Abstract

PC Connection will report its first-quarter 2026 financial results on April 29, 2026 Post Market; this preview synthesizes management’s recent trajectory, current-quarter forecasts for revenue, profitability and EPS, and consolidates recent market commentary into a majority view on the setup.

Market Forecast

- For the current quarter, forecasts point to revenue of 696.09 million US dollars, up 7.75% year over year, with adjusted EPS estimated at 0.61, up 45.78% year over year; EBIT is projected at 18.75 million US dollars, up 45.45% year over year. Forecasted gross margin and net margin were not formally provided in the market estimates. - The company’s solutions-led model highlights continued mix shift into services and complex solutions, with management’s recent commentary emphasizing investment in higher-margin services and engineering capacity; within the portfolio, Enterprise Solutions remains the most promising growth engine, supported by segment momentum and improving deal pipelines (see segment revenue and growth detail below). - Most promising segment: Enterprise Solutions generated 1.28 billion US dollars in revenue in the latest reported breakdown and achieved year-over-year growth of 8.6% in 2025, indicating durable demand from large accounts for infrastructure, cloud, and lifecycle services.

Last Quarter Review

- PC Connection delivered prior-quarter revenue of 702.94 million US dollars (down 0.84% year over year), with a gross profit margin of 19.29% and a net profit margin of 2.95%; GAAP net profit attributable to the parent company was 20.71 million US dollars, while adjusted EPS was 0.91 (up 16.67% year over year). Quarter-on-quarter net profit declined by 16.28%. - A key operational highlight was operating discipline and mix that supported margin resilience even as revenue was modestly lower year over year; EBIT reached 28.92 million US dollars, up 27.75% year over year, and adjusted EPS exceeded market expectations. - Main business highlights: In the most recent revenue breakdown, Enterprise Solutions contributed 1.28 billion US dollars, Business Solutions contributed 1.08 billion US dollars, and Public Sector Solutions contributed 0.51 billion US dollars; by growth profile in 2025, Enterprise rose 8.6% year over year, Business rose 3.1%, and Public Sector declined 11.1%.

Current Quarter Outlook (with major analytical insights)

Main business trajectory

The core solutions and fulfillment engine is expected to deliver revenue of 696.09 million US dollars, implying year-over-year growth of 7.75% and a sequential normalization from the seasonal fourth quarter. Underlying drivers include broad-based refresh cycles in endpoint, networking, and hybrid infrastructure, and continued project pull-through from services. The 45.78% year-over-year gain implied for adjusted EPS suggests positive operating leverage despite a revenue base that is broadly consistent with recent quarters. Mix remains pivotal: elevated gross margin in the previous quarter at 19.29% indicates traction in higher-value solutions and services, and the company’s emphasis on expanding services engineering capacity points to sustained support for profitability per dollar of revenue.

At the same time, the company typically encounters variability in public sector volumes tied to U.S. budget timing and any contract delays; that dynamic is a watch item this quarter given the prior-year decline in the Public Sector Solutions segment. Offsetting this, enterprise and commercial demand are positioned to benefit from ongoing modernization and security projects, where multi-vendor solution design and lifecycle services help defend gross margin. With EBIT projected at 18.75 million US dollars and growing 45.45% year over year, the set-up infers better cost absorption and improved utilization in the services organization relative to the year-ago period.

Given no explicit gross or net margin guidance for the quarter in the forecasts, investors will anchor on the sustainability of last quarter’s 19.29% gross margin and 2.95% net margin as a benchmark. The combination of low working-capital intensity and favorable vendor funding, if consistent with recent trends, can support cash conversion even as revenue seasonality plays through the first quarter.

Most promising business: Enterprise Solutions

Enterprise Solutions is positioned as the growth engine, contributing 1.28 billion US dollars in the latest segment revenue breakdown and posting year-over-year growth of 8.6% during 2025. The segment’s momentum stems from large-account data center, networking, and cloud workload transitions, alongside security and device lifecycle services that raise wallet share. Projects in this segment often bundle hardware with design, integration, and managed offerings, creating a richer margin profile compared with transactional categories.

For the current quarter, the forecasts implying stronger EPS growth relative to revenue align with an Enterprise-led mix, where larger, consultative engagements can yield higher gross profit per dollar. Sales pipelines referenced in recent commentary suggest stable to improving conversion in enterprise infrastructure and cloud migration, which could help counterbalance any softness in discretionary endpoint categories. As utilization of service engineers increases and multi-year services initiatives mature, the contribution margin from Enterprise deals should continue to outpace company-average margin, reinforcing the thesis for profitable growth.

Risks to this view include elongated decision cycles for major infrastructure deployments and shifting vendor rebate or market development fund frameworks. Nevertheless, with an 8.6% full-year growth print most recently and a healthy backlog of multi-phase projects, Enterprise Solutions remains the business most likely to outperform in the near term, supporting the quarter’s implied EBIT and EPS expansion.

Stock-price swing factors this quarter

Share-price reaction will be sensitive to revenue vs. the 696.09 million US dollars benchmark and the quality of the gross margin print relative to the 19.29% prior-quarter level. A revenue meet or beat paired with stable or higher gross margin would validate the 45.78% year-over-year EPS growth implication, potentially supporting a positive response; conversely, a revenue shortfall or margin compression could dilute the operating leverage thesis. Management commentary around services attach rates and the utilization of engineering headcount will be read as leading indicators for medium-term margin resilience.

Public sector pacing remains a swing factor. If federal and education demand shows signs of recovery from last year’s weaker levels, it could provide a secondary lift, though the segment historically exhibits quarter-to-quarter variability. Finally, product cycle dynamics in high-ticket categories such as servers, networking, and security appliances, as well as any AI-adjacent infrastructure demand, could influence deal sizes and close rates; clarity on order backlog and visibility may determine how durable the implied EBIT growth appears to investors.

Analyst Opinions

Recent market commentary during January 2026 to April 2026 skews constructive, focusing on resilient margins and the improving earnings trajectory implied by current-quarter forecasts. Coverage summaries emphasize that the prior quarter’s adjusted EPS of 0.91 surpassed consensus while revenue modestly missed, and that the current-quarter setup assumes a return to top-line growth with substantial year-over-year EPS expansion. Commentaries also note that Enterprise Solutions continues to outgrow other segments, with Public Sector still normalizing from prior-year weakness. On balance, the prevailing tone is cautiously optimistic rather than negative, highlighting the potential for positive operating leverage if gross margin remains near the prior-quarter 19.29% level and services mix continues to improve.

Within this framing, the majority view expects PC Connection to meet or modestly exceed revenue expectations and to deliver EPS in line to slightly above the 0.61 estimate, predicated on stable mix and disciplined expense control. Analysts pointing to risks primarily cite the cadence of public sector orders and the possibility of elongated procurement cycles in large enterprises, but these are seen as manageable within the quarter. The consensus tilt is that the company’s combination of services expansion, enterprise project demand, and cost discipline supports the year-over-year improvements embedded in revenue and EBIT forecasts, positioning the stock for a positive reaction if execution is consistent with these expectations.