Connection (CNXN) Reports Third Quarter 2026 Results
Connection reported Q3 2026 net sales of $874.3 million, up 23.3% year over year, with record net sales, gross billings and gross profit. Diluted EPS rose 28% to $1.24 on net income of $31.5 million, though gross margin compressed 110 basis points to 18.5%; the board declared a $0.20 quarterly dividend payable November 27. All three segments grew, led by Business Solutions (+27.8%) and Enterprise Solutions (+27.4%), while servers/storage (+45%) and networking (+43%) were the fastest product categories; management cited AI as an expanding opportunity across the technology lifecycle.
Key figures
- Eps
- 1.24
- Revenue
- 874313000
- Revenue Yoy
- 23.3%
- Net income
- $31.5 million, up 27.2% y/y
- Gross margin
- 18.5%, down 110 bps y/y
- Gross profit
- $161.9 million, up 16.7% y/y
- Gross billings
- $1.3 billion, up 19.4% y/y
- Operating margin
- 4.7% vs 4.3% y/y
- Quarterly dividend
- $0.20 per share
- Ltm adjusted ebitda
- $155.2 million, up 26% y/y
- Adjusted diluted eps
- $1.24 vs $0.97 y/y
- Nine month net sales
- $2.5 billion, up 12.9% y/y
- Cash and short term investments
- $343.3 million
AI analysis
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