Earnings Releases·Oct 28, 2026, 4:05 PM ET

Connection (CNXN) — Third Quarter 2026 Earnings Summary

Net sales reached $874.3 million (+23.3% YoY) and net income rose 27.2% YoY to $31.5 million ($1.24 diluted EPS), while gross margin contracted 110 basis points to 18.5% despite a 16.7% increase in gross profit.
All three business segments delivered growth, with Enterprise and Business Solutions net sales increasing 27.4% and 27.8% respectively, driven by 45% YoY growth in servers/storage and 43% in networking.
The Board declared a quarterly dividend of $0.20 per share, payable November 27, 2026, to shareholders of record on November 10, 2026.
Cash and cash equivalents plus short-term investments declined to $343.3 million as of September 30, 2026, from $406.7 million at year-end 2025, while inventory turns decreased to 14 from 18.
Management highlighted record sales and gross profit driven by strong demand and disciplined execution, citing AI as a key catalyst for expanding opportunities across the technology lifecycle.