CDW (NASDAQ:CDW) Issues Earnings Results

CDW (NASDAQ:CDW) released its quarterly earnings results on Wednesday. The information technology services provider reported $3.26 EPS for the quarter, topping analysts’ consensus estimates of $2.98 by $0.28, FiscalAI reports. The company had revenue of $6.75 billion for the quarter, compared to analysts’ expectations of $6.19 billion. CDW had a return on equity of 52.23% and a net margin of 4.48%. The firm’s revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.71 earnings per share.

Here are the key takeaways from CDW’s conference call:

• CDW delivered record third-quarter net sales of $6.8 billion, up 18%, with double-digit growth in both hardware and software. Strength was broad across customer markets, led by infrastructure demand; server and storage sales more than doubled.
• Management raised its 2026 outlook, expecting the U.S. IT market to grow at a high-single-digit rate and CDW to outperform by 300–400 basis points. Full-year gross profit growth is now expected in the mid- to high-single digits, with non-GAAP EPS growth in the low double digits.
• Gross margin fell 140 basis points year over year to 20.5%, reflecting a mix weighted toward large infrastructure projects and netted-down cloud sales. CDW expects full-year gross margin to decline versus 2025, while services growth remains modest as customers prioritize infrastructure spending and deployments progress through the lifecycle.
• Cost efficiencies supported operating leverage: non-GAAP operating income rose 16.8% on 10.3% gross profit growth, and diluted EPS increased 20.4% to $3.26, aided by share repurchases. Management said its Geared for Growth savings are at or above expectations, though quarterly efficiency gains may not be linear.
• Adjusted free cash flow was $506 million in the quarter, but year-to-date conversion was 73% of non-GAAP net income, below the company’s 80%–90% long-term guide. CDW returned $892 million to shareholders year to date and announced an approximately 8% dividend increase, while net leverage ended the quarter at 2.5 times.

CDW Price Performance

Shares of CDW stock traded down $2.08 on Friday, hitting $156.31. The company’s stock had a trading volume of 428,507 shares, compared to its average volume of 1,826,031. CDW has a 52-week low of $97.12 and a 52-week high of $172.47. The company has a quick ratio of 1.05, a current ratio of 1.26 and a debt-to-equity ratio of 2.32. The firm has a fifty day moving average price of $148.57 and a 200-day moving average price of $133.60. The company has a market capitalization of $19.54 billion, a P/E ratio of 18.26, a price-to-earnings-growth ratio of 2.21 and a beta of 0.92.

CDW Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 25th will be given a dividend of $0.68 per share. The ex-dividend date is Wednesday, November 25th. This is a positive change from CDW’s previous quarterly dividend of $0.63. This represents a $2.72 dividend on an annualized basis and a yield of 1.7%. CDW’s dividend payout ratio (DPR) is presently 30.29%.

Trending Headlines about CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Strong quarterly results and outlook: CDW’s third-quarter adjusted EPS of $3.26 beat estimates of $2.98, while revenue rose 17.7% year over year to $6.75 billion. The company also pointed to low-double-digit 2026 adjusted EPS growth and raised its gross-profit outlook. Article: CDW Stock Jumps as AI Infrastructure Demand Drives Q3 Beat
• Positive Sentiment: Analysts raised price targets: JPMorgan lifted its target to $195 and kept an Overweight rating; UBS also set a $195 target with a Buy rating. Northcoast raised its target to $204, while Citi increased its target to $170 but maintained a Neutral rating. Article: JPMorgan Raises CDW Price Target
• Positive Sentiment: Lovelytics deal: Interlock Equity completed the reported $525 million sale of analytics and AI consultancy Lovelytics to CDW, adding capabilities in a growth area. Article: Interlock Equity Completes Sale of Lovelytics to CDW
• Positive Sentiment: Higher dividend: CDW raised its quarterly dividend 7.9%, to $0.68 per share, signaling confidence in cash generation and offering a modest income boost. Article: CDW Raises Quarterly Dividend
• Neutral Sentiment: Possible post-rally consolidation: CDW recently reached a 52-week high after its earnings beat. A retreat after that sharp advance may reflect investors taking profits rather than a new deterioration in the business. Article: CDW Reaches New 52-Week High on Earnings Beat
• Negative Sentiment: Risks remain: Commentary has flagged rising debt and shrinking margins, which could temper the impact of sales growth and the larger dividend. Evercore ISI also removed CDW from its TAP Outperform list. Article: CDW Dividend, Debt and Margin Considerations

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Barclays cut their price objective on shares of CDW from $150.00 to $148.00 and set an “equal weight” rating on the stock in a report on Monday, September 21st. Morgan Stanley increased their price objective on CDW from $170.00 to $171.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Citigroup raised their target price on shares of CDW from $150.00 to $170.00 and gave the stock a “neutral” rating in a research report on Thursday. UBS Group lifted their target price on shares of CDW from $159.00 to $195.00 and gave the company a “buy” rating in a report on Thursday. Finally, JPMorgan Chase & Co. upped their price target on shares of CDW from $170.00 to $195.00 and gave the company an “overweight” rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $167.38.

About CDW

CDW Corporation (NASDAQ: CDW) is a provider of technology products and services for business, government, education and healthcare organizations. The company helps customers plan, procure, implement and manage information technology solutions from leading hardware, software and cloud vendors.

Its offerings include computers, servers, networking equipment, data-storage systems, cybersecurity products, collaboration tools, software licensing and cloud solutions. CDW also provides professional and managed services, including technology consulting, infrastructure deployment, cloud management, security support and lifecycle services.

Founded in 1984 as Computer Discount Warehouse, CDW serves customers primarily in the United States, Canada and the United Kingdom through sales teams, digital channels and technology partnerships.