Zacks Research Issues Optimistic Outlook for CDW Earnings

Key Points

• Zacks Research raised its CDW earnings outlook, lifting Q3 2026 EPS to $2.73 from $2.70 and forecasting $10.25 EPS for fiscal 2026, $11.48 for fiscal 2027 and $12.72 for fiscal 2028.
• CDW’s latest quarterly results exceeded expectations, with EPS of $2.91 versus the $2.80 consensus and revenue of $6.57 billion versus $6.21 billion; revenue increased 10% year over year.
• Analysts maintain a generally positive view, with CDW carrying a “Moderate Buy” consensus rating and an average price target of $147. The company also declared a quarterly dividend of $0.63 per share, equivalent to a 1.7% yield.

CDW Corporation (NASDAQ:CDW - Free Report) - Stock analysts at Zacks Research raised their Q3 2026 earnings estimates for shares of CDW in a research note issued on Wednesday, August 26th. Zacks Research analyst Team now expects that the information technology services provider will earn $2.73 per share for the quarter, up from their prior estimate of $2.70. The consensus estimate for CDW's current full-year earnings is $10.33 per share. Zacks Research also issued estimates for CDW's Q4 2026 earnings at $2.62 EPS, FY2026 earnings at $10.25 EPS, Q1 2027 earnings at $2.34 EPS, Q2 2027 earnings at $2.53 EPS, Q3 2027 earnings at $2.89 EPS, Q4 2027 earnings at $3.72 EPS, FY2027 earnings at $11.48 EPS, Q1 2028 earnings at $4.40 EPS, Q2 2028 earnings at $2.53 EPS and FY2028 earnings at $12.72 EPS.

CDW (NASDAQ:CDW - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The information technology services provider reported $2.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.80 by $0.11. The company had revenue of $6.57 billion for the quarter, compared to analysts' expectations of $6.21 billion. CDW had a net margin of 4.60% and a return on equity of 50.61%. The firm's revenue for the quarter was up 10.0% compared to the same quarter last year. During the same period last year, the company earned $2.60 EPS.

Several other analysts have also recently commented on the stock. UBS Group lowered their target price on shares of CDW from $162.00 to $147.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Weiss Ratings raised CDW from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 25th. Morgan Stanley raised their price objective on CDW from $170.00 to $171.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Barclays lowered their price objective on CDW from $144.00 to $123.00 and set an "equal weight" rating for the company in a research report on Thursday, May 7th. Finally, Royal Bank Of Canada upgraded CDW to an "outperform" rating and set a $130.00 target price on the stock in a research report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $147.00.

CDW Stock Performance

Shares of CDW opened at $147.69 on Monday. CDW has a 1 year low of $97.12 and a 1 year high of $171.55. The company's 50 day simple moving average is $137.73 and its 200 day simple moving average is $128.56. The company has a market capitalization of $18.46 billion, a price-to-earnings ratio of 17.75, a PEG ratio of 1.94 and a beta of 0.96. The company has a debt-to-equity ratio of 1.97, a quick ratio of 1.05 and a current ratio of 1.17.

CDW Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Tuesday, August 25th will be paid a dividend of $0.63 per share. The ex-dividend date of this dividend is Tuesday, August 25th. This represents a $2.52 annualized dividend and a dividend yield of 1.7%. CDW's payout ratio is currently 30.29%.

Insider Activity

In other news, insider Elizabeth H. Connelly sold 26,695 shares of the company's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $137.62, for a total transaction of $3,673,765.90. Following the completion of the sale, the insider directly owned 34,215 shares in the company, valued at $4,708,668.30. This represents a 43.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.82% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CDW

A number of institutional investors have recently added to or reduced their stakes in the company. HighTower Advisors LLC increased its stake in CDW by 1.9% during the second quarter. HighTower Advisors LLC now owns 22,009 shares of the information technology services provider's stock worth $3,095,000 after acquiring an additional 419 shares during the last quarter. California State Teachers Retirement System lifted its stake in shares of CDW by 13,221.2% in the 2nd quarter. California State Teachers Retirement System now owns 29,850,699 shares of the information technology services provider's stock valued at $4,198,202,000 after purchasing an additional 29,626,614 shares in the last quarter. Studio Investment Management LLC grew its holdings in shares of CDW by 6.0% during the 2nd quarter. Studio Investment Management LLC now owns 2,667 shares of the information technology services provider's stock worth $375,000 after purchasing an additional 150 shares during the period. HB Wealth Management LLC grew its holdings in shares of CDW by 6.9% during the 2nd quarter. HB Wealth Management LLC now owns 6,896 shares of the information technology services provider's stock worth $970,000 after purchasing an additional 445 shares during the period. Finally, Saudi Central Bank grew its holdings in shares of CDW by 86.4% during the 2nd quarter. Saudi Central Bank now owns 8,958 shares of the information technology services provider's stock worth $1,260,000 after purchasing an additional 4,152 shares during the period. Hedge funds and other institutional investors own 93.15% of the company's stock.

Trending Headlines about CDW

Here are the key news stories impacting CDW this week:

• Positive Sentiment: Zacks Research raised its estimates for several periods, including Q3 and Q4 2026 EPS to $2.73 and $2.62, respectively, from $2.70 and $2.54. The firm also increased Q1 2027 EPS to $2.34, Q2 2027 to $2.53, and Q3 2027 to $2.89.
• Positive Sentiment: Longer-term earnings expectations improved: FY2027 EPS was raised to $11.48 from $10.85, Q4 2027 EPS to $3.72 from $3.66, and FY2028 EPS to $12.72 from $11.93. These revisions suggest analysts see stronger future profitability for the information technology services provider.
• Neutral Sentiment: Zacks’ FY2026 EPS forecast increased to $10.25 from $10.02, broadly in line with the current consensus estimate of $10.28. The firm maintained its FY2028 Q2 estimate at $2.53.
• Negative Sentiment: Zacks Research cut its Q2 2028 EPS forecast to $2.53 from $2.86. The sizable downward revision introduces concern about uneven earnings growth and may be outweighing the upgrades to other periods.

About CDW

CDW NASDAQ: CDW is a leading provider of information technology products and integrated solutions for business, government, education and healthcare customers. The company sources and resells hardware and software from major technology vendors and packages those products with professional services, managed services and lifecycle support. Its offerings span IT infrastructure, cloud and data center solutions, cybersecurity, networking, unified communications, endpoint devices, and software licensing and procurement services designed to simplify IT operations for customers.

CDW combines a broad product portfolio with consultative sales, implementation and technical support capabilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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