CDW Q2 FY2026: revenue up 10.0%, but margin and cash flow slip
CDW's fiscal 2026 second quarter was a growth story with a thinner profit layer: revenue rose 10.0% to $6.5722 billion and non-GAAP EPS of $2.91 beat the $2.8275 consensus, but gross margin fell to 20.1% and free cash flow turned negative at -$82.6 million. Read the quarter as demand-led, not efficiency-led — the top line and earnings per share both improved, yet the cash and margin lines show what that growth cost.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS was $2.15, up 5.1%, while non-GAAP diluted EPS was $2.91, up 11.9% and above the $2.8275 consensus. The $0.76 gap between the two reflects items such as $44.2 million of workplace optimization costs, intangible amortization and equity-based compensation. A lower diluted share count of 127.4 million, versus 132.4 million, did part of the work.
Revenue of $6.5722 billion rose 10.0% from $5.9766 billion a year earlier, with 64 selling days in both quarters. Growth was broad but uneven: Government rose 13.6%, the UK and Canada "Other" segment rose 22.9% and Commercial rose 9.2%, while Education managed only 0.7%. Customer demand centered on data storage and servers, notebooks/mobile devices, software and netcomm products.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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