CDW Q1 Earnings Call Highlights

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CDW (NASDAQ:CDW) reported a “strong start” to fiscal 2026, citing robust request tied to AI concern and infrastructure modernization arsenic customers worked done representation proviso and pricing constraints, according to executives connected the company’s first-quarter net call.

Chair and CEO Chris Leahy said consolidated nett income roseate 9% year-over-year successful the quarter. Gross nett accrued 6% to a grounds first-quarter level, portion non-GAAP operating income roseate 2%. Non-GAAP nett income per diluted stock grew 6% to $2.28, and adjusted escaped currency travel totaled $251 million.

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Leahy characterized the operating backdrop arsenic “complex and fast-moving,” with customers shifting near-term priorities toward securing hardware amid pricing and proviso friction. That premix weighed connected gross margin, but CDW emphasized it was capable to respond rapidly done its spouse network, “full stack” capabilities, and equilibrium expanse strength.

Segment performance: commercialized and planetary spot offset national and higher ed softness

CDW highlighted the benefits of its diversified end-market vulnerability crossed its U.S. Commercial, Government, and Education segments, positive planetary operations reported arsenic “Other” (combined U.K. and Canada).

• Commercial: Net income roseate astir 10%, which Leahy described arsenic an “excellent start” with broad-based maturation crossed lawsuit sizes. CFO Al Miralles said request was driven by infrastructure hardware and infrastructure software, with firm and healthcare customers focused connected web upgrades and bundle investments, and fiscal services customers purchasing retention and servers to alteration AI inferencing.

• Government: Sales accrued astir 5%, led by a double-digit summation successful authorities and section that much than offset a debased single-digit diminution successful federal. Leahy said national results were impacted by fund timing and procurement delays tied to the anterior year’s shutdown. Miralles added national enactment resumed aft a fourth-quarter shutdown, but nett income and gross nett were down year-over-year arsenic expected.

• Education: Sales grew debased azygous digits, up astir 3%, with K-12 spot offset by extended decision-making successful higher education. Leahy said K-12 request was driven chiefly by lawsuit instrumentality purchases up of anticipated terms increases.

• International (Other): Sales roseate 18% successful U.S. dollars. Leahy said the U.K. posted precocious single-digit maturation successful section currency driven by backstage assemblage demand, portion Canada grew treble digits successful section currency with balanced end-market growth.