PC Connection, Inc. delivered a record second quarter in the three months ended June 30, 2026. Consolidated net sales reached $854.0M. The topline rose 12.4% from a year ago. Net income reached $33.2M. Operating leverage flowed through to the bottom line. SG&A intensity compressed to 13.4% of net sales. The productivity of the operating model continues to surprise positively, with management's continued investment in certified engineering resources laying the foundation for further mix-driven margin gains in the back half of the year as services revenue scales against the fixed cost base. The operating profile in the quarter also reflects tight working-capital discipline and a capital-allocation philosophy that prioritizes recurring shareholder return over opportunistic external deployment, which together produce a quality of earnings that compares favorably to broader small-cap IT distribution peers and sets up the Company to compound earnings at a pace above topline growth as services attach matures.
The operating story behind those headline figures carries more nuance than the consolidated results suggest. The Enterprise Solutions segment posted net sales of $369.6M, up 13.4%. The Business Solutions segment generated net sales of $343.9M, up 17.3%. The Public Sector Solutions segment produced effectively flat net sales at $140.5M. Diluted earnings per share reached $1.31 against $0.97 a year earlier. The mid-market engine carried the quarter. Government demand remained subdued. Reading the consolidated tape without that segmentation masks the underlying divergence that defines the operating story.
Balance sheet quality remains a defining feature of the equity story. PC Connection held $123.7M in cash at quarter end. Total liquidity reached $340.7M against total liabilities of $475.0M. Stockholders' equity stood at $952.7M. The Board declared a $0.20 per share quarterly cash dividend. The equity trades near $82.6. That price sits within a fifty-two week range of $54.5 to $88.3. The range is broad enough to define the operating story. The investment case rests on whether mid-market momentum sustains into the back half of the year.