10-Q · May 6, 2026
CDW Corporation reported strong Q1 2026 earnings with revenue of $5.68 billion, exceeding prior estimates and showing a 9.2% increase year-over-year, while EPS also surpassed expectations at $2.28. Segment performance…
Earnings analysis · 10-Q
CDW earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
CDW delivered strong third-quarter growth, with revenue of $6.754 billion up 17.7% year over year and non-GAAP EPS of $3.26, or 10.9% above consensus. However, GAAP EPS was $2.46, gross margin fell to 20.5%, and…
Read full summary
CDW delivered strong third-quarter growth, with revenue of $6.754 billion up 17.7% year over year and non-GAAP EPS of $3.26, or 10.9% above consensus. However, GAAP EPS was $2.46, gross margin fell to 20.5%, and nine-month free cash flow was $537.8 million, reflecting weaker profitability and cash conversion. Management retained a constructive growth objective of outpacing the U.S. IT market by 200 to 300 basis points, but the 10-Q did not provide formal numeric revenue or EPS guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.46
- Gross margin
- 20.5%
What stood out
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Record revenue materially beat estimates
Revenue increased 17.7% year over year to $6,754.5 million and exceeded the $6,178.2 million consensus estimate by 9.3%.
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Adjusted EPS exceeded consensus
Non-GAAP diluted EPS was $3.26, 10.9% above the $2.94 consensus estimate; GAAP diluted EPS was $2.46.
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Growth outlook remains constructive
Nine-month free cash flow was $537.8 million, while management continued to target growth ahead of U.S. IT addressable-market expansion by 200 to 300 basis points on a constant-currency basis.
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No control deficiencies reported
The company maintained effective disclosure controls as of September 30, 2026, and reported no material changes to internal controls during the three months ended September 30, 2026.
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Substantial repurchase capacity remains
CDW had approximately $1,032 million remaining under its share-repurchase authorization as of September 30, 2026, supporting continued capital-return flexibility.
What to watch
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Gross-margin compression
Gross margin declined to 20.5% from 21.9% in the year-ago quarter and 20.8% in the immediately preceding quarter, indicating pressure from large infrastructure deals and mix.
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Weaker cash conversion
Nine-month free cash flow was $537.8 million, down from $692 million implied by the first nine months of 2025 based on quarterly free cash flow of $260 million, $133 million, and $299 million, signaling weaker cash conversion year over year.
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Higher-cost debt issuance
CDW issued senior notes bearing interest rates of 5.700%, 6.100%, and 6.350% on September 21, 2026, increasing exposure to financing and interest costs.
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Acquisition-related share dilution
The company issued 327,370 restricted common shares with a fair value of $44 million as partial consideration for the Lovelytics acquisition, creating dilution risk.
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No new formal risk-factor changes
The filing states that there were no material changes to risk factors during the nine months ended September 30, 2026; therefore, no new material risk-factor changes versus the 2025 Form 10-K were identified.
Management's outlook
The 10-Q provides no formal numeric revenue or EPS guidance. Management reiterated its expectation to outpace U.S. IT addressable-market growth by 200 to 300 basis points on a constant-currency basis; the filing does not quantify a change versus prior outlook.
Earlier filings 4
10-K · February 20, 2026
CDW reported Net sales of $22,424.1 million in 2025, up from $20,998.7 million in 2024, and positions itself as a multi‑brand IT solutions provider serving over 250,000 customers across the US, UK and Canada. The…
10-Q · May 7, 2025
CDW reported net sales of $5,199.1 million for the quarter, up $326.4 million (+6.7%) versus the prior-year quarter, with diluted EPS of $1.69 (vs. $1.59). Operating income rose to $361.4 million and gross profit…
10-K · February 21, 2025
CDW describes itself as a large, multi‑brand IT solutions provider with scale across the US, UK and Canada, serving over 250,000 customers and offering hardware, software and services across the IT lifecycle. 2024 Net…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.