CDW Corporation (CDW) is a Vernon Hills, Illinois-based information technology solutions provider that sells hardware, software, and technology services to businesses, government agencies, educational institutions, and healthcare organizations. With a market cap of $17.1 billion, the company offers a broad portfolio of products and services spanning cybersecurity, cloud computing, networking, data center infrastructure, and digital transformation.
The leading multi-brand provider of IT solutions is expected to announce its fiscal third-quarter earnings for 2026 in the near term. Ahead of the event, analysts expect CDW to report a profit of $2.77 per share on a diluted basis, up 8.6% from $2.55 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in three of the last four quarterly reports, while missing on another quarter.
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For the current year, analysts expect CDW to report EPS of $10.33, up 8.4% from $9.53 in fiscal 2025. Its EPS is expected to rise 15.2% year over year to $11.90 in fiscal 2027.
www.barchart.comCDW stock has underperformed the S&P 500 Index’s ($SPX) 15.5% gains over the past 52 weeks, with shares down marginally during this period. Similarly, it notably underperformed the State Street Technology Select Sector SPDR ETF’s (XLK) 29% gains over the same time frame.
www.barchart.comCDW Corporation has struggled to keep up with the broader market over the past year as sluggish revenue growth and softer demand for its IT solutions weighed on its performance. The company’s revenue grew at an annual rate of just 3.6% over the past five years, while projected sales growth of 4% over the next 12 months points to limited near-term momentum. Meanwhile, earnings per share growth of 3.8% over the past two years has trailed revenue growth, raising concerns about its ability to translate sales into stronger profits.
Looking to reignite growth, CDW completed its acquisition of Lovelytics on Sept. 25, adding specialized expertise in data analytics and artificial intelligence (AI). The deal strengthens CDW’s data and analytics capabilities, positioning the company to capitalize on rising demand for AI adoption, data modernization, and cloud-based solutions. By integrating Lovelytics’ Databricks expertise with its broad technology portfolio, CDW aims to help customers turn their data into actionable insights and accelerate AI-driven transformation.
Analysts’ consensus opinion on CDW stock is reasonably bullish, with a “Moderate Buy” rating overall. Of the 11 analysts covering the stock, six rate it a “Strong Buy,” one a “Moderate Buy,” and four a “Hold.” CDW’s average analyst price target is $159.30, indicating a potential upside of 5.9% from the current levels.
On the date of publication, Kritika Sarmah 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. For more information please view the Barchart Disclosure Policy here.
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