IT solutions provider CDW's shares fall on margin miss

CDW

05/08/2026 13:30

Aug 5 (Reuters) - CDW CDW.O reported second-quarter gross profit margin below Wall Street estimates on Wednesday, offsetting stronger-than-expected revenue and sending the IT solutions provider's shares down 14% in premarket trading.
The Vernon Hills, Illinois-based company also said its CFO Albert Miralles will retire from the role next year. 
CDW reported net sales of $6.57 billion in the second quarter, beating estimates of $6.21 billion, according to data compiled by LSEG.
Adjusted profit of $2.91 per share also topped estimates of $2.80.
Enterprise technology spending has remained resilient as companies invest in AI infrastructure, cloud computing and data center upgrades, benefiting firms such as CDW.
Gross profit margin for the quarter came in at 20.1%, below estimates of 21.2%, primarily due to a sales mix shift toward lower-margin hardware products.
Revenue from its commercial segment, which includes financial and healthcare services, grew 9.2% in the quarter. 

 (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Vijay Kishore)
 ((HarshitaMary.Varghese@thomsonreuters.com;))