CDW Q1 Earnings Call Highlights
Key takeaways
- Interested in CDW Corporation?
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- Chair and CEO Chris Leahy said consolidated net sales rose 9% year-over-year in the quarter.
CDW Q1 Earnings Call Highlights Market Beat Wed, May 6, 2026 at 10:54 PM GMT+7 9 min read CDW CDW logo Key Points Q1 results: Consolidated net sales rose about 9% year‑over‑year, gross profit increased 6% to a record first-quarter level, non‑GAAP EPS was $2.28 (up 6%), and adjusted free cash flow was $251 million, while CDW returned $282 million to shareholders via buybacks and dividends.
Demand and product mix: Strong customer spending tied to AI infrastructure and modernization drove hardware revenue up ~10% (networking, servers and enterprise storage each >20%) and software up 11%, but a heavier hardware mix pressured gross margin down ~60 bps to 21% and left services revenue flat.
Strategy and outlook: CDW is embedding AI across sales and operations (CDW Assist, Boost Run GPU-as-a-service) and pursuing its "Geared for Growth" modernization, targeting ~$100M annual run‑rate savings by 2027 (potentially $200M by 2028); management expects low‑ to mid‑single‑digit gross profit growth for 2026 and non‑GAAP EPS growth at the high end of mid‑single digits.