How is AI Infrastructure Demand Fueling CDW's Growth in 2026?

• Hardware revenue grew 10% with servers, storage, and networking posting strong double-digit growth; Corporate business net sales increased 11% driven by modernization and AI-readiness projects
• CDW's infrastructure investment cycle is expected to generate future services opportunities as customers move from procurement to implementation, with robust written demand and elevated backlog supporting raised guidance
• CDW trades at a forward P/E of 11.9, below the industry average of 18.72, with a Zacks Rank #3 (Hold) and consensus earnings estimates revised marginally upward over the past 60 days

CDW Corporation Rides AI Infrastructure Wave to Strong Q2 2026 Growth

Key Financial Performance:

CDW Corporation (CDW) reported second-quarter 2026 net sales of $6.6 billion, up 10% year-over-year, with gross profit increasing 6% to $1.3 billion. The company's Corporate business segment saw net sales rise 11%, driven by infrastructure modernization and AI readiness initiatives.

Revenue Drivers and Sector Performance:

Hardware revenue climbed 10%, with servers, storage, and network communications posting strong double-digit growth. Software, cloud, and security solutions also delivered healthy gains as customers prioritized application modernization, AI evaluation, hybrid environment optimization, and enhanced security for advanced technology architectures.

AI Infrastructure Opportunity:

CDW is capitalizing on enterprises treating AI as a comprehensive architectural challenge spanning on-premises, public cloud, edge, and hybrid environments. The company's full-stack, full-lifecycle model positions it to capture opportunities across infrastructure, security, data integration, and ongoing lifecycle support as customers transition from AI experimentation to implementation and scaling.

Market Outlook and Valuation:

Strong written demand, shipping activity, and elevated backlog prompted CDW to raise its full-year outlook. The stock currently trades at a forward P/E ratio of 11.9, below the IT Services industry average of 18.72, suggesting attractive valuation. The company holds a Zacks Rank #3 (Hold).

Competitive Landscape:

Competitors Avnet (AVT) and TD SYNNEX (SNX) are similarly benefiting from AI-driven technology expansion, with demand broadening beyond data centers into networking, industrial automation, and edge computing applications. CDW has outperformed the IT Services industry's growth rate of 15.3% over the past year.