CDW Q2 sales beat estimates on strong cloud and AI demand

CDW

05/08/2026 12:11

Overview
US IT solutions provider's Q2 sales rose 10% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company says Q2 growth driven by demand for infrastructure modernization, cloud and AI technologies

Outlook
CDW expects to exceed US IT addressable market growth by 200-300 basis points, constant currency
Company sees strong demand for infrastructure, cloud, and AI-enabled technologies continuing
CDW says it will focus on balancing growth investments with operational efficiency

Result Drivers
INFRASTRUCTURE DEMAND - Co said Q2 sales growth was driven by customer investments in infrastructure modernization, cloud, and AI technologies
SEGMENT SALES GROWTH - Co cited sales growth in data storage, servers, notebooks/mobile devices, software, and netcomm products
MARGIN PRESSURE - Gross profit margin declined due to mix into and lower margin in certain hardware categories, partially offset by higher contribution of netted down revenue

Company press release: ID:nBw3vGQRFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$6.57 bln
$6.21 bln (8 Analysts)
Q2 Adjusted EPS
Beat
$2.91
$2.80 (10 Analysts)
Q2 Adjusted Net Income
Beat
$370.40 mln
$360.42 mln (8 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated hardware & software peer group is "buy"
Wall Street's median 12-month price target for CDW Corporation is $147.00, about 4.5% below its August 4 closing price of $154.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)