CDW Corporation (Nasdaq: CDW) has announced its first-quarter financial results for 2026, showcasing solid growth in net sales and profitability. The company reported a rise in demand for technology solutions amidst a dynamic economic landscape, highlighting its strategic role in supporting clients through complex technological changes.

1. Financial Performance Overview

For the first quarter ended March 31, 2026, CDW reported net sales of $5,679.8 million, marking a 9.2% increase from $5,199.1 million in the same quarter of 2025. This growth was attributed to heightened customer demand across various segments, particularly in data storage, servers, netcomm products, software, and mobile devices.

Key Financial Metrics

Gross Profit: Increased to $1,190.0 million, up 6.0% from $1,122.3 million in Q1 2025.

Gross Profit Margin: Declined to 21.0% from 21.6%, mainly due to lower netted down revenue contributions.

Operating Income: Rose by 4.0% to $376 million compared to $361 million in the previous year.

Non-GAAP Operating Income: Increased to $451.9 million, reflecting a 1.8% growth from $444 million in Q1 2025.

Net Income: Grew by 4.7% to $235.4 million, up from $224.9 million a year ago.

Net Income per Diluted Share: Increased by 7.9% to $1.82 from $1.69.

These results underscore CDW’s capacity to navigate a complex environment while achieving robust financial outcomes.

2. Strategic Commentary

Christine A. Leahy, CDW’s Chair and CEO, remarked on the company's performance, stating, "CDW delivered a strong first quarter, reflecting outcome-driven execution in a complex and fast-moving environment." Leahy emphasized the growing reliance of customers on CDW’s integration, governance, and lifecycle expertise as they transition from AI exploration to production environments.

Albert J. Miralles, Chief Financial Officer, noted that the demand for infrastructure hardware, combined with disciplined execution, drove the solid net sales growth and resilient profitability during the quarter. He highlighted the company's commitment to disciplined working capital management, which enables strong cash flow and capital flexibility amidst ongoing economic uncertainties.

3. Segment Performance Breakdown

CDW's diversified operations contributed to its growth, with notable performance across its segments:

Commercial Segment: Net sales reached $3,569 million, up 9.6% year-over-year, fueled by strong demand from Financial Services (up 28.2%), Corporate (up 8.4%), and Healthcare customers (up 4.9%).

Government Segment: Reported net sales of $633 million, a 4.6% increase from 2025.

Education Segment: Achieved net sales of $675 million, reflecting a 2.5% increase.

Other Operations (UK and Canada): Combined net sales of $803 million, up 17.9% year-over-year.

4. Dividend Announcement

In addition to its financial results, CDW’s Board of Directors approved a quarterly cash dividend of $0.630 per common share. This dividend is set to be paid on June 10, 2026, to all stockholders of record as of the close of business on May 25, 2026, demonstrating the company's commitment to returning value to its shareholders.

5. Conclusion

CDW Corporation's first-quarter results for 2026 reflect a strong operational performance driven by effective strategies and robust customer demand. With its continued focus on integrating cutting-edge technologies and providing comprehensive solutions, CDW is well-positioned to capture growth opportunities in the evolving IT landscape. As the company anticipates exceeding US IT addressable market growth by 200 to 300 basis points on a constant currency basis, stakeholders remain optimistic about its prospects in the upcoming quarters.

Original press release