How did CDW's revenue perform in the second quarter of 2026?

Net sales were $6,572.2 million, up 10.0 percent from $5,976.6 million. Growth was driven mainly by data storage and servers, notebooks/mobile devices, software, and netcomm products. The Commercial segment grew 9.2 percent, Government grew 13.6 percent, Education grew 0.7 percent, and Other (UK and Canada) grew 22.9 percent.

Why did gross profit margin decline?

Gross profit margin was 20.1 percent compared with 20.8 percent a year earlier. The company attributed the decline primarily to mix into, and lower margins in, certain hardware categories, partially offset by a higher contribution of netted down revenue.

How did profitability compare on GAAP and non-GAAP bases?

GAAP operating income rose 2.0 percent to $428.6 million, and GAAP net income rose 1.2 percent to $274.4 million. Non-GAAP operating income rose 7.0 percent to $556.0 million, and Non-GAAP net income rose 7.8 percent to $370.4 million. Non-GAAP diluted EPS was $2.91, up 11.9 percent. Non-GAAP measures exclude items such as amortization of acquisition-related intangibles, equity-based compensation, transformation initiatives, and workplace optimization costs.

What is the dividend and how much capacity remains for share repurchases?

The Board declared a quarterly cash dividend of $0.630 per common share, payable September 10, 2026 to stockholders of record at the close of business on August 25, 2026. As of June 30, 2026, approximately $1,138 million remained under the share repurchase program, and the company stated that future dividends and repurchases are at the Board's discretion.

Why did operating cash flow decline in the first half of 2026?

Net cash provided by operating activities was $219.7 million for the six months ended June 30, 2026, compared with $443.1 million a year earlier. The filing's balance sheet shows accounts receivable rising to $7,343.7 million from $6,312.4 million at December 31, 2025, and merchandise inventory rising to $981.8 million from $563.4 million, while the filing does not provide a specific cause for the change in operating cash flow.

CDW 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.

CDW Corporation reported second quarter 2026 results in an 8-K furnished on August 5, 2026.

Net sales rose 10.0 percent to $6,572.2 million^a from $5,976.6 million, and gross profit increased 6.3 percent to $1,319.8 million, though gross profit margin declined to 20.1 percent from 20.8 percent, which the company attributed mainly to mix into lower-margin hardware categories. Operating income grew 2.0 percent to $428.6 million, while Non-GAAP operating income rose 7.0 percent to $556.0 million. Net income was $274.4 million, up 1.2 percent, and diluted EPS was $2.15 versus $2.05, while Non-GAAP diluted EPS rose 11.9 percent to $2.91.

Growth was led by the Commercial segment (up 9.2 percent to $3,965.4 million^b), Government (up 13.6 percent), and Other (the UK and Canada, up 22.9 percent), with Education nearly flat at 0.7 percent growth. Cash generation weakened in the first half of 2026. Net cash provided by operating activities was $219.7 million versus $443.1 million a year earlier, and free cash flow was $165.8 million versus $393.7 million.

Accounts receivable rose to $7,343.7 million^c from $6,312.4 million at December 31, 2025, and inventory increased to $981.8 million from $563.4 million. Total debt was $5,817.0 million at June 30, 2026, compared with $5,629.8 million at December 31, 2025, and cash fell to $361.8 million. The Board declared a quarterly cash dividend of $0.630 per share, payable September 10, 2026 to holders of record on August 25, 2026.

The filing states that approximately $1,138 million^d remained under the share repurchase program as of June 30, 2026. Management reiterated its confidence in exceeding US IT addressable market growth by 200 to 300 basis points on a constant currency basis.

02—Key points

Key Highlights

Net sales increased 10.0 percent to $6,572.2 million in Q2 2026; on a constant currency basis, growth was 9.9 percent.
Gross profit margin fell to 20.1 percent from 20.8 percent, driven by mix into lower-margin hardware categories, partly offset by a higher contribution of netted down revenue.
Non-GAAP diluted EPS rose 11.9 percent to $2.91, while GAAP diluted EPS rose 5.1 percent to $2.15; diluted shares fell to 127.4 million from 132.4 million.
Operating cash flow for the six months ended June 30, 2026 was $219.7 million, down from $443.1 million, and free cash flow was $165.8 million versus $393.7 million.
Accounts receivable ($7,343.7 million) and merchandise inventory ($981.8 million) both increased from December 31, 2025, and cash and cash equivalents declined to $361.8 million.
The Board declared a $0.630 per share quarterly dividend payable September 10, 2026, with approximately $1,138 million remaining under the share repurchase program.
Selling and administrative expenses rose 8.6 percent to $891.2 million, mainly due to higher compensation, including performance-based incentives, and workplace optimization costs.

03—Questions

Frequently Asked Questions

How did CDW's revenue perform in the second quarter of 2026?
Net sales were $6,572.2 million, up 10.0 percent from $5,976.6 million. Growth was driven mainly by data storage and servers, notebooks/mobile devices, software, and netcomm products. The Commercial segment grew 9.2 percent, Government grew 13.6 percent, Education grew 0.7 percent, and Other (UK and Canada) grew 22.9 percent.
Why did gross profit margin decline?
Gross profit margin was 20.1 percent compared with 20.8 percent a year earlier. The company attributed the decline primarily to mix into, and lower margins in, certain hardware categories, partially offset by a higher contribution of netted down revenue.
How did profitability compare on GAAP and non-GAAP bases?
GAAP operating income rose 2.0 percent to $428.6 million, and GAAP net income rose 1.2 percent to $274.4 million. Non-GAAP operating income rose 7.0 percent to $556.0 million, and Non-GAAP net income rose 7.8 percent to $370.4 million. Non-GAAP diluted EPS was $2.91, up 11.9 percent. Non-GAAP measures exclude items such as amortization of acquisition-related intangibles, equity-based compensation, transformation initiatives, and workplace optimization costs.
What is the dividend and how much capacity remains for share repurchases?
The Board declared a quarterly cash dividend of $0.630 per common share, payable September 10, 2026 to stockholders of record at the close of business on August 25, 2026. As of June 30, 2026, approximately $1,138 million remained under the share repurchase program, and the company stated that future dividends and repurchases are at the Board's discretion.
Why did operating cash flow decline in the first half of 2026?
Net cash provided by operating activities was $219.7 million for the six months ended June 30, 2026, compared with $443.1 million a year earlier. The filing's balance sheet shows accounts receivable rising to $7,343.7 million from $6,312.4 million at December 31, 2025, and merchandise inventory rising to $981.8 million from $563.4 million, while the filing does not provide a specific cause for the change in operating cash flow.

04—Continue

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