CDW (NASDAQ:CDW) Announces Quarterly Earnings Results

CDW (NASDAQ:CDW) issued its quarterly earnings data on Wednesday. The information technology services provider reported $2.57 earnings per share for the quarter, topping the consensus estimate of $2.44 by $0.13, FiscalAI reports. The business had revenue of $5.51 billion during the quarter, compared to analysts’ expectations of $5.33 billion. CDW had a net margin of 4.76% and a return on equity of 50.66%. The business’s revenue was up 6.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.48 EPS.

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

• CDW reported a strong finish to 2025 with Q4 net sales of $5.5B (+5%), Q4 non-GAAP EPS of $2.57 (+4%), and a record full-year non-GAAP EPS of $10.02, generating ~$1.1B of adjusted free cash flow and returning nearly $1B to shareholders.
• Growth was driven by higher‑margin categories — notably cloud, software, and professional & managed services — with cloud contributing roughly half of the quarter’s gross profit growth and strong end‑market performance in small business (+18%) and education (+13%).
• Operating leverage was mixed as non‑GAAP SG&A rose 14.6% (driven by commissions and performance comp), leaving non‑GAAP operating margin at 9.1% (down ~50 bps), and a rising mix of netted‑down revenues now represents 36.1% of gross profit.
• For 2026 CDW expects the U.S. IT addressable market to grow low single digits and is targeting 200–300 bps of outperformance, with management forecasting low‑single‑digit gross profit growth, slightly higher gross margin vs. 2025, and mid‑single‑digit EPS growth while maintaining capital returns and a ~2.4x net leverage target.
• Key near‑term risks include memory price increases and potential supply volatility (management noted pull‑forwards of ~ $50M in Q4 and similar Q1 exposure), plus public‑sector funding uncertainty from the federal shutdown, tariffs and geopolitical factors that could pressure demand later in the year.

CDW Price Performance

Shares of NASDAQ:CDW opened at $140.77 on Friday. CDW has a twelve month low of $123.08 and a twelve month high of $205.00. The stock’s 50 day moving average is $136.52 and its 200-day moving average is $151.58. The company has a quick ratio of 1.30, a current ratio of 1.18 and a debt-to-equity ratio of 1.77. The firm has a market capitalization of $18.33 billion, a price-to-earnings ratio of 17.40, a PEG ratio of 1.98 and a beta of 1.08.

CDW Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Wednesday, February 25th will be issued a dividend of $0.63 per share. The ex-dividend date is Wednesday, February 25th. This represents a $2.52 annualized dividend and a dividend yield of 1.8%. CDW’s payout ratio is currently 31.82%.

Insider Activity at CDW

In other news, insider Sona Chawla sold 7,400 shares of the business’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $146.17, for a total transaction of $1,081,658.00. Following the completion of the sale, the insider directly owned 28,110 shares of the company’s stock, valued at $4,108,838.70. The trade was a 20.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CDW

Several large investors have recently bought and sold shares of the stock. Dark Forest Capital Management LP purchased a new position in CDW during the third quarter worth about $313,000. Jones Financial Companies Lllp raised its position in CDW by 316.0% in the first quarter. Jones Financial Companies Lllp now owns 4,896 shares of the information technology services provider’s stock worth $785,000 after acquiring an additional 3,719 shares during the period. Harvest Fund Management Co. Ltd raised its holdings in shares of CDW by 7.4% in the 3rd quarter. Harvest Fund Management Co. Ltd now owns 8,044 shares of the information technology services provider’s stock worth $1,281,000 after purchasing an additional 556 shares during the period. Empowered Funds LLC increased its position in CDW by 1.2% in the first quarter. Empowered Funds LLC now owns 18,076 shares of the information technology services provider’s stock worth $2,897,000 after buying an additional 216 shares during the last quarter. Finally, Jump Financial LLC grew its stake in shares of CDW by 182.3% during the 3rd quarter. Jump Financial LLC now owns 21,563 shares of the information technology services provider’s stock worth $3,435,000 after acquiring an additional 13,926 shares during the period. 93.15% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. Weiss Ratings reissued a “hold (c-)” rating on shares of CDW in a report on Tuesday, January 27th. Morgan Stanley lifted their target price on shares of CDW from $141.00 to $142.00 and gave the stock an “equal weight” rating in a research report on Thursday. Evercore ISI restated an “outperform” rating and issued a $180.00 price target on shares of CDW in a research report on Tuesday, January 20th. Raymond James Financial raised shares of CDW from an “outperform” rating to a “strong-buy” rating and set a $185.00 price target for the company in a research note on Tuesday, November 25th. Finally, Citigroup upped their price target on CDW from $148.00 to $150.00 and gave the company a “neutral” rating in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, CDW currently has an average rating of “Moderate Buy” and an average target price of $160.43.

Key CDW News

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Q4 beat on adjusted EPS and revenue — CDW reported adjusted EPS of $2.57 (above consensus) and revenue of $5.51B, driven by broad demand and small-business strength; investors rewarded the topline beat and margin expansion. Reuters: CDW beats fourth-quarter estimates
• Positive Sentiment: Management cited AI and cloud services as durable demand drivers and highlighted record margins and ongoing buybacks that supported the stock’s move higher. Yahoo: CDW Leans on AI, Cloud and Buybacks
• Positive Sentiment: Capital return: Board declared a $0.63 quarterly dividend and management emphasized buybacks (nearly $1B returned recently), underpinning shareholder yield and signaling confidence in cash flow. BusinessWire: Dividend announcement
• Neutral Sentiment: Small analyst moves: Morgan Stanley nudged its target from $141 to $142 with an “equal weight” rating — a minor signal that some shops see limited near-term upside. Benzinga: Morgan Stanley target change
• Neutral Sentiment: Analyst landscape remains mixed: consensus/median targets sit well above today’s price (QuiverQuant shows a median near ~$166.5), indicating divergent views on multi-year growth vs. valuation. QuiverQuant: Analyst targets & institutional flow
• Negative Sentiment: JPMorgan lowered its price target from $170 to $160 and moved to “neutral” — a notable headline that could cap upside if other large shops follow. Benzinga: JPMorgan cuts target
• Negative Sentiment: Conflicting/GAAP details in some call transcripts: one transcript flags a GAAP EPS miss (different from the adjusted-beat headlines), which could create short-term confusion for investors focused on GAAP metrics. InsiderMonkey: Earnings call transcript

CDW Company Profile

CDW (NASDAQ: CDW) is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.