CDW (NASDAQ:CDW) Releases Earnings Results, Beats Expectations By $0.13 EPS

CDW (NASDAQ:CDW) released its quarterly earnings data on Wednesday. The information technology services provider reported $2.57 EPS for the quarter, topping the consensus estimate of $2.44 by $0.13, FiscalAI reports. CDW had a net margin of 4.76% and a return on equity of 51.89%. The company had revenue of $5.51 billion during the quarter, compared to the consensus estimate of $5.33 billion. During the same period last year, the firm earned $2.48 EPS. CDW’s revenue for the quarter was up 6.3% on a year-over-year basis.

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

CDW traded up $1.19 during trading on Thursday, reaching $139.27. The stock had a trading volume of 108,854 shares, compared to its average volume of 1,611,668. The business has a 50-day moving average of $136.59 and a 200-day moving average of $151.66. CDW has a one year low of $123.08 and a one year high of $205.00. The company has a debt-to-equity ratio of 2.21, a quick ratio of 1.30 and a current ratio of 1.39. The stock has a market cap of $18.13 billion, a PE ratio of 17.58, a PEG ratio of 1.81 and a beta of 1.08.

CDW Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Wednesday, February 25th will be given a $0.63 dividend. The ex-dividend date is Wednesday, February 25th. This represents a $2.52 annualized dividend and a yield of 1.8%. CDW’s payout ratio is 31.82%.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on CDW. Morgan Stanley boosted their price objective on CDW from $141.00 to $142.00 and gave the company an “equal weight” rating in a research note on Thursday. Evercore ISI reiterated an “outperform” rating and set a $180.00 price target on shares of CDW in a research report on Tuesday, January 20th. Citigroup reissued a “neutral” rating on shares of CDW in a report on Thursday. Raymond James Financial raised shares of CDW from an “outperform” rating to a “strong-buy” rating and set a $185.00 price objective for the company in a research note on Tuesday, November 25th. Finally, UBS Group set a $162.00 target price on shares of CDW in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $166.57.

Insiders Place Their Bets

In other CDW news, insider Sona Chawla sold 7,400 shares of the company’s stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $146.17, for a total value of $1,081,658.00. Following the completion of the sale, the insider owned 28,110 shares of the company’s stock, valued at $4,108,838.70. This represents a 20.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 0.84% of the stock is owned by insiders.

Institutional Trading of CDW

A number of institutional investors have recently made changes to their positions in the stock. Marshall Wace LLP increased its stake in shares of CDW by 255.7% in the third quarter. Marshall Wace LLP now owns 599,248 shares of the information technology services provider’s stock worth $95,448,000 after buying an additional 430,796 shares during the period. Danske Bank A S bought a new stake in CDW in the 3rd quarter worth $13,347,000. BI Asset Management Fondsmaeglerselskab A S grew its holdings in CDW by 1,339.7% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 49,380 shares of the information technology services provider’s stock worth $8,819,000 after acquiring an additional 45,950 shares during the last quarter. Russell Investments Group Ltd. increased its position in shares of CDW by 18.2% in the third quarter. Russell Investments Group Ltd. now owns 111,267 shares of the information technology services provider’s stock valued at $17,782,000 after acquiring an additional 17,132 shares during the period. Finally, Jump Financial LLC raised its stake in shares of CDW by 182.3% during the third quarter. Jump Financial LLC now owns 21,563 shares of the information technology services provider’s stock valued at $3,435,000 after acquiring an additional 13,926 shares during the last quarter. Hedge funds and other institutional investors own 93.15% of the company’s stock.

Key Stories Impacting CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Q4 results beat expectations — CDW reported adjusted EPS of $2.57 and revenue of $5.51B, topping Street estimates. The beat and signs of margin expansion are the primary catalyst for the rally. Read More.
• Positive Sentiment: AI and cloud demand highlighted by management — Management said AI adoption and cloud projects are driving “massive demand” across customer segments, supporting revenue momentum and higher-margin services. Read More.
• Positive Sentiment: Return of capital and shareholder-friendly actions — Company noted significant share repurchases/return of capital (reported ~$982M returned recently) and declared a $0.63 quarterly dividend (ex-div Feb 25), supporting investor confidence. Read More.
• Positive Sentiment: Market reaction / volume — Coverage aggregators report the stock climbed strongly (single?day spikes ~7–9%) on the prints, with heavy trading volume, reflecting broad investor enthusiasm. Read More.
• Neutral Sentiment: Morgan Stanley nudges price target — Morgan Stanley raised its target slightly from $141 to $142 but kept an “equal weight” rating; modest upside to the new target but no upgrade in conviction. Read More.
• Neutral Sentiment: Analyst notes & slide deck available — Multiple outlets published the earnings slide deck and transcripts (useful for modeling customer mix and margin drivers). These help investors dig into guidance and segment trends. Read More.
• Negative Sentiment: Conflicting transcript showing an earnings miss — At least one published transcript/summary shows a reported EPS of $2.14 vs. $2.44 expectations, which contradicts the company’s adjusted EPS beat and could create short?term confusion or headline risk. Investors should rely on the official release and reconcile GAAP vs. non?GAAP figures. Read More.

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.