CDW Corp

DUS:CDW

Record quarter: CDW delivered all-time quarterly records for net sales, gross profit and earnings per share, with net sales of $6.6 billion, up 10%, and non-GAAP EPS of $2.91, up 12%.

AI demand: Management said AI is increasingly driving customer activity, especially in infrastructure, security, cloud and services, with adoption still led by large enterprises but broadening across customer segments.

Outlook raised: The company increased its full-year 2026 outlook, now expecting gross profit to grow in the mid-single digits and full-year EPS growth to land at the high end of the high-single-digit range.

Margin mix: Gross margin fell 70 basis points to 20.1% because of mix toward large hardware infrastructure deals and a lower contribution from services, not because of like-for-like pricing pressure.

Cash flow caution: Free cash flow was muted in the first half because of working capital and inventory investment, but management expects cash conversion to normalize in the back half of the year.

Services lag: Services grew only 1% in the quarter, but management expects a pickup as hardware and cloud projects move from procurement into implementation and management.