Key Highlights

● Second-quarter net sales rose 10.0% to US$6,572.2 million.

● Gross margin narrowed to 20.1% from 20.8% a year earlier.

● Non-GAAP diluted earnings per share increased 11.9% to US$2.91.

● Government sales rose 13.6% while Education edged up 0.7%.

Latest verified development

CDW Corporation (NASDAQ:CDW), the US-based provider of information technology products and services to businesses, government and education customers, last reported on 5 August 2026. Second-quarter net sales were US$6,572.2 million, up 10.0% from US$5,976.6 million, and six-month net sales were US$12,252.0 million, up 9.6%. The company also declared a quarterly cash dividend of US$0.630 per share, payable on 10 September 2026 to holders of record on 25 August.

Growth with thinner margins

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. The gap between GAAP and adjusted figures reflects adjustments defined by the company itself.

Segment detail

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 pattern of sales growing faster than gross profit is visible in the numbers themselves and is the main analytical point from the quarter.

Index context

CDW has been an S&P 500 constituent since 23 September 2019, when it replaced Total System Services following that company's acquisition by Global Payments (NYSE:GPN), according to coverage at the time. Index membership means the stock is held by funds that track the benchmark.

Margins and segments to watch

The third-quarter report is the next scheduled financial event. 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.

Segment trends deserve attention too. Government and the UK and Canada businesses grew fastest, while Education was close to flat. Because CDW sells hardware and software from many vendors, investors may also follow commentary on enterprise technology budgets and customer refresh cycles. The release provided no forward guidance.