CDW · Earnings call · 2026Q2T · Full report

Operating Expense Trends

CDW Corp · 2026-08-05 · Importance 55 · Surprise 32 · No source text

Non-GAAP SG&A totaled $764 million, representing 57.9% of gross profit, down 20 basis points year-over-year and 410 basis points sequentially. Non-GAAP operating income increased 7% to approximately $556 million, outpacing 6.3% gross-profit growth, and operating margin was 8.5%. Expense efficiency reflected disciplined spending and broader efficiency efforts, with Geared for Growth benefits expected to increase in the second half of 2026 and into 2027. Coworker count ended at approximately 14,700, including 10,300 customer-facing coworkers, with both measures modestly lower year-over-year and quarter-over-quarter.

Key facts

• Geared for Growth initiatives expected to further improve expense efficiency in second half and into 2027 and to contribute to $100 million to $200 million of savings (referenced from prior call and progress affirmed)
• Expect third quarter non-GAAP SG&A to be lower than second quarter, driven by Geared for Growth benefits
• Second quarter non-GAAP SG&A totaled $764 million or 57.9% of gross profit, down 20 basis points year-over-year and down 410 basis points quarter-over-quarter
• Second quarter non-GAAP operating income: $556 million, up 7% year-over-year
• Non-GAAP operating income margin was 8.5% in the quarter
• Coworker count ended at approximately 14,700 and customer-facing coworker count was 10,300
• Non-GAAP effective tax rate was 26% in the quarter

Impact estimates