CDW · Q2 2026 Earnings

Neutral

CDW Corporation

Reported August 5, 2026

30-second summary

Revenue grew 10.0% YoY to $6.57B and non-GAAP EPS of $2.91 grew 11.9% YoY vs. $2.60, clearing the prior quarter's high-single-digit Q2 EPS guide and the market-+200-300bps revenue frame. The more informative signal is what's missing: no updated Q3 dollar guide, no refreshed FY2026 EPS or gross profit range, and gross margin at 20.1% still trails prior-year Q2's 20.8% by 70bps — meaning the FY "in line with 2025 (~20.5%)" reset from Q1 remains under pressure at the half-year mark despite the earnings beat. Management restated the 200-300bps constant-currency outperformance frame and let the FY range stand, which reads as post-beat restraint rather than confidence.

Headline numbers

EPS

Q2 FY2026

$2.91

+3.9% vs est.

Revenue

Q2 FY2026

$6.57B

+10.0% YoY

+5.8% vs est.

Gross margin

Q2 FY2026

20.1%

Operating margin

Q2 FY2026

6.5%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$6.57B	$5.98B	+10.0%	$5.68B	+15.7%
EPS	$2.91	$2.60	+11.9%	$2.28	+27.6%
Gross margin	20.1%	20.8%	-70bps	21.0%	-90bps
Operating margin	6.5%	7.0%	-50bps	6.6%	-10bps

Guidance

Q2 FY2026 revenue and EPS beat qualitative guidance; FY2026 full-year outlook reaffirmed without numeric update.

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	Not numerically specified; qualitatively 'high single-digit YoY growth'	$6.572B	+10% YoY vs high single-digit guide; beat by ~100-200 bps	Beat
Non-GAAP EPS	Q2 FY2026	Not numerically specified; qualitatively 'up high single digits year over year'	$2.91	Beat consensus ($2.80) by +3.9%	Beat
Gross Profit Growth	Q2 FY2026	High single-digit YoY growth; high single-digit sequential growth	Gross margin 20.1% (in-line with guidance)	In-line with prior guide	Met

Reaffirmed unchanged this quarter: Non-GAAP EPS (No new FY2026 EPS guidance issued this quarter), Gross Margin (No new FY2026 margin guidance issued this quarter), Gross Profit Growth (No new FY2026 gross profit growth guidance issued this quarter), IT Addressable Market Outperformance (200-300 basis points above US IT addressable market growth on constant currency basis)

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Commercial	$3.965B	—	+9.2%
Government	$0.848B	—	+13.6%
Education	$0.933B	—	+0.7%
Commercial - Corporate	$2.618B	—	+10.7%
Commercial - Healthcare	$0.86B	—	+9.1%
Commercial - Financial Services	$0.487B	—	+1.8%

Platform metrics

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Average Daily Sales	$102.7M	$93.4 million	—
Net Sales Constant Currency Growth	9.9%	—	—
Days of Sales Outstanding	93 days	—	—
Days of Supply in Inventory	16 days	—	—
Cash Conversion Cycle	21 days	—	—

Profitability

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Non-GAAP Operating Income Margin	8.5%	8.7%	—
Gross Profit Margin	20.1%	—	—
Non-GAAP Net Income per Diluted Share	$2.91	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	YoY
Other (UK & Canada)	$0.826B	+22.9%

Management tone

No transcript was available for this quarter; tone analysis is limited to what the press release framing reveals.

The single most informative signal is what management chose not to disclose. After delivering revenue +10.0% and EPS +11.9% YoY, the press release contains no updated Q3 dollar guide, no raised FY EPS range, and no upgraded outperformance target — only a restatement of the 200-300bps constant-currency frame. This is the third consecutive quarter (Q4 2025 → Q1 2026 → Q2 2026) where the outperformance ceiling has held at 200-300bps despite consistent over-delivery. On the Q4 2025 call management explicitly reframed the metric to constant currency, lowering the reported-basis bar; this quarter that same frame is repeated verbatim. The 200-300bps target continues to function as a managed cap, not a growth commitment being revised upward.

What to watch into next quarter

Q3 FY2026 dollar guide reintroduction — Watch the Q3 call for whether management resumes explicit next-quarter dollar/YoY guidance or continues with qualitative-only framing. A second consecutive quarter without a next-quarter guide would signal materially reduced H2 visibility.

Gross margin gap vs. prior-year Q3 — Watch whether Q3 FY2026 closes the 70bps YoY gap that has now persisted through H1, or widens it. Given H1 already ran at 20.5% and the FY guide is "approximately in line with 2025 ~20.5%," a wider Q3 gap would put the FY reset at risk.

Financial Services — was Q1 the outlier or is Q2 the outlier — After +28.2% in Q1 and +1.8% in Q2, the Q3 print determines whether the segment is durable double-digit (Q1 was clean) or lumpy low-single-digit (Q2 is the trend). A sub-5% Q3 FSI print would invalidate the "durable, AI-infra driven" framing from Q1.

Government sustainability post-shutdown drag — +13.6% is the highest Government growth in this coverage window. Watch whether Q3 sustains double-digits — if so, the post-shutdown recovery thesis is validated; if it drops back to mid-single-digit, Q2 was a comp benefit.

Geared for Growth savings quantification — H2 FY2026 was committed as the first flow-through quarter for the $100-200M program. The Q2 release did not quantify the H1 contribution. Watch whether Q3 provides an in-quarter dollar figure or continues to defer specificity.

FCF conversion recovery — H1 FCF margin of 1.4% is very low and no FY conversion target was restated in the print. Watch Q3 for either an explicit conversion reaffirmation or an acknowledgment of working-capital pressure — the latter would put the FY EPS-to-cash bridge in doubt.

Sources

CDW Corporation Q2 2026 Earnings Release, https://www.sec.gov/Archives/edgar/data/1402057/000140205726000062/cdw-2026630earningsrelease.htm

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