• In early February 2026, PC Connection, Inc. reported fourth-quarter 2025 results showing slightly lower sales of US$702.94 million but stable net income of US$20.71 million, alongside a new quarterly dividend of US$0.20 per share payable in March and continued share repurchases under its long-running buyback program.
• At the same time, the company modestly improved quarterly earnings per share, completed repurchasing 7.21% of its stock since 2018 for US$108.80 million, and expanded its share buyback authorization to US$190 million, underlining management’s focus on shareholder returns.
• We’ll now examine how the expanded US$190 million share repurchase authorization shapes PC Connection’s investment narrative following these earnings and capital-return decisions.

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What Is PC Connection's Investment Narrative?

To own PC Connection, you need to be comfortable with a steady, execution-focused IT reseller that is prioritizing consistent profitability and disciplined capital returns over rapid expansion. The latest quarter fits that story neatly: revenue was a touch softer, but earnings held up and EPS ticked higher, helped by buybacks. The new US$0.20 dividend and the expanded US$190 million repurchase authorization reinforce shareholder-return as a clear short term catalyst, especially after the share price moved sharply higher on the earnings beat. At the same time, the full year picture shows earnings slightly lower and margins a bit thinner, which keeps execution risk front and center in a competitive, low margin industry. The recent news does not remove those pressures, but it does signal management’s confidence in the current earnings base.

However, investors should also weigh how tighter margins could interact with that stepped-up capital return. PC Connection's shares have been on the rise but are still potentially undervalued by 41%. Find out what it's worth.

Exploring Other Perspectives

Three Simply Wall St Community fair value views span roughly US$65 to just under US$116, showing how differently investors can frame PC Connection’s potential. Set that against the recent earnings-driven price move and still-thin profit margins, and you can see why it pays to compare several perspectives before forming your own expectations.

Explore 3 other fair value estimates on PC Connection - why the stock might be worth just $65.56!

Build Your Own PC Connection Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PC Connection research is our analysis highlighting 2 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.