CDW · 10-Q · 2026Q2

CDW Corp

Filed 2026-08-05 · Consumer · View original filing on EDGAR

Ranked Events

• Workforce Reduction and OptimizationImportance 63 · Surprise 82
  CDW incurred $44.2 million of workplace optimization costs in the six months ended June 30, 2026, compared with $12.8 million in the prior-year period. The costs include workforce reductions and charges related to…
• Interest Rate EnvironmentImportance 61 · Surprise 32
  CDW finances operations and capital expenditures partly through a variable-rate senior unsecured revolving loan facility. As of June 30, 2026, the company had $5.8 billion of total unsecured indebtedness and $1.7…
• Liquidity and Debt PositionImportance 61 · Surprise 32
  CDW had $5.8 billion of total unsecured indebtedness and $362 million of cash and cash equivalents as of June 30, 2026, producing net debt of $5,455.2 million. Availability under the variable-rate senior unsecured…
• Geographic Market CommentaryImportance 59 · Surprise 48
  Sales in the Other category, comprising CDW UK and CDW Canada, increased 20.4% in the first six months and 22.9% in the second quarter. Growth was primarily driven by customer demand for notebooks and mobile devices…
• Supply Chain And InventoryImportance 58 · Surprise 42
  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,…
• Operating Cash Flow TrendsImportance 57 · Surprise 64
  Net cash provided by operating activities declined $223.4 million to $219.7 million in the six months ended June 30, 2026 from $443.1 million in the prior-year period. Free cash flow fell to $165.8 million from $393.7…
• Capital Return ProgramImportance 52 · Surprise 42
  CDW repurchased 4.5 million shares for $545 million during the six months ended June 30, 2026. On May 13, 2026, the Board authorized a $1 billion increase to the share repurchase program. The company paid two 2026…
• End-Market Demand TrendsImportance 49 · Surprise 32
  Six-month net sales increased 9.6%, with customer demand concentrated in data storage and servers, notebooks and mobile devices, software, and netcomm products. Commercial demand increased 9.4%, led by data storage and…
• Operating Income and MarginsImportance 49 · Surprise 32
  Six-month operating income increased 2.9% to $804.6 million from $781.6 million, while operating margin declined to 6.6% from 7.0%. Second-quarter operating income increased 2.0% to $428.6 million, with margin falling…
• Operating Expense TrendsImportance 49 · Surprise 32
  Selling and administrative expenses increased $123 million, or 7.8%, to $1,705.2 million in the six months ended June 30, 2026. The increase was primarily attributable to higher compensation expense, including…
• Gross Margin DriversImportance 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…
• Revenue Performance and MixImportance 49 · Surprise 32
  Six-month net sales increased 9.6% year over year to $12,252.0 million from $11,175.7 million, while second-quarter sales increased 10.0% to $6,572.2 million. Growth was driven primarily by data storage and servers,…
• Product Mix And PricingImportance 36 · Surprise 40
  Higher sales were partly offset by lower gross profit margins from mix into certain hardware categories and lower margins in those categories. The pressure was most pronounced in Government, where the six-month gross…
• AI Infrastructure DemandImportance 32 · Surprise 42
  Rapid adoption of artificial intelligence applications and related data center investments are increasing demand for memory-intensive products. CDW says customers are investing in AI-ready infrastructure, cloud and…
• Income Tax Rate ChangesImportance 31 · Surprise 32
  Six-month income tax expense increased 5.4% to $182.1 million from $172.8 million. The effective tax rate increased to 26.3% from 25.8%, primarily because current-year tax shortfalls replaced prior-year excess tax…
• Macroeconomic Factors ImpactImportance 29 · Surprise 24
  CDW reports that economic conditions remain complex because of uncertainty surrounding global trade policies and geopolitical conditions. These conditions may affect customer willingness and ability to spend on IT,…
• Government Funding UncertaintyImportance 17 · Surprise 24
  Changes and uncertainty in spending policies, budget priorities, timing, and funding levels are affecting government, healthcare, and education customers. CDW specifically identifies potential U.S. government shutdowns…
• Distribution ChannelsImportance 10 · Surprise 6
  CDW serves business, government, education, and healthcare customers through Commercial, Government, and Education segments, with CDW UK and CDW Canada reported in Other. Its portfolio includes more than 100,000…

Revenue by Product (in millions)

Revenue by Geography (in millions)