CDW · Earnings call · 2026Q2T · Full report

Gross Margin Drivers

CDW Corp · 2026-08-05 · Importance 61 · Surprise 32 · No source text

Second-quarter gross profit was $1.3 billion, up 6.3% year-over-year, while gross margin declined 70 basis points to 20.1%. The margin decline reflected a greater mix of large hardware infrastructure opportunities tied to modernization and AI readiness, particularly for enterprise customers. A lower relative contribution from services also pressured gross margin. Management expects second-half gross margins below second-half 2025 levels, resulting in full-year 2026 gross margin modestly below 2025.

Key facts

• Second quarter gross profit: $1.3 billion, up 6% year-over-year
• Second quarter gross profit was $1.3 billion and was up 6.3% year-over-year
• Netted down revenue streams were up 16.1% and represented 35.9% of gross profit, up 300 basis points year-over-year and 140 basis points quarter-over-quarter
• Second quarter gross margin was 20.1%, down 70 basis points year-over-year

Impact estimates