01—Abstract
Summary
Summary of the 8-K filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
CDW Corporation filed this Current Report under Item 7.01 (Regulation FD Disclosure) to give investors supplemental, unaudited historical segment data recast for its fiscal 2026 realignment of segment reporting.
Effective January 1, 2026, the company realigned its customer-facing sales organization and now reports three segments: Commercial, Government, and Education. CDW UK and CDW Canada are unchanged and reported in an all other category, "Other." Customers previously in the Small business segment are now included across the Commercial segment's customer channels. The filing states that the recast affects only how segment information was previously disclosed, and it does not amend or restate previously reported consolidated financial statements.
The company also updated its methodology for allocating headquarters function costs, separating costs that directly support the operating segments from enterprise-wide costs. The updated methodology was applied to all historical periods presented, which changed the operating expense retained by Headquarters. The filing presents quarterly net sales, cost of sales, gross profit, other segment expense items, and operating income by segment for the eight quarters from the first quarter of 2024 through the fourth quarter of 2025, along with net sales by customer channel.
For the fourth quarter of 2025, the recast shows total net sales of $5,511.0 milliona and operating income of $430.7 million. Commercial contributed $3,450.0 million in net sales and $384.9 million in operating income, Government $758.7 million and $63.0 million, Education $633.4 million and $48.0 million, and Other $668.9 million and $29.5 million, with Headquarters costs of $94.7 million. Investors can use the recast history to compare segment performance on a consistent basis across the new structure.
02—Key points
Key Highlights
- Segment realignment effective January 1, 2026: CDW now reports three segments (Commercial, Government, and Education), with CDW UK and CDW Canada reported in "Other."
- Small business customers were moved into the Commercial segment's customer channels (Corporate, Financial Services, and Healthcare).
- Headquarters cost allocation methodology was updated to separate costs that directly support operating segments from enterprise-wide costs, and it was applied retroactively to all historical periods presented.
- The recast is supplemental and unaudited; it does not amend or restate previously reported consolidated financial statements.
- Q4 2025 recast results: total net sales of $5,511.0 million and operating income of $430.7 million, with Commercial at $3,450.0 million in net sales and $384.9 million in operating income.
- Education segment net sales and operating income declined over the periods shown: Q2 2025 net sales were $926.6 million and operating income $56.1 million, versus $1,047.4 million and $99.5 million in Q2 2024.
- The filing furnishes the information under Item 7.01 and states that it is not deemed "filed" under Section 18 of the Exchange Act.
03—Questions
Frequently Asked Questions
Why did CDW change its segment reporting?
Effective January 1, 2026, CDW realigned its customer-facing sales organization to better meet the evolving needs of its customers and end markets. This produced three reportable segments: Commercial, Government, and Education.
Does this recast change CDW's previously reported financial results?
No. The filing states that the recast only changes how certain segment information was previously disclosed, is provided to aid comparability, and does not amend or restate previously reported consolidated financial statements for any period.
Where do CDW UK and CDW Canada fit in the new structure?
They are unchanged by the realignment and are reported in an all other category labeled "Other." In the fourth quarter of 2025, Other reported net sales of $668.9 million and operating income of $29.5 million.
What changed in how headquarters costs are reported?
CDW updated its methodology for allocating headquarters function costs to distinguish costs that directly support the operating segments from enterprise-wide costs. The change was applied to all historical periods presented, which adjusted the operating expense retained by Headquarters. Headquarters operating expense was $94.7 million in the fourth quarter of 2025 and $96.4 million in the fourth quarter of 2024.
How did the segments perform in the fourth quarter of 2025?
Commercial reported net sales of $3,450.0 million and operating income of $384.9 million, compared with $3,304.3 million and $388.5 million in the fourth quarter of 2024. Government reported $758.7 million in net sales and $63.0 million in operating income, versus $714.4 million and $49.2 million a year earlier. Education reported $633.4 million in net sales and $48.0 million in operating income, versus $560.2 million and $37.2 million a year earlier.
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