Electrical Equipment
Price
$152.38
-1.00%Market Cap
$19.24B
Day High
$154.12
Day Low
$149.16
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.
Key risk: Gross Margin Erosion from Hardware Mix Shift
Gross margin contracted 70 basis points to 20.1% in Q2, driven by a shift toward lower-margin hardware. Sustained AI-driven demand may continue this mix pressure, potentially compressing margins further if high-margin software and services do not offset.