Spotting Winners: Connection (NASDAQ:CNXN) And IT Distribution & Solutions Stocks In Q2

October 07, 2025 at 23:31 PM EDT

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Wrapping up Q2 earnings, we look at the numbers and key takeaways for the it distribution & solutions stocks, including Connection (NASDAQ: CNXN) and its peers.

IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement.

The 8 it distribution & solutions stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.9% while next quarter’s revenue guidance was 0.5% below.

While some it distribution & solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.

Connection (NASDAQ: CNXN)

Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ: CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.

Connection reported revenues of $759.7 million, up 3.2% year on year. This print fell short of analysts’ expectations by 0.6%, but it was still a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

“Q2 2025 represents our fifth consecutive quarter of year-over-year net sales growth. Despite a dynamic economic environment, customers continued to invest in data center refresh initiatives and in the transition to Windows 11, which resulted in positive momentum in advanced technologies and end point devices. We remain committed to delivering outstanding value through integrated IT solutions and superior customer service,” said Timothy McGrath, President and Chief Executive Officer.

Unsurprisingly, the stock is down 6.8% since reporting and currently trades at $59.67.

Is now the time to buy Connection? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q2: ePlus (NASDAQ: PLUS)

Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.

ePlus reported revenues of $637.3 million, up 19% year on year, outperforming analysts’ expectations by 23.3%. The business had an incredible quarter with a solid beat of analysts’ revenue and EPS estimates.

ePlus scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 13.5% since reporting. It currently trades at $72.04.

Is now the time to buy ePlus? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Insight Enterprises (NASDAQ: NSIT)

With over 35 years of IT expertise and partnerships with more than 8,000 technology providers, Insight Enterprises (NASDAQ: NSIT) provides end-to-end digital transformation solutions that help businesses modernize their IT infrastructure and maximize the value of technology.

Insight Enterprises reported revenues of $2.09 billion, down 3.2% year on year, falling short of analysts’ expectations by 2.4%. It was a slower quarter as it posted a significant miss of analysts’ revenue and EPS estimates.

Insight Enterprises delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 25.8% since the results and currently trades at $107.38.

Read our full analysis of Insight Enterprises’s results here.

Avnet (NASDAQ: AVT)

With a century-long history of adapting to technological evolution, Avnet (NASDAQ: AVT) is a global electronic components distributor that connects manufacturers of semiconductors and other electronic parts with businesses that need these components.

Avnet reported revenues of $5.62 billion, flat year on year. This number beat analysts’ expectations by 4.5%. Overall, it was a very strong quarter as it also put up revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.

The stock is down 1.1% since reporting and currently trades at $51.34.

Read our full, actionable report on Avnet here, it’s free for active Edge members.

TD SYNNEX (NYSE: SNX)

Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.

TD SYNNEX reported revenues of $15.65 billion, up 6.6% year on year. This print topped analysts’ expectations by 3.5%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.

The stock is up 5.5% since reporting and currently trades at $158.65.

Read our full, actionable report on TD SYNNEX here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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