PC Connection Reports Mixed Q3 2025 Results

Pc Connection ( (CNXN) ) has released its Q3 earnings. Here is a breakdown of the information Pc Connection presented to its investors.

PC Connection, Inc., operating as Connection, is a prominent IT solutions provider serving business, government, healthcare, and education sectors, known for its comprehensive IT product offerings and services. In its third-quarter earnings report for 2025, Connection reported a slight decline in net sales by 2.2% year-over-year to $709.1 million, while gross profit reached a record $138.6 million, marking a 2.4% increase. The company also declared a quarterly dividend of $0.15 per share, reflecting its commitment to shareholder returns.

Key financial metrics from the third quarter reveal a mixed performance. While net income decreased by 8.6% to $24.7 million, the gross margin improved by 90 basis points to 19.6%. The Business Solutions segment saw a 1.7% increase in net sales, while the Enterprise Solutions segment grew by 7.7%. However, the Public Sector Solutions segment experienced a significant decline in net sales by 24.3%. Notably, software and servers/storage sales increased by 11% and 17%, respectively, highlighting growth in these product categories.

Despite the challenges in net income and certain segments, Connection’s strategic focus on data center modernization and digital workplace transformation has contributed to its record gross profit. The company’s SG&A expenses rose slightly, impacting the net income, but the overall operational efficiency is reflected in the improved gross margins across segments.

Looking ahead, Connection remains focused on enhancing shareholder value through strategic initiatives and maintaining its position in the competitive IT solutions market. The management’s emphasis on innovation and execution is expected to drive future growth, despite the current macroeconomic challenges.