CDW (CDW) Citi's 2026 Global TMT Conference summary

Deployment-agnostic approach (cloud, on-prem, hybrid) allows flexibility and positions the company to benefit regardless of customer infrastructure choices. Repeatable, scalable solutions in healthcare and municipalities drive productivity and efficiency, such as reducing 911 call times and improving clinical outcomes. Recent acquisition of Lovelytics enhances data and AI implementation capabilities, adding 500 engineers and data scientists to address data readiness challenges. End-to-end technology partnerships are increasingly vital as complexity grows, with a focus on advisory, integration, implementation, and managed services. AI is reshaping demand, expanding from hyperscalers to enterprises and mid-market, with strong growth seen in verticals like healthcare, federal, education, and state/local government. Demand has been broader and stronger than expected, with robust engagement, backlog, and written business, especially in hardware infrastructure. Geared for Growth is a multi-year initiative focused on efficiency, automation, and AI productivity, with benefits expected to accrue in the second half and beyond. Outlook for the U.S. IT market is mid-single-digit growth, with expectations to outperform by 200–300 basis points, though some prudence is maintained due to macro and supply chain risks. Gross margin fluctuations are attributed to mix shifts, with strong enterprise hardware demand offset by lighter services growth, but long-term margins are expected to improve as services and SaaS pick up.