CDW Q3 2026 sales rise 17.7%; gross margin falls to 20.5%
CDW’s declared dividend is approximately 8% higher than last year’s, with a December 10, 2026 payment date.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
CDW Corporation reported third-quarter 2026 net sales of $6,754.5 million, up 17.7% from a year earlier. Net income rose 6.5% to $309.8 million, and diluted earnings per share were $2.46, up 11.6%; non-GAAP diluted earnings per share increased 20.4% to $3.26. Gross profit margin was 20.5%, versus 21.9%, primarily reflecting sales mix and lower margins in certain product categories. Commercial sales were $3,979.4 million, up 20.8%, including Financial Services sales growth of 73.2%.
Nine-month net cash provided by operating activities was $618.5 million, compared with $771.4 million a year earlier. Third-quarter net interest expense was $65.9 million, up 19.8%, primarily due to higher average borrowings under the senior unsecured revolving loan facility and lower interest income on cash. The board declared a quarterly cash dividend of $0.680 per common share, approximately 8% above last year's dividend, payable December 10, 2026, to stockholders of record November 25, 2026. Management expressed confidence in its ability to outpace U.S. IT addressable market growth by 200 to 300 basis points on a constant currency basis.
3 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net sales reached $6,754.5 million, up 17.7%.
- Moderate pointNon-GAAP diluted earnings per share rose 20.4% to $3.26.
- Minor pointQuarterly dividend increased approximately 8% to $0.680 per share.
Negative
- Moderate pointNine-month operating cash flow was $618.5 million, versus $771.4 million a year earlier.
Filing Explained
The filing adds that CDW had about
8-K Event Classification
3 items: 2.02, 8.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $6,754.5 million
Net income: $309.8 million
Diluted earnings per share: $2.46
+4 more
7 metrics
Net sales
$6,754.5 million
Three months ended September 30, 2026; up 17.7% from 2025
Net income
$309.8 million
Three months ended September 30, 2026; up 6.5% from 2025
Diluted earnings per share
$2.46
Three months ended September 30, 2026; up 11.6% from 2025
Non-GAAP net income per diluted share
$3.26
Three months ended September 30, 2026; up 20.4% from 2025
Gross profit margin
20.5%
Three months ended September 30, 2026, compared with 21.9% in 2025
Net cash provided by operating activities
$618.5 million
Nine months ended September 30, 2026, compared with $771.4 million in 2025
Quarterly cash dividend
$0.680 per common share
Approximately 8% increase over last year's dividend; payable December 10, 2026
Key Terms
constant currency basis, Non-GAAP financial measures, cash conversion cycle, Adjusted free cash flow
4 terms
constant currency basis financial
"Net sales, on a constant currency basis"
A "constant currency basis" is a way companies compare financial results by removing the effects of changing exchange rates between different currencies. It helps show how the business is really performing, without the confusion caused by currency value swings, much like adjusting for inflation to see true growth.
Non-GAAP financial measures financial
"collectively referred to as "non-GAAP financial measures""
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
cash conversion cycle financial
"Cash conversion cycle"
A cash conversion cycle measures how many days it takes a company to turn money spent on goods into money received from customers — essentially the time between paying suppliers and collecting cash. Think of it as the gap between buying inventory and getting paid at the register; a shorter cycle means the business frees up cash faster, reducing borrowing needs and indicating more efficient operations, which matters to investors evaluating liquidity and financial health.
Adjusted free cash flow financial
"Adjusted free cash flow"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Earnings Snapshot
Net sales: $6,754.5 million · Guidance included
Three months ended September 30, 2026
Net sales
$6,754.5 million
17.7% increase
Net income
$309.8 million
6.5% increase
Net income per diluted share
$2.46
11.6% increase
Non-GAAP net income per diluted share
$3.26
20.4% increase
Guidance
Management expressed confidence in its ability to outpace U.S. IT addressable market growth by 200 to 300 basis points on a constant currency basis.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were CDW’s Q3 2026 sales and earnings?
CDW reported net sales of $6,754.5 million, up 17.7% from the third quarter of 2025. Net income was $309.8 million, up 6.5%, and diluted earnings per share were $2.46, up 11.6%.
What is CDW’s dividend and when is it paid?
CDW declared a quarterly cash dividend of $0.680 per common share, approximately 8% above last year’s dividend. Payment is scheduled for December 10, 2026, to stockholders of record November 25, 2026.
Why did CDW’s gross profit margin decline?
CDW said the third-quarter gross profit margin of 20.5%, compared with 21.9% a year earlier, primarily reflected sales mix and lower margins in certain product categories.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 4, 2026
______________________________
(Exact name of registrant as specified in its charter)
_______________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: (847) 465-6000
None
(Former name or former address, if changed since last report)
_______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
CDW Corporation (the “Company”) is furnishing under cover of this Current Report on Form 8-K a copy of its press release dated November 4, 2026 announcing its third quarter 2026 financial results. The press release is attached to this report as Exhibit 99.1 and incorporated herein by reference. The Company is furnishing this information in connection with its previously announced webcast conference call to be held on November 4, 2026 at 8:30 a.m. ET / 7:30 a.m. CT to discuss these results.
The information contained under Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 8.01. Other Events.
Quarterly Cash Dividend
On November 4, 2026, the Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.680 per common share to be paid on December 10, 2026 to all stockholders of record as of the close of business on November 25, 2026. A copy of the press release announcing the declaration of the quarterly cash dividend is attached to this report as Exhibit 99.2 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. | Description | |||||||
99.1 | Press release dated November 4, 2026, announcing third quarter 2026 financial results. | |||||||
99.2 | Press release dated November 4, 2026, announcing dividend declaration. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CDW CORPORATION | ||||||||||||||
| Date: | November 4, 2026 | By: | /s/ Albert J. Miralles | |||||||||||
| Albert J. Miralles | ||||||||||||||
| Chief Financial Officer and Executive Vice President, Enterprise Business Operations | ||||||||||||||
EXHIBIT 99.1
CDW Reports Third Quarter 2026 Earnings
| (Dollars in millions, except per share amounts) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | |||||||||||||||
| Net sales | $ | 6,754.5 | $ | 5,737.4 | 17.7 | % | $ | 19,006.5 | $ | 16,913.1 | 12.4 | % | ||||||||
| Gross profit | $ | 1,385.3 | $ | 1,255.5 | 10.3 | $ | 3,895.1 | $ | 3,619.0 | 7.6 | ||||||||||
| Gross profit margin | 20.5 | % | 21.9 | % | 20.5 | % | 21.4 | % | ||||||||||||
| Operating income | $ | 489.5 | $ | 443.3 | 10.4 | $ | 1,294.1 | $ | 1,224.9 | 5.6 | ||||||||||
| Operating income margin | 7.2 | % | 7.7 | % | 6.8 | % | 7.2 | % | ||||||||||||
Non-GAAP operating income1 | $ | 619.8 | $ | 530.6 | 16.8 | $ | 1,627.7 | $ | 1,494.3 | 8.9 | ||||||||||
Non-GAAP operating income margin1 | 9.2 | % | 9.2 | % | 8.6 | % | 8.8 | % | ||||||||||||
| Net income | $ | 309.8 | $ | 291.0 | 6.5 | $ | 819.6 | $ | 787.1 | 4.1 | ||||||||||
Non-GAAP net income1 | $ | 410.2 | $ | 357.2 | 14.8 | $ | 1,075.9 | $ | 987.4 | 9.0 | ||||||||||
| Net income per diluted share | $ | 2.46 | $ | 2.21 | 11.6 | $ | 6.43 | $ | 5.94 | 8.2 | ||||||||||
Non-GAAP net income per diluted share1 | $ | 3.26 | $ | 2.71 | 20.4 | $ | 8.44 | $ | 7.45 | 13.3 | ||||||||||
Average daily sales2 | $ | 105.5 | $ | 89.6 | 17.7 | $ | 99.5 | $ | 88.6 | 12.4 | ||||||||||
1 Non-GAAP measures used in this release that are not based on accounting principles generally accepted in the United States of America ("GAAP") are each defined and reconciled to the most directly comparable GAAP measures in the attached schedules. | ||||||||||||||||||||
2 Defined as Net sales divided by the number of selling days. There were 64 selling days for both the three months ended September 30, 2026 and 2025. There were 191 selling days for both the nine months ended September 30, 2026 and 2025. | ||||||||||||||||||||
VERNON HILLS, Ill., November 4, 2026 - CDW Corporation (Nasdaq: CDW) announced today third quarter 2026 results. CDW also announced the approval by its Board of Directors of a quarterly cash dividend of $0.680 per common share to be paid on December 10, 2026, to all stockholders of record as of the close of business on November 25, 2026.
"CDW delivered robust third quarter results, powered by broad-based strength across our diverse customer end-markets and strong momentum in enterprise AI adoption," said Christine A. Leahy, chair and chief executive officer, CDW. "By bringing together the technology, expertise and capabilities our customers need, we are helping advance their most important priorities and turn technology investment into meaningful business and mission outcomes."
"Strong customer demand and disciplined execution drove double-digit growth in gross profit, while operating leverage and capital management contributed to more than 20 percent growth in non-GAAP net income per diluted share," said Albert J. Miralles, chief financial officer, CDW. “We continue to balance investments that support our customers and long-term growth with disciplined expense management and capital allocation, providing flexibility to deliver shareholder value."
"In an environment defined by rapid technology change and increasing complexity, CDW’s role as a trusted advisor has never been more important," Leahy concluded. "Our ability to address customers’ needs across the full technology stack and lifecycle, together with our continued strategic investments, reinforces our confidence in our ability to outpace US IT addressable market growth by 200 to 300 basis points on a constant currency basis and drive sustainable long-term value for our customers and shareholders."
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Third Quarter of 2026 Highlights:
Net sales in the third quarter of 2026 were $6,755 million, compared to $5,737 million in the third quarter of 2025, an increase of 17.7 percent. There were 64 selling days for both the three months ended September 30, 2026 and 2025. Net sales on a constant currency basis increased 17.8 percent in the third quarter of 2026 compared to the third quarter of 2025. Customer demand drove Net sales growth primarily in data storage and servers, notebooks/mobile devices, and software. The third quarter of 2026 Net sales performance included:
•Commercial segment Net sales of $3,979 million, 20.8 percent higher than 2025. Commercial results were driven by an increase in Net sales to Financial Services, Corporate, and Healthcare customers of 73.2 percent, 16.8 percent, and 9.3 percent, respectively.
•Government segment Net sales of $913 million, 9.9 percent higher than 2025.
•Education segment Net sales of $982 million, 7.5 percent higher than 2025.
•Net sales for CDW’s UK and Canadian operations, combined as "Other" for financial reporting purposes, were $880 million, 26.0 percent higher than 2025.
Gross profit in the third quarter of 2026 was $1,385 million, compared to $1,256 million for the third quarter of 2025, representing an increase of 10.3 percent. Gross profit margin was 20.5 percent in the third quarter of 2026 compared to 21.9 percent in the third quarter of 2025. The decrease in Gross profit margin was primarily driven by mix into and lower margin in certain product categories.
Selling and administrative expenses were $896 million in the third quarter of 2026, compared to $812 million in the third quarter of 2025, representing an increase of 10.3 percent. The increase was primarily due to higher performance-based incentives, workplace optimization costs, and acquisition costs.
Operating income was $490 million in the third quarter of 2026, compared to $443 million in the third quarter of 2025, representing an increase of 10.4 percent. Non-GAAP operating income was $620 million in the third quarter of 2026, compared to $531 million in the third quarter of 2025, representing an increase of 16.8 percent. Operating income margin and Non-GAAP operating income margin were 7.2 percent and 9.2 percent, respectively, for the third quarter of 2026, compared to 7.7 percent and 9.2 percent, respectively, for the third quarter of 2025.
Interest expense, net includes interest expense and interest income. Interest expense, net was $66 million in the third quarter of 2026, compared to $55 million for the third quarter of 2025, representing an increase of 19.8 percent. The increase is primarily due to higher average borrowings under our senior unsecured revolving loan facility and lower interest income earned on cash balances.
The effective income tax rate was 26.9 percent in the third quarter of 2026, compared to 25.3 percent in the third quarter of 2025, which resulted in income tax expense of $114 million and $98 million, respectively. The increase in the effective income tax rate was primarily due to lower tax credits compared to prior year, and higher non-deductible expenses.
Net income was $310 million in the third quarter of 2026, compared to $291 million in the third quarter of 2025, representing an increase of 6.5 percent. Non-GAAP net income was $410 million in the third quarter of 2026, compared to $357 million in the third quarter of 2025, representing an increase of 14.8 percent.
Weighted-average diluted shares outstanding were 126 million for the third quarter of 2026, compared to 132 million for the third quarter of 2025. Net income per diluted share for the third quarter of 2026 was $2.46, compared to $2.21 for the third quarter of 2025, representing an increase of 11.6 percent. Non-GAAP net income per diluted share for the third quarter of 2026 was $3.26, compared to $2.71 for the third quarter of 2025, representing an increase of 20.4 percent.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements. These statements relate to analyses and other information, which are based on forecasts of future results or events and estimates of amounts not yet determinable. These statements also relate to our future prospects, financial outlook, growth, developments, business strategies, capital allocation, and stockholder returns. We claim the protection of The Private Securities Litigation Reform Act of 1995 for all forward-looking statements in this release.
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These forward-looking statements are identified by the use of terms and phrases such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "potential," "predict," "project," "target" and similar terms and phrases or future or conditional verbs such as "could," "may," "should," "will," and "would." However, these words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make in this release regarding our future financial and operational performance, expected customer demand for technology solutions and services, customer spending trends, future liquidity, capital allocation priorities, strategic investments and transformation initiatives, management of debt obligations, and the impact of any economic, geopolitical, and regulatory developments. Although we believe that our plans, intentions, and other expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve those plans, intentions, or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those that we expected.
Important factors that could cause actual results or events to differ materially from our expectations, or cautionary statements, are disclosed under the sections entitled "Risk Factors" and "Trends and Key Factors Affecting our Financial Performance" included in our Annual Report on Form 10-K for the year ended December 31, 2025, and from time to time in our subsequent Quarterly Reports on Form 10-Q and our other US Securities and Exchange Commission ("SEC") filings and public communications.
These factors include, among others:
•relationships with our vendor partners and wholesale distributors and the terms of their agreements;
•the ability of vendor partners, wholesale distributors, and third-party providers to fulfill their responsibilities and commitments and our reliance on certain key vendor partners and wholesale distributors;
•our dependence on the continued innovations in technology by our vendor partners;
•the use or capabilities of artificial intelligence and the challenges related to its adoption;
•substantial competition that could reduce our market share;
•the continuing development, maintenance, and operation of our information technology ("IT") systems;
•potential breaches of data security and failure to protect our IT systems from cybersecurity threats;
•potential failures to provide high-quality services to our customers;
•potential losses of any key personnel, significant increases in labor costs, or ineffective workforce management;
•potential service failures or disruptions related to outsourcing arrangements with certain business processes;
•potential adverse occurrences at one of our primary facilities or third-party data centers, including as a result of climate change;
•increases in the cost of commercial delivery services or disruptions of those services;
•exposure to accounts receivable and inventory risks;
•the costs and risks associated with, and the successful and timely execution and effects of, strategic investments or acquisitions or entry into joint ventures, including our ability to successfully integrate newly acquired businesses and align our investment efforts with our strategic goals;
•future operating results may fluctuate significantly due to rapid changes in the technology industry and broader market conditions;
•the costs and risks associated with, and the successful and timely execution and effects of, our existing and any future business opportunities, expansions, initiatives, strategies, investments, and plans;
•fluctuations in foreign currency and the impact to our operating results;
•global and regional economic and political conditions, including the impact of inflationary pressures and the level of interest rates;
•decreases, delays, or changes in spending on technology products and services, including impacts of adverse changes in government spending and funding policies, federal procurement policies, and US government shutdowns;
•potential disruptions in the supply of products from our suppliers, including capacity limitations and cost increases resulting from heightened demand related to artificial intelligence workloads;
•potential failures to comply with public sector contracts or applicable laws and regulations;
•current and future legal proceedings, investigations, and audits, including intellectual property infringement claims;
•potential failure to comply with complex and evolving laws and regulations applicable to our operations or to meet sometimes conflicting stakeholder expectations on environmental sustainability and corporate responsibility matters;
•our level of indebtedness and the obligations imposed by agreements and instruments relating to our indebtedness;
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•fluctuations in the market price and trading volumes of our common stock and changes in, or the discontinuation of, our share repurchase program or dividend payments; and
•other risk factors or uncertainties identified from time to time in our filings with the SEC.
All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by those cautionary statements as well as other cautionary statements that are made from time to time in our other SEC filings and public communications. You should evaluate all forward-looking statements made in this release in the context of these risks and uncertainties.
We caution you that the important factors referenced above may not reflect all of the factors that could cause actual results or events to differ from our expectations. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this release are made only as of the date hereof or, with respect to any documents incorporated by reference, available at the time such document was prepared or filed with the SEC. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Non-GAAP Financial Measures
Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial condition that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures used by management may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
The non-GAAP performance measures discussed in this press release include Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP net income, Non-GAAP net income per diluted share, and Net sales on a constant currency basis, and the non-GAAP financial condition measures discussed in this press release include Free cash flow and Adjusted free cash flow. These non-GAAP performance measures and non-GAAP financial condition measures are collectively referred to as "non-GAAP financial measures." The GAAP measures most directly comparable to Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP net income, Non-GAAP net income per diluted share, and Net sales on a constant currency basis are Operating income, Operating income margin, Net income, Net income per diluted share, and Net sales, respectively. The GAAP measure most directly comparable to Free cash flow and Adjusted free cash flow is Net cash provided by operating activities.
Non-GAAP operating income excludes, among other things, charges related to the amortization of acquisition-related intangible assets, equity-based compensation and the associated payroll taxes, acquisition and integration expenses, transformation initiatives, and workplace optimization. Non-GAAP operating income margin is defined as Non-GAAP operating income as a percentage of Net sales. Non-GAAP net income and Non-GAAP net income per diluted share exclude, among other things, charges related to the amortization of acquisition-related intangible assets, equity-based compensation and the associated payroll taxes, acquisition and integration expenses, transformation initiatives, workplace optimization, and their associated income tax effects. Net sales on a constant currency basis is defined as Net sales excluding the impact of foreign currency translation on Net sales. Free cash flow is defined as Net cash provided by operating activities less capital expenditures. Adjusted free cash flow is defined as Free cash flow adjusted to include certain cash flows from financing activities incurred in the normal course of operations or as capital expenditures.
We believe our non-GAAP performance measures provide analysts, investors, and management with useful information regarding the underlying operating performance of our business, because they remove the impact of items that management believes are not reflective of underlying operating performance. Management uses these measures to evaluate period-over-period performance as management believes they provide a more comparable measure of the underlying business. We also present non-GAAP financial condition measures because we believe they provide analysts, investors, and management with more information regarding our liquidity and capital resources. Certain non-GAAP financial measures are also used to determine certain components of performance-based compensation.
When possible, we provide a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. We are unable to provide a reconciliation of certain annual outlook non-GAAP financial targets to the corresponding GAAP financial measures on a forward-looking basis because we believe it would not be possible to have the required information necessary to quantitatively reconcile such measures with sufficient
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precision without unreasonable efforts due to, among other things, the potential variability of future events that either cannot be controlled, such as currency impacts or interest rates, or reliably predicted because they are not part of our underlying performance, such as refinancing activities or acquisition and integration expenses. For the same reasons, we are unable to address the probable significance of such unavailable information.
The financial statement tables that accompany this press release include a reconciliation of non-GAAP financial measures to the applicable most comparable GAAP financial measures.
About CDW
CDW Corporation (Nasdaq: CDW) is the strategic end-to-end technology partner that cuts through complexity to turn customer ambition into outcomes. Working with organizations across the business, government, education and healthcare sectors in the United States, the United Kingdom and Canada, CDW enables organizations to navigate an increasingly complex technology market and turn their technology investments into lasting value. For more information about CDW, please visit CDW.com.
Webcast
CDW Corporation will hold a conference call today, November 4, 2026, at 7:30 a.m. CT/8:30 a.m. ET to discuss its third quarter financial results. The conference call, which will be broadcast live via the Internet, and a copy of this press release along with supplemental slides used during the call, can be accessed on CDW’s website at investor.cdw.com. For those unable to participate in the live call, a replay of the webcast will be available at investor.cdw.com approximately 90 minutes after the completion of the call and will be accessible on the site for approximately one year. We use our website as a tool to disclose important information about CDW and comply with our disclosure obligations under Regulation Fair Disclosure. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this release.
| Investor Inquiries | Media Inquiries | ||||
| Steven O’Brien | Tammy Olson | ||||
| Senior Vice President, Investor Relations | Director, Corporate Communications | ||||
| (847) 968-0238 | (773) 797-6702 | ||||
| investorrelations@cdw.com | mediarelations@cdw.com | ||||
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CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars and shares in millions, except per-share amounts)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Percent Change | 2026 | 2025 | Percent Change | ||||||||||||||||||||||||||||||
| Net sales | $ | 6,754.5 | $ | 5,737.4 | 17.7 | % | $ | 19,006.5 | $ | 16,913.1 | 12.4 | % | |||||||||||||||||||||||
| Cost of sales | 5,369.2 | 4,481.9 | 19.8 | 15,111.4 | 13,294.1 | 13.7 | |||||||||||||||||||||||||||||
| Gross profit | 1,385.3 | 1,255.5 | 10.3 | 3,895.1 | 3,619.0 | 7.6 | |||||||||||||||||||||||||||||
| Selling and administrative expenses | 895.8 | 812.2 | 10.3 | 2,601.0 | 2,394.1 | 8.6 | |||||||||||||||||||||||||||||
| Operating income | 489.5 | 443.3 | 10.4 | 1,294.1 | 1,224.9 | 5.6 | |||||||||||||||||||||||||||||
| Interest expense, net | (65.9) | (55.0) | 19.8 | (181.4) | (168.9) | 7.4 | |||||||||||||||||||||||||||||
| Other income (expense), net | 0.3 | 1.1 | nm* | 3.1 | 2.3 | nm* | |||||||||||||||||||||||||||||
| Income before income taxes | 423.9 | 389.4 | 8.9 | 1,115.8 | 1,058.3 | 5.4 | |||||||||||||||||||||||||||||
| Income tax expense | (114.1) | (98.4) | 16.0 | (296.2) | (271.2) | 9.2 | |||||||||||||||||||||||||||||
| Net income | $ | 309.8 | $ | 291.0 | 6.5 | % | $ | 819.6 | $ | 787.1 | 4.1 | % | |||||||||||||||||||||||
| Net income per common share: | |||||||||||||||||||||||||||||||||||
| Basic | $ | 2.48 | $ | 2.22 | 11.5 | % | $ | 6.45 | $ | 5.98 | 8.0 | % | |||||||||||||||||||||||
| Diluted | $ | 2.46 | $ | 2.21 | 11.6 | % | $ | 6.43 | $ | 5.94 | 8.2 | % | |||||||||||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||||||||||||||
| Basic | 125.1 | 131.0 | 127.0 | 131.7 | |||||||||||||||||||||||||||||||
| Diluted | 125.7 | 131.8 | 127.5 | 132.6 | |||||||||||||||||||||||||||||||
*nm - Not meaningful
6
CDW CORPORATION AND SUBSIDIARIES
NET SALES DETAIL
(dollars in millions)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Percent Change(i) | 2026 | 2025 | Percent Change(i) | ||||||||||||||||||||||||||||||
| Commercial: | |||||||||||||||||||||||||||||||||||
| Corporate | $ | 2,606.3 | $ | 2,231.4 | 16.8 | % | $ | 7,598.7 | $ | 6,785.8 | 12.0 | % | |||||||||||||||||||||||
| Financial Services | 571.5 | 330.0 | 73.2 | 1,487.0 | 1,142.7 | 30.1 | |||||||||||||||||||||||||||||
| Healthcare | 801.6 | 733.2 | 9.3 | 2,428.5 | 2,252.7 | 7.8 | |||||||||||||||||||||||||||||
| Total Commercial | 3,979.4 | 3,294.6 | 20.8 | 11,514.2 | 10,181.2 | 13.1 | |||||||||||||||||||||||||||||
| Government | 912.8 | 830.9 | 9.9 | 2,393.7 | 2,182.4 | 9.7 | |||||||||||||||||||||||||||||
| Education | 982.2 | 913.5 | 7.5 | 2,590.3 | 2,498.6 | 3.7 | |||||||||||||||||||||||||||||
| Other | 880.1 | 698.4 | 26.0 | 2,508.3 | 2,050.9 | 22.3 | |||||||||||||||||||||||||||||
| Total Net sales | $ | 6,754.5 | $ | 5,737.4 | 17.7 | % | $ | 19,006.5 | $ | 16,913.1 | 12.4 | % | |||||||||||||||||||||||
(i)There were 64 selling days for both the three months ended September 30, 2026 and 2025. There were 191 selling days for both the nine months ended September 30, 2026 and 2025. Average Daily Sales is defined as Net sales divided by the number of selling days. | |||||||||||||||||||||||||||||||||||
7
CDW CORPORATION AND SUBSIDIARIES
TIMING OF REVENUE RECOGNITION
(dollars in millions)
(unaudited)
| Three Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Commercial | Government | Education | Other | Total | |||||||||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||||||||
| Transferred at a point in time where CDW is principal | $ | 3,385.4 | $ | 777.3 | $ | 871.8 | $ | 766.2 | $ | 5,800.7 | |||||||||||||||||||
| Transferred at a point in time where CDW is agent | 337.9 | 69.6 | 72.3 | 49.9 | 529.7 | ||||||||||||||||||||||||
| Transferred over time where CDW is principal | 256.1 | 65.9 | 38.1 | 64.0 | 424.1 | ||||||||||||||||||||||||
| Total Net sales | $ | 3,979.4 | $ | 912.8 | $ | 982.2 | $ | 880.1 | $ | 6,754.5 | |||||||||||||||||||
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| Commercial | Government | Education | Other | Total | |||||||||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||||||||
| Transferred at a point in time where CDW is principal | $ | 2,775.8 | $ | 683.1 | $ | 821.0 | $ | 587.6 | $ | 4,867.5 | |||||||||||||||||||
| Transferred at a point in time where CDW is agent | 284.9 | 67.2 | 62.3 | 37.9 | 452.3 | ||||||||||||||||||||||||
| Transferred over time where CDW is principal | 233.9 | 80.6 | 30.2 | 72.9 | 417.6 | ||||||||||||||||||||||||
| Total Net sales | $ | 3,294.6 | $ | 830.9 | $ | 913.5 | $ | 698.4 | $ | 5,737.4 | |||||||||||||||||||
| Nine Months Ended September 30, 2026 | |||||||||||||||||||||||||||||
| Commercial | Government | Education | Other | Total | |||||||||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||||||||
| Transferred at a point in time where CDW is principal | $ | 9,819.8 | $ | 2,042.2 | $ | 2,349.0 | $ | 2,175.0 | $ | 16,386.0 | |||||||||||||||||||
| Transferred at a point in time where CDW is agent | 959.7 | 173.1 | 147.4 | 134.4 | 1,414.6 | ||||||||||||||||||||||||
| Transferred over time where CDW is principal | 734.7 | 178.4 | 93.9 | 198.9 | 1,205.9 | ||||||||||||||||||||||||
| Total Net sales | $ | 11,514.2 | $ | 2,393.7 | $ | 2,590.3 | $ | 2,508.3 | $ | 19,006.5 | |||||||||||||||||||
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||
| Commercial | Government | Education | Other | Total | |||||||||||||||||||||||||
| Timing of Revenue Recognition | |||||||||||||||||||||||||||||
| Transferred at a point in time where CDW is principal | $ | 8,624.0 | $ | 1,814.7 | $ | 2,285.5 | $ | 1,722.3 | $ | 14,446.5 | |||||||||||||||||||
| Transferred at a point in time where CDW is agent | 860.3 | 162.0 | 127.1 | 121.5 | 1,270.9 | ||||||||||||||||||||||||
| Transferred over time where CDW is principal | 696.9 | 205.7 | 86.0 | 207.1 | 1,195.7 | ||||||||||||||||||||||||
| Total Net sales | $ | 10,181.2 | $ | 2,182.4 | $ | 2,498.6 | $ | 2,050.9 | $ | 16,913.1 | |||||||||||||||||||
8
CDW CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
| September 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||
| Assets | (unaudited) | (unaudited) | |||||||||||||||
| Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 1,538.7 | $ | 618.7 | $ | 452.9 | |||||||||||
Accounts receivable, net of allowance for credit losses of $70.2, $65.2, and $57.8, respectively | 7,767.7 | 6,312.4 | 5,785.1 | ||||||||||||||
Merchandise inventory | 1,019.9 | 563.4 | 504.7 | ||||||||||||||
Miscellaneous receivables | 587.7 | 554.0 | 613.3 | ||||||||||||||
Prepaid expenses and other | 447.7 | 452.0 | 421.4 | ||||||||||||||
| Total current assets | 11,361.7 | 8,500.5 | 7,777.4 | ||||||||||||||
| Operating lease right-of-use assets | 125.1 | 136.7 | 102.9 | ||||||||||||||
| Property and equipment, net | 163.6 | 171.5 | 177.1 | ||||||||||||||
| Goodwill | 4,998.7 | 4,662.3 | 4,642.1 | ||||||||||||||
| Other intangible assets, net | 1,255.5 | 1,186.4 | 1,225.7 | ||||||||||||||
| Accounts receivable and other assets, noncurrent | 1,683.7 | 1,370.8 | 1,272.4 | ||||||||||||||
Total assets | $ | 19,588.3 | $ | 16,028.2 | $ | 15,197.6 | |||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||
| Current liabilities: | |||||||||||||||||
Accounts payable - trade | $ | 5,509.8 | $ | 4,220.1 | $ | 3,678.8 | |||||||||||
Accounts payable - inventory financing | 599.4 | 352.6 | 331.0 | ||||||||||||||
Current maturities of long-term debt | 1,009.1 | 1,007.5 | 9.1 | ||||||||||||||
Contract liabilities | 585.8 | 534.0 | 477.0 | ||||||||||||||
Accrued expenses and other current liabilities | 1,278.7 | 1,111.9 | 1,097.9 | ||||||||||||||
| Total current liabilities | 8,982.8 | 7,226.1 | 5,593.8 | ||||||||||||||
| Long-term liabilities: | |||||||||||||||||
Debt | 6,115.2 | 4,622.3 | 5,619.7 | ||||||||||||||
Deferred income taxes | 197.5 | 171.8 | 165.3 | ||||||||||||||
Operating lease liabilities | 143.1 | 157.8 | 128.8 | ||||||||||||||
| Accounts payable and other liabilities | 1,513.8 | 1,244.1 | 1,150.3 | ||||||||||||||
| Total long-term liabilities | 7,969.6 | 6,196.0 | 7,064.1 | ||||||||||||||
| Total stockholders’ equity | 2,635.9 | 2,606.1 | 2,539.7 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 19,588.3 | $ | 16,028.2 | $ | 15,197.6 | |||||||||||
9
CDW CORPORATION AND SUBSIDIARIES
DEBT AND WORKING CAPITAL INFORMATION
(dollars in millions)
(unaudited)
| September 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||||||||||
| Debt and Revolver Availability | |||||||||||||||||
| Cash and cash equivalents | $ | 1,538.7 | $ | 618.7 | $ | 452.9 | |||||||||||
| Total debt | 7,124.3 | 5,629.8 | 5,628.8 | ||||||||||||||
Net debt(i) | 5,585.6 | 5,011.1 | 5,175.9 | ||||||||||||||
| Revolver availability | 1,869.5 | 1,925.8 | 1,304.4 | ||||||||||||||
| Cash plus revolver availability | 3,408.2 | 2,544.5 | 1,757.3 | ||||||||||||||
Working Capital(ii) | |||||||||||||||||
| Days of sales outstanding | 100 | 95 | 92 | ||||||||||||||
| Days of supply in inventory | 18 | 11 | 12 | ||||||||||||||
| Days of purchases outstanding | (98) | (90) | (93) | ||||||||||||||
| Cash conversion cycle | 20 | 16 | 11 | ||||||||||||||
(i)Defined as Total debt minus Cash and cash equivalents. | |||||||||||||||||
(ii)Based on a rolling three-month average. | |||||||||||||||||
CDW CORPORATION AND SUBSIDIARIES
CASH FLOW INFORMATION
(dollars in millions)
(unaudited)
| Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net cash provided by operating activities | $ | 618.5 | $ | 771.4 | ||||||||||
| Capital expenditures | (80.7) | (79.2) | ||||||||||||
| Acquisitions of businesses, net of cash acquired | (450.3) | (5.0) | ||||||||||||
| Other cash flows (used in) provided by investing activities | (9.6) | 208.9 | ||||||||||||
| Net cash (used in) provided by investing activities | (540.6) | 124.7 | ||||||||||||
| Net change in accounts payable-inventory financing-supplier financing | 24.4 | (24.2) | ||||||||||||
| Proceeds from accounts payable-inventory financing-product financing | 240.8 | — | ||||||||||||
| Repayments on accounts payable-inventory financing-product financing | (18.4) | — | ||||||||||||
| Other cash flows provided by (used in) financing activities | 615.5 | (944.5) | ||||||||||||
| Net cash provided by (used in) financing activities | 862.3 | (968.7) | ||||||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (13.1) | 18.0 | ||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 927.1 | (54.6) | ||||||||||||
Cash, cash equivalents, and restricted cash - beginning of period(i) | 618.9 | 507.7 | ||||||||||||
Cash, cash equivalents, and restricted cash - end of period(i) | $ | 1,546.0 | $ | 453.1 | ||||||||||
| Supplementary disclosure of cash flow information: | ||||||||||||||
| Interest paid | $ | (177.0) | $ | (173.1) | ||||||||||
| Income taxes paid, net | $ | (237.3) | $ | (195.6) | ||||||||||
(i)Restricted cash is presented within Prepaid expenses and other on the Consolidated Balance Sheets, as applicable. | ||||||||||||||
10
CDW CORPORATION AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
CDW has included reconciliations of Non-GAAP operating income, Non-GAAP operating income margin, Non-GAAP net income, Non-GAAP net income per diluted share, and Net sales on a constant currency basis for the three and nine months ended September 30, 2026 and 2025 below. In addition, a reconciliation of Free cash flow and Adjusted free cash flow is included for the nine months ended September 30, 2026 and 2025.
CDW CORPORATION AND SUBSIDIARIES
NON-GAAP OPERATING INCOME AND NON-GAAP OPERATING INCOME MARGIN
(dollars in millions)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | Percentage of Net sales | 2025 | Percentage of Net sales | 2026 | Percentage of Net sales | 2025 | Percentage of Net sales | ||||||||||||||||||||||||||||||||||||||||
| Operating income, as reported | $ | 489.5 | 7.2 | % | $ | 443.3 | 7.7 | % | $ | 1,294.1 | 6.8 | % | $ | 1,224.9 | 7.2 | % | |||||||||||||||||||||||||||||||
Amortization of intangibles(i) | 42.3 | 42.4 | 127.4 | 127.6 | |||||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | 26.7 | 27.1 | 76.9 | 71.1 | |||||||||||||||||||||||||||||||||||||||||||
Transformation initiatives(ii) | 15.2 | 13.0 | 33.4 | 44.1 | |||||||||||||||||||||||||||||||||||||||||||
| Acquisition and integration expenses | 13.8 | 1.1 | 16.4 | 6.0 | |||||||||||||||||||||||||||||||||||||||||||
Workplace optimization(iii) | 31.0 | 2.7 | 75.2 | 15.5 | |||||||||||||||||||||||||||||||||||||||||||
| Other adjustments | 1.3 | 1.0 | 4.3 | 5.1 | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP operating income | $ | 619.8 | 9.2 | % | $ | 530.6 | 9.2 | % | $ | 1,627.7 | 8.6 | % | $ | 1,494.3 | 8.8 | % | |||||||||||||||||||||||||||||||
(i)Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts, and trade names. | |||||||||||||||||||||||||||||||||||||||||||||||
(ii)Includes costs related to strategic transformation initiatives focused on optimizing various operations and systems. | |||||||||||||||||||||||||||||||||||||||||||||||
(iii)Includes costs related to workforce reductions and charges related to the reduction of our real estate lease portfolio. | |||||||||||||||||||||||||||||||||||||||||||||||
11
CDW CORPORATION AND SUBSIDIARIES
NON-GAAP NET INCOME
AND NON-GAAP NET INCOME PER DILUTED SHARE
(dollars and shares in millions, except per share amounts)
(unaudited)
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Income before Income Taxes | Income Tax Expense(i) | Net Income | Effective Tax Rate | Income before Income Taxes | Income Tax Expense(i) | Net Income | Effective Tax Rate | ||||||||||||||||||||||||||||||||||||||||
| GAAP, as reported | $ | 423.9 | $ | (114.1) | $ | 309.8 | 26.9 | % | $ | 389.4 | $ | (98.4) | $ | 291.0 | 25.3 | % | |||||||||||||||||||||||||||||||
Amortization of intangibles(ii) | 42.3 | (11.0) | 31.3 | 42.4 | (11.0) | 31.4 | |||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | 26.7 | (5.8) | 20.9 | 27.1 | (5.6) | 21.5 | |||||||||||||||||||||||||||||||||||||||||
Transformation initiatives(iii) | 15.2 | (3.5) | 11.7 | 13.0 | (3.4) | 9.6 | |||||||||||||||||||||||||||||||||||||||||
| Acquisition and integration expenses | 13.8 | (1.3) | 12.5 | 1.1 | (0.3) | 0.8 | |||||||||||||||||||||||||||||||||||||||||
Workplace optimization(iv) | 31.0 | (8.0) | 23.0 | 2.7 | (0.7) | 2.0 | |||||||||||||||||||||||||||||||||||||||||
| Other adjustments | 1.3 | (0.3) | 1.0 | 1.0 | (0.1) | 0.9 | |||||||||||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 554.2 | $ | (144.0) | $ | 410.2 | 26.0 | % | $ | 476.7 | $ | (119.5) | $ | 357.2 | 25.1 | % | |||||||||||||||||||||||||||||||
| Net income per diluted share, as reported | $ | 2.46 | $ | 2.21 | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP net income per diluted share | $ | 3.26 | $ | 2.71 | |||||||||||||||||||||||||||||||||||||||||||
| Shares used in computing GAAP and Non-GAAP net income per diluted share | 125.7 | 131.8 | |||||||||||||||||||||||||||||||||||||||||||||
(i)Income tax on non-GAAP adjustments includes excess tax benefits or shortfalls associated with equity-based compensation. | |||||||||||||||||||||||||||||||||||||||||||||||
(ii)Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts, and trade names. | |||||||||||||||||||||||||||||||||||||||||||||||
(iii)Includes costs related to strategic transformation initiatives focused on optimizing various operations and systems. | |||||||||||||||||||||||||||||||||||||||||||||||
(iv)Includes costs related to workforce reductions and charges related to the reduction of our real estate lease portfolio. | |||||||||||||||||||||||||||||||||||||||||||||||
12
CDW CORPORATION AND SUBSIDIARIES
NON-GAAP NET INCOME
AND NON-GAAP NET INCOME PER DILUTED SHARE
(dollars and shares in millions, except per share amounts)
(unaudited)
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Income before Income Taxes | Income Tax Expense(i) | Net Income | Effective Tax Rate | Income before Income Taxes | Income Tax Expense(i) | Net Income | Effective Tax Rate | ||||||||||||||||||||||||||||||||||||||||
| GAAP, as reported | $ | 1,115.8 | $ | (296.2) | $ | 819.6 | 26.5 | % | $ | 1,058.3 | $ | (271.2) | $ | 787.1 | 25.6 | % | |||||||||||||||||||||||||||||||
Amortization of intangibles(ii) | 127.4 | (33.1) | 94.3 | 127.6 | (33.2) | 94.4 | |||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | 76.9 | (13.4) | 63.5 | 71.1 | (17.6) | 53.5 | |||||||||||||||||||||||||||||||||||||||||
Transformation initiatives(iii) | 33.4 | (8.2) | 25.2 | 44.1 | (11.5) | 32.6 | |||||||||||||||||||||||||||||||||||||||||
| Acquisition and integration expenses | 16.4 | (2.0) | 14.4 | 6.0 | (1.6) | 4.4 | |||||||||||||||||||||||||||||||||||||||||
Workplace optimization(iv) | 75.2 | (19.5) | 55.7 | 15.5 | (4.0) | 11.5 | |||||||||||||||||||||||||||||||||||||||||
| Other adjustments | 4.3 | (1.1) | 3.2 | 5.1 | (1.2) | 3.9 | |||||||||||||||||||||||||||||||||||||||||
| Non-GAAP | $ | 1,449.4 | $ | (373.5) | $ | 1,075.9 | 25.8 | % | $ | 1,327.7 | $ | (340.3) | $ | 987.4 | 25.6 | % | |||||||||||||||||||||||||||||||
| Net income per diluted share, as reported | $ | 6.43 | $ | 5.94 | |||||||||||||||||||||||||||||||||||||||||||
| Non-GAAP net income per diluted share | $ | 8.44 | $ | 7.45 | |||||||||||||||||||||||||||||||||||||||||||
| Shares used in computing GAAP and Non-GAAP net income per diluted share | 127.5 | 132.6 | |||||||||||||||||||||||||||||||||||||||||||||
(i)Income tax on non-GAAP adjustments includes excess tax benefits or shortfalls associated with equity-based compensation. | |||||||||||||||||||||||||||||||||||||||||||||||
(ii)Includes amortization expense for acquisition-related intangible assets, primarily customer relationships, customer contracts, and trade names. | |||||||||||||||||||||||||||||||||||||||||||||||
(iii)Includes costs related to strategic transformation initiatives focused on optimizing various operations and systems. | |||||||||||||||||||||||||||||||||||||||||||||||
(iv)Includes costs related to workforce reductions and charges related to the reduction of our real estate lease portfolio. | |||||||||||||||||||||||||||||||||||||||||||||||
13
CDW CORPORATION AND SUBSIDIARIES
NET SALES ON A CONSTANT CURRENCY BASIS
(dollars in millions)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Percent Change(i) | 2026 | 2025 | Percent Change(i) | |||||||||||||||||||||||||||||||||
| Net sales, as reported | $ | 6,754.5 | $ | 5,737.4 | 17.7 | % | $ | 19,006.5 | $ | 16,913.1 | 12.4 | % | ||||||||||||||||||||||||||
Foreign currency translation(ii) | — | (5.9) | — | 35.2 | ||||||||||||||||||||||||||||||||||
| Net sales, on a constant currency basis | $ | 6,754.5 | $ | 5,731.5 | 17.8 | % | $ | 19,006.5 | $ | 16,948.3 | 12.1 | % | ||||||||||||||||||||||||||
(i)There were 64 selling days for both the three months ended September 30, 2026 and 2025. There were 191 selling days for both the nine months ended September 30, 2026 and 2025. Average Daily Sales is defined as Net sales divided by the number of selling days. | ||||||||||||||||||||||||||||||||||||||
(ii)Represents the effect of translating the prior year results of CDW UK and CDW Canada at the average exchange rates applicable in the current year. | ||||||||||||||||||||||||||||||||||||||
14
CDW CORPORATION AND SUBSIDIARIES
FREE CASH FLOW AND ADJUSTED FREE CASH FLOW
(dollars in millions)
(unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | $ | 618.5 | $ | 771.4 | |||||||
| Capital expenditures | (80.7) | (79.2) | |||||||||
| Free cash flow | 537.8 | 692.2 | |||||||||
| Net change in accounts payable-inventory financing-supplier financing | 24.4 | (24.2) | |||||||||
| Proceeds from accounts payable-inventory financing-product financing | 240.8 | — | |||||||||
| Repayments on accounts payable-inventory financing-product financing | (18.4) | — | |||||||||
Adjusted free cash flow(i) | $ | 784.6 | $ | 668.0 | |||||||
(i)Defined as Net cash provided by operating activities less Capital expenditures, adjusted to include cash flows from financing activities that relate to the purchase of inventory. | |||||||||||
15
EXHIBIT 99.2
CDW Declares Quarterly Cash Dividend of $0.680 Per Share
Reinforces Ongoing Commitment to Delivering Value to Stockholders
VERNON HILLS, Ill., November 4, 2026 -- CDW Corporation (Nasdaq: CDW) announced today that its Board of Directors declared a quarterly cash dividend of $0.680 per common share to be paid on December 10, 2026, to all stockholders of record as of the close of business on November 25, 2026. This amount represents approximately an 8 percent increase over last year's dividend and is aligned with the target of 25 percent of the trailing-twelve-month Non-GAAP net income through September 30, 2026.
"Dividends represent an important component of our capital allocation priorities, along with share repurchases, strategic M&A, and managing our capital structure." said Albert J. Miralles, chief financial officer, CDW. "This increase reflects our confidence in CDW’s future earnings power and cash flow generation. Since our IPO in June 2013, our dividend has increased sixteen-fold, with thirteen consecutive years of increases, and we have returned over $9.0 billion to stockholders through share repurchases and dividends. Our capital allocation strategy has enabled us to deliver value to our stockholders, just as we have delivered value to our customers and partners for over 40 years."
Future dividends and share repurchase authorizations will be at the discretion of and subject to approval by CDW's Board of Directors. The payment of any future dividends will be at the discretion of our Board of Directors and will depend upon our results of operations, financial condition, business prospects, capital requirements, contractual restrictions (including in current or future agreements governing our indebtedness), restrictions imposed by applicable law, tax considerations, and other factors that our Board of Directors deems relevant. Share repurchases under the program will be made from time to time in private transactions, open market purchases, or other transactions as permitted by securities laws and other legal requirements. The timing and amounts of any purchases will be based on market conditions and other factors including but not limited to price, regulatory requirements, and capital availability. The program does not require the purchase of any minimum dollar amount or number of shares and the program may be modified, suspended, or discontinued at any time. As of September 30, 2026, the Company has approximately $1,032 million remaining under the program.
About CDW
CDW Corporation (Nasdaq: CDW) is the strategic end-to-end technology partner that cuts through complexity to turn customer ambition into outcomes. Working with organizations across the business, government, education and healthcare sectors in the United States, the United Kingdom and Canada, CDW enables organizations to navigate an increasingly complex technology market and turn their technology investments into lasting value. For more information about CDW, please visit CDW.com.
Forward-Looking Statements
Statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future dividends, share repurchases, earnings growth, capital allocation, leverage ratio, stockholder returns, and other strategic plans of CDW. These forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those described in such statements. Although CDW believes that its plans, intentions, and other expectations reflected in or suggested by such forward-looking statements are reasonable, it can give no assurance that it will achieve those plans, intentions, or expectations. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Forward-Looking Statements" and "Risk Factors" in CDW's Annual Report on Form 10-K for the year ended December 31, 2025, and in CDW's subsequent filings with the Securities and Exchange Commission. CDW undertakes no obligation to update or revise any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.
| Investor Inquiries | Media Inquiries | ||||
| Steven O’Brien | Tammy Olson | ||||
| Senior Vice President, Investor Relations | Director, Corporate Communications | ||||
| (847) 968-0238 | (773) 797-6702 | ||||
| investorrelations@cdw.com | mediarelations@cdw.com | ||||