CDW Q3 sales jump 17.7% to $6.75 billion on servers, storage and notebooks; non-GAAP EPS up 20% to $3.26. Key points * Net sales rose 17.7% to $6.755 billion, driven by data storage and servers, notebooks and mobile devices, and software [[1]]. * Gross margin fell 140 basis points to 20.5% on mix into lower-margin product categories; GAAP EPS rose 11.6% to $2.46 and non-GAAP EPS rose 20.4% to $3.26 [[1]]. * Commercial segment sales rose 20.8%, with sales to financial services customers up 73.2% [[1]]. CDW grew third-quarter net sales 17.7% to $6.755 billion, with the same 64 selling days as a year earlier, according to its November 4 results release [[1]]. The company said demand was strongest in data storage and servers, notebooks and mobile devices, and software. Sales rose 10.0% in the second quarter [[2]]. Profit grew more slowly than sales. Gross margin fell to 20.5% from 21.9%, which CDW attributed to mix into lower-margin categories and lower margin in certain products. Operating income rose 10.4% to $489.5 million and net income rose 6.5% to $309.8 million, as selling and administrative costs climbed 10.3% on incentives, workplace optimization and acquisition costs. Diluted EPS rose 11.6% to $2.46; non-GAAP EPS rose 20.4% to $3.26 [[1]]. Quarter at a glance. | Metric | Q3 2026 | Q2 2026 | Q3 2025 | | Net sales | $6,754.5M | $6,572.2M | $5,737.4M | | Gross margin | 20.5% | 20.1% | 21.9% | | Operating income | $489.5M | $428.6M | $443.3M | | Net income | $309.8M | $274.4M | $291.0M | | Diluted EPS | $2.46 | $2.15 | $2.21 | | Non-GAAP diluted EPS | $3.26 | $2.91 | $2.71 | Segments and outlook. Commercial sales rose 20.8% to $3.979 billion, with financial services up 73.2%, corporate up 16.8% and healthcare up 9.3%. Government grew 9.9%, education 7.5%, and the UK and Canada combined 26.0% [[1]]. The hardware categories leading the quarter overlap with the server build-out MLQ has covered, including Foxconn's forecast for AI servers. CDW issued no quarterly or annual numbers. It repeated its aim to outgrow the U.S. IT addressable market by 200 to 300 basis points in constant currency and declared a quarterly dividend of $0.680 per share. "CDW delivered robust third quarter results, powered by broad-based strength across our diverse customer end-markets and strong momentum in enterprise AI adoption," chair and CEO Christine Leahy said [[1]]. Companies mentioned. At the intersection of AI, tech, and markets. The stories that matter, in one email. Free - unsubscribe anytime.

CDW earnings: CDW stock rises 14% as third-quarter sales grow 17.7%. CDW CDW Corporation 168.97 | +12.70% O 160.82 H 172.47 L 155.00 NEW YORK · 2:25pm ET CDW Corporation (NASDAQ: CDW) shares rose 14% on Wednesday, Nov. 4, 2026, after CDW earnings for the third quarter showed net sales up 17.7% and adjusted profit above estimates. The stock was trading at $170.71 as of 1:01 p.m. ET, up $20.94 from the Nov. 3 close of $149.77, according to Robinhood market data. The IT products and services reseller touched $171.21 during the session, which Robinhood data showed as a new 52-week high. The stock had traded as low as $97.12 on May 12, 2026. Why CDW stock rose after earnings. Non-GAAP net income came to $3.26 per diluted share, up 20.4% from $2.71 a year earlier, according to the company's earnings release filed with the SEC on Nov. 4, 2026. The consensus estimate in Robinhood earnings data was $2.94. Net sales reached $6.75 billion, compared with $5.74 billion in the third quarter of 2025. The company said growth came mainly from data storage and servers, notebooks and mobile devices, and software. Chief Executive Christine Leahy cited "strong momentum in enterprise AI adoption" in the release. CDW earnings by the numbers. * Commercial segment sales: $3.98 billion, up 20.8%, with sales to financial services customers up 73.2%. * Government segment sales: $913 million, up 9.9%. * Education segment sales: $982 million, up 7.5%. * Gross margin: 20.5%, down from 21.9%, which the company tied to product mix and lower margins in some categories. * GAAP net income: $309.8 million, or $2.46 per diluted share, up from $291.0 million, or $2.21. What the dividend increase means for shareholders. CDW declared a quarterly dividend of $0.680 per share, about 8% above the prior-year rate, according to a separate release. The company said the payout aligns with its target of 25% of trailing-twelve-month non-GAAP net income. The dividend is payable Dec. 10, 2026, to holders of record as of Nov. 25, 2026. Non-GAAP operating income rose 16.8% to $619.8 million, and the non-GAAP operating margin held at 9.2%, according to the release. For the first nine months of 2026, net sales totaled $19.01 billion, up 12.4% from a year earlier. Robinhood data put CDW's market value at about $21.3 billion. Interest expense rose 19.8% to $66 million, which the company attributed to higher revolving-loan borrowings and lower interest income. Market data as of 1:01 p.m. ET on Nov. 4, 2026. This article is for informational purposes only and is not investment advice. More news on: CDW More On This