-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
CDW Corporation delivered mixed Q1 2026 results, with net sales of $5,680M rising 9.2% Y/Y and beating consensus by $190M, driven by robust demand across infrastructure hardware, data storage, servers, and software, though non-GAAP EPS of $2.28 missed consensus by $0.01. All customer segments posted growth, led by Commercial (+9.6%), with Financial Services surging 28.2%, while the Other segment grew 17.9%. We view CDW's strengthening position in AI transitions - as customers move from exploration to production - as a key catalyst, leveraging the company's services-led capabilities. Management reaffirmed confidence in exceeding U.S. IT market growth by 200-300 bps on a constant currency basis. Gross margin compressed 60 bps to 21.0%, while non-GAAP operating margin declined 50 bps to 8.0% due to higher SG&A. We believe CDW's solid cash generation of $248.4M in free cash flow and disciplined capital allocation provide flexibility to support growth investments while navigating near-term margin pressures.