CDW Reports Third Quarter 2026 Earnings
- 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." 1 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.
• 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 cert ain 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.
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. 2 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.
• 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;
• 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 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;
• 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;
• 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; 3 • 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.
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 4 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.
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 .
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 Director, Corporate Communications Relations (847) 968-0238 (773) 797-6702 investorrelations@cdw.com mediarelations@cdw.com
Nine Months Ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by operating $ 618.5 $ 771.4 activities Capital expenditures -80.7 -79.2 Acquisitions of businesses, net of cash -450.3 -5.0 acquired Other cash flows (used in) provided by -9.6 208.9 investing activities Net cash (used in) provided by investing -540.6 124.7 activities Net change in accounts payable-inventory 24.4 -24.2 financing-supplier financing Proceeds from accounts payable-inventory 240.8 — financing-product financing Repayments on accounts payable-inventory -18.4 — financing-product financing Other cash flows provided by (used in) 615.5 -944.5 financing activities Net cash provided by (used in) financing 862.3 -968.7 activities Effect of exchange rate changes on cash, -13.1 18.0 cash equivalents, and restricted cash Net increase (decrease) in cash, cash 927.1 -54.6 equivalents, and restricted cash Cash, cash equivalents, and restricted 618.9 507.7 cash - beginning of period(i) Cash, cash equivalents, and restricted $ 1,546.0 $ 453.1 cash - end of period(i) 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.
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.
Nine Months Ended September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by operating $ 618.5 $ 771.4 activities Capital expenditures -80.7 -79.2 Free cash flow 537.8 692.2 Net change in accounts payable-inventory 24.4 -24.2 financing-supplier financing Proceeds from accounts payable-inventory 240.8 — financing-product financing Repayments on accounts payable-inventory -18.4 — financing-product financing 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.
Full text with the tables
EXHIBIT 99.1
CDW Reports Third Quarter 2026 Earnings
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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."
1
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 cert ain 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.
2
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;
3
• 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
4
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 Director, Corporate Communications
Relations
(847) 968-0238 (773) 797-6702
investorrelations@cdw.com mediarelations@cdw.com
5
CDW CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars and shares in millions, except per-share amounts)
(unaudited)
T… Ni…
M… Mo…
E… En…
S… Pe… Se… P…
20… 3… 20… Ch… 2… 30, 2… C…
──────────────────────────────────────────────────────────────────────────────
… $ 6… $ 5… 1… % $ 19… $ 16… 12… %
…
…
… 5… 4… 1… 15… 13… 13…
…
… 1… 1… 1… 3,… 3,… 7.6
…
…
… 8… 8… 1… 2,… 2,… 8.6
…
…
… 4… 4… 1… 1,… 1,… 5.6
…
…
… -… -… 1… -1… -1… 7.4
…
…
… 0… 1… nm* 3.1 2.3 n…
…
…
…
… 4… 3… 8… 1,… 1,… 5.4
…
…
…
… -… -… 1… -2… -2… 9.2
…
… $ 3… $ 2… 6… % $ 81… $ 78… 4.1 %
…
…
…
…
…
…
… $ 2… $ 2… 1… % $ 6.… $ 5.… 8.0 %
… $ 2… $ 2… 1… % $ 6.… $ 5.… 8.2 %
…
…
…
…
… 1… 1… 12… 13…
… 1… 1… 12… 13…
*nm - Not meaningful
6
CDW CORPORATION AND SUBSIDIARIES
NET SALES DETAIL
(dollars in millions)
(unaudited)
Th… N…
Mo… M…
En… E…
Se… S…
30, P… 3… P…
C… 20… 20… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
C… $ 2,… $ 2,… 16… % $ 7,… $ 6,… 12… %
F… 57… 33… 73… 1,… 1,… 30…
S…
H… 80… 73… 9.3 2,… 2,… 7.8
T… 3,… 3,… 20… 11… 10… 13…
C…
G… 91… 83… 9.9 2,… 2,… 9.7
E… 98… 91… 7.5 2,… 2,… 3.7
O… 88… 69… 26… 2,… 2,… 22…
T…
N… $ 6,… $ 5,… 17… % $ 19… $ 16… 12… %
s…
(…
w…
64
s…
d…
f…
b…
t…
t…
m…
e…
S…
3…
2…
a…
2…
T…
w…
1…
s…
d…
f…
b…
t…
n…
m…
e…
S…
3…
2…
a…
2…
A…
D…
S…
is
d…
as
N…
s…
d…
by
t…
n…
of
s…
d…
7
CDW CORPORATION AND SUBSIDIARIES
TIMING OF REVENUE RECOGNITION
(dollars in millions)
(unaudited)
Thr…
Mon…
End…
Sep…
30,
2026
──────────────────────────────────────────────────────────────────────────────
Com… Gov… Educ… Other Total
Ti…
of
Re…
Re…
Tr…
at
a
po…
in $ 3,3… $ 777… $ 871… $ 766… $ 5,8…
ti…
wh…
CDW
is
pr…
Tr…
at
a
po…
in 337… 69.6 72.3 49.9 529…
ti…
wh…
CDW
is
ag…
Tr…
ov…
ti…
wh… 256… 65.9 38.1 64.0 424…
CDW
is
pr…
To…
Net $ 3,9… $ 912… $ 982… $ 880… $ 6,7…
sa…
Thr…
Mon…
End…
Sep…
30,
2025
Com… Gov… Educ… Other Total
Ti…
of
Re…
Re…
Tr…
at
a
po…
in $ 2,7… $ 683… $ 821… $ 587… $ 4,8…
ti…
wh…
CDW
is
pr…
Tr…
at
a
po…
in 284… 67.2 62.3 37.9 452…
ti…
wh…
CDW
is
ag…
Tr…
ov…
ti…
wh… 233… 80.6 30.2 72.9 417…
CDW
is
pr…
To…
Net $ 3,2… $ 830… $ 913… $ 698… $ 5,7…
sa…
Nine
Mon…
End…
Sep…
30,
2026
Com… Gov… Educ… Other Total
Ti…
of
Re…
Re…
Tr…
at
a
po…
in $ 9,8… $ 2,0… $ 2,3… $ 2,1… $ 16,…
ti…
wh…
CDW
is
pr…
Tr…
at
a
po…
in 959… 173… 147… 134… 1,4…
ti…
wh…
CDW
is
ag…
Tr…
ov…
ti…
wh… 734… 178… 93.9 198… 1,2…
CDW
is
pr…
To…
Net $ 11,… $ 2,3… $ 2,5… $ 2,5… $ 19,…
sa…
Nine
Mon…
End…
Sep…
30,
2025
Com… Gov… Educ… Other Total
Ti…
of
Re…
Re…
Tr…
at
a
po…
in $ 8,6… $ 1,8… $ 2,2… $ 1,7… $ 14,…
ti…
wh…
CDW
is
pr…
Tr…
at
a
po…
in 860… 162… 127… 121… 1,2…
ti…
wh…
CDW
is
ag…
Tr…
ov…
ti…
wh… 696… 205… 86.0 207… 1,1…
CDW
is
pr…
To…
Net $ 10,… $ 2,1… $ 2,4… $ 2,0… $ 16,…
sa…
8
CDW CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
September December September
30, 2026 31, 2025 30, 2025
──────────────────────────────────────────────────────────────────────────────
Assets -unaudited -unaudited
Current
assets:
Cash and
cash $ 1,538.7 $ 618.7 $ 452.9
equivale…
Accounts
receivab…
net of
allowance
for
credit 7,767.7 6,312.4 5,785.1
losses
of $70.2,
$65.2,
and
$57.8,
respecti…
Merchand… 1,019.9 563.4 504.7
inventory
Miscella… 587.7 554.0 613.3
receivab…
Prepaid
expenses 447.7 452.0 421.4
and other
Total
current 11,361.7 8,500.5 7,777.4
assets
Operating
lease 125.1 136.7 102.9
right-of…
assets
Property
and 163.6 171.5 177.1
equipmen…
net
Goodwill 4,998.7 4,662.3 4,642.1
Other
intangib… 1,255.5 1,186.4 1,225.7
assets,
net
Accounts
receivab…
and other 1,683.7 1,370.8 1,272.4
assets,
noncurre…
Total $ 19,588.3 $ 16,028.2 $ 15,197.6
assets
Liabilit…
and
Stockhol…
Equity
Current
liabilit…
Accounts
payable - $ 5,509.8 $ 4,220.1 $ 3,678.8
trade
Accounts
payable - 599.4 352.6 331.0
inventory
financing
Current
maturiti…
of 1,009.1 1,007.5 9.1
long-term
debt
Contract 585.8 534.0 477.0
liabilit…
Accrued
expenses
and other 1,278.7 1,111.9 1,097.9
current
liabilit…
Total
current 8,982.8 7,226.1 5,593.8
liabilit…
Long-term
liabilit…
Debt 6,115.2 4,622.3 5,619.7
Deferred
income 197.5 171.8 165.3
taxes
Operating
lease 143.1 157.8 128.8
liabilit…
Accounts
payable 1,513.8 1,244.1 1,150.3
and other
liabilit…
Total
long-term 7,969.6 6,196.0 7,064.1
liabilit…
Total
stockhol… 2,635.9 2,606.1 2,539.7
equity
Total
liabilit…
and $ 19,588.3 $ 16,028.2 $ 15,197.6
stockhol…
equity
9
CDW CORPORATION AND SUBSIDIARIES
DEBT AND WORKING CAPITAL INFORMATION
(dollars in millions)
(unaudited)
September 30, December 31, September 30,
2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
Debt and
Revolver
Availability
Cash and cash $ 1,538.7 $ 618.7 $ 452.9
equivalents
Total debt 7,124.3 5,629.8 5,628.8
Net debt(i) 5,585.6 5,011.1 5,175.9
Revolver 1,869.5 1,925.8 1,304.4
availability
Cash plus
revolver 3,408.2 2,544.5 1,757.3
availability
Working
Capital(ii)
Days of sales 100 95 92
outstanding
Days of
supply in 18 11 12
inventory
Days of
purchases -98 -90 -93
outstanding
Cash
conversion 20 16 11
cycle
(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 $ 618.5 $ 771.4
activities
Capital expenditures -80.7 -79.2
Acquisitions of businesses, net
of cash -450.3 -5.0
acquired
Other cash flows (used in)
provided by -9.6 208.9
investing activities
Net cash (used in) provided by
investing -540.6 124.7
activities
Net change in accounts
payable-inventory 24.4 -24.2
financing-supplier financing
Proceeds from accounts
payable-inventory 240.8 —
financing-product financing
Repayments on accounts
payable-inventory -18.4 —
financing-product financing
Other cash flows provided by
(used in) 615.5 -944.5
financing activities
Net cash provided by (used in)
financing 862.3 -968.7
activities
Effect of exchange rate changes
on cash, -13.1 18.0
cash equivalents, and restricted
cash
Net increase (decrease) in cash,
cash 927.1 -54.6
equivalents, and restricted cash
Cash, cash equivalents, and
restricted 618.9 507.7
cash - beginning of period(i)
Cash, cash equivalents, and
restricted $ 1,546.0 $ 453.1
cash - end of period(i)
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)
… …
… … … … … …
… … … … … …
… … … … … …
… … … … … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … … % $ … … % $ … … % $ … … %
… … … …
… … … …
… … … …
… … … …
… … … …
… … … …
$ … … % $ … … % $ … … % $ … … %
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)
…
…
…
…
…
… 2…
… I…
… … E… b… I… E…
… … N… T… I… T… N… T…
… … I… R… T… E… I… R…
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … … % $ … $ … $ … … %
… … … … … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
$ … $ … $ … … % $ … $ … $ … … %
$ … $ …
$ … $ …
… …
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)
…
…
…
…
…
… 2…
… I…
… … E… b… I… E…
… … N… T… I… T… N… T…
… … I… R… T… E… I… R…
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … … % $ … $ … $ … … %
… … … … … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
… … … … … …
$ … $ … $ … … % $ … $ … $ … … %
$ … $ …
$ … $ …
… …
13
CDW CORPORATION AND SUBSIDIARIES
NET SALES ON A CONSTANT CURRENCY BASIS
(dollars in millions)
(unaudited)
T… N…
M… M…
E… E…
S… P… S… P…
2… 3… 2… C… 3… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
…
… $ 6… $ 5… 1… % $ 19… $ 16… 12… %
…
…
…
… — -… — 35…
…
…
…
…
a $ 6… $ 5… 1… % $ 19… $ 16… 12… %
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
…
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 $ 618.5 $ 771.4
activities
Capital expenditures -80.7 -79.2
Free cash flow 537.8 692.2
Net change in accounts
payable-inventory 24.4 -24.2
financing-supplier financing
Proceeds from accounts
payable-inventory 240.8 —
financing-product financing
Repayments on accounts
payable-inventory -18.4 —
financing-product financing
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