CDW · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

CDW Corp · 2026-11-04 · Importance 29 · Surprise 22

The effective tax rate increased to 26.9% in the third quarter of 2026 from 25.3% a year earlier, while quarterly tax expense rose 16.0% to $114.1 million. For the first nine months, the effective rate was 26.5%, compared with 25.6%, and tax expense increased 9.2% to $296.2 million. The rate increases reflected lower tax credits and higher nondeductible expenses; year-to-date results also included current-year equity-compensation tax shortfalls compared with prior-year excess tax benefits.

Key facts

• For the three months ended September 30, 2026, CDW’s effective income tax rate was 26.9%, compared with 25.3% in 2025; the increase primarily reflected lower tax credits and higher nondeductible expenses. source
• For the nine months ended September 30, 2026, CDW’s effective income tax rate was 26.5%, compared with 25.6% in 2025; the increase primarily reflected lower tax credits, equity-compensation tax shortfalls rather than prior-year excess benefits, and higher nondeductible expenses. source