CDW

Vernon Hills, Illinois-based CDW Corporation (CDW) provides information technology (IT) solutions in the United States and internationally. The company has a market cap of $17.2 billion and operates through three segments: Commercial, Government, and Education. CDW is expected to release its Q2 2026 earnings soon. Ahead of the event, analysts expect the company’s EPS to be $2.65 on a diluted basis, up 7.3% from $2.47 in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of its last four quarters, while missing on one occasion. Micron Stock Is Off 31% From Its High. Why This Could Be the Best Time to Buy. Michael Saylor’s Bitcoin Treasury Company Strategy Is Falling Apart This Red-Hot AI Infrastructure Stock Just Made a Game-Changing Move. How to Play NBIS Here. Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2026, analysts project the company’s EPS to be $10.21, up 7.1% from $9.53 in fiscal 2025. Moreover, its EPS is expected to rise by roughly 10.6% year over year (YoY) to $11.29 in fiscal 2027. CDW stock has declined 25.4% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 20.3% rise and the State Street Technology Select Sector SPDR ETF’s (XLK) 32.8% rise during the same time frame. On May 6, CDW stock declined 20.3% following the release of its Q1 2026 earnings. The company’s revenue for the quarter amounted to $5.7 billion, surpassing the Street’s estimates. However, its adjusted EPS came in at $2.28, failing to touch Wall Street’s forecasts. Analysts are highly bullish on CDW, with the stock currently rated “Moderate Buy” overall. Among the 12 analysts covering the stock, seven recommend a “Strong Buy,” one suggests a “Moderate Buy,” and four recommend a “Hold.” CDW’s average analyst price target is $151.82, indicating a 12.3% upside from the current levels. On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Over the past six months, CDW’s stock price fell to $130.14. Shareholders have lost 10.3% of their capital, which is disappointing considering the S&P 500 has climbed by 9.3%. This may have investors wondering how to approach the situation. Is there a buying opportunity in CDW, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free. Even with the cheaper entry price, we’re swiping left on CDW for now. Here are three reasons you should be careful with CDW, plus one stock we’d rather own. A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, CDW’s 3.9% annualized revenue growth over the last five years was tepid. This was below our standard for the business services sector. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect CDW’s revenue to rise by 2.8%, close to its 3.9% annualized growth for the past five years. This projection doesn’t excite us and suggests its newer products and services will not lead to better top-line performance yet. While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business. CDW’s EPS grew at a weak 2% compounded annual growth rate over the last two years, lower than its 4.1% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. CDW isn’t a terrible business, but it doesn’t pass our quality test. Following the recent decline, the stock trades at 12.2× forward P/E (or $130.14 per share). This valuation multiple is fair, but we don’t have much faith in the company. We’re pretty confident there are superior stocks to buy right now. Let us point you toward one of our top digital advertising picks. ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum —...

It has been about a month since the last earnings report for Amdocs (DOX). Shares have lost about 9.5% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Amdocs due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Amdocs Limited before we dive into how investors and analysts have reacted as of late. Amdocs reported better-than-expected second-quarter fiscal 2026 results. DOX’s non-GAAP earnings of $1.78 per share came above the midpoint of management’s guidance of $1.73-$1.79 and remained flat on a year-over-year basis. The figure also surpassed the Zacks Consensus Estimate of $1.77. Amdocs’ fiscal second-quarter revenues of $1.172 billion topped the consensus mark of $1.167 billion and came above the midpoint of management’s guidance of $1.15-$1.19 billion. The top line increased 3.9% on a reported basis and 2.2% on a constant-currency basis. DOX reported growth in revenues across North America, Europe and the Rest of the World (RoW). North America reported revenues of $754.3 million (64.4% of the total revenues), which increased 2.2% year over year. Europe revenues (16.4% of the total revenues) of $191.8 million advanced 6.1% year over year. RoW revenues (19.2% of the total revenues) increased 7.9% year over year to $225.8 million. Our model estimates for North America, Europe and RoW were pinned at $766.6 million, $204.3 million and $195.1 million, respectively. Managed services revenues rose 1.6% year over year to $758.7 million. The company ended the second quarter of fiscal 2026 with a 12-month backlog of $4.28 billion, up $30 million sequentially. Our model estimates for managed services revenues and backlog were pegged at $767.3 million and $4.27 billion, respectively. The non-GAAP operating income increased 5% year over year to $252 million, whereas the operating margin expanded 20 basis points to 21.5%. Amdocs had cash and cash equivalents of $214.5 million as of March 31, 2026, compared with $247.9 million as of Dec. 31, 2025. Long-term debt was $647.2 million as of March 31, 2026, increasing marginally from the Dec. 31, 2025, level of $647 million. In the fiscal second quarter, the company generated an operating cash flow of $101.6 million and a free cash flow of $80...

It has been about a month since the last earnings report for CDW (CDW). Shares have added about 26.5% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is CDW due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. CDW reported first-quarter 2026 non-GAAP earnings per share (EPS) of $2.28, matching the Zacks Consensus Estimate. The bottom line increased approximately 6.3% year over year. CDW reported quarterly net sales of $5.68 billion, representing a 9.2% year-over-year increase. On a constant currency (cc) basis, sales grew 8.4%, reflecting healthy organic demand across the business. The strongest drivers of growth included data storage systems, servers and networking hardware, software solutions and notebooks and mobile devices. Despite ongoing economic and geopolitical uncertainty, all segments saw stronger customer spending compared with the previous-year quarter. Quarterly revenues also surpassed the consensus mark of $5.4 billion. According to management, organizations increasingly need partners capable of managing integration, governance and lifecycle execution at scale, areas where CDW believes it has a competitive advantage. CDW’s “full-stack” approach appears increasingly valuable in this environment. Rather than simply selling hardware, the company positions itself as a long-term technology advisor helping enterprises integrate, secure and manage complex systems. The company also continues investing internally in AI initiatives, which contributed to higher operating expenses during the quarter. The company also reinforced shareholder returns by approving a quarterly cash dividend of 63 cents per share, payable June 10, 2026, to shareholders of record as of May 25, 2026. Management is optimistic regarding the remainder of 2026 despite continued macroeconomic and geopolitical uncertainty. CDW expects to outperform the broader U.S. IT market by 200 to 300 basis points on cc, signaling confidence in both customer demand and competitive positioning. The company’s diversified customer base across commercial, government, education and international markets is likely to help reduce dependence...

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the it distribution & solutions industry, including CDW (NASDAQ:CDW) and its peers. IT Distribution & Solutions will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware, which could dent demand for large portions of the product portfolio and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement. The 7 it distribution & solutions stocks we track reported an exceptional Q1. As a group, revenues beat analysts’ consensus estimates by 6.4% while next quarter’s revenue guidance was 0.6% below. Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results. Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ:CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services. CDW reported revenues of $5.68 billion, up 9.2% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates. "CDW delivered a strong first quarter, reflecting outcome-driven execution in a complex and fast-moving environment," said Christine A. Leahy, chair and chief executive officer, CDW. The stock is down 23.3% since reporting and currently trades at $104.95. Is now the time to buy CDW? Access our full analysis of the earnings results here, it’s free. Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions. TD SYNNEX reported revenues of $17.16 billion, up 18.1% year on year, outperforming analysts’ expectations by 9.5%. The busine...

CDW’s first quarter was marked by robust top-line growth, driven by heightened demand for infrastructure hardware and ongoing AI investments, yet accompanied by market disappointment due to margin pressures and expense patterns. Management attributed revenue gains to agility in securing hardware supply and adapting to customer priorities, particularly as organizations accelerated AI adoption and infrastructure modernization. CEO Christine Leahy noted, “Customers navigated the operational challenge of moving AI from exploration into real production environments,” highlighting that the shift toward heavier hardware mix and supply chain complexities weighed on higher-margin services and software attach rates. Is now the time to buy CDW? Find out in our full research report (it’s free). Revenue: $5.68 billion vs analyst estimates of $5.47 billion (9.2% year-on-year growth, 3.8% beat) Adjusted EPS: $2.28 vs analyst estimates of $2.29 (in line) Adjusted EBITDA: $526.1 million vs analyst estimates of $495 million (9.3% margin, 6.3% beat) Operating Margin: 6.6%, in line with the same quarter last year Market Capitalization: $12.69 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Margaret Nolan (William Blair): Asked if AI-driven deals have a different margin profile; CEO Christine Leahy explained they typically have higher-value services attach and recurring revenues, making them margin accretive. Joseph Cardoso (JPMorgan): Questioned how much of hardware growth was due to demand versus supply constraints; CFO Albert Miralles noted strong customer engagement and some backlog carryover into Q2, with supply frictions largely expected. Victor Santiago (Evercore ISI): Asked about durability of financial services strength; Leahy noted ongoing AI and infrastructure investments and credited tailored go-to-market strategies for sector momentum. Adam Tindle (Raymond James): Inquired about managing disruption from the Geared for Growth initiative and the hiring of a Chief Transformation Officer; Leahy described it as the next phase of long-term efficiency efforts and emphasized careful timing and positive uptake. Ruplu Bhattac...

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. CDW (CDW) is back in focus after first quarter 2026 results showed revenue of US$5.68b and net income of US$235.4m, along with continued investment in AI infrastructure and internal efficiency programs. See our latest analysis for CDW. Despite the Q1 beat and ongoing AI and efficiency initiatives, recent share price momentum has been weak, with a 7 day share price return of 19.47% and a 1 year total shareholder return of 37.75% as of the latest US$110.25 close. This points to fading sentiment even as the business continues to invest in growth and cost programs. If CDW's AI driven story has your attention, it can be useful to see what else is moving in this theme through the Simply Wall St screener of 40 AI infrastructure stocks So with CDW trading at US$110.25 and an estimated intrinsic value and analyst target both sitting higher, are you looking at an undervalued AI infrastructure stock, or has the market already priced in its future growth potential? With CDW last trading at $110.25 and the most followed narrative pointing to a fair value of $167.40, the gap between price and story is hard to ignore. Read the complete narrative. Want to see what is sitting behind that confidence in recurring revenue and margins? The narrative leans heavily on measured growth, a richer mix, and a future earnings multiple that is anything but casual. It is worth asking which specific revenue and profit assumptions have to line up for $167.40 to make sense. Result: Fair Value of $167.40 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, softer gross margins on larger hardware deals, along with more cautious federal and education funding, could both pressure the recurring earnings story investors are leaning on. Find out about the key risks to this CDW narrative. If the mix of optimism and concern in this story feels familiar, do not wait for the crowd to decide for you. Instead, review the full picture of 5 key rewards and 1 important warning sign Do not stop your research with a single stock; broaden your watchlist with focused ideas that could fit different roles in your portfolio. Target potential mispricings by scanning for quality companies trading below their implied value through the 51 high qualit...

Performance was driven by agility in securing supply and capturing robust demand for AI investment and infrastructure modernization, resulting in 9% consolidated net sales growth. Management attributed strong Commercial segment performance to broad-based demand for infrastructure hardware, specifically networking, storage, and servers, which grew over 20%. The company successfully navigated memory supply and pricing constraints by leveraging partner relationships and balance sheet strength to secure product for customers ahead of price increases. A strategic shift is occurring as customers move from AI exploration to production environments, increasing the relevance of CDW's orchestration and integration capabilities. The 'Geared for Growth' initiative was launched to embed AI across operations, aiming to translate productivity gains into operating leverage and enhanced customer experience. Gross margin compression of 60 basis points was primarily due to a lower mix of netted-down revenues as customers prioritized hardware acquisition over software and services. Management maintains a prudent outlook for the U.S. IT addressable market to grow in the low single digits for 2026, targeting 200 to 300 basis points of outperformance. Full-year gross profit growth expectations were raised to the low-to-mid single-digit range, driven by strong Q1 order activity flowing into the Q2 backlog. The 'Geared for Growth' program is expected to deliver annual run-rate savings of $100 million to $200 million by 2027-2028, with benefits beginning to accrue in the second half of 2026. Guidance assumes a normalization of product mix in the second half of the year, with netted-down revenues and services expected to regain priority over hardware. The outlook does not factor in potential recessionary conditions or extreme geopolitical risks, maintaining a cautious stance on second-half macroeconomic uncertainty. Federal segment performance was impacted by budget timing and procurement delays stemming from the previous year's government shutdown. Inventory levels increased significantly to approximately $450 million to ensure supply availability for customers facing memory price hikes and lead-time extensions. The company finalized a relationship with provider Boost Run to offer GPU-as-a-service, addressing customer constraints in accessing high-performance AI infrastructure. Capit...

For the quarter ended March 2026, CDW (CDW) reported revenue of $5.68 billion, up 9.3% over the same period last year. EPS came in at $2.28, compared to $2.15 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $5.4 billion, representing a surprise of +5.17%. The company delivered an EPS surprise of +0.15%, with the consensus EPS estimate being $2.28. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how CDW performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net sales- Other: $802.5 million versus $695.77 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +18% change. Net sales- Corporate: $2.37 billion versus the three-analyst average estimate of $2.24 billion. The reported number represents a year-over-year change of +6.2%. Net sales- Public- Healthcare: $766.7 million versus the three-analyst average estimate of $709.43 million. The reported number represents a year-over-year change of +11.5%. Net sales- Public- Education: $675 million versus the three-analyst average estimate of $668.7 million. The reported number represents a year-over-year change of +3.5%. Net sales- Public- Government: $632.9 million versus the three-analyst average estimate of $541.15 million. The reported number represents a year-over-year change of +17.7%. Net Sales- Major Product and Services- Hardware- Collaboration: $431.3 million versus $402.16 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change. Net Sales- Major Product and Services- Hardware- Data Storage and Servers: $687.2 million versus the two-analyst average estimate of $513.44 million. The reported number represents a year-over-year change of +32%. Net sales- Major Product and Services- Hardware- Other Hardware: $578.8 million versus the two-analyst average estima...

Image source: The Motley Fool. Wednesday, May 6, 2026 at 8:30 a.m. ET President & Chief Executive Officer — Christine A. Leahy Chief Financial Officer — Albert J. Miralles Need a quote from a Motley Fool analyst? Email [email protected] As a reminder, we made changes to reflect our updated go-to-market structure, which are reflected in our earnings materials on the website. We also released an 8-K filing last Friday, which provides quarterly financial performance for 2024 and 2025, aligned to our new segment structure. We will talk through these new reported segments now and in the future. Replay of this webcast will be posted to our website later today. This conference call is property of CDW and may not be recorded or rebroadcast without specific written permission from the company. With that, let me turn the call over to Chris. Christine Leahy: Thank you, Steve, and good morning, everyone. I'll begin today's call with an overview of our first quarter performance, strategic progress and provide thoughts on the balance of the year. Al will provide additional detail on our results, our capital allocation priorities and further perspective on our outlook. The team delivered a strong start to the year in a complex and fast-moving environment. Excellent top line performance reflected agility both in securing supply and capturing demand for AI investment and ongoing infrastructure modernization. For the quarter, consolidated net sales increased 9% year-over-year. Gross profit grew 6%. Non-GAAP operating income increased 2%, non-GAAP net income per diluted share grew 6%, and our adjusted free cash flow totaled $251 million. Across all sizes and industries, customers navigated the operational challenge of moving AI from exploration into real production environments. Customers also navigated memory supply and pricing constraints, which reshaped budget priorities in this quarter. Teams responded quickly by leveraging our partner relationships, full stack capabilities and balance sheet strength to help customers secure product and identify alternatives, once again demonstrating their unmatched execution in yet another challenging supply market. Our ability to address the shift in near-term customer priorities and meet ongoing AI hardware infrastructure investment fueled strength across networking, storage, servers, power and cooling, which drove heavier infrastructure hard...

Jack Henry (JKHY) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +19.37%. A quarter ago, it was expected that this payment processsing company would post earnings of $1.43 per share when it actually produced earnings of $1.72, delivering a surprise of +20.28%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Jack Henry, which belongs to the Zacks Computers - IT Services industry, posted revenues of $636.25 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.40%. This compares to year-ago revenues of $585.09 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Jack Henry shares have lost about 16.4% since the beginning of the year versus the S&P 500's gain of 5.2%. While Jack Henry has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Jack Henry was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank...

Microchip MCHP is set to report fourth-quarter fiscal 2026 results on May 7. Microchip expects net sales of $1.26 billion (+/-$20 million) at the mid-point for the fourth quarter of fiscal 2026, which indicates 6.2% sequential growth and a 29.8% rise from the year-ago quarter's reported figure. Non-GAAP earnings are anticipated to be 48-52 cents per share. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is pegged at $1.27 billion, indicating a year-over-year growth of 30.8%. The consensus mark for fiscal fourth-quarter earnings is pegged at 50 cents per share, unchanged over the past 30 days, and significantly higher than 11 cents reported in the year-ago quarter. Microchip’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 7.72%. Microchip Technology Incorporated price-eps-surprise | Microchip Technology Incorporated Quote Let us see how things might have shaped up for MCHP prior to the announcement: Microchip has been suffering from challenging macroeconomic conditions and high inventory levels. MCHP’s channel inventory decreased to 201 days at the end of the third quarter of fiscal 2026, while underutilization stood at $51.7 million. The company is expected to have benefited from a near-normal level of inventory at distributors. Increasing supply constraints across substrates, subcontracting, and foundry nodes are expected to have benefited MCHP’s to-be-reported quarter’s results. Microchip is expected to have benefited from a mix shift toward higher-margin products with strong momentum across networking & connectivity (Ethernet, PCIe), data center products, FPGA and memory, as well as strong aerospace & defense demand. This is expected to have boosted revenues in the to-be-reported quarter. The company entered the fiscal fourth quarter with a much higher backlog, which is expected to have benefited growth. MCHP expects roughly 6.2% sequential growth, better than the typical seasonality of roughly 2-3%. Gross margin is expected to be at 61% at mid-point (guidance between 60.5% and 61.5% of sales), driven by strong top-line growth. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here. Microchip has an Earnings ESP of 0.00% and a Zacks...