CDW Corporation Reports 10% Revenue Growth to $6.57 Billion in Q2 2026

CDW Corporation reported a notable increase in financial performance for the second quarter of 2026, with net sales reaching $6.57 billion, a 10% rise from $5.98 billion in the same period last year. For the first half of 2026, net sales totaled $12.25 billion, up 9.6% from $11.18 billion in the first half of 2025. The company's gross profit also saw an increase, rising to $1.32 billion for the quarter, compared to $1.24 billion a year earlier, while net income for the quarter was $274.4 million, slightly up from $271.2 million in the prior year.

The company experienced a shift in its gross profit margin, which decreased to 20.1% from 20.8% year-over-year, attributed to a mix of lower-margin hardware categories. Selling and administrative expenses increased by 8.6% to $891.2 million, primarily due to higher compensation costs and workplace optimization expenses. Operating income for the quarter was $428.6 million, reflecting a modest increase of 2% from $420.2 million in the previous year.

Strategically, CDW has realigned its customer-facing sales organization as of January 1, 2026, creating three reportable segments: Commercial, Government, and Education. This restructuring aims to better address the evolving needs of its customer base. The Commercial segment, which serves corporate, financial services, and healthcare customers, generated $3.97 billion in sales for the quarter, a 9.2% increase from the previous year. The Government segment also saw a 13.6% increase in sales, reaching $848 million, while the Education segment's sales rose slightly to $933 million.

Operationally, CDW's customer base and engagement metrics showed positive trends, with increased demand for data storage, servers, and software driving sales growth. The company reported a cash conversion cycle of 21 days, up from 16 days a year prior, primarily due to higher days of sales outstanding and inventory levels. As of June 30, 2026, CDW had total assets of $17.25 billion, with cash and cash equivalents decreasing to $361.8 million from $618.7 million at the end of 2025. The company also repurchased 4.5 million shares for $545 million during the first half of 2026, reflecting its commitment to returning value to shareholders.

Looking ahead, CDW anticipates continued growth driven by customer demand for technology solutions, particularly in AI and cloud services. However, the company acknowledges potential challenges from economic conditions, including inflation and government spending uncertainties, which may impact customer purchasing behavior. CDW remains focused on executing its strategic initiatives to enhance operational efficiency and capitalize on emerging market opportunities.