PC Connection IncCNXN
Price$92.57Intrinsic value$60.4135% below price

Qualitative Analysis

Business overview

Business Overview

PC Connection, Inc. (NASDAQ: CNXN), operating under the brand name Connection, is a leading Fortune 1000 technology solutions provider founded in 1982 and headquartered in Merrimack, New Hampshire. The company delivers a comprehensive portfolio of over 460,000 information technology products and services, including computer systems, data center solutions, cybersecurity, cloud services, and AI-enabled hardware. PC Connection operates through three primary business segments: Connection Business Solutions (serving small-to-medium businesses), Connection Enterprise Solutions (serving large corporate clients), and Connection Public Sector Solutions (serving government and educational institutions). The company differentiates itself through high-touch engineering services, custom-configured systems, and rapid overnight fulfillment from its ISO-certified configuration lab in Wilmington, Ohio.

Research as of 20 Jun 2026

Strategic Initiatives

Growth programs, investments, and their expected impact

AI-assisted
Internal Cost Reduction and RestructuringEfficiency

Implementation of a voluntary retirement offering and targeted headcount reductions to streamline the cost structure and align expenses with strategic priorities.

Expected impact: Expected to generate approximately $7.0 million to $8.0 million in ongoing annual cost savings split between SG&A and cost of goods.

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Investment$5.9 million to $6.2 million in total restructuring charges over Q4 2025 and Q1 2026
TimelineInitiated in Q4 2025 and completed in January 2026
Advanced Technology Solutions FocusGrowth

Strategic shift towards higher-margin advanced technology solutions, specifically focusing on cloud software, cybersecurity, and services recognized on a net basis.

Expected impact: Drives gross margin expansion and offsets fluctuations in hardware sales volumes.

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InvestmentOngoing capital and resource allocation to sales capability and service delivery
TimelineOngoing throughout 2025 and 2026

Mergers, Acquisitions & Partnerships

Recent deals and strategic collaborations

AI-assisted

Strategic Partnerships

Dell TechnologiesTitanium Black Status

Achieved the highest tier in the Dell Technologies Partner Program for 2026, positioning the company among an elite group of strategic partners with enhanced access to Dell resources and joint go-to-market collaboration.

Terms: Not publicly disclosed

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Administrative Office of the U.S. Courts and the Federal JudiciaryBlanket Purchase Agreement (BPA)

Single-award agreement to provide specific Microsoft products and ancillary services to support IT systems for over 30,000 Federal Judiciary employees.

Terms: Estimated total value of $125 million over a three-year base period with a three-year option extending through November 2029.

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Sources: 2
AI-assisted, source-linked narrative; figures from company filings (SEC EDGAR) and market data. Dates shown per section. Not investment advice. Terms of Use.