PC Connection Reports Record Q3 2026 Results Driven by AI Infrastructure Demand
PC Connection (CNXN) delivered strong third-quarter fiscal 2026 results, reporting net sales of $874.3 million, a 23.3% increase year-over-year. Growth was primarily fueled by record demand in Enterprise and Business Solutions segments, specifically driven by customer investments in AI-ready infrastructure, server/storage modernization, and networking technology. Despite the top-line growth and a 27.8% increase in diluted EPS to $1.24, gross margins saw a slight decline of 110 basis points due to shifts in customer mix and software revenue contributions. While the company maintains a record enterprise backlog and expects to outperform the U.S. IT market by 200 basis points for the full year, management cautioned that the primary endpoint device upgrade cycle may be concluding, potentially impacting demand in 2027.
Tickers: $CNXN
Topics: AI infrastructure data center modernization EPS gross billings net sales
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