CDW Corporation (CDW) AI Stock Analysis

CDW Corporation provides information technology solutions to clients across the United States, the United Kingdom, and Canada. Operating through Corporate, Small Business, and Public segments, it delivers hardware, software, and integrated services. Solutions span on-premise, hybrid, and cloud capabilities across data center, networking, digital workspace, and security environments. Its hardware portfolio includes notebooks, desktops, networking equipment, monitors, and storage systems. CDW also provides software suites, security platforms, virtualization tools, and operating systems. In addition, the company offers consulting, advisory and design, software development, implementation, managed services, professional services, configuration, and telecom services to businesses, government agencies, education providers, and healthcare institutions.

CDW achieved a five-year revenue compound annual growth rate of 4.0% from FY2020 to FY2025. Annual revenue expanded to $23.75B in FY2022 before contracting 10.0% to $21.38B in FY2023 and 1.8% to $21.00B in FY2024. Top-line growth rebounded 6.8% in FY2025 to $22.42B, while net income totaled $1.07B with a net margin of 4.8%. Operating margin was 7.4% in FY2025, compared to 6.8% in FY2021. For the trailing twelve months ended June 30, 2026, revenue stood at $23.50B with an operating margin of 7.3%. In the latest quarter ended June 30, 2026, quarterly revenue grew 10.0% year-over-year, and quarterly earnings rose 4.9%.

As of June 30, 2026, CDW held $361.8M in cash and short-term investments against total debt of $5.96B, resulting in net debt of $5.60B. Shareholders' equity was $2.44B, reflecting a debt-to-equity ratio of 2.44 and a current ratio of 1.17. In FY2025, operating cash flow reached $1.21B and free cash flow was $1.09B. Capital allocation during FY2025 included $117.1M for capital expenditures, $653.0M for share buybacks, and $328.6M for dividends paid, contributing to a 7.5% reduction in share count over five years.

CDW closed at $150.48 on October 16, 2026, representing a market capitalization of $18.81B and an enterprise value of $23.88B. The stock trades at a trailing price-to-earnings ratio of 18.1x and a forward P/E of 15.2x, below the median of its S&P 500 Technology peers at 31.5x trailing and 20.9x forward. Its enterprise value-to-EBITDA multiple is 12.1x versus the peer median of 19.9x, and price-to-sales stands at 0.8x compared to 6.3x for peers. Over the past year, CDW gained 1.6%, while the S&P 500 (SPY) returned 16.8%. Over five years, the stock returned -9.3% versus 83.0% for the index.

CDW pays an annual forward dividend of $2.52 per share, offering a dividend yield of 1.67%. The dividend is paid quarterly with a payout ratio of 24.5%. CDW has paid dividends for 14 consecutive years and generated a 10.2% annualized dividend growth rate over the past five years. Its last ex-dividend date was August 25, 2026.

Wall Street coverage consists of 5 Strong Buy, 2 Buy, and 3 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $158.67, implying 5.4% upside compared to the last close of $150.48. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $24.29B and EPS of $10.97, representing 9.5% EPS growth. CDW has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is scheduled for November 3, 2026.

This page is an AI-written research summary of CDW Corporation (CDW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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