With a market cap of $16.5 billion, Vernon Hills, Illinois-based CDW Corporation (CDW) is a leading provider of information technology solutions across the United States, United Kingdom, and Canada, serving corporate, small business, and public sector clients. The company delivers a wide range of hardware, software, and integrated IT services, including hybrid infrastructure, digital experience, and security solutions.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and CDW fits this criterion perfectly. CDW continues to support organizations with comprehensive advisory, implementation, and managed services.
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Shares of the information technology company have fallen 31% from its 52-week high of $183.91. Shares of CDW have gained 7.7% over the past three months, underperforming the broader State Street Technology Select Sector SPDR ETF's (XLK) 27.3% increase over the same time frame.
www.barchart.com CDW stock is down nearly 6% on a YTD basis, lagging behind XLK’s 24.1% gain. Longer term, shares of the company have dipped 27.1% over the past 52 weeks, compared to XLK’s 48.7% surge over the same time frame.
Despite a few fluctuations, the stock has been trading below its 50-day and 200-day moving averages since last year.
www.barchart.com CDW shares tumbled 20.3% on May 6 after the company reported Q1 2026 margin pressure, as gross margin declined 60 basis points to 21.0% due to a higher mix of lower-margin hardware sales and a lower contribution from cloud and SaaS-related revenue. Operating income of $376 million increased 4% year-over-year but fell short of analyst expectations.
Although revenue rose 9% to $5.67 billion, beating the consensus estimate, flat "netted down" sales and a decline in the share of gross profit to 34.5%, along with a 9% increase in SG&A expenses to $738 million, weighed on market sentiment.
In comparison, rival International Business Machines Corporation (IBM) has shown a steeper decline than CDW stock on a YTD basis, with IBM shares declining 8.1%. However, IBM stock has dropped 3.4% over the past 52 weeks, a less pronounced decline than CDW stock.
Despite CDW’s weak performance over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts covering it, and the mean price target of $147.30 is a premium of 15.8% to current levels.
On the date of publication, Sohini Mondal 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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