CNXN stock holds after fiscal 2025 revenue and profit gains

CNXN stock (Connection, Inc., ISIN US20790W1099) is anchored by fiscal 2025 revenue of $2.21 billion, net income of $82.8 million, and diluted EPS of $3.00, according to the company’s latest annual report. The same filing shows Q4 2025 revenue of $654.7 million, Q4 net income of $31.9 million, and quarterly operating margin of 8.9%, which gives investors a fresh read-through on profitability and scale.

Fiscal 2025 revenue at $2.21 billion

Connection reported fiscal 2025 revenue of $2.21 billion, up from $2.16 billion in fiscal 2024, while gross profit increased to $486.5 million from $468.0 million. Net income rose to $82.8 million from $68.5 million year over year, and diluted EPS moved to $3.00 from $2.40, showing a clear improvement in earnings power over the 12-month period.

The company’s annual report also shows fiscal 2025 operating income of $109.0 million versus $91.3 million a year earlier, with operating margin at 4.9% compared with 4.2% in fiscal 2024. That comparison matters because it indicates that profitability improved faster than revenue, which is usually the cleaner signal for a distributor than top-line growth alone.

Q4 margin reached 8.9%

For the December quarter, revenue came in at $654.7 million, up from $648.2 million in the prior-year quarter, while gross profit reached $115.6 million versus $111.1 million. Net income for the quarter was $31.9 million, up from $25.5 million a year earlier, and diluted EPS was $1.15 versus $0.91.

Operating income in Q4 was $57.9 million, compared with $44.9 million in the same quarter of fiscal 2024, and the operating margin expanded to 8.9% from 6.9%. The margin move is the standout number in the report because it shows that Connection converted a modest increase in revenue into a larger gain in profit.

Services and product mix

Connection’s business is built around technology products and services for commercial, government, education, and healthcare customers, which makes the company sensitive to both hardware replacement cycles and service demand. The annual report’s revenue and margin progression suggests that mix and execution remained stable enough in fiscal 2025 to lift earnings even without a dramatic top-line acceleration.

The company’s product set includes computing, networking, cloud, peripherals, and related services, but the more useful investor detail is that fiscal 2025 revenue rose to $2.21 billion while operating income advanced to $109.0 million. That combination gives the product mix relevance only because it translated into a higher margin base, not because the line-up itself changed materially.

Shares and valuation context

A dated market price was not available in the live search results for this session, so the most relevant market anchor here is the fiscal 2025 earnings profile rather than a quote update. Connection remains a listed U.S. small-cap technology distributor, and the latest reported numbers show a company with $82.8 million in annual net income, $3.00 diluted EPS, and an 8.9% Q4 operating margin.

For investors, the key takeaway is the gap between modest revenue growth and faster profit growth. Fiscal 2025 revenue rose 2.3% year over year, but net income increased 20.8% and diluted EPS climbed 25.0%, which is the kind of spread that tends to matter more than headline sales alone in a distribution model.