Analysis for CDW

📈 Growth & Financial Trajectory

CDW's eight-quarter trajectory shows revenue growing from about $5.42B in 2024 Q2 to $6.57B in 2026 Q2, a roughly 21% expansion. Net income, however, eased from about $316.4M to $274.4M, down ~13%, indicating profitability pressures despite top-line strength. Gross margin remained around the low- to mid-20% range (roughly 20.1%–20.7%), suggesting modest compression while revenue climbs. Overall, the trajectory is revenue-led growth with steadier, albeit uneven, profitability.

💰 Margins & Cash Flow

• Gross margin around 20%
• Operating margin in the mid single digits historically
• Cash flow: operating cash flow generally positive in most quarters but with variability; 2026 Q2 shows a negative net cash flow due to higher financing outflows

🛡️ Balance Sheet & Liquidity

Balance sheet is asset-light relative to scale but healthy liquidity: total assets run about $15–$17B, liabilities about $11–$13B, and equity around $2.3–$2.7B. Current assets exceed current liabilities in several quarters, supporting liquidity, though leverage remains meaningful.

⚠️ Key Drivers & Risks

• Drivers: enterprise IT/BD hardware and services demand, channel strength
• Risks: cyclicality of tech spending, margin sensitivity to cost structure and financing activity