CDW AI Stock Analysis
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CDW (CDW) AI Stock Analysis
CDW
(NASDAQ:CDW)
CDW scores well primarily on strong technical momentum (price above all major moving averages with positive MACD) and a notably positive earnings update that included record results and raised guidance. The score is moderated by financial structure risks—especially elevated leverage and softer recent free-cash-flow momentum—and a valuation that looks fair rather than clearly discounted.
CDW Key Performance Indicators (KPIs)
Revenue by GeographyShows where the company earns its revenue across different regions, with a heavy North American focus pointing to sensitivity to U.S. IT spending and any regional downturns. Tracking shifts over time flags successful international growth or rising exposure to new markets.
Rest of World revenues have moved from cyclical troughs to a clear acceleration in 2026, reflecting the international momentum management flagged (Canada, U.K.) and strong demand for infrastructure, cloud, software and security. That geographic strength helps validate the raised outlook and CDW's ability to outgrow the market, but much of the lift appears hardware-heavy—supporting top-line and gross-profit growth while likely weighing on margins near term due to product mix and inventory buildup; watch services reacceleration and cash‑conversion normalization in H2 for durable margin improvement.
The FlyCDW (CDW) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $21.60B
- Dividend Yield
- 1.46%
- Average Volume (3M)
- 1.63M
- Price to Earnings (P/E)
- 20.1
- Beta (1Y)
- 0.81
- Revenue Growth
- 10.94%
- EPS Growth
- 8.13%
- Country
- US
- Employees
- 14,800
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
CDW Business Overview & Revenue Model
Company Description
CDW Corporation specializes in delivering comprehensive information technology services and products across North America and the United Kingdom. It strategically targets three core client divisions: corporate enterprises, small to medium-sized busin...
How the Company Makes Money
CDW primarily makes money by selling third-party IT products and solutions—most notably hardware, software, and cloud-related offerings—sourced from a broad ecosystem of technology vendors and delivered to customers through its corporate, small busin...
CDW Earnings Call Summary
The call was strongly positive. CDW delivered record quarterly performance with 18% sales growth, double-digit growth across major product categories, significant operating leverage, healthy backlog and written demand, and raised full-year guidance. The main challenges were lower gross margin, modest services growth tied to deployment timing, declining client device unit volumes, higher interest expense, and year-to-date cash conversion below the long-term target range, but these issues did not outweigh the company's broad-based growth and improved outlook.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year 2026, CDW now expects the U.S. IT addressable market to grow at a high single-digit rate on a customer spend basis, with 300-400 basis points of CDW outperformance compared to the market; gross profit to grow at a mid to high single-digit rate, with a first half versus second half split in the range of 48%-52%, while full year 2026 gross margin is expected to be down compared to the full year 2025; net interest expense is expected in the range of $255 million-$260 million; non-GAAP net income per diluted share growth is expected to be in the low double-digit range year over year; and currency is expected to be relatively neutral to reported growth rates for the full year. For the fourth quarter, gross profit is expected to increase at a mid-single-digit rate year over year, equivalent to a seasonal low to mid-single-digit decline sequentially, non-GAAP SG&A is expected to increase at a low single-digit rate year-over-year and sequentially, and non-GAAP net income per diluted share is expected to increase at a low double-digit rate year over year.
CDW Financial Statement Overview
Summary
Profitability and cash generation are solid (TTM gross margin ~21%, net margin ~4.6%, operating cash flow ~$1.05B and FCF ~$0.93B with ~0.88x FCF-to-net-income conversion). However, the balance sheet remains meaningfully levered (debt-to-equity ~2.44x) and TTM free cash flow declined ~15.8%, which reduces flexibility despite improving TTM revenue growth (~4.3%).
Income Statement
72PositiveBalance Sheet
55NeutralCash Flow
60Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.52B | 22.42B | 21.00B | 21.38B | 23.75B | 20.82B |
| Gross Profit | 5.15B | 4.87B | 4.60B | 4.65B | 4.69B | 3.57B |
| EBITDA | 1.83B | 1.95B | 1.93B | 1.95B | 2.01B | 1.64B |
| Net Income | 1.10B | 1.07B | 1.08B | 1.10B | 1.11B | 988.60M |
Balance Sheet | ||||||
| Total Assets | 19.59B | 16.03B | 14.68B | 13.28B | 13.13B | 13.20B |
| Cash, Cash Equivalents and Short-Term Investments | 1.54B | 618.70M | 717.70M | 588.70M | 315.20M | 258.10M |
| Total Debt | 7.27B | 6.33B | 5.99B | 5.81B | 6.10B | 7.35B |
| Total Liabilities | 16.95B | 13.42B | 12.33B | 11.24B | 11.53B | 12.49B |
| Stockholders Equity | 2.64B | 2.61B | 2.35B | 2.04B | 1.60B | 705.70M |
Cash Flow | ||||||
| Free Cash Flow | 1.18B | 1.09B | 1.15B | 1.45B | 1.21B | 684.60M |
| Operating Cash Flow | 1.33B | 1.21B | 1.28B | 1.60B | 1.34B | 784.60M |
| Investing Cash Flow | -626.00M | 70.20M | -659.20M | -229.60M | -164.50M | -2.77B |
| Financing Cash Flow | 373.30M | -1.18B | -686.90M | -1.10B | -1.10B | 832.80M |
CDW Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDW, the sentiment is Positive. The current price of 173.08 is above the 20-day moving average (MA) of 159.91, above the 50-day MA of 149.88, and above the 200-day MA of 133.68, indicating a bullish trend. The MACD of 5.17 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDW.
CDW Risk Analysis
CDW disclosed 23 risk factors in its most recent earnings report. CDW reported the most risks in the "Production" category.
Latest Risks Added
2 New RisksCDW Peers Comparison
Overall Rating
INGM86Outperform
IBM79Outperform
CTSH77Outperform- CDW75Outperform
NSIT71Outperform
VRRM63Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| INGM | 86Outperform | $6.31B | 14.07 | 10.81% | 1.21% | 14.83% | 60.93% |
| IBM | 79Outperform | $231.11B | 20.86 | 32.95% | 2.72% | 6.83% | 39.80% |
| CTSH | 77Outperform | $29.06B | 11.73 | 17.36% | 2.02% | 4.96% | 27.16% |
| CDW | 75Outperform | $21.14B | 20.10 | 42.94% | 1.46% | 10.94% | 8.13% |
| NSIT | 71Outperform | $4.86B | 28.29 | 11.31% | ― | 9.02% | 33.07% |
| VRRM | 63Neutral | $313.14M | 8.24 | 14.37% | ― | 6.49% | -25.87% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CDW | CDW Corporation | 173.08 | 29.26 | 20.34% | |
| CTSH | Cognizant Technology Solutions | 64.43 | -7.51 | -10.43% | |
| NSIT | Insight Enterprises Inc. | 169.44 | 78.95 | 87.25% | |
| IBM | International Business Machines Corporation | 248.22 | -48.50 | -16.35% | |
| VRRM | Verra Mobility | 2.06 | -20.61 | -90.91% | |
| INGM | Ingram Micro Holding Corporation | 28.00 | 7.82 | 38.76% |
CDW Corporate Events
CDW Reports Strong Third-Quarter Sales and Earnings Growth
PositiveOn November 4, 2026, CDW reported third-quarter net sales of $6.755 billion, up 17.7% from a year earlier, while gross profit increased 10.3% to $1.385 billion. Non-GAAP net income per diluted share rose 20.4% to $3.26, reflecting broad-based demand...
CDW appoints Sam Balaji to board of directors
PositiveOn October 15, 2026, CDW Corporation expanded its Board of Directors from nine to ten members and appointed Sam Balaji, former Global Chief Executive Officer of Consulting & Advisory at Deloitte, as a director. Balaji was deemed independent under Nas...
CDW Completes $1.5 Billion Senior Notes Offering
PositiveOn September 21, 2026, CDW LLC and CDW Finance Corporation completed a registered offering of $1.5 billion in senior unsecured notes, split among 5.700% notes due 2029, 6.100% notes due 2032, and 6.350% notes due 2033, with interest payments beginnin...
CDW announces $1.5 billion senior notes offering
PositiveOn September 14, 2026, CDW LLC and CDW Finance Corporation, with CDW Corporation as guarantor, entered into an underwriting agreement with a syndicate led by BofA Securities, J.P. Morgan, Mizuho Securities USA, and Wells Fargo Securities. Under this...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 05, 2026