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CDW Corporation
S&P 500
🏹 Trader: 🎯 Near 52W High | BRS 71 Forming View all →
$20.1B
Market Cap
16.9
P/E
1.74
PEG
15.4%
ROCE
43.0%
ROE
2.37
D/E
7.5%
OPM
-6.2%
% from 52W High
61
α RS
🔍 CDW is showing a high-conviction setup because it matches 5 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still strengthening, and RS Rating is 61. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 5/39 · Technology in Leading quadrant · RS Rating 61
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🌏 Global Investor Returns
Currency-adjusted total returns for CDW including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
📊 Sector Averages
About

CDW Corporation provides information technology (IT) solutions in the United States, the United Kingdom, and Canada. It operates through three segments: Commercial, Government, and Education. The company offers discrete hardware and software products and services, as well as integrated IT solutions, including on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. It also provides hardware products comprising notebooks/mobile devices, tablets, network communications, collaboration hardware, data storage and servers, desktop computers, and other hardware; and software products, such as cloud solutions, software assurance, application suites, security, virtualization, collaboration and productivity applications, operating systems, and network management. In addition, the company offers advisory and design, software development, implementation, and managed services, as well as warranties. It serves business, government, education, and healthcare customers. The company was formerly known as CDW Computer Centers, Inc. and changed its name to CDW Corporation in June 2003. CDW Corporation was founded in 1984 and is based in Vernon Hills, Illinois.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding CDW
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 523.0K $63.3M 0.10% Mar 2026
Steve Cohen Point72 Asset Management 19.4K $2.3M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Mixed ~ Volatile 4 quarters Full tone analysis in Intelligence →
📊 MIXED CDW Q1 2026: Net sales up 9%, EPS $2.28, AI infrastructure demand drives growth
Revenue & Profitability
Q1 2026 net sales increased 9% versus the prior year on an average daily basis. Gross profit was $1.2 billion, up 6%. Non-GAAP operating income was $452 million, up 1.8%; non-GAAP net income was $295 million, up 3.1%; non-GAAP EPS grew 6.3% to $2.28. Adjusted free cash flow totaled $251 million, representing 85% of non-GAAP net income. Gross margin was 21%, down 60 basis points year-over-year due to mix shift away from netted-down revenues.
Outlook
Management maintains a view of low single-digit growth for the U.S. IT addressable market in 2026 on a customer spend basis, with CDW targeting 200-300 basis points of outperformance. The outlook is prudent, factoring in strong Q1 order flow and elevated backlog but uncertainty in the second half of the year. It excludes potential recessionary conditions or extreme dislocations in pricing and supply. Second half is expected to see a more balanced mix, with netted-down revenues and services picking up relative to hardware.
Growth Drivers
Key growth levers identified in the call include AI infrastructure investment (networking, servers, storage each up >20%), strength in commercial (up 10%, driven by financial services, healthcare, corporate), state and local government (double-digit growth), and international (U.K. and Canada up 18%). AI adoption is bringing new customers to CDW and increasing wallet share. The company also highlighted growth via its GPU-as-a-service partnership with Boost Run and the Geared for Growth productivity initiatives.
Balance Sheet & CapEx
Not discussed in this earnings call beyond the Geared for Growth program, which is a multi-year investment in AI tools, training, and process modernization. Management expects $100 million to $200 million in run-rate savings from this program by 2027-2028, with some reinvestment into the business. No specific CapEx dollar guidance was provided.
Margins
Gross margin was 21% in Q1, down 60 basis points year-over-year, driven by a lower mix of netted-down revenues (34.5% of gross profit vs. 36.5% in Q1 2025). Management expects gross margins to be approximately in line with 2025 for the full year. Non-GAAP SG&A increased 8.8% due to seasonally higher expenses and investments in AI tools. Operating leverage is expected to return in the second half of 2026, supported by Geared for Growth savings. The company targets an SG&A efficiency ratio and durable operating leverage.
Key Risks
Risks flagged include uncertainty in the second half of the year due to geopolitical tensions, pricing and supply dislocations (e.g., memory constraints), and potential macroeconomic recession not factored into the outlook. Federal segment was impacted by budget timing and procurement delays from the prior year shutdown. Higher education customers are showing extended decision-making. Customer urgency related to tariff and price increases could create volatility. Management also noted the potential for demand normalization after pull-forward activity.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
Second quarter results set new records for net sales, gross profit, and non-GAAP EPS, driven by strong AI-related infrastructure demand and disciplined execution. The outlook for 2026 was raised, with continued growth expected in hardware, software, and services, and capital returns remain robust.
Q1 2026 Q1 2026 2026-05-06
Q1 saw 9% net sales growth and 6% gross profit growth, driven by AI and infrastructure demand. Full-year guidance remains for low single-digit IT market growth and 200-300 bps outperformance, with margin discipline and operational savings from AI initiatives expected in the second half.
Q4 2025 Q4 2025 2026-02-04
Fourth quarter and full-year 2025 results exceeded expectations, with strong growth in cloud, software, and services driving record margins and earnings. 2026 guidance targets continued outperformance of a modestly growing IT market, with disciplined capital allocation and a focus on AI and higher-margin solutions.
Q3 2025 Q3 2025 2025-11-04
Net sales and gross profit grew 4% and 5% year-over-year, respectively, with strong performance in small business, government, and international segments. Full-year guidance remains for low single-digit IT market growth and 200-300 bps outperformance, despite ongoing macro and sector-specific uncertainties.
Q2 2025 Q2 2025 2025-08-06
Q2 2025 saw 10% net sales growth to $6B, with strong commercial, healthcare, and international results offsetting federal and education declines. Gross margin fell due to mix, but non-GAAP EPS rose 4%. 2025 guidance remains for low single-digit IT market growth and a 200-300 bps outperformance.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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