CDW · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

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

Six-month gross profit increased 6.2% to $2,509.8 million, but gross profit margin declined 60 basis points to 20.5% from 21.1%. The decline was primarily caused by mix into and lower margins in certain hardware categories. Government gross profit fell 4.8% to $288.4 million as its margin declined 290 basis points to 19.5%, while Commercial margin fell 50 basis points to 21.8%. Education was a favorable offset, with gross profit up 7.4% to $265.5 million and margin up 90 basis points to 16.5%.

Key facts

• Three months ended June 30, 2026 Gross profit: $1,319.8 million source
• Commercial segment gross profit for three months ended June 30, 2026: $845.3 million with gross profit margin 21.3% source
• Gross profit margin decreased 70 basis points to 20.1% for the three months ended June 30, 2026, primarily driven by mix into and lower margin in certain hardware categories source
• Government segment gross profit for three months ended June 30, 2026: $163.7 million with gross profit margin 19.3% source
• Education segment gross profit for three months ended June 30, 2026: $153.0 million with gross profit margin 16.4% source
• Three months ended June 30, 2026 Gross profit margin: 20.1% source
• Six months ended June 30, 2026 Gross profit margin: 20.5% source
• Three months ended June 30, 2025 Gross profit margin: 20.8% source