Highlights

  • CDW reported second-quarter net sales of US$6.57 billion, representing 10% year-on-year growth in the period.
  • Gross profit rose 6.3%, but the gross margin narrowed to 20.1% from 20.8% a year earlier.
  • Government sales increased 13.6%, while Education sales edged up just 0.7% during the quarter during the reported period.
  • The company declared a quarterly dividend of US$0.630 per share, payable on 10 September 2026.

Sales expanded faster than profitability in the latest reported quarter for CDW Corporation (NASDAQ:CDW). The technology products and services provider recorded US$6.57 billion of second-quarter net sales, up 10% year on year, but its gross margin contracted. The contrast between revenue momentum and profitability is central to the August results.

Growth Meets Margin Pressure

Sales growth did not translate fully into profit. Gross profit rose 6.3% to US$1,319.8 million, but gross margin narrowed to 20.1% from 20.8%. Operating income increased 2.0% to US$428.6 million, and net income rose 1.2% to US$274.4 million. Diluted earnings per share were US$2.15 against US$2.05, up 5.1%.

The non-GAAP picture was stronger. Non-GAAP operating income grew 7.0% to US$556.0 million, non-GAAP net income rose 7.8% to US$370.4 million, and non-GAAP diluted earnings per share increased 11.9% to US$2.91. For the half year, diluted earnings per share were US$3.97 and non-GAAP earnings per share US$5.18. Investors can note the gap between GAAP and adjusted figures when comparing with peers, because adjustments are defined by the company itself.

Customer Segments

Commercial sales, the largest segment, reached US$3,965.4 million, up 9.2%. Government sales rose 13.6% to US$848.0 million, and Education sales edged up 0.7% to US$933.1 million. The Other segment, covering the United Kingdom and Canada, grew 22.9% to US$825.7 million.

That mix shows demand broadening across customer types, with Education the laggard. The release does not attribute growth to particular product categories in the extract provided, and it does not discuss share repurchases, so it would be unwise to infer drivers beyond the reported segment figures. The twelve-month pattern of faster sales growth than gross profit growth is, however, visible in the numbers themselves and is the main analytical point from the quarter. Mix, pricing and the balance between product and service revenue are common explanations in distribution businesses, but the company has not confirmed them in the material provided.

Trading and Index Context

CDW shares closed at US$154.33 on Thursday 15 October 2026, up 2.82% on the session, on volume of about 1.72 million shares, in the supplied market data. The close on Wednesday was US$150.10. The supplied material does not identify a company announcement for Thursday that explains the move, and the daily change should not be read as a reaction to any specific news.

Milestones Still Ahead

The third-quarter report is the next scheduled financial event, but we did not locate a confirmed date in the sources provided, so investors should check the company's investor page. Questions likely to matter include whether gross margin stabilises after slipping 70 basis points year on year, and whether non-GAAP earnings growth continues to outpace GAAP growth.