CDW CDW Corp
Price Chart
Executive Summary
CDW reported Q1 2026 results with net sales of $5.68B (+9.2% YoY) and GAAP EPS of $1.82 (+7.9% YoY), while non-GAAP EPS was $2.28 (+6.3% YoY). The company maintained its quarterly dividend at $0.630/share. Revenue growth was broad-based across segments, but gross margin contracted 60bps to 21.0% and operating margin declined 40bps to 6.6%, signaling ongoing cost pressures and mix shift.
Key Financial Metrics
Actionable Insight
CDW delivered solid top-line growth driven by infrastructure hardware demand, but margin compression (gross -60bps, operating -40bps) signals cost headwinds from compensation and AI investments. The stock may trade range-bound as the market weighs revenue momentum against margin erosion. Watch for commentary on the earnings call regarding FY2026 margin trajectory and IT spending outlook.
Key Facts
- Q1 2026 net sales $5,679.8M, up 9.2% YoY from $5,199.1M
- GAAP diluted EPS $1.82 vs $1.69 YoY, up 7.9%
- Non-GAAP diluted EPS $2.28 vs $2.15 YoY, up 6.3%
- Gross profit margin declined to 21.0% from 21.6% YoY
- Operating income margin declined to 6.6% from 7.0% YoY
- Non-GAAP operating margin declined to 8.0% from 8.5% YoY
- Quarterly cash dividend maintained at $0.630 per share
- Commercial segment net sales +9.6%, Government +4.6%, Education +2.5%, Other +17.9%
- Net cash from operations $274.8M vs $287.2M YoY
- Share count declined to 129.5M diluted from 133.5M YoY due to buybacks
Financial Impact
Revenue beat consensus by ~3.5% ($5.68B vs $5.49B est), but GAAP EPS of $1.82 is below the Street non-GAAP consensus of $2.15. Margin compression is the key negative offset to top-line strength.
Risk Factors
- Gross margin compression from lower netted-down revenue contribution
- Selling & administrative expenses growing faster than revenue (7.0% vs 9.2%)
- Elevated accounts receivable DSO of 96 days vs 86 a year ago
- Inventory build of $820.6M vs $563.4M at year-end 2025
- No formal FY2026 guidance provided beyond targeting 200-300bps above US IT market growth
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001402057-26-000023 |
| Document: cdw-20260506.htm | 0001402057-26-000023 |
| Document: cdw-2026331dividendrelease.htm | 0001402057-26-000023 |
| Document: 0001402057-26-000023-index-headers.html | 0001402057-26-000023 |
| Document: 0001402057-26-000023-index.html | 0001402057-26-000023 |
| Document: 0001402057-26-000023.txt | 0001402057-26-000023 |
| 8-K Data (Synthetic) | 0001402057-26-000023 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
May 13, 2026
27d ago
|
8-K
| $100.11 $106.06 | ▲ +5.94% | ▲ +6.08% | $134.81 (+34.66%) |
|
May 6, 2026
4w ago
|
8-K
| $108.43 $99.30 | ▼ −8.42% | ▼ −9.55% | $134.81 (+24.33%) |
|
May 1, 2026
5w ago
|
8-K
| $135.25 $102.44 | ▼ −24.26% | ▼ −27.19% | $134.81 (−0.32%) |
US Market Status
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