CDW Q3 Sales Jump 17.7% to $6.76 Billion; Non-GAAP EPS Rises 20.4% and Dividend Raised to $0.680

CDW grew third-quarter net sales 17.7% to $6.755 billion and raised its quarterly dividend to $0.680 per share, according to its 8-K released Wednesday, as enterprise AI adoption and strong financial services demand lifted the IT reseller.

Non-GAAP EPS rose 20.4% to $3.26, and GAAP diluted EPS increased 11.6% to $2.46. Net income grew 6.5% to $309.8 million.

Financial services spending jumps

Commercial segment sales rose 20.8% to $3.979 billion, led by a 73.2% jump in sales to financial services customers. Corporate customer sales grew 16.8%, and healthcare grew 9.3%. Government sales increased 9.9% to $913 million, education rose 7.5% to $982 million, and U.K. and Canadian operations grew 26.0% to $880 million.

CDW said demand was strongest in data storage and servers, notebooks and mobile devices, and software.

"CDW delivered robust third quarter results, powered by broad-based strength across our diverse customer end-markets and strong momentum in enterprise AI adoption," said Chair and CEO Christine Leahy.

Margin mix shifts

Gross profit rose 10.3% to $1.385 billion, but gross margin narrowed to 20.5% from 21.9%. Non-GAAP operating income grew 16.8% to $619.8 million, holding a 9.2% margin.

Leahy reiterated the company's aim to outpace U.S. IT market growth by 200 to 300 basis points in constant currency.

Dividend and buybacks

The $0.680 quarterly dividend is payable Dec. 10, 2026, to holders of record on Nov. 25. CDW said the payout is an estimated 8% increase over last year's dividend and is set at its target of 25% of trailing 12-month non-GAAP net income. CFO Albert Miralles said the dividend has risen sixteen-fold since the June 2013 IPO.

The company had an estimated $1.032 billion remaining under its share repurchase program as of Sept. 30, the company said.

By the numbers

• Q3 net sales: $6.755 billion, up 17.7%
• Non-GAAP EPS: $3.26, up 20.4%
• GAAP EPS: $2.46, up 11.6%
• Financial services sales: up 73.2%
• Quarterly dividend: $0.680

Sources

1. CDW Corporation Form 8-K with third-quarter 2026 earnings release and dividend announcement, filed Nov. 4, 2026 (accession 0001402057-26-000113)

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