CDW

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...

Q1 results: Consolidated net sales rose about 9% year‑over‑year, gross profit increased 6% to a record first-quarter level, non‑GAAP EPS was $2.28 (up 6%), and adjusted free cash flow was $251 million, while CDW returned $282 million to shareholders via buybacks and dividends. Demand and product mix: Strong customer spending tied to AI infrastructure and modernization drove hardware revenue up ~10% (networking, servers and enterprise storage each >20%) and software up 11%, but a heavier hardware mix pressured gross margin down ~60 bps to 21% and left services revenue flat. Strategy and outlook: CDW is embedding AI across sales and operations (CDW Assist, Boost Run GPU-as-a-service) and pursuing its "Geared for Growth" modernization, targeting ~$100M annual run‑rate savings by 2027 (potentially $200M by 2028); management expects low‑ to mid‑single‑digit gross profit growth for 2026 and non‑GAAP EPS growth at the high end of mid‑single digits. Interested in CDW Corporation? Here are five stocks we like better. 5 Ways to Play Retail that will Profit in 2023 CDW (NASDAQ:CDW) reported a “strong start” to fiscal 2026, citing robust demand tied to AI investment and infrastructure modernization as customers worked through memory supply and pricing constraints, according to executives on the company’s first-quarter earnings call. Chair and CEO Chris Leahy said consolidated net sales rose 9% year-over-year in the quarter. Gross profit increased 6% to a record first-quarter level, while non-GAAP operating income rose 2%. Non-GAAP net income per diluted share grew 6% to $2.28, and adjusted free cash flow totaled $251 million. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Retail Theft Rises: Two Ways For Investors To Beat Shrinkage Leahy characterized the operating backdrop as “complex and fast-moving,” with customers shifting near-term priorities toward securing hardware amid pricing and supply friction. That mix weighed on gross margin, but CDW emphasized it was able to respond quickly through its partner network, “full stack” capabilities, and balance sheet strength. CDW highlighted the benefits of its diversified end-market exposure across its U.S. Commercial, Government, and Education segments, plus international operations reported as “Other” (combined U.K. and Canada). Commercial: Net sales rose about 10%, which Leahy described as an “...

ACM Research ACMR is scheduled to report first-quarter 2026 results on May 7. ACMR released its preliminary first-quarter results on April 27. For the first quarter of 2026, revenues are expected to be between $225 million and $230 million, indicating year-over-year growth of 31%-33%. The Zacks Consensus Estimate for earnings is pegged at 16 cents per share, suggesting a decline of 65.22% from the year-ago figure. The figure has been unchanged over the past 30 days. The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing it twice, with a negative average surprise of 1.60%. ACM Research, Inc. price-eps-surprise | ACM Research, Inc. Quote Let’s see how things have shaped up before the announcement. ACMR's first-quarter performance is expected to have benefited from the ramp-up and delivery of new and advanced products to both domestic and international customers. The company has announced multiple orders for its advanced packaging tools and cleaning systems, including its first tool installations in Singapore and deliveries to leading global semiconductor manufacturers outside Mainland China. These shipments, scheduled for the first quarter of 2026, mark significant milestones in ACMR's global expansion and are expected to drive revenue growth. The company expects preliminary total shipments for the first quarter of 2026 to be in the range of $233 million to $238 million, which represents year-over-year growth of 49% to 52%. Strong momentum in ACMR's differentiated cleaning technologies, such as the single-wafer Sulfuric Peroxide Mixture (SPM) cleaning tools and proprietary N2 bubbling wet etch systems, is expected to have benefited the company’s top-line growth in the to-be-reported quarter. The company has made significant technical progress, including a new SPM nozzle design that delivers best-in-class particle cleaning performance and increased equipment uptime. These innovations have resulted in repeat orders from major customers and growing interest from global clients who are seeking higher performance and reliability for advanced semiconductor manufacturing processes. The expansion of ACMR's manufacturing capacity, particularly at its Lingang production and R&D center, is another key benefit for the first quarter of 2026. The facility now supports volume production and on-site customer evaluation...

CDW (CDW) came out with quarterly earnings of $2.28 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $2.15 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.15%. A quarter ago, it was expected that this information technology company would post earnings of $2.44 per share when it actually produced earnings of $2.57, delivering a surprise of +5.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. CDW, which belongs to the Zacks Computers - IT Services industry, posted revenues of $5.68 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 5.17%. This compares to year-ago revenues of $5.2 billion. 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. CDW shares have added about 0.4% since the beginning of the year versus the S&P 500's gain of 6%. While CDW 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 CDW 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 (Strong Buy) stocks here. It will be interesting to see...

CDW Corporation 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. CDW Corporation price-consensus-eps-surprise-chart | CDW Corporation Quote 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 on any single sector. In the past month, CDW's shares have gained 10.6% against the Zacks Computers-IT Services industry’s fall of 0.6%. Image Source: Zacks Investment Research The Commercial segment served as the company’s largest revenue contributor, generating $3.57 billion in sales, up 9.6% year over year. Under commercial, several industries posted particularly strong spending tren...