CDW Corporation Earnings Recaps
Q1 2026
May 7, 2026
Shares fell 19.4% on the quarter as investors reacted negatively to a clear deceleration in growth within key segments and margin pressures despite modest top-line gains, signaling discomfort with the company’s cautious outlook and uneven execution.
Key takeaways
- Consolidated net sales increased 9% year-over-year, driven primarily by infrastructure hardware demand related to AI investment and supply chain agility.
- Hardware grew 10%, led by networking, servers, and enterprise storage, each up more than 20%, while software revenue rose 11%; however, services revenue was flat, weighed down by warranty declines.
- Commercial segment grew 10%, with broad-based demand, while government growth was modest at 5%, impacted by federal procurement delays and budget timing; education rose only 3%, with weakness in higher education offset by K-12 client device purchases.
- Gross profit increased 6%, but non-GAAP operating income rose just 2%, reflecting margin compression from hardware mix shift and lower margin services, plus elevated discretionary expenses.
- Despite record non-GAAP net income per share growth of 6% and strong cash flow generation, investors focused on deceleration trends and cautious commentary around near-term customer spending priorities and supply chain challenges.
Q3 2025
Nov 6, 2025
CDW reported a solid third quarter performance with consolidated net sales rising 4% to $5.7 billion, driven by strong execution across diverse customer segments despite a dynamic market environment.
Key takeaways
- Gross profit increased 5% to $1.3 billion, showcasing effective sales strategies in key areas like security and cloud solutions.
- Non-GAAP net income per share rose 3% to $2.71, reflecting the company's ability to maintain profitability amid market challenges.
- Adjusted free cash flow reached $209 million, indicating strong cash generation capabilities supporting future investments.
- Small Business segment exhibited double-digit growth, fueled by demand for cloud and AI-related technologies.
- U.K. and Canadian operations performed well, reporting a combined 9% increase in net sales, underscoring the benefits of geographic diversity.