A month has gone by since the last earnings report for CDW (CDW Quick QuoteCDW - Free Report) . Shares have added about 8.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CDW due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for CDW Corporation before we dive into how investors and analysts have reacted as of late.

CDW's Q2 Earnings Beat Estimates

CDW reported second-quarter 2026 non-GAAP earnings per share (EPS) of $2.91, beating the Zacks Consensus Estimate of $2.80. The bottom line increased approximately 12% year over year.

CDW generated quarterly net sales of $6.57 billion, representing a 10% year-over-year increase. On a constant currency (cc) basis, revenue increased 9.9%, indicating that growth was primarily driven by stronger customer demand rather than favorable foreign exchange movements. Increased investments across several technology categories, including data storage solutions, enterprise servers, notebooks, mobile devices, software and networking and communications products, led to top-line expansion. These categories continue to benefit from enterprise digital transformation initiatives, hybrid work environments, cybersecurity upgrades and expanding AI infrastructure requirements. The consensus estimate was pinned at $6.26 billion.

As organizations move beyond experimenting with AI and start implementing production-scale AI solutions, CDW seems well-positioned to benefit from this shift. CDW expects to outperform the overall U.S. IT market by 200-300 basis points at cc over the long term despite ongoing macroeconomic uncertainties. Management believes several structural trends like infrastructure modernization, cloud migration, AI adoption, increasing cybersecurity investments, growing technology complexity and digital workplace transformation will keep supporting demand. As enterprise environments grow more sophisticated, customers increasingly seek strategic partners capable of delivering comprehensive technology solutions rather than just individual products.

Segmental Details

The Commercial segment continued to be CDW's largest contributor, generating $3.97 billion in sales, an increase of 9.2%. Growth was broad-based across several industries under Commercial. Corporate customers increased spending by 10.7%, Healthcare customers grew 9.1% and Financial Services customers expanded purchases by 1.8%.

Government sales reached $848 million, increasing 13.6% year over year, reflecting continued investments by public sector organizations in technology modernization.

The Education segment remained relatively stable with 0.7% growth, generating $933 million in revenue.

International operations performed exceptionally well. Net sales in Other (the U.K. and Canadian operations) generated $826 million in sales, growing 22.9%, making international markets one of the strongest contributors during the quarter.

Profitability Improves Despite Margin Pressure

Gross profit increased 6.3% year over year to $1.32 billion. However, gross margin declined slightly from 20.8% to 20.1%. Management attributed the lower margin primarily to a higher sales mix toward lower-margin hardware and margin pressure in selected hardware categories. These factors were partially offset by higher contributions from netted-down revenue. Although gross margin contracted modestly, the company continued expanding earnings through disciplined cost management and operating efficiency.

Non-GAAP operating income increased 7% year over year to $556 million. The non-GAAP operating margin fell to 8.5% from 8.7%.

Selling and administrative expenses rose 8.6% to $891 million, primarily due to higher employee compensation, increased performance-based incentives and workplace optimization initiatives.

Balance Sheet & Cash Flow

As of June 30, 2026, CDW had $361.8 million of cash and cash equivalents compared with $578.6 million as of March 31.

The company had a long-term debt of $5.82 billion compared with $5.64 billion as of March 31, 2026.

For the six months that ended June 30, 2026, CDW generated $219.7 million of cash flow from operating activities compared with $443.1 million a year ago.

Adjusted free cash flow totaled $278.4 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

Currently, CDW has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, CDW has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

CDW belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Wix.com (WIX Quick QuoteWIX - Free Report) , has gained 33.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Wix.com reported revenues of $563.06 million in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $1.39 for the same period compares with $2.28 a year ago.

For the current quarter, Wix.com is expected to post earnings of $1.40 per share, indicating a change of -16.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Wix.com. Also, the stock has a VGM Score of D.