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

CDW (NASDAQ:CDW) posted its earnings results on Wednesday. The information technology services provider reported $2.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.44 by $0.13, FiscalAI reports. The firm had revenue of $5.51 billion for the quarter, compared to analysts’ expectations of $5.33 billion. CDW had a return on equity of 51.89% and a net margin of 4.76%.The business’s revenue was up 6.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.48 earnings per share.

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 Trading Up 5.3%

Shares of NASDAQ CDW traded up $6.67 during midday trading on Wednesday, reaching $132.83. 297,465 shares of the stock were exchanged, compared to its average volume of 1,556,806. CDW has a 12 month low of $123.08 and a 12 month high of $222.92. The company has a debt-to-equity ratio of 2.21, a current ratio of 1.39 and a quick ratio of 1.30. The company has a market capitalization of $17.29 billion, a price-to-earnings ratio of 16.76, a P/E/G ratio of 1.66 and a beta of 1.08. The business has a 50-day simple moving average of $136.72 and a two-hundred day simple moving average of $151.75.

Insider Transactions at CDW

In other news, insider Sona Chawla sold 7,400 shares of the company’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $146.17, for a total value of $1,081,658.00. Following the completion of the transaction, the insider owned 28,110 shares in the company, valued at $4,108,838.70. This represents a 20.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.90% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Marshall Wace LLP grew 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 valued at $95,448,000 after buying an additional 430,796 shares in the last quarter. California State Teachers Retirement System increased its position in CDW by 0.6% during the second quarter. California State Teachers Retirement System now owns 225,709 shares of the information technology services provider’s stock worth $40,309,000 after buying an additional 1,242 shares during the last quarter. Ameriprise Financial Inc. boosted its stake in shares of CDW by 0.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 150,209 shares of the information technology services provider’s stock worth $23,924,000 after acquiring an additional 1,052 shares during the period. Russell Investments Group Ltd. increased its holdings in shares of CDW by 18.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 111,267 shares of the information technology services provider’s stock worth $17,782,000 after acquiring an additional 17,132 shares during the last quarter. Finally, Danske Bank A S bought a new stake in CDW in the 3rd quarter valued at $13,347,000. Institutional investors and hedge funds own 93.15% of the company’s stock.

Key CDW News

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Q4 results beat expectations — non‑GAAP EPS of $2.57 topped consensus and revenue of $5.51B beat estimates, with revenue up ~6.3% year-over-year; beats are the primary catalyst for the rally. CDW Corp earnings beat by $0.13, revenue topped estimates
• Positive Sentiment: Management and reporters cited resilient demand for IT solutions — clients are still investing in AI and cloud adoption, which supports near‑term sales momentum. CDW beats fourth-quarter estimates on resilient demand for IT solutions
• Positive Sentiment: Board declared a quarterly cash dividend of $0.63 per share, reinforcing shareholder returns (dividends + buybacks cited as capital allocation priorities). CDW Declares Quarterly Cash Dividend of $0.630 Per Share
• Positive Sentiment: Recent analyst coverage and price‑target activity skew positive — several firms maintain buy/strong‑buy views and mid‑to‑high targets, supporting investor sentiment after the beat. CDW ($CDW) Releases Q4 2025 Earnings
• Neutral Sentiment: Company filed its press release and slide deck (useful for preparing model updates and checking segment/guide detail). CDW Reports Fourth Quarter and Full Year 2025 Earnings
• Neutral Sentiment: Valuation/technical context — trailing P/E around 16.8 and the stock is trading below its 50‑ and 200‑day moving averages; investors may weigh beat vs. longer‑term technical resistance. CDW ($CDW) Releases Q4 2025 Earnings
• Negative Sentiment: Management had previously flagged pockets of weakness — guidance commentary noted softer government and education demand and management guided a slight EPS decline in the near term, which could cap upside if those end markets remain sluggish. CDW to Release Q4 Earnings: Here’s What Investors Should Know

Wall Street Analysts Forecast Growth

CDW has been the topic of a number of recent research reports. Weiss Ratings restated a “hold (c-)” rating on shares of CDW in a research note on Tuesday, January 27th. Raymond James Financial upgraded CDW from an “outperform” rating to a “strong-buy” rating and set a $185.00 price objective on the stock in a research note on Tuesday, November 25th. Evercore ISI restated an “outperform” rating and set a $180.00 price objective on shares of CDW in a report on Tuesday, January 20th. Barclays reduced their target price on CDW from $176.00 to $148.00 and set an “equal weight” rating for the company in a research report on Wednesday, November 5th. Finally, Morgan Stanley lowered CDW from an “overweight” rating to an “equal weight” rating and lowered their price objective for the company from $177.00 to $141.00 in a research note on Tuesday, January 20th. One research 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, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $171.00.

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.