Revenue Acceleration
CDW grew Q1 FY2026 revenue by 9.2% year-over-year to $5.68B (from $5.20B), indicating a meaningful rebound in IT spending demand across its customer segments.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
CDW delivered solid Q1 FY2026 revenue growth of 9.2% to $5.68B, driven by strong top-line momentum, though gross and operating margins compressed modestly as cost of revenue grew faster than sales.
Revenue
$5.68B
+9.25% YoY
EPS (Diluted)
$1.82
+7.69% YoY
Gross Margin
21.0%
-0.6 pts YoY
Operating Income
$376M
+4.04% YoY
Source: SEC XBRL
Cdw (CDW) reported Q1 FY2026 revenue of $5.68B, up 9.2% year over year. Operating margin was 6.6%, down 0.4 points from 7.0% a year earlier. Operating cash flow was $274.8M, down 4.3% year over year. CDW's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.91 | 2.83 | Beat +2.9% |
| Mar 2026This filing | 2.28 | 2.31 | Miss -1.2% |
| Dec 2025 | 2.57 | 2.47 | Beat +4.2% |
| Sep 2025 | 2.71 | 2.65 | Beat +2.4% |
Adjusted (non-GAAP) EPS of $2.28 versus the $2.31 analyst consensus — a -1.2% miss for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.82.
Compiled by AI from this SEC filing
CDW grew Q1 FY2026 revenue by 9.2% year-over-year to $5.68B (from $5.20B), indicating a meaningful rebound in IT spending demand across its customer segments.
Source: 10-Q Income Statement
Gross margin declined approximately 63 basis points to 21.0% from 21.6%, as cost of revenue grew 10.1%—faster than the 9.2% revenue growth—suggesting pricing pressure or a shift toward lower-margin product mix.
Source: 10-Q Income Statement
SG&A expenses rose 7.0% year-over-year to $814.0M, though they grew more slowly than revenue, providing modest operating leverage; operating income grew 4.0% to $376.0M.
Source: 10-Q Income Statement
Current liabilities jumped 33.2% year-over-year to $7.70B, significantly outpacing the 17.2% growth in current assets to $8.97B, compressing the current ratio to 1.16 and warranting monitoring of near-term liquidity.
Source: 10-Q Balance Sheet
Long-term debt declined 17.6% year-over-year to $4.64B from $5.62B, reflecting meaningful deleveraging that strengthens CDW's long-term financial flexibility even as short-term obligations rose.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
CDW's gross margin fell from 21.6% to 21.0% as cost of revenue grew faster than net sales. If the company continues to shift toward lower-margin hardware or large enterprise deals, profitability could face sustained pressure even with strong top-line growth.
Source: 10-Q Income Statement
Current liabilities surged 33.2% to $7.70B while current assets grew only 17.2% to $8.97B, compressing the current ratio to 1.16. A continued deterioration in this ratio could signal near-term liquidity stress, particularly if working capital needs intensify.
Source: 10-Q Balance Sheet
Operating cash flow fell 4.3% year-over-year to $274.8M despite higher net income of $235.4M, suggesting working capital headwinds are absorbing cash generation. Sustained cash flow underperformance relative to earnings could limit capital allocation flexibility.
Source: 10-Q Cash Flow Statement
CDW repurchased $201.0M in shares in Q1 FY2026, nearly unchanged from $200.1M a year ago, while still carrying $4.64B in long-term debt. Aggressive capital returns alongside significant debt could constrain financial flexibility in a downturn.
Source: 10-Q Cash Flow Statement
Operating margin declined approximately 33 basis points to 6.62% from 6.95%, reflecting cost growth outpacing revenue gains. If SG&A and cost of revenue continue to expand faster than sales, CDW's profitability improvement story could stall.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.68 $B | 5.20 $B | +9.25% |
Cost of Revenue $B | 4.49 $B | 4.08 $B | +10.13% |
Gross Profit $B | 1.19 $B | 1.12 $B | +6.03% |
Operating Income $M | 376.00 $M | 361.40 $M | +4.04% |
Net Income $M | 235.40 $M | 224.90 $M | +4.67% |
EPS (Basic) $ | 1.82 $ | 1.70 $ | +7.06% |
EPS (Diluted) $ | 1.82 $ | 1.69 $ | +7.69% |
SG&A Expense $M | 814.00 $M | 760.90 $M | +6.98% |
Answers draw on this SEC filing and the data on this page
CDW delivered double-digit revenue growth in Q2 FY2026, but margin compression and working capital challenges restrained net income growth to 1.2% year-over-year.
CDW delivered FY2025 revenue of $22.4B (+6.8% YoY), but net income slipped 1.0% to $1.07B as SG&A costs surged 9.0% and operating margins compressed, even as the company aggressively returned capital to shareholders via $653M in buybacks.