CDW Q1 Rises on AI Infrastructure Rush

Overview

• CDW, which reported results Wednesday, posted about 9% net sales growth, 6% gross profit growth, non‑GAAP EPS of $2.28, and $251 million in adjusted free cash flow while returning $282 million to shareholders.
• Executives said customers shifted AI from testing to production and faced memory supply and price strains that spurred urgent buys of networking, servers, and storage.
• The heavier tilt to infrastructure hardware pushed gross margin down about 60 basis points to 21% as customers delayed higher‑margin services and software assurance.
• CDW is embedding AI across its own operations with tools such as CDW Assist and a new GPU‑as‑a‑service offering through partner Boost Run.
• Leaders outlined 2026 guidance for low‑ to mid‑single‑digit gross profit growth and mid‑single‑digit EPS growth alongside the Geared for Growth program targeting about $100 million in annual savings by 2027.