CDW · Earnings call · 2026Q2T · Full report
Guidance and Outlook
CDW Corp · 2026-08-05 · Importance 63 · Surprise 60 · In source text
CDW raised its full-year 2026 outlook and expects the U.S. IT addressable market to grow in the mid-single digits on a customer-spend basis. The company expects 200 to 300 basis points of outperformance versus that market and full-year gross-profit growth in the mid-single digits. Full-year non-GAAP diluted EPS growth is now expected at the high end of the high-single-digit range, supported by gross-profit performance and operating leverage. Third-quarter gross profit is expected to grow at a mid-single-digit rate, with SG&A lower than in the second quarter and EPS growth also at the high end of the high-single-digit range.
Key facts
- Now expect full year non-GAAP net income per diluted share growth to be at the high end of high single-digit range year-over-year
- Expect third quarter non-GAAP net income per diluted share to be at the high end of high single-digit growth year-over-year
- Now expect the U.S. IT addressable market to grow in the mid-single digits in 2026 on a customer spend basis, with 200 to 300 basis points of CDW outperformance
- Raising full year outlook and expect gross profit to grow mid-single digits for full year 2026
- Expect second half gross margins to be below second half 2025 levels and full year 2026 gross margin to be modestly below full year 2025
- Modeling thoughts for third quarter: anticipate gross profit to increase at a mid-single-digit year-over-year growth rate
- Expectation that currency will be a slight benefit to reported growth rates for the year
- Non-GAAP net income per diluted share growth of 11.9% in Q2 was above expectation for high single-digit growth year-over-year
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | positive | committed | — | Now expect full year non-GAAP net income per diluted share growth to be at the high end of high single-digit range year-over-year |
| net_income | positive | committed | — | Expect third quarter non-GAAP net income per diluted share to be at the high end of high single-digit growth year-over-year |
| revenue | positive | probable | — | Now expect the U.S. IT addressable market to grow in the mid-single digits in 2026 on a customer spend basis, with 200 to 300 basis points… |
| margin | positive | committed | — | Raising full year outlook and expect gross profit to grow mid-single digits for full year 2026 |
| margin | negative | committed | — | Expect second half gross margins to be below second half 2025 levels and full year 2026 gross margin to be modestly below full year 2025 |
| margin | positive | committed | — | Modeling thoughts for third quarter: anticipate gross profit to increase at a mid-single-digit year-over-year growth rate |