$CDW · CDW Corp
CDW reported Q3 FY2026 results: net sales of $6.755B, up 17.7% YoY, with gross profit of $1.385B (+10.3%) and non-GAAP net income of $410.2M (+14.8%). Non-GAAP EPS was $3.26 (+20.4%) versus GAAP EPS of $2.46. The board also declared a quarterly dividend of $0.680/share, an ~8% increase, payable December 10, 2026.
- Net sales rose 17.7% YoY to $6.755B, driven by data storage, servers, notebooks/mobile devices, and software.
- Non-GAAP EPS of $3.26 grew 20.4% YoY; GAAP EPS was $2.46, up 11.6%.
- Gross profit margin fell to 20.5% from 21.9% on product mix and lower margins in certain categories.
- Quarterly dividend raised ~8% to $0.680/share, payable December 10, 2026 to holders of record November 25, 2026.
- Commercial segment net sales rose 20.8% to $3.979B; UK/Canada 'Other' sales rose 26.0% to $880M.
Extended-hours last trade $153.81, up +2.70% vs the $149.77 regular close, signaling a positive after-hours reaction to the beat and dividend hike.
Double-digit top-line growth and a 20%+ non-GAAP EPS gain, paired with a dividend increase, confirm strong enterprise IT demand momentum.
Strong enterprise AI adoption and data storage/server demand echo the broader IT infrastructure spending cycle benefiting resellers and distributors.
Gross margin compression (20.5% vs 21.9%) from product mix and lower-margin categories; interest expense rose 19.8% on higher revolver borrowings.