CDW's Buyback Pace Jumps: Can Stronger Cash Flow Sustain Returns?

CDW returned $706 million to shareholders in H1 2026, including $545 million in buybacks, with net leverage at 2.5X and over $1.1 billion in remaining buyback capacity. However, adjusted free cash flow conversion remained below management's 80-90% target at 42% of non-GAAP net income, primarily due to working capital timing and inventory buildup. Management expects inventory rationalization to drive improved cash flow in H2 2026.