CDW Corp
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 5, 2026
CDW$157.00-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001402057-26-000025
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001402057-26-000065
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 156 previous paragraphs and 179 current paragraphs.
110 unchanged; 29 reworded; 37 added; 17 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (37)
Current report
•The evolution of technology and AI adoption trends continue to drive customer purchasing decisions in the market. Current trends are focused on modernizing and optimizing technology environments to improve operational efficiency, agility, and cybersecurity while enabling organizations to leverage AI at scale. These trends are driving investment in AI-ready infrastructure, cloud and data modernization, cybersecurity solutions, and workflow automation technologies. As AI capabilities continue to evolve, organizations are increasingly focused on achieving practical, secure, and measurable business outcomes while managing complexity and risk. We have orchestrated outcome-driven solutions that bring together AI, security, software, and services to help customers achieve their objectives.
Current report
Net sales increased $596 million, or 10.0%, with higher Net sales across all operating segments. Net sales on a constant currency basis increased 9.9% for thethree months ended June 30, 2026, compared to thethree months ended June 30, 2025. Customer demand drove Net sales growth primarily in data storage and servers, notebooks/mobile devices, software, and netcomm products.
Current report
Gross profit increased $79 million, or 6.3%, due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 70 basis points to 20.1%, primarily driven by mix into and lower margin in certain hardware categories, partially offset by a higher contribution of netted down revenue.
Current report
Operating income increased $8 million, or 2.0%, to $429 millionfor the three months ended June 30, 2026, compared to $420 million for the three months ended June 30, 2025.
Current report
Income tax expense increased $5 million, or 5.1%. The effective income tax ratewas 26.4% and 25.7% for thethree months ended June 30, 2026 and 2025, respectively. The increase in the effective income tax rate wasprimarily due to current year tax shortfalls as compared to prior year excess tax benefits on equity-based compensation.
Current report
Six months ended June 30, 2026 compared with the six months ended June 30, 2025
Current report
Selling and administrative expenses increased $123 million, or 7.8%, primarily dueto higher compensation expense, including performance-based incentives, and workplace optimization costs.
Current report
Operating income increased $23 million, or 2.9%, to $805 million for the six months ended June 30, 2026, compared to $782 million for the six months ended June 30, 2025.
Current report
Income tax expense increased $9 million, or 5.4%. The effective income tax rate was 26.3% and 25.8% for the six months ended June 30, 2026 and 2025, respectively. The increase in the effective income tax rate was primarily due to current year tax shortfalls as compared to prior year excess tax benefits on equity-based compensation, partially offset by tax credits.
Current report
Net sales increased $334 million, or 9.2%, primarily due to an increased customer demand in data storage and servers across all customer channels, software, and netcomm products in the corporate customer channel, and notebooks/mobile devices in the corporate and healthcare customer channels.
Current report
Gross profit dollars increased $56 million, or 7.1%, due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 40 basis points to 21.3%, which is primarily attributed to mix into and lower margin in certain hardware categories, partially offset by a higher contribution of netted down revenue.
Current report
Operating income increased $11 million, or 2.9%, primarily due to higher Gross profit dollars, partially offset by higher compensation expense, including performance-based incentives.
Current report
Net sales increased $101 million, or 13.6%, primarily due to increased customer demand primarily in netcomm products, data storage and servers, and software.
Current report
Operating income increased $9 million, or 17.5%, primarily due to lower compensation expense, including performance-based incentives, which more than offset the impact of lower Gross profit dollars.
Current report
Net sales increased $7 million, or 0.7%, due to increased customer demand primarily in notebooks/mobile devices and software, partially offset by decreased customer demand in various hardware categories.
Current report
Gross profit dollars increased $11 million, or 7.9%, primarily due to higher Gross profit margin and Net sales. Gross profit margin increased 110 basis points, to 16.4%, which is attributed to a higher margin in certain product categories and a higher contribution of netted down revenue.
Current report
Net sales increased $154 million, or 22.9%, primarily due to increased customer demand primarily in notebooks/mobile devices and data storage and servers within UK and Canada operations.
Current report
Gross profit dollars increased $16 million, or 11.1%, due to higher Net sales, partially offset by lower Gross profit margin. Gross profit margin decreased 200 basis points, to 19.1%, which is primarily attributed to mix into and lower margin in certain product categories.
Current report
Operating income increased $9 million, or 22.1%, primarily due to higher Gross profit dollars, partially offset by higher compensation expense, including performance-based incentives within Canada and UK operations.
Current report
Six months ended June 30, 2026 compared with the six months ended June 30, 2025
Current report
Commercial:
Current report
Gross profit dollars increased $104 million, or 6.8%, due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 50 basis points, to 21.8%, which is primarily attributed to mix into and lower margin in certain hardware categories.
Current report
Operating income increased $5 million, or 0.7%, primarily due to higher Gross profit dollars, partially offset by higher compensation expense, including performance-based incentives.
Current report
Government:
Current report
Nets ales increased $129 million, or 9.6%, primarily due to increased customer demand primarily in data storage and servers, software, and netcomm products.
Current report
Gross profit decreased $15 million, or 4.8%, due to lower gross profit margin, partially offset by higher Net sales. Gross profit margin decreased 290 basis points, to 19.5%, which is attributed to mix into and lower margin in certain hardware categories and services.
Current report
Operating income increased $9 million, or 11.2%, primarily due to lower compensation expense, including performance-based incentives, which more than offset the impact of lower Gross profit dollars.
Current report
Education:
Current report
Net sales increased $23 million, or 1.5%, primarily due to increased customer demand primarily in notebooks/mobile devices and software, partially offset by decreased customer demand in various hardware categories.
Current report
Gross profit dollars increased $18 million, or 7.4%, due to higher Gross profit margin and Net sales. Gross profit margin increased 90 basis points, to 16.5%, which is attributed to a higher margin in certain product categories.
Current report
Other:
Current report
Net sales increased $276 million, or 20.4%, primarily due to increased customer demand primarily in notebooks/mobile devices and data storage and servers within UK and Canada operations.
Current report
Gross profit dollars increased $38 million, or 14.0%, due to higher Net sales, partially offset by lower Gross profit margin. Gross profit margin decreased 110 basis points, to 19.2%, which is primarily attributed to mix into and lower margin in certain product categories.
Current report
Operating income increased $17 million, or 20.6%, primarily due to higher Gross profit dollars, partially offset by higher compensation expense, including performance-based incentives within Canada and UK operations.
Current report
During the second quarter of 2026, we entered into a product financing arrangement with an independent third-party intermediary to support a customer’s hardware procurement program. This arrangement is intended to mitigate the working capital impact associated with the timing difference between inventory procurement and customer collections. We retain the economic benefits and risks of inventory held by the intermediary. Contractual financing costs incurred under the program are recognized as interest expense over the term of the arrangement.
Current report
The cash conversion cycle increased to 21 days at June 30, 2026, compared to 16 days at June 30, 2025. The increase was primarily driven by higher days of sales outstanding (DSO), reflecting the impacts of timing of collections and increased sales activity, along with higher days of inventory outstanding (DIO), reflecting the impacts of higher average customer stocking positions and increased hardware cost. These increases were partially offset by the higher days of purchases outstanding (DPO), driven by the timing of payments and increased sales activity.
Current report
Net cash used in investing activities increased $213 million for the six months ended June 30, 2026 compared to June 30, 2025. This increase was primarily driven by cash inflow from the maturity of the short-term investments in 2025.
Removed paragraphs (17)
Previous report
•Customers are evaluating the complex technology landscape in order to balance priorities and focus on solutions that lead to business optimization, cost management, and security risk management, among other factors, resulting in a more measured approach to their IT spending. We have orchestrated solutions that leverage security, software, artificial intelligence (“AI”), and hybrid and cloud offerings to help customers achieve their objectives.
Previous report
•Technology trends drive customer purchasing behaviors in the market. Current technology trends are focused on delivering greater flexibility and efficiency, as well as designing and managing IT securely, while balancing product availability, which is currently creating an inflationary environment. These trends are driving customer adoption of cloud, AI, software defined architectures, and hybrid on-premise and off-premise combinations. The trends are further driven by the evolution of the IT consumption model to more “as a service” solutions, including software as a service and infrastructure as a service, in addition to ongoing managed and professional service arrangements. Technology trends are likely to evolve and customers will prioritize spend that will produce the most important outcomes for their business.
Previous report
Operating income increased $15 million, or 4.0%, to $376 million for the three months ended March 31, 2026, compared to $361 million for the three months ended March 31, 2025.
Previous report
Income tax expense was $84 million and $79 million for the three months ended March 31, 2026 and 2025, respectively. The effective income tax rate, expressed by calculating the income tax expense as a percentage of Income before income taxes, was 26.2% and 26.0% for the three months ended March 31, 2026 and 2025, respectively.
Previous report
The effective income tax rate for the three months ended March 31, 2026 was higher than the US federal statutory rate of 21.0% primarily due to state and local income taxes and tax shortfalls on equity-based compensation, partially offset by tax credits. The effective income tax rate for the three months ended March 31, 2025 was higher than the US federal statutory rate of 21.0% primarily due to state and local income taxes.
Previous report
The effective income tax rate for the three months ended March 31, 2026 was relatively consistent with the effective income tax rate for the three months ended March 31, 2025.
Previous report
Gross profit dollars increased $48 million, or 6.4%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 60 basis points, to 22.4%, which is primarily attributed to a lower contribution of netted down revenue.
Previous report
Operating income decreased $6 million, or 1.7%, primarily due to higher compensation expense, including performance-based incentives, and coworker-related costs, partially offset by higher Gross profit dollars.
Previous report
Netsales increased $28 million, or 4.6%, primarily due to increased customer demand primarily in data storage and servers.
Previous report
Operating income remained relatively consistent year-over-year.
Previous report
Net sales increased $17 million, or 2.5%, primarily due to increased customer demand primarily in notebooks/mobile devices.
Previous report
Gross profit dollars increased $7 million, or 6.7%, primarily due to higher Net sales and Gross profit margin. Gross profit margin increased 70 basis points, to 16.7%, which is attributed to higher margin in software.
Previous report
Net sales increased $122 million, or 17.9%, primarily due to increased customer demand primarily in notebooks/mobile devices, data storage and servers, and collaboration products within the UK and Canada operations.
Previous report
Gross profit dollars increased $23 million, or 17.0%, primarily due to higher Net sales. Gross profit margin remained relatively consistent at 19.3%.
Previous report
Operating income increased $7 million, or 18.9%, primarily due to higher Gross profit dollars, partially offset by compensation expense, including performance-based incentives, within the UK and Canada operations.
Previous report
The cash conversion cycle increased to 16 days at March 31, 2026, compared to 15 days at March 31, 2025. The increase was primarily due to DIO, which increased by 1 day as a result of higher average customer stocking positions. DSO and DPO increased due to timing of collections and payments, respectively, and multi-year transactions.
Previous report
Net cash used in investing activities remained relatively consistent at a decrease of $1 million for the three months ended March 31, 2026 compared to March 31, 2025.
Reworded paragraphs (29)
Previous wording
CDW Corporation (“Parent”), a Fortune 500 company and member of the S&P 500 Index, is a leading multi-brand provider of information technology (“IT”) solutions to business, government, education, and healthcare customers in the United States (“US”), the United Kingdom (“UK”), and Canada. Our broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.
Current wording
CDW Corporation (“Parent”) is a leading multi-brand provider of information technology (“IT”) solutions to business, government, education, and healthcare customers in the United States (“US”), the United Kingdom (“UK”), and Canada. Our broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.
Previous wording
We are vendor, technology, and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual, and cloud-based environments through approximately 10,400 customer-facing coworkers, including sellers, highly-skilled specialists, and engineers. We are a leading sales channel partner for many original equipment manufacturers (“OEMs”), software publishers, and cloud providers (collectively, our “vendor partners”), and wholesale distributors, whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise, and extensive customer access.
Current wording
We are vendor, technology, and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual, and cloud-based environments through approximately 10,300 customer-facing coworkers, including sellers, highly skilled specialists, and engineers. We are a leading sales channel partner for many original equipment manufacturers (“OEMs”), software publishers, and cloud providers (collectively, our “vendor partners”), and wholesale distributors, whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise, and extensive customer access.
Previous wording
•General economic conditions are a key factor affecting our results as they can impact our customers’ willingness and ability to spend on IT. The prevailing economic conditions remain challenging, largely due to ongoing uncertainty surrounding evolving global trade policies and geopolitical conditions, along with other drivers. These dynamics may continue to influence supply chains, drive inflationary pressures, and affect interest rates. The uncertainty in the current economic environment has impacted and may continue to impact the timing of our customers’ investments in technology.
Current wording
•General economic conditions are a key factor affecting our results as they can impact our customers’ willingness and ability to spend on IT. The prevailing economic conditions remain complex, largely due to ongoing uncertainty surrounding evolving global trade policies and geopolitical conditions, among other drivers. In addition, there has been increased demand for memory-intensive products driven by the rapid adoption of artificial intelligence (“AI”) applications and related data center investments. Collectively, these dynamics may continue to influence supply chains and drive pricing pressures, while the broader economic conditions may affect interest rates. The uncertainty in the current economic environment has impacted and may continue to impact the timing of our customers’ investments in technology.
Previous wording
We monitor a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary. Financial measures are presented both in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), and non-GAAP, which excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. We believe that the most important of these measures and ratios include Gross profit, Gross profit margin, Operating income, Operating income margin, Non-GAAP operating income, Non-GAAP operating income margin, Net income, Non-GAAP net income, Net income per diluted share, Non-GAAP net income per diluted share, Average daily sales, Net cash provided by operating activities, Adjusted free cash flow, Cash conversion cycle, and Net debt. These measures and ratios are closely monitored by management, so that actions can be taken, as necessary, in order to achieve financial objectives.
Current wording
We monitor a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary. Financial measures are presented both in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), and non-GAAP, which excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. We believe that the most important of these measures and ratios include Gross profit, Gross profit margin, Operating income, Operating income margin, Non-GAAP operating income, Non-GAAP operating income margin, Net income, Non-GAAP net income, Net income per diluted share, Non-GAAP net income per diluted share, Average daily sales, Net debt, Cash conversion cycle, Net cash provided by operating activities, and Adjusted free cash flow. These measures and ratios are closely monitored by management, so that actions can be taken, as necessary, in order to achieve financial objectives.
Previous wording
(1)Defined as Net sales divided by the number of selling days. There were 63 selling days for both the three months ended March 31, 2026 and 2025.
Current wording
(1)Defined as Net sales divided by the number of selling days. There were 64 selling days for both the three months ended June 30, 2026 and 2025. There were 127 selling days for both the six months ended June 30, 2026 and 2025.
Previous wording
(1)Defined as total debt minus Cash and cash equivalents and Short-term investments. As of March 31, 2026 and March 31, 2025, total debt was $5.6 billion and $5.9 billion, respectively, and Cash and cash equivalents was $579 million and $471 million, respectively. Short-term investments was $217 million as of March 31, 2025. We did not hold Short-term investments as of March 31, 2026.
Current wording
(1)Defined as total debt minus Cash and cash equivalents. As of June 30, 2026 and June 30, 2025, total debt was $5.8 billion and $5.6 billion, respectively, and Cash and cash equivalents was $362 million and $481 million, respectively.
Previous wording
Results of operations, including Gross profit margin and Operating income margin, expressed as Gross profit and Operating income as a percentage of Net sales, respectively, for the three months ended March 31, 2026 and 2025 are below. For additional information on Net sales, Gross profit, and Operating income by segment, see the “Segment Results of Operations.”
Current wording
Results of operations, including Gross profit margin and Operating income margin, expressed as Gross profit and Operating income as a percentage of Net sales, respectively, for the three and six months ended June 30, 2026 and 2025 are below. For additional information on Net sales, Gross profit, and Operating income by segment, see the “Segment Results of Operations.”
Previous wording
Selling and administrative expenses increased $53 million, or 7.0%, primarily due to higher compensation expense, including performance-based incentives, coworker-related costs, and investments to support our AI initiatives.
Current wording
Selling and administrative expenses increased $70 million, or 8.6%, primarily due to higher compensation expense, including performance-based incentives, and workplace optimization costs.
Previous wording
Interest expense, net includes interest expense and interest income. Interest expense, netdecreased $2 million, or 3.2%, primarilydue to decreased interest expense on lower debt levels and a lower variable interest rate on the senior unsecured term loan, partially offset by lower interest income earned on cash balances.
Current wording
Interest expense, net includes interest expense and interest income. Interest expense, net increased $3 million, or 6.0%, primarily due to higher average debt levels on our senior unsecured revolving loan facility.
Previous wording
Net sales increased $481 million, or 9.2%, with higher Net sales across all operating segments. Net sales on a constant currency basis increased 8.4% in the first quarter of 2026. While economic and geopolitical uncertainty persists, all of our segments continued to experience improved customer spending during the quarter. The increase in customer demand drove Net sales growth primarily in data storage and servers, netcomm products, software, and notebooks/mobile devices.
Current wording
Net sales increased $1,076 million, or 9.6%, with higher Net sales across all operating segments. Net sales on a constant currency basis increased 9.2%for the six months ended June 30, 2026, compared to thesix months ended June 30, 2025. Customer demand drove Net sales growth primarily in data storage and servers, notebooks/mobile devices, software, and netcomm products.
Previous wording
Gross profit increased $68 million, or 6.0%, primarily due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 60 basis points to 21.0%, primarily driven by a lower contribution of netted down revenue.
Current wording
Gross profit increased $146 million, or 6.2%, due to higher Net sales, partially offset by lower gross profit margin. Gross profit margin decreased 60 basis points to 20.5%, primarily driven by mix into and lower margin in certain hardware categories.
Previous wording
(1)There were 63 selling days for both the three months ended March 31, 2026 and 2025. Average daily sales is defined as Net sales divided by the number of selling days.
Current wording
(1)There were 64 selling days for both the three months ended June 30, 2026 and 2025. There were 127 selling days for both the six months ended June 30, 2026 and 2025. Average daily sales is defined as Net sales divided by the number of selling days.
Previous wording
Gross profit by segment for the comparative periods are as follows:
Current wording
Gross profit by segment for the comparative periods is as follows:
Previous wording
Operating income by segment for the comparative periods are as follows:
Current wording
Operating income by segment for the comparative periods is as follows:
Previous wording
Gross profit decreased $10 million, or 7.6%, primarily due to lower gross profit margin, partially offset by higher Net sales. Gross profit margin decreased 260 basis points, to 19.7%, which is attributed to lower margin in services and certain hardware categories, and a lower contribution of netted down revenue.
Current wording
Gross profit decreased $5 million, or 2.7%, due to lower gross profit margin, partially offset by higher Net sales. Gross profit margin decreased 320 basis points, to 19.3%, which is attributed to mix into and lower margin in certain hardware categories and services.
Previous wording
Operating income increased $14 million, or 55.7%, primarily due to higher Gross profit dollars and lower compensation expense.
Current wording
Operating income increased $9 million, or 16.0%, primarily due to higher Gross profit dollars and lower compensation expense.
Previous wording
Net sales increased $314 million, or 9.6%, primarily due to an increased customer demand in netcomm products and software across the corporate and healthcare customer channels, and data storage and servers in the financial services customer channel.
Current wording
Net sales increased $648 million, or 9.4%, primarily due to increased customer demand in data storage and servers across all customer channels, and netcomm products and software in the corporate and healthcare customer channels.
Previous wording
We have included reconciliations of our non-GAAP financial measures to the most comparable GAAP financial measures for the three months ended March 31, 2026 and 2025 below.
Current wording
We have included reconciliations of our non-GAAP financial measures to the most comparable GAAP financial measures for the three and six months ended June 30, 2026 and 2025 below.
Previous wording
(1)There were 63 selling days for both the three months ended March 31, 2026 and 2025. Average daily sales is defined as Net sales divided by the number of selling days.
Current wording
(1)There were 64 selling days for both the three months ended June 30, 2026 and 2025. There were 127 selling days for both the six months ended June 30, 2026 and 2025. Average daily sales is defined as Net sales divided by the number of selling days.
Previous wording
While we have not historically experienced significant seasonality throughout the year on a consolidated basis, sales in our Government and Education segments have historically been higher in the second and third quarter than in other quarters primarily due to the buying patterns of education and government customers.
Current wording
While we have not historically experienced significant seasonality throughout the year on a consolidated basis, sales in our Government and Education segments have historically been higher in the second and third quarters than in other quarters primarily due to the buying patterns of education and government customers.
Previous wording
We finance our operations and capital expenditures with cash from operations and borrowings under our variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”). As of March 31, 2026, we had $1.9 billion of availability for borrowings under our Revolving Loan Facility. Our liquidity and borrowing plans are established to align with our financial and strategic planning processes and ensure we have the necessary funding to meet our operating commitments, which primarily include the purchase of inventory, payroll, and general expenses. We also take into consideration our overall capital allocation strategy, which includes dividend payments, assessment of debt levels, acquisitions, and share repurchases. We believe we have adequate sources of liquidity and funding available for at least the next year; however, there are a number of factors that may negatively impact our available sources of funds. The amount of cash generated from operations will be dependent upon factors such as the successful execution of our business plan, general economic conditions, and working capital management.
Current wording
We finance our operations and capital expenditures with cash from operations and borrowings under our variable rate senior unsecured revolving loan facility (the “Revolving Loan Facility”). As of June 30, 2026, we had $1.7 billion of availability for borrowings under our Revolving Loan Facility. Our liquidity and borrowing plans are established to align with our financial and strategic planning processes and ensure we have the necessary funding to meet our operating commitments, which primarily include the purchase of inventory, payroll, and general expenses. We also take into consideration our overall capital allocation strategy, which includes dividend payments, assessment of debt levels, acquisitions, and share repurchases. We believe we have adequate sources of liquidity and funding available for at least the next 12 months and thereafter; however, there are a number of factors that may negatively impact our available sources of funding and liquidity. The amount of cash generated from operations will be dependent upon factors such as the successful execution of our business plan, general economic conditions, and working capital management.
Previous wording
As of March 31, 2026, we had total unsecured indebtedness of $5.6 billion, and we were in compliance with the covenants under our credit agreements and indentures.
Current wording
As of June 30, 2026, we had total unsecured indebtedness of $5.8 billion, and we were in compliance with the covenants under our credit agreements and indentures.
Previous wording
We have entered into agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions to enhance working capital. These amounts are classified separately as Accounts payable-inventory financing on the Consolidated Balance Sheets. We do not incur any interest expense or other incremental expenses associated with these agreements as balances are paid when they are due. For additional information, see Note 5 (Inventory Financing Agreements) to the accompanying Consolidated Financial Statements.
Current wording
We have entered into supplier financing agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions to enhance working capital. We do not incur any interest expense or other incremental expenses associated with these agreements as balances are paid when they are due.
Previous wording
During the three months ended March 31, 2026, we repurchased 1.6 million shares of our common stock for $201 million under the previously announced share repurchase program. For additional information on our share repurchase program, see “Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds.”
Current wording
During the six months ended June 30, 2026, we repurchased 4.5 million shares of our common stock for $545 million under the share repurchase program. On May 13, 2026, we announced that our Board of Directors authorized a $1 billion increase to the share repurchase program. For additional information on our share repurchase program, see “Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds.”
Previous wording
Net cash provided by operating activities decreased $12 million for the three months ended March 31, 2026 compared to March 31, 2025. This decrease was primarily attributable to Merchandise inventory, partially offset by Accounts payable-trade. The decrease from Merchandise inventory was primarily due to customer-driven stocking positions as a result of higher demand. The increase from Accounts payable-trade was primarily due to timing of payments.
Current wording
Net cash provided by operating activities decreased $223 million for the six months ended June 30, 2026 compared to June 30, 2025. This decrease was primarily attributable to Accounts receivable and Merchandise inventory, partially offset by Accounts payable-trade. The decrease from Accounts receivable was primarily due to timing of collections and increased sales activity. The decrease from Merchandise inventory was primarily due to customer-driven stocking positions as a result of higher demand and increased hardware cost. The increase from Accounts payable-trade was primarily due to timing of payments and increased sales activity.
Previous wording
Net cash used in financing activities decreased $21 million for the three months ended March 31, 2026 compared to March 31, 2025. This decrease was primarily driven by the net change in Accounts payable-inventory financing.
Current wording
Net cash used in financing activities decreased $243 million for the six months ended June 30, 2026 compared to June 30, 2025. This decrease was primarily driven by repayment of long-term debt in 2025 and proceeds from borrowings under the Revolving Loan Facility in 2026, partially offset by higher share repurchases in 2026.
Previous wording
Our critical accounting policies have not changed from those reported in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
Our critical accounting policies and estimates have not changed from those reported in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025.
Previous wording
This report contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements. These statements relate to analyses and other information, which are based on forecasts of future results or events and estimates of amounts not yet determinable. These statements also relate to our future prospects, growth, developments, and business strategies. We claim the protection of The Private Securities Litigation Reform Act of 1995 for all forward-looking statements in this report.
Current wording
This report contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements. These statements relate to analyses and other information, which are based on forecasts of future results or events and estimates of amounts not yet determinable. These statements also relate to our future prospects, growth, developments, business strategies, capital allocation, and stockholder returns. We claim the protection of The Private Securities Litigation Reform Act of 1995 for all forward-looking statements in this report.
Previous wording
These forward-looking statements are identified by the use of terms and phrases such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “goal,” “intend,” “plan,” “potential,” “predict,” “project,” “target,” and similar terms and phrases or future or conditional verbs such as “could,” “may,” “should,” “will,” and “would.” However, these words are not the exclusive means of identifying such statements. Although we believe that our plans, intentions, and other expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve those plans, intentions, or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those that we expected.
Current wording
These forward-looking statements are identified by the use of terms and phrases such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “goal,” “intend,” “plan,” “potential,” “predict,” “project,” “target,” and similar terms and phrases or future or conditional verbs such as “could,” “may,” “should,” “will,” and “would.” However, these words are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make in this report regarding our future financial and operational performance, expected customer demand for technology solutions and services, customer spending trends, future liquidity, capital allocation priorities, strategic investments and transformation initiatives, management of debt obligations, the impact of any economic, geopolitical, and regulatory developments, and the expected outcome of any existing or potential litigation, claims, audits, and tax matters. Although we believe that our plans, intentions, and other expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that we will achieve those plans, intentions, or expectations. All forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those that we expected.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Interest expense, net includes interest expense and interest income. Interest expense, net increased $2 million, or 1.4%, primarilydue tohigher average debt levels on our senior unsecured revolving loan facility.
Current report — wording carried from elsewhere
Operating income increased $23 million, or 28.4%, primarily due to higher Gross profit dollars and lower compensation expense.
Current report — wording carried from elsewhere
Amounts under both supplier financing and product financing arrangements are classified within Accounts payable-inventory financing on the Consolidated Balance Sheets. For additional information, see Note 5 (Inventory Financing Agreements) to the accompanying Consolidated Financial Statements.