CDW · 10-Q · 2026Q2 · Full report

Supply Chain And Inventory

CDW Corp · 2026-08-05 · Importance 58 · Surprise 42 · In source text

AI-related demand for memory-intensive products and broader hardware demand are influencing supply chains and creating pricing pressure. Merchandise inventory increased by $418.3 million during the first six months, primarily because of customer-driven stocking positions associated with higher demand and increased hardware costs. Days of inventory outstanding also increased, reflecting higher average customer stocking positions and increased hardware cost, while the cash conversion cycle rose to 21 days from 16 days.

Key facts

• During Q2 2026 entered into a product financing arrangement with an independent third-party intermediary to support a customer's hardware procurement program; contractual financing costs are recognized as interest expense over the term source
• Inventory increased cash use for six months ended June 30, 2026: Merchandise inventory change $(418.3) million versus $(147.3) million prior year (decrease of $271.0 million) source
• The company identified potential disruptions in the supply of products from our suppliers, including capacity limitations and cost increases resulting from heightened demand related to artificial intelligence workloads. source
• Amounts under supplier financing and product financing arrangements are classified within Accounts payable-inventory financing on the Consolidated Balance Sheets source

Impact estimates