• PC Connection recently reported solid first-quarter 2026 results, with growth in its Business and Enterprise Solutions segments offsetting weaker Public Sector Solutions and supported by increased demand for AI-enabled endpoint devices.
• An interesting development is that the company’s order backlog has climbed to its highest level since mid-2022, reflecting customers pulling forward purchases ahead of potential component shortages and price increases.
• With these trends in mind, we’ll now examine how rising AI-driven endpoint demand shapes PC Connection’s broader investment narrative.

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What Is PC Connection's Investment Narrative?

To own PC Connection, you need to believe it can keep translating its role as a value‑added IT reseller into consistent earnings, even if top‑line growth stays moderate. The recent first quarter showed that AI‑driven endpoint demand and disciplined cost control are supporting that story in the near term, with Business and Enterprise strength offsetting a softer Public Sector. The jump in backlog to the highest level since mid‑2022 looks like a short‑term catalyst, as it tightens supply conditions and could support pricing, but it also raises the risk of customers pausing once pulled‑forward orders are filled. Add in a higher share price after a solid year‑to‑date run and ongoing questions around CEO pay and slower growth expectations than the broader market, and the risk‑reward now looks more finely balanced.

However, one current risk investors should be aware of relates to that elevated backlog. PC Connection's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

The Simply Wall St Community’s fair value views span roughly US$66 to US$169 across 2 estimates, underlining how differently people see PC Connection’s upside. Set that against the company’s rising AI‑related demand and higher backlog, which could support results in the near term but also increase sensitivity if customer orders normalize.

Explore 2 other fair value estimates on PC Connection - why the stock might be worth over 2x more than the current price!

The Verdict Is Yours

Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your PC Connection research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free PC Connection research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PC Connection's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.