CDW (CDW) Q3 2026 Earnings Report

The call was strongly positive. CDW delivered record quarterly performance with 18% sales growth, double-digit growth across major product categories, significant operating leverage, healthy backlog and written demand, and raised full-year guidance. The main challenges were lower gross margin, modest services growth tied to deployment timing, declining client device unit volumes, higher interest expense, and year-to-date cash conversion below the long-term target range, but these issues did not outweigh the company's broad-based growth and improved outlook.

For full year 2026, CDW now expects the U.S. IT addressable market to grow at a high single-digit rate on a customer spend basis, with 300-400 basis points of CDW outperformance compared to the market; gross profit to grow at a mid to high single-digit rate, with a first half versus second half split in the range of 48%-52%, while full year 2026 gross margin is expected to be down compared to the full year 2025; net interest expense is expected in the range of $255 million-$260 million; non-GAAP net income per diluted share growth is expected to be in the low double-digit range year over year; and currency is expected to be relatively neutral to reported growth rates for the full year. For the fourth quarter, gross profit is expected to increase at a mid-single-digit rate year over year, equivalent to a seasonal low to mid-single-digit decline sequentially, non-GAAP SG&A is expected to increase at a low single-digit rate year-over-year and sequentially, and non-GAAP net income per diluted share is expected to increase at a low double-digit rate year over year.