CDW (NASDAQ:CDW) Posts Quarterly Earnings Results

CDW (NASDAQ:CDW) released its quarterly earnings data on Wednesday. The information technology services provider reported $2.28 EPS for the quarter, meeting the consensus estimate of $2.28, FiscalAI reports. CDW had a net margin of 4.76% and a return on equity of 50.66%. The business had revenue of $5.68 billion during the quarter, compared to the consensus estimate of $5.48 billion. During the same quarter in the prior year, the firm earned $2.15 EPS. The business’s revenue was up 9.2% on a year-over-year basis.

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

• Q1 financials — Consolidated net sales rose 9%, gross profit grew 6%, non?GAAP EPS increased 6%, and adjusted free cash flow was $251M, delivering a record first?quarter gross profit.
• Demand shifted toward AI and infrastructure with hardware up 10% and networking/servers/storage each >20%, while services and netted?down revenues were deprioritized, which pressured gross margin by roughly 60 basis points due to mix.
• The new Geared for Growth AI?powered modernization program is being embedded across operations and sales (e.g., CDW Assist Super Agent), with expected benefits starting in H2 and a targeted $100M–$200M annual run?rate improvement by 2027–2028.
• Supply and timing dynamics created an elevated backlog entering Q2 from pull?ins and shipment delays, supporting a stronger near?term outlook while management remains cautious about potential H2 uncertainty.
• Capital allocation remained shareholder?friendly — $282M returned in Q1 ($201M buybacks, $81M dividends), net leverage at ~2.5x, a target ~25% dividend payout ratio, and opportunistic M&A/share repurchases going forward.

CDW Price Performance

Shares of NASDAQ CDW traded down $26.36 during mid-day trading on Wednesday, hitting $110.45. 4,502,986 shares of the company’s stock traded hands, compared to its average volume of 1,698,129. The company’s 50-day moving average is $125.61 and its two-hundred day moving average is $134.85. The company has a debt-to-equity ratio of 1.77, a current ratio of 1.18 and a quick ratio of 1.10. The company has a market capitalization of $14.13 billion, a P/E ratio of 13.60, a PEG ratio of 1.86 and a beta of 1.04. CDW has a 1 year low of $106.00 and a 1 year high of $192.30.

Institutional Trading of CDW

Several hedge funds have recently made changes to their positions in CDW. Align Financial LLC purchased a new stake in CDW in the 4th quarter worth about $1,929,000. California State Teachers Retirement System raised its position in CDW by 2.3% in the 4th quarter. California State Teachers Retirement System now owns 230,692 shares of the information technology services provider’s stock worth $31,420,000 after purchasing an additional 5,121 shares during the period. Van ECK Associates Corp raised its position in CDW by 9.8% in the 4th quarter. Van ECK Associates Corp now owns 27,910 shares of the information technology services provider’s stock worth $3,801,000 after purchasing an additional 2,498 shares during the period. Campbell & CO Investment Adviser LLC purchased a new stake in CDW in the 4th quarter worth about $351,000. Finally, Brown Brothers Harriman & Co. raised its position in CDW by 38.6% in the 4th quarter. Brown Brothers Harriman & Co. now owns 912 shares of the information technology services provider’s stock worth $124,000 after purchasing an additional 254 shares during the period. 93.15% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have commented on CDW shares. Raymond James Financial set a $150.00 price objective on shares of CDW in a report on Wednesday. UBS Group dropped their price objective on shares of CDW from $190.00 to $162.00 and set a “buy” rating for the company in a report on Thursday, February 5th. JPMorgan Chase & Co. decreased their target price on shares of CDW from $170.00 to $160.00 and set a “neutral” rating on the stock in a research report on Thursday, February 5th. Barclays decreased their target price on shares of CDW from $148.00 to $144.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 5th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of CDW in a research report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $155.43.

More CDW News

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Revenue and demand: Net sales rose ~9.2% to $5.68B and CDW cited strong IT demand from AI and cloud spending — a clear growth signal for resellers. Reuters: CDW posts first-quarter revenue beat
• Positive Sentiment: Dividend increase: Board declared a $0.63 quarterly cash dividend, supporting shareholder yield and signaling confidence in cash flow. Business Wire: Dividend announcement
• Neutral Sentiment: Management/IR activity: CDW participated in the J.P. Morgan TMT conference (visibility with investors) and recently hired an HPE enterprise-services leader — strategic moves but not immediate earnings drivers. Yahoo Finance: JP Morgan conference
• Negative Sentiment: Margins and EPS nuance: While revenue beat, gross and operating margins compressed y/y (21.0% gross vs 21.6% a year ago; operating margin down) and some data providers flag a slight EPS miss vs certain estimates — investors often punish margin deterioration even with sales growth. Business Wire: Q1 results and margins
• Negative Sentiment: Heavy selling and volume: The decline accelerated on very high intraday volume and data feeds showing ~20% intraday price drop; Quiver notes insider sales and large institutional portfolio changes that may have amplified the sell-off. Quiver Quantitative: intraday move and flows

About CDW

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.