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CDW (MX:CDW)
:CDW
Mexico Market
EarningsQ2 2026 Earnings Report

CDW (CDW) Q2 2026 Earnings Report

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MX:CDW Q2 2026 EPS Results

Actual EPS$49.40
Consensus EPS$47.52
Beat/MissBeat by +$1.88
One Year Ago EPS$44.14

MX:CDW Q2 2026 Revenue Results

Actual Revenue$111.57B
Expected Revenue$105.35B
Beat/MissBeat by +$6.22B
YoY Revenue Growth+9.97%

Earnings Announcement Details

QuarterQ2 2026
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
MX:CDW Upcoming Earnings
CDW's next earnings date is estimated for November 4, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:CDW Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 05, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presents a largely positive operational and financial story: company delivered record quarterly revenue, gross profit and EPS driven by strong infrastructure, software, cloud and security demand, and raised its full-year outlook. Key strengths include diversified end markets, international momentum, improving expense discipline and pronounced AI-related opportunity across the full stack. Primary near-term risks are margin compression from product mix, muted services growth due to deployment timing, a temporary working capital build that depressed free cash flow conversion, and a modestly cautious near-term margin outlook. Management expects services tailwinds and cash conversion to normalize in the back half of the year.
Company Guidance
CDW raised its full‑year outlook, forecasting full‑year gross profit growth in the mid‑single‑digits and full‑year non‑GAAP net income per diluted share growth at the high end of the high‑single‑digit range, with full‑year gross margin expected to be modestly below 2025 and second‑half gross margins below second‑half 2025 as seasonality shifts toward a more typical second‑half weighting; management expects the U.S. IT addressable market to grow mid‑single‑digits in 2026 with CDW outperformance of 200–300 basis points, sees currency as a slight benefit to reported growth, and provided Q3 modeling of gross profit up mid‑single‑digits year‑over‑year, non‑GAAP SG&A lower than Q2 (driving operating expense as a percent of gross profit down both year‑over‑year and sequentially) and Q3 non‑GAAP EPS growth at the high end of the high‑single‑digit range. Balance‑sheet and cash expectations include net debt of $5.5 billion, liquidity of $2.0 billion, a 3‑month average cash conversion cycle of 21 days (target: high‑teens to low‑20s), adjusted free cash flow year‑to‑date of $278 million (42% of non‑GAAP net income) with an expectation to normalize toward an 80–90% conversion rate in the back half, a targeted ~25% dividend payout ratio, net leverage of 2.5x (target 2.0–3.0x), and more than $1.1 billion of remaining share‑repurchase capacity.
Record Quarterly Financials
Net sales of $6.6B, up 10% YoY; gross profit of $1.3B, up 6.3% YoY; non-GAAP operating income of $556M, up 7% YoY; non-GAAP EPS of $2.91, up 11.9% YoY. Net sales, gross profit and non-GAAP EPS set all-time quarterly records.
Strong Top-Line Growth Driven by Infrastructure and AI Readiness
Double-digit top-line growth in infrastructure categories (hardware revenue +10%; servers, storage and netcomm delivered strong double-digit growth) as customers invest in AI readiness, modernization and resiliency.
Segment and Geographic Strength
Commercial +9% (Corporate +11%, Healthcare +9%, Financial Services +2%); Government ~+14% (federal improvement and state/local momentum); International net sales +23% led by record Canada quarter and strong U.K. mid-teens local growth.
Software, Cloud and Security Momentum
Software grew low-double digits driven by security, application suites and storage/network management; cloud growth described as robust; security delivered double-digit growth in both top line and gross profit.
Improving Operating Leverage and Expense Discipline
Non-GAAP SG&A $764M (57.9% of gross profit), down 20 bps YoY and down 410 bps QoQ; non-GAAP operating income grew 7% versus 6.3% gross profit growth, indicating incremental operating leverage; Geared for Growth initiatives expected to drive further efficiency.
Strong Netted-Down and Recurring Revenue Trends
Netted down revenue streams increased 16.1% YoY and represented 35.9% of gross profit (up 300 bps YoY and 140 bps QoQ), reflecting recurring/partner-driven content strength.
Prudent and Upgraded Outlook
Company raised full-year outlook: now expects full-year gross profit growth in mid-single digits and full-year non-GAAP EPS growth at the high end of high-single-digit range; expects U.S. IT addressable market mid-single digit growth with 200–300 bps of CDW outperformance.
Capital Allocation and Shareholder Returns
Returned $344M in share repurchases and $80M in dividends in the quarter; year-to-date returns ~$545M; >$1.1B remaining share repurchase capacity; dividend policy targeting ~25% payout ratio and net leverage at 2.5x within 2–3x target.

MX:CDW Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 04, 2026
2026 (Q3)
50.13 / -
46.005
2026 (Q2)
47.52 / 49.40
44.13711.92% (+5.26)
2026 (Q1)
38.67 / 38.71
36.4986.05% (+2.21)
2025 (Q4)
41.47 / 43.63
42.13.63% (+1.53)
2025 (Q3)
44.53 / 46.00
44.6473.04% (+1.36)
2025 (Q2)
42.29 / 44.14
42.444.00% (+1.70)
2025 (Q1)
33.32 / 36.50
32.59411.98% (+3.90)
2024 (Q4)
39.44 / 42.10
43.628-3.50% (-1.53)
2024 (Q3)
48.47 / 44.65
46.174-3.31% (-1.53)
2024 (Q2)
42.93 / 42.44
43.458-2.34% (-1.02)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed