CDW · News · 20260805N

Gross Margin Drivers

CDW Corp · 2026-08-05 · Importance 31 · Surprise 32

Second-quarter gross profit increased 6.3% year over year to $1,319.8 million from $1,241.2 million. Gross margin declined to 20.1% from 20.8%, a 70-basis-point contraction despite 10.0% revenue growth. The margin pressure reflected a shift toward lower-margin hardware, including stronger data storage, server, and networking sales, while services revenue stagnated. Operating income rose only 2.0% to $428.6 million, indicating reduced operating leverage.

Key facts

• Q2 2026 gross profit: $1,319.8 million vs $1,241.2 million in Q2 2025, a 6.3% increase. source
• CDW incurred $44.2 million in workplace optimization costs in the quarter. source
• Q2 2026 gross profit margin: 20.1% compared with 20.8% in Q2 2025. source