CDW · 8-K · 20260805PR000062

Operating Expense Trends

CDW Corp · 2026-08-05 · Importance 49 · Surprise 32

Second-quarter selling and administrative expense increased 8.6% to $891.2 million from $821.0 million. The increase was primarily attributable to higher compensation expense, including performance-based incentives, and workplace optimization costs. Operating income increased only 2.0% to $428.6 million as expense growth outpaced gross-profit growth. Non-GAAP operating income increased 7.0% to $556.0 million, while non-GAAP operating margin declined to 8.5% from 8.7%.

Key facts

• Selling and administrative expenses were $891 million in the second quarter of 2026, compared to $821 million in the second quarter of 2025, representing an increase of 8.6 percent. source
• Non-GAAP operating income was $556 million in the second quarter of 2026, compared to $520 million in the second quarter of 2025, representing an increase of 7.0 percent. source
• Non-GAAP net income was $370 million in the second quarter of 2026, compared to $344 million in the second quarter of 2025, representing an increase of 7.8 percent. source
• Income taxes paid, net for the six months ended June 30, 2026 were $(202.2) million. source
• The effective income tax rate was 26.4 percent in the second quarter of 2026, compared to 25.7 percent in the second quarter of 2025, which resulted in income tax expense of $99 million and $94 million, respectively. source
• Amortization of intangibles for the three months ended June 30, 2026 was $42.4 million (included in adjustments to Non-GAAP operating income). source
• Equity-based compensation adjustment for the three months ended June 30, 2026 was $28.1 million (included in adjustments to Non-GAAP operating income). source
• The increase in selling and administrative expenses was primarily due to higher compensation expense, including performance-based incentives, and workplace optimization costs. source