Overview
- CDW reported record second‑quarter results with net sales up 10% to $6.6 billion and non‑GAAP diluted EPS rising 12% to $2.91.
- Management said demand for infrastructure modernization, AI readiness and security lifted double‑digit hardware and software revenue across commercial, government and international customers.
- The company raised its 2026 growth outlook and said it expects to outperform the U.S. IT market by 200 to 300 basis points while warning gross margins will remain below 2025 levels.
- First‑half free‑cash‑flow conversion fell to 42% largely because the company increased inventory to support elevated hardware demand and manage supply volatility.
- CFO Al Morales disclosed plans to retire in 2027 and management signaled operational levers such as lifecycle services, cost savings programs and opportunistic buybacks as ways to strengthen margins and cash flow going forward.