CDW Corporation reported a net sales increase of 9.2% for the first quarter of 2026, reaching $5.68 billion compared to $5.20 billion in the same period of 2025. The company's gross profit also rose to $1.19 billion, a 6.0% increase from $1.12 billion year-over-year. However, the gross profit margin decreased to 21.0% from 21.6%, attributed to a lower contribution of netted down revenue. Operating income increased by 4.0% to $376 million, while net income rose 4.7% to $235.4 million, resulting in a diluted earnings per share of $1.82, up from $1.69 in the prior year.
In terms of operational changes, CDW underwent a significant realignment of its customer-facing sales organization effective 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 $3.57 billion in net sales, a 9.6% increase from the previous year. The Government and Education segments also saw growth, with net sales of $632.9 million and $675 million, respectively.
The company’s balance sheet as of March 31, 2026, showed total assets of $16.45 billion, up from $16.03 billion at the end of 2025. Current assets increased to $8.97 billion, driven by higher accounts receivable and merchandise inventory. However, current liabilities also rose to $7.70 billion, leading to a slight increase in total liabilities. CDW's employee headcount remained stable at approximately 10,400, reflecting its commitment to maintaining a skilled workforce amid ongoing investments in technology and AI initiatives.
CDW's cash flow from operating activities decreased to $274.8 million from $287.2 million in the prior year, primarily due to changes in merchandise inventory and accounts payable. The company repurchased 1.6 million shares for $201 million during the quarter and declared a quarterly cash dividend of $0.630 per share. Looking ahead, CDW anticipates continued growth driven by customer demand for IT solutions, despite ongoing economic uncertainties and inflationary pressures that may impact spending patterns across its customer segments. The company remains focused on leveraging technology trends, including cloud and AI, to enhance its service offerings and drive future performance.
About CDW Corp
CDW Corporation is a leading multi-brand provider of integrated information technology solutions and services to business, government, education, and healthcare customers primarily in the US, UK, and Canada. Offering hardware, software, cloud, security, and digital transformation solutions, CDW serves over 250,000 clients through a broad vendor portfolio. Its value lies in expert consulting, customized IT lifecycle services, extensive distribution, and strong vendor and customer relationships.
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