CDW (NASDAQ:CDW) Announces Earnings Results, Beats Estimates By $0.28 EPS

CDW (NASDAQ:CDW) released its quarterly earnings results on Wednesday. The information technology services provider reported $3.26 earnings per share for the quarter, beating the consensus estimate of $2.98 by $0.28, FiscalAI reports. The firm had revenue of $6.75 billion for the quarter, compared to analysts’ expectations of $6.19 billion. CDW had a net margin of 4.60% and a return on equity of 50.61%. The business’s revenue was up 17.7% on a year-over-year basis. During the same period in the prior year, the firm earned $2.71 EPS.

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 Stock Performance

Shares of CDW stock traded up $18.93 on Wednesday, hitting $168.71. The company’s stock had a trading volume of 2,405,405 shares, compared to its average volume of 1,822,245. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.05 and a current ratio of 1.17. The stock’s 50 day moving average is $147.70 and its 200-day moving average is $133.29. CDW has a fifty-two week low of $97.12 and a fifty-two week high of $172.47. The company has a market capitalization of $21.09 billion, a PE ratio of 20.28, a PEG ratio of 1.97 and a beta of 0.92.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on the company. Weiss Ratings upgraded CDW from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 25th. Morgan Stanley upped their target price on CDW from $170.00 to $171.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Barclays lowered their target price on CDW from $150.00 to $148.00 and set an “equal weight” rating on the stock in a research note on Monday, September 21st. Finally, Citigroup lifted their price target on CDW from $123.00 to $145.00 and gave the stock a “neutral” rating in a report on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $150.12.

Key Stories Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: CDW reported Q3 adjusted earnings of $3.26 per share, above analyst estimates, while revenue rose 17.7% year over year to $6.755 billion and also exceeded expectations. The company attributed growth to enterprise AI adoption and broad-based demand. Article: CDW Stock Jumps as AI Infrastructure Demand Drives Q3 Beat
• Positive Sentiment: The board raised CDW’s quarterly dividend to $0.68 per share, about 8% above last year’s payout, signaling continued cash returns to shareholders. Article: CDW Raises Quarterly Dividend
• Neutral Sentiment: A Hennessy Focus Fund investor letter revisited CDW as a “good but not great” business amid a market environment dominated by large technology stocks. The available article details do not specify a new CDW position or transaction. Article: Reevaluating CDW Corp.
• Negative Sentiment: Despite the earnings beat, margin compression and rising expenses remain watchpoints that could limit how much of the sales growth translates into future profit gains. Article: CDW Q3 Earnings Beat Despite Margin Compression

Insider Buying and Selling

In other CDW news, insider Elizabeth Connelly sold 26,695 shares of CDW stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $137.62, for a total value of $3,673,765.90. Following the completion of the sale, the insider owned 34,215 shares in the company, valued at $4,708,668.30. The trade was a 43.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.82% of the company’s stock.

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.