EarningsQ3 2026 Earnings Report
DE:PCC Q3 2026 EPS Results
Actual EPS€1.11
Consensus EPS€0.93
Beat/MissBeat by +€0.18
One Year Ago EPS€0.87
DE:PCC Q3 2026 Revenue Results
Actual Revenue€780.24M
Expected Revenue€690.49M
Beat/MissBeat by +€89.75M
YoY Revenue Growth+23.30%
Earnings Announcement Details
QuarterQ3 2026
Date10/28/2026
TimeAfter Close
Conference CallWednesday, October 28, 2026
DE:PCC Upcoming Earnings
PC Connection's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:PCC Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by record net sales, gross billings and gross profit, double-digit growth across major segments and verticals, improved operating leverage, record adjusted EBITDA, strong backlog and liquidity, and continued AI-related demand. Offsetting concerns included gross-margin pressure, operating cash use from working-capital investments, slower public-sector growth, an expected 3% or 4% sequential fourth-quarter decline, no anticipated budget flush, and the expectation that endpoint demand might be down slightly in 2027.Company Guidance
Record Quarterly Results
Third-quarter net sales reached a record $874.3 million, up 23.3% year-over-year; gross billings increased 19.4% to $1.3 billion; and gross profit grew 16.7% to a record $161.9 million.
Broad-Based Product Category Growth
Growth occurred across all product categories: notebooks, mobility and desktops increased 26.6%, software rose 23.2%, server storage increased 45.1%, and networking improved 43.3%.
Business Solutions Segment Growth
Business Solutions net sales increased 27.8% to $328.2 million, gross billings grew 22.1% to a record $522.7 million, and gross profit rose 14.9% to $78.2 million. Demand showed double-digit growth across endpoint devices, servers, Net/Com and software.
Enterprise Solutions Momentum and Record Backlog
Enterprise Solutions net sales increased 27.4% to a record $407.5 million, gross profit grew 26% to a record $60.2 million, and gross billings increased 23.1% to a record $521.2 million. The segment ended the quarter with a record backlog.
Operating Leverage and Earnings Growth
SG&A as a percentage of net sales declined 150 basis points year-over-year to 13.8%, while operating income increased 35.4% to $41 million and operating income margin improved to 4.7% from 4.3%. Net income increased 27.2% to $31.5 million, and diluted EPS rose 27.8%, or $0.27, to $1.24.
Record Adjusted EBITDA
Trailing 12-month adjusted EBITDA reached a record $155.2 million versus $122.7 million a year ago, an increase of 26%, resulting from ongoing earnings growth.
Strong Healthcare and Vertical-Market Performance
Healthcare net sales grew 34% and gross profit grew 33% year-over-year, driven by demand related to value-based care, analytics, care coordination platforms and healthcare tools. Financial Services net sales increased 12% and gross profit grew 11%, while manufacturing net sales increased 26% and gross profit increased 10%.
Strong Customer Demand and AI Opportunity
Management reported strong demand for enterprise AI-ready infrastructure, data center modernization, AI-ready devices, cybersecurity and technical services. The company stated that AI is driving enterprise investment in infrastructure, security, devices and expertise, while customer engagement remains strong across digital workspace, modern infrastructure and multicloud, and supply chain and lifecycle.
Strong Fourth-Quarter Starting Position
Connection entered the fourth quarter with strong momentum, a strong backlog despite record third-quarter net sales, and a strong funnel. Management expects to continue outperforming the U.S. IT market by 200 basis points this year.
Public Sector Returned to Growth
Public Sector Solutions net sales increased 4.6% to $138.6 million and gross billings increased 6.8% to $233.3 million. Management said the SLED business had a strong quarter and the federal business returned to growth as it continued to be rebuilt.
Strong Liquidity and Capital Returns
Connection ended the quarter with $343.3 million of cash, cash equivalents and short-term investments. The company paid a quarterly dividend of $0.20 per share, declared another $0.20 per share dividend payable on November 27, 2026, and had $81.2 million remaining under its stock repurchase program.
Strategic Partner and Corporate Recognition
Connection was named to Business Insider's 2027 list of the 500 most innovative businesses in the United States, was included in Newsweek America's Greenest Companies in 2027, and achieved HPE Triple Platinum Plus status.
New Chief Operating Officer
Matt Zafirovski joined Connection as President and Chief Operating Officer. Management said his experience in technology operations, strategy and business transformation would help propel the company into the future.
Supplier Relationships Remain Strong
Management reported no major changes in supplier partner programs and said the company was thrilled to continue with Broadcom and VMware, while its Microsoft business remained very strong.
Pricing Environment Supported Revenue Growth
Notebook and laptop revenue increased more than 30% while unit count declined about 5%, indicating the pricing environment contributed to revenue performance.
DE:PCC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed