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

Posted by Grant Hamersma on Nov 5th, 2026

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

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 Trading Up 0.6%

Shares of CDW stock traded up $0.95 during trading on Thursday, reaching $169.70. 261,797 shares of the company were exchanged, compared to its average volume of 1,820,789. The firm has a market capitalization of $21.22 billion, a price-to-earnings ratio of 20.43, a P/E/G ratio of 1.96 and a beta of 0.92. CDW has a twelve month low of $97.12 and a twelve month high of $172.47. The business has a 50-day moving average price of $148.23 and a 200-day moving average price of $133.47. The company has a quick ratio of 1.05, a current ratio of 1.17 and a debt-to-equity ratio of 1.97.

CDW Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Wednesday, November 25th will be paid a dividend of $0.68 per share. This represents a $2.72 dividend on an annualized basis and a dividend yield of 1.6%. This is a boost from CDW’s previous quarterly dividend of $0.63. The ex-dividend date of this dividend is Wednesday, November 25th. CDW’s payout ratio is presently 30.29%.

Wall Street Analyst Weigh In

CDW has been the topic of several research analyst reports. Morgan Stanley increased their target price on CDW from $170.00 to $171.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Weiss Ratings raised CDW from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 25th. Barclays reduced their price target on shares of CDW from $150.00 to $148.00 and set an “equal weight” rating on the stock in a research report on Monday, September 21st. Finally, Citigroup increased their price objective on shares of 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 issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $150.12.

Check Out Our Latest Stock Analysis on CDW

Insider Buying and Selling at CDW

In related news, insider Elizabeth Connelly sold 26,695 shares of CDW stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the transaction, the insider owned 34,215 shares of the company’s stock, valued at $4,708,668.30. This trade represents a 43.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.82% of the stock is owned by corporate insiders.

Key CDW News

Here are the key news stories impacting CDW this week:

Positive Sentiment: CDW reported Q3 adjusted EPS of $3.26, above estimates, while revenue rose 17.7% year over year to $6.75 billion and also topped expectations. The company cited broad demand, including enterprise AI adoption. Article: CDW Stock Jumps as AI Infrastructure Demand Drives Q3 Beat
Positive Sentiment: Management signaled low-double-digit 2026 non-GAAP EPS growth and raised its gross-profit outlook to mid- to high-single-digit growth, supporting expectations for continued earnings momentum. Article: CDW Signals 2026 EPS Growth and Raises Gross-Profit Outlook
Positive Sentiment: CDW raised its quarterly dividend 7.9% to $0.68 per share, an approximately 8% increase from a year earlier. Article: CDW Raises Quarterly Dividend
Positive Sentiment: Citigroup lifted its price target to $170 from $150, reflecting a more favorable view after the results. Article: Citigroup Adjusts Price Target on CDW
Negative Sentiment: Despite the sales and earnings beat, margin compression and rising expenses remain concerns; one analysis also flagged rising debt and shrinking margins. These factors could limit how much of the revenue growth flows through to profits. Article: CDW Q3 Earnings Beat Despite Margin Compression
Neutral Sentiment: Evercore ISI removed CDW from its TAP Outperform list, a cautious signal, although its earnings commentary described the quarter as an encouraging step forward. Article: Evercore ISI Removes CDW from TAP Outperform List

CDW Company Profile

(Get Free Report)

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.