Revenue rose 23.3% year over year to $874.3M in 2026Q3, yet gross margin remained confined to an 18.1% to 19.6% range and operating margin compressed from 5.2% in 2026Q2 to 4.7%, signaling that the top-line rebound has not yet translated into durable profitability.
PC Connection, Inc. (CNXN) annual income statement — 29-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 3.15B | 2.87B | 2.8B | 2.85B | 3.12B | 2.89B | 2.59B | 2.82B | 2.7B | 2.91B | 2.69B | 2.57B | 2.46B | 2.22B | 2.16B | 2.1B | 1.97B | 1.57B | 1.75B | 1.79B | 1.64B | 1.44B | 1.35B | 1.31B | 1.19B | 1.19B | 1.45B | 1.06B | 732.4M | 550.6M |
| Revenue Growth % | 9.53% | 2.52% | -1.7% | -8.78% | 8.03% | 11.67% | -8.15% | 4.47% | -7.29% | 8.14% | 4.61% | 4.49% | 10.88% | 2.91% | 2.64% | 6.54% | 25.77% | -10.49% | -1.78% | 9.15% | 13.25% | 6.68% | 3.12% | 10.19% | 0.45% | -18.19% | 37.21% | 44.28% | 33.02% | - |
| Cost of Goods Sold | 2.57B | 2.33B | 2.28B | 2.34B | 2.6B | 2.43B | 2.17B | 2.37B | 2.29B | 2.53B | 2.32B | 2.23B | 2.14B | 1.93B | 1.88B | 1.84B | 1.74B | 1.38B | 1.54B | 1.57B | 1.44B | 1.28B | 1.2B | 1.18B | 1.06B | 1.05B | 1.27B | 922.1M | 636.2M | 470.9M |
| COGS % of Revenue | - | 81.23% | 81.45% | 82.05% | 83.16% | 83.94% | 83.83% | 84% | 84.77% | 86.88% | 86.22% | 86.75% | 86.87% | 86.81% | 86.93% | 87.41% | 88.35% | 88.23% | 87.75% | 87.74% | 87.76% | 88.67% | 88.77% | 89.51% | 89.16% | 88.91% | 87.39% | 87.26% | 86.87% | 85.52% |
| Gross Profit | 587.68M | 539.33M | 519.79M | 511.74M | 526.18M | 464.58M | 418.81M | 451.31M | 411.09M | 382.08M | 371.16M | 341.02M | 323.39M | 293M | 282.09M | 264.88M | 229.9M | 184.8M | 214.84M | 218.97M | 200.25M | 163.6M | 152.05M | 137.68M | 129.19M | 131.59M | 182.79M | 134.6M | 96.2M | 79.7M |
| Gross Margin % | 18.64% | 18.77% | 18.55% | 17.95% | 16.84% | 16.06% | 16.17% | 16% | 15.23% | 13.12% | 13.78% | 13.25% | 13.13% | 13.19% | 13.07% | 12.59% | 11.65% | 11.77% | 12.25% | 12.26% | 12.24% | 11.33% | 11.23% | 10.49% | 10.84% | 11.09% | 12.61% | 12.74% | 13.13% | 14.48% |
| Gross Profit Growth % | - | 3.76% | 1.57% | -2.74% | 13.26% | 10.93% | -7.2% | 9.78% | 7.59% | 2.94% | 8.84% | 5.45% | 10.37% | 3.87% | 6.5% | 15.22% | 24.41% | -13.99% | -1.88% | 9.35% | 22.41% | 7.59% | 10.44% | 6.57% | -1.82% | -28.01% | 35.8% | 39.92% | 20.7% | - |
| Operating Expenses | 450.81M | 436.96M | 422.73M | 408.58M | 405.63M | 368.06M | 346.73M | 339.34M | 324.43M | 300.91M | 287.23M | 262.46M | 251.94M | 233.6M | 226.32M | 217.27M | 191.23M | 172.65M | 196.97M | 182.18M | 176.32M | 154.11M | 137.96M | 124.82M | 121.96M | 117.61M | 130.54M | 96.7M | 73.8M | 72.4M |
| OpEx % of Revenue | - | 15.21% | 15.09% | 14.33% | 12.98% | 12.72% | 13.39% | 12.03% | 12.02% | 10.33% | 10.67% | 10.2% | 10.23% | 10.51% | 10.48% | 10.33% | 9.69% | 11% | 11.23% | 10.2% | 10.78% | 10.67% | 10.19% | 9.51% | 10.24% | 9.91% | 9% | 9.15% | 10.08% | 13.15% |
| Selling, General & Admin | 441.41M | 419.63M | 38M | 35.3M | 385M | 347.6M | 345.74M | 338.63M | 324.43M | 300.91M | 262.7M | 240.8M | 231.8M | 214.8M | 208M | 217.27M | 191.23M | 172.65M | 186.73M | 181.64M | 173.93M | 151.98M | 132.73M | 124.82M | 121.96M | 117.61M | 123.97M | 91.4M | 70.9M | 68.7M |
| SG&A % of Revenue | - | 14.61% | 1.36% | 1.24% | 12.32% | 12.02% | 13.35% | 12.01% | 12.02% | 10.33% | 9.76% | 9.36% | 9.41% | 9.67% | 9.63% | 10.33% | 9.69% | 11% | 10.65% | 10.17% | 10.63% | 10.52% | 9.8% | 9.51% | 10.24% | 9.91% | 8.55% | 8.65% | 9.68% | 12.48% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 17.34M | 384.73M | 373.28M | 20.63M | 20.46M | 992K | 703K | 2.98M | 0 | 10.5M | 9M | 8.1M | 7.1M | 41K | 0 | 0 | 0 | 10.24M | 541K | 2.39M | 2.13M | 5.23M | 0 | 0 | 0 | 6.57M | 5.3M | 2.9M | 3.7M |
| Operating Income | 136.87M | 102.36M | 97.06M | 103.15M | 120.55M | 96.52M | 72.07M | 111.97M | 85.69M | 77.53M | 80.52M | 78.55M | 71.45M | 59.4M | 54.63M | 47.61M | 38.67M | -684K | 17.88M | 36.79M | 23.93M | 9.49M | 14.09M | 10.93M | 5.59M | 11.77M | 52.25M | 37.9M | 22.4M | 7.3M |
| Operating Margin % | 4.34% | 3.56% | 3.46% | 3.62% | 3.86% | 3.34% | 2.78% | 3.97% | 3.17% | 2.66% | 2.99% | 3.05% | 2.9% | 2.67% | 2.53% | 2.26% | 1.96% | -0.04% | 1.02% | 2.06% | 1.46% | 0.66% | 1.04% | 0.83% | 0.47% | 0.99% | 3.6% | 3.59% | 3.06% | 1.33% |
| Operating Income Growth % | - | 5.46% | -5.9% | -14.43% | 24.9% | 33.91% | -35.63% | 30.68% | 10.52% | -3.72% | 2.5% | 9.94% | 20.3% | 8.72% | 14.75% | 23.13% | 5753.07% | -103.83% | -51.4% | 53.72% | 152.24% | -32.68% | 28.99% | 95.6% | -52.55% | -77.47% | 37.86% | 69.2% | 206.85% | - |
| EBITDA | 147.89M | 114.07M | 110.05M | 115.81M | 132.53M | 108.72M | 85.68M | 125.29M | 99.75M | 89.37M | 90.97M | 87.52M | 79.55M | 66.48M | 61.53M | 53.56M | 44.1M | 6.11M | 24.84M | 43.57M | 30.98M | 16.68M | 21.22M | 19.29M | 13.73M | 19.59M | 58.81M | 43.2M | 25.3M | 11M |
| EBITDA Margin % | 4.69% | 3.97% | 3.93% | 4.06% | 4.24% | 3.76% | 3.31% | 4.44% | 3.7% | 3.07% | 3.38% | 3.4% | 3.23% | 2.99% | 2.85% | 2.55% | 2.23% | 0.39% | 1.42% | 2.44% | 1.89% | 1.16% | 1.57% | 1.47% | 1.15% | 1.65% | 4.06% | 4.09% | 3.45% | 2% |
| EBITDA Growth % | 34.03% | 3.65% | -4.97% | -12.62% | 21.9% | 26.89% | -31.61% | 25.6% | 11.62% | -1.77% | 3.95% | 10.02% | 19.65% | 8.06% | 14.87% | 21.46% | 621.48% | -75.4% | -42.98% | 40.63% | 85.69% | -21.37% | 10.01% | 40.48% | -29.9% | -66.7% | 36.15% | 70.75% | 130% | - |
| D&A (Non-Cash Add-back) | 11.02M | 11.7M | 12.98M | 12.65M | 11.98M | 12.2M | 13.6M | 13.31M | 14.06M | 11.84M | 10.45M | 8.96M | 8.09M | 7.09M | 6.89M | 5.95M | 5.43M | 6.8M | 6.96M | 6.78M | 7.05M | 7.2M | 7.13M | 8.36M | 8.14M | 7.82M | 6.57M | 5.3M | 2.9M | 3.7M |
| EBIT | 138.77M | 113.73M | 97.48M | 105.57M | 120.58M | 96.48M | 73.07M | 112.67M | 88.81M | 77.63M | 83.96M | 78.55M | 71.45M | 59.4M | 54.67M | 47.8M | 38.88M | -160K | 18.69M | 36.79M | 23.93M | 9.49M | 14.09M | 12.86M | 7.22M | 11.77M | 51.82M | 37.94M | 22.4M | 7.3M |
| Net Interest Income | 11.92M | 14.37M | 18.73M | 0 | 0 | 0 | 61K | 707K | 2.98M | 98K | -67K | -87K | -86K | -149K | -166K | -369K | -490K | -517K | -681K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 11.92M | 14.37M | 18.73M | 0 | 0 | 0 | 168K | 810K | 3.12M | 98K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 107K | 103K | 145K | 0 | 67K | 87K | 86K | 149K | 166K | 369K | 490K | 517K | 681K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 2.86M | 11.36M | 20.43M | 9.96M | 1.08M | 5K | 1.12M | 707K | 2.98M | 98K | -67K | -87K | -86K | -149K | -125K | -180K | -277K | 7K | 130K | -168K | -1.71M | -1.36M | -1.23M | -1.19M | -639K | 128K | -1.07M | -1.33M | 100K | -1.5M |
| Pretax Income | 139.73M | 113.73M | 117.49M | 113.11M | 121.64M | 96.52M | 73.2M | 112.68M | 88.66M | 77.63M | 80.45M | 78.47M | 71.37M | 59.25M | 54.51M | 47.43M | 38.39M | -677K | 18.01M | 36.62M | 22.23M | 8.13M | 12.86M | 9.74M | 4.95M | 11.9M | 50.75M | 36.6M | 22.5M | 5.8M |
| Pretax Margin % | 4.43% | 3.96% | 4.19% | 3.97% | 3.89% | 3.34% | 2.83% | 4% | 3.28% | 2.67% | 2.99% | 3.05% | 2.9% | 2.67% | 2.52% | 2.26% | 1.94% | -0.04% | 1.03% | 2.05% | 1.36% | 0.56% | 0.95% | 0.74% | 0.42% | 1% | 3.5% | 3.46% | 3.07% | 1.05% |
| Income Tax | 37.17M | 30.01M | 30.39M | 29.84M | 32.42M | 26.62M | 17.43M | 30.57M | 24.07M | 22.77M | 32.34M | 31.64M | 28.69M | 23.57M | 21.44M | 18.64M | 15.43M | 545K | 7.64M | 13.63M | 8.45M | 3.68M | 4.56M | 3.85M | 1.7M | 4.52M | 19.29M | 13.9M | 3.9M | 600K |
| Effective Tax Rate % | 26.6% | 26.38% | 25.87% | 26.38% | 26.65% | 27.58% | 23.81% | 27.13% | 27.15% | 29.33% | 40.2% | 40.32% | 40.2% | 39.77% | 39.33% | 39.31% | 40.19% | -80.5% | 42.44% | 37.21% | 38.02% | 45.3% | 35.43% | 39.54% | 34.36% | 37.99% | 38.01% | 37.98% | 17.33% | 10.34% |
| Net Income | 102.56M | 83.72M | 87.09M | 83.27M | 89.22M | 69.91M | 55.77M | 82.11M | 64.59M | 54.86M | 48.11M | 46.83M | 42.68M | 35.68M | 33.07M | 28.79M | 22.96M | -1.22M | 10.37M | 23M | 13.78M | 4.45M | 8.3M | 5.89M | 3.25M | 7.38M | 31.46M | 22.7M | 18.6M | 5.2M |
| Net Margin % | 3.25% | 2.91% | 3.11% | 2.92% | 2.85% | 2.42% | 2.15% | 2.91% | 2.39% | 1.88% | 1.79% | 1.82% | 1.73% | 1.61% | 1.53% | 1.37% | 1.16% | -0.08% | 0.59% | 1.29% | 0.84% | 0.31% | 0.61% | 0.45% | 0.27% | 0.62% | 2.17% | 2.15% | 2.54% | 0.94% |
| Net Income Growth % | 22.49% | -3.87% | 4.59% | -6.67% | 27.63% | 25.36% | -32.09% | 27.12% | 17.75% | 14.02% | 2.74% | 9.71% | 19.61% | 7.9% | 14.88% | 25.37% | 1978.97% | -111.79% | -54.92% | 66.92% | 209.78% | -46.45% | 41.03% | 81.34% | -56% | -76.55% | 38.6% | 22.04% | 257.69% | - |
| Net Income (Continuing) | 102.56M | 83.72M | 87.09M | 83.27M | 89.22M | 69.91M | 55.77M | 82.11M | 64.59M | 54.86M | 48.11M | 46.83M | 42.68M | 35.68M | 33.07M | 28.79M | 22.96M | -1.22M | 10.37M | 23M | 13.78M | 4.45M | 8.3M | 5.89M | 3.25M | 7.38M | 31.2M | 22.7M | 18.6M | 5.2M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.03 | 3.27 | 3.29 | 3.15 | 3.37 | 2.65 | 2.12 | 3.10 | 2.41 | 2.04 | 1.80 | 1.76 | 1.61 | 1.35 | 1.24 | 1.07 | 0.85 | -0.05 | 0.39 | 0.85 | 0.54 | 0.18 | 0.33 | 0.23 | 0.13 | 0.30 | 1.22 | 0.63 | 0.45 | 0.34 |
| EPS Growth % | 25.39% | -0.61% | 4.44% | -6.53% | 27.17% | 25% | -31.61% | 28.63% | 18.14% | 13.33% | 2.27% | 9.32% | 19.26% | 8.87% | 15.89% | 25.88% | 1968.13% | -111.67% | -54.12% | 57.41% | 200% | -45.45% | 43.48% | 76.92% | -56.67% | -75.41% | 93.65% | 40% | 32.35% | - |
| EPS (Basic) | - | 3.28 | 3.31 | 3.17 | 3.40 | 2.67 | 2.13 | 3.12 | 2.42 | 2.05 | 1.81 | 1.77 | 1.63 | 1.37 | 1.25 | 1.08 | 0.85 | -0.05 | 0.39 | 0.86 | 0.54 | 0.18 | 0.33 | 0.24 | 0.13 | 0.30 | 1.30 | 0.65 | 0.47 | 0.35 |
| Diluted Shares Outstanding | 25.44M | 25.63M | 26.51M | 26.43M | 26.44M | 26.36M | 26.34M | 26.5M | 26.85M | 26.89M | 26.72M | 26.62M | 26.51M | 26.39M | 26.59M | 26.8M | 27.05M | 26.83M | 26.9M | 27.02M | 25.73M | 25.28M | 25.27M | 25.11M | 24.86M | 24.95M | 25.57M | 36.14M | 23.4M | 22.37M |
| Basic Shares Outstanding | 25.24M | 25.51M | 26.32M | 26.29M | 26.28M | 26.2M | 26.16M | 26.34M | 26.72M | 26.77M | 26.53M | 26.4M | 26.25M | 26.12M | 26.43M | 26.7M | 27.01M | 26.83M | 26.83M | 26.79M | 25.52M | 25.18M | 25.03M | 24.71M | 24.55M | 24.45M | 24M | 35.16M | 23.4M | 22.37M |
| Dividend Payout Ratio | - | 18.27% | 12.09% | 10.1% | - | 49.49% | 15.11% | 10.29% | 14.12% | 16.48% | 22.01% | 22.62% | 24.66% | 29.36% | 30.46% | 36.78% | - | - | - | - | - | - | - | - | - | - | - | - | 177.42% | - |
Quick answers to the most common questions about buying CNXN stock.
For fiscal year 2025, PC Connection, Inc. (CNXN) reported total revenue of $2.87B. This represents a 421.7% increase compared to $550.6M in 1997.
PC Connection, Inc. (CNXN) is profitable, generating $83.7M in net income for the fiscal year ending 2025 with a net profit margin of 2.9%.
PC Connection, Inc. (CNXN) reported an operating income of $102.4M, resulting in an operating profit margin of 3.6%. This margin reflects the operational efficiency of the business before interest and taxes.
PC Connection, Inc. (CNXN) generated $539.3M in gross profit for the year, representing a gross profit margin of 18.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Thin net margin sensitivity
Metrics are mathematically derived from official filings.
Recent Revenue Rebound Versus Volatile Base
According to the reported quarterly figures, CNXN's revenue rose 23.3% year over year in 2026Q3 to $874.3M, but this follows several quarters of flat-to-negative growth, suggesting the acceleration may be uneven rather than a durable trend.
Revenue growth swung from -2.2% in 2025Q3 to 23.3% in 2026Q3, which points to lumpy demand and possibly timing effects in large enterprise and government orders rather than a clear secular expansion. The reported figures do not disclose volume versus pricing contribution, so the source of the rebound cannot be confirmed from this data. Investors should monitor whether the 2026Q2 and 2026Q3 gains persist across the next two quarters before treating them as a sustainable growth rate.
Gross Margin Holding Near Eighteen Percent
Based on the reported income statement, CNXN's gross margin has remained in a narrow 18.1% to 19.6% band across the ten quarters, which is well below the 21.4% to 21.7% reported by CDW and NSIT, indicating limited pricing power relative to premium peers.
The stability of gross margin suggests the company has not materially shifted its product or services mix toward higher-margin offerings over this period. The gap versus CDW and NSIT is consistent with a distributor model weighted toward lower-margin hardware resale. Margin resilience during the 2025 revenue softness is a positive signal, but the absence of expansion leaves limited room to absorb cost pressure.
Net Income Swings Track Operating Volatility
As reported in financial statements, CNXN's net income ranged from $13.5M to $33.2M over the period, with EPS moving from $0.51 to $1.31, and the net margin of 3.6% in 2026Q3 sits close to peer levels, which suggests earnings are driven primarily by operations rather than non-operating items.
The close correspondence between operating income and net income across quarters indicates limited reliance on non-operating gains or unusual tax effects, though the tax line is not separately disclosed in this dataset. Stock-based compensation remained modest at roughly $2.0M to $2.7M per quarter, so dilution-related distortion to EPS appears limited. Quarterly EPS volatility is high relative to the margin band, which warrants further investigation into working capital and timing effects.
Operating Leverage Visible But Uneven
According to recent reported figures, CNXN's operating margin expanded from 2.1% in 2025Q1 to 5.2% in 2026Q2 while gross margin stayed flat, indicating that SG&A growth lagged gross profit growth during the recovery, though 2026Q3 margin compressed to 4.7%.
The 2026Q2 operating margin high suggests overhead absorbed incremental revenue efficiently, consistent with positive operating leverage. The subsequent compression as SG&A rose to $120.9M in 2026Q3 shows that the leverage is not yet structural. SG&A has grown from roughly $101M to $121M over the period, which indicates expense growth has tracked closely with top-line movement.
Growth Rebound Could Prove Transitory
Based on reported figures, CNXN's 2026 growth rate is markedly above its trailing 2025 trend, and with peer NSIT showing negative one-year revenue growth, the strongest bear case is that the recent acceleration reflects temporary order timing rather than sustained demand.
A sharp reversal in revenue, combined with gross margin sitting below larger peers, would leave limited cushion for the operating margin to hold above roughly 4%. The data do not reveal backlog, customer concentration, or pricing dynamics, so the durability of demand cannot be verified from these figures alone. A return to 2025-style revenue levels would likely compress EPS back toward the $0.50 to $0.80 range seen in weaker quarters.