CDW Sales Growth Accelerates to 17.7 Percent

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter net sales reached $6,754.5 million, faster than the 10.0 percent pace in the second quarter, as Commercial and Other sales growth exceeded their first-quarter rates.

CDW Corporation (CDW) reported third-quarter net sales of $6,754.5 million, up 17.7 percent from a year earlier, after 10.0 percent growth in the second quarter and 9.2 percent in the first.

The technology reseller said customer demand drove the increase primarily in data storage and servers, notebooks/mobile devices, and software. Constant-currency sales rose 17.8 percent. Average daily sales were $105.5 million across 64 selling days.

Commercial segment net sales were $3,979.4 million, 20.8 percent higher than 2025, accelerating from 9.6 percent growth in the first quarter. Financial Services sales rose 73.2 percent to $571.5 million, Corporate 16.8 percent to $2,606.3 million, and Healthcare 9.3 percent to $801.6 million. Government sales were $912.8 million, up 9.9 percent. Education sales were $982.2 million, up 7.5 percent. Other, covering the United Kingdom and Canada, was $880.1 million, up 26.0 percent.

Gross profit was $1,385.3 million, up 10.3 percent. Gross profit margin was 20.5 percent, down from 21.9 percent a year earlier. The company said the year-over-year decline was primarily driven by mix into and lower margin in certain product categories. Selling and administrative expenses were $895.8 million, up 10.3 percent, which the company said was primarily due to higher performance-based incentives, workplace optimization costs, and acquisition costs. Operating income was $489.5 million, up 10.4 percent, for a 7.2 percent margin.

Non-GAAP operating income was $619.8 million, up 16.8 percent, with the margin holding at 9.2 percent. Net income was $309.8 million, up 6.5 percent. Non-GAAP net income was $410.2 million, up 14.8 percent. Diluted earnings were $2.46 a share, up 11.6 percent. Non-GAAP diluted earnings were $3.26 a share, up 20.4 percent. Weighted-average diluted shares were 125.7 million.

Interest expense, net was $65.9 million, up 19.8 percent, primarily due to higher average borrowings under the senior unsecured revolving loan facility and lower interest income on cash. The effective tax rate was 26.9 percent, versus 25.3 percent a year earlier, which the company said was primarily due to lower tax credits and higher non-deductible expenses.

Cash and cash equivalents were $1,538.7 million at September 30, 2026, versus $618.7 million at December 31, 2025. Total debt was $7,124.3 million and net debt $5,585.6 million. Days of sales outstanding were 100, versus 95 at year-end. Days of supply in inventory were 18, versus 11.

For the nine months ended September 30, 2026, net cash provided by operating activities was $618.5 million, versus $771.4 million a year earlier. Acquisitions of businesses, net of cash acquired, were $450.3 million, versus $5.0 million.

Chair and chief executive Christine A. Leahy said the quarter was powered by broad-based strength across customer end-markets and momentum in enterprise AI adoption. Chief financial officer Albert J. Miralles said 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. Leahy said the company remains confident in its ability to outpace US IT addressable market growth by 200 to 300 basis points on a constant currency basis.

The board approved a quarterly cash dividend of $0.680 a share, payable December 10, 2026, to stockholders of record as of November 25, 2026, up from $0.630 in the second and first quarters.