Zacks Research Analysts Raise Earnings Estimates for CDW

Key Points

• Zacks Research raised its Q2 2026 EPS estimate for CDW to $2.63 from $2.58, and also provided longer-term earnings forecasts through FY2028. The consensus full-year earnings estimate for CDW is $10.08 per share.
• CDW recently matched analysts’ quarterly EPS expectations at $2.28 and beat revenue estimates with $5.68 billion in sales, up 9.2% year over year. The company reported a net margin of 4.70% and return on equity of 49.67%.
• Analyst sentiment is mixed but leans positive, with consensus rating of Moderate Buy and an average price target of $140.63. Recent actions included an upgrade from Royal Bank of Canada, while other firms cut targets or downgraded the stock.

CDW Corporation (NASDAQ:CDW - Free Report) - Equities researchers at Zacks Research lifted their Q2 2026 EPS estimates for CDW in a note issued to investors on Wednesday, May 27th. Zacks Research analyst Team now expects that the information technology services provider will post earnings per share of $2.63 for the quarter, up from their previous forecast of $2.58. The consensus estimate for CDW's current full-year earnings is $10.08 per share. Zacks Research also issued estimates for CDW's FY2026 earnings at $10.02 EPS, Q1 2027 earnings at $2.32 EPS, Q2 2027 earnings at $2.21 EPS, FY2027 earnings at $10.85 EPS, Q1 2028 earnings at $4.07 EPS and FY2028 earnings at $11.93 EPS.

CDW (NASDAQ:CDW - Get Free Report) last released its earnings results on Wednesday, May 6th. The information technology services provider reported $2.28 EPS for the quarter, hitting analysts' consensus estimates of $2.28. CDW had a net margin of 4.70% and a return on equity of 49.67%. The business had revenue of $5.68 billion during the quarter, compared to analysts' expectations of $5.48 billion. During the same quarter in the previous year, the company earned $2.15 earnings per share. The company's quarterly revenue was up 9.2% on a year-over-year basis.

A number of other analysts have also issued reports on the company. Royal Bank Of Canada raised CDW to an "outperform" rating and set a $130.00 price target on the stock in a research note on Wednesday, May 27th. Morgan Stanley raised their price objective on CDW from $141.00 to $142.00 and gave the company an "equal weight" rating in a report on Thursday, February 5th. Citigroup lowered their target price on shares of CDW from $150.00 to $123.00 and set a "neutral" rating on the stock in a research note on Friday, May 8th. Barclays dropped their target price on shares of CDW from $144.00 to $123.00 and set an "equal weight" rating for the company in a report on Thursday, May 7th. Finally, Weiss Ratings downgraded shares of CDW from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $140.63.

CDW Price Performance

NASDAQ:CDW opened at $139.72 on Wednesday. The stock has a 50 day moving average of $121.20 and a two-hundred day moving average of $129.14. CDW has a 12 month low of $97.12 and a 12 month high of $183.91. The firm has a market cap of $17.85 billion, a P/E ratio of 17.00, a price-to-earnings-growth ratio of 1.89 and a beta of 1.00. The company has a current ratio of 1.16, a quick ratio of 1.06 and a debt-to-equity ratio of 1.81.

Institutional Investors Weigh In On CDW

A number of hedge funds have recently modified their holdings of the company. Fenimore Asset Management Inc increased its position in CDW by 0.8% during the fourth quarter. Fenimore Asset Management Inc now owns 1,150,567 shares of the information technology services provider's stock worth $156,707,000 after purchasing an additional 9,485 shares during the last quarter. Marshall Wace LLP grew its stake in shares of CDW by 255.7% in the 3rd quarter. Marshall Wace LLP now owns 599,248 shares of the information technology services provider's stock valued at $95,448,000 after buying an additional 430,796 shares during the period. BNP Paribas Financial Markets increased its holdings in shares of CDW by 20.5% during the 4th quarter. BNP Paribas Financial Markets now owns 284,965 shares of the information technology services provider's stock worth $38,812,000 after buying an additional 48,547 shares during the last quarter. Local Pensions Partnership Investment Ltd raised its position in shares of CDW by 7.8% during the 4th quarter. Local Pensions Partnership Investment Ltd now owns 249,176 shares of the information technology services provider's stock valued at $33,940,000 after buying an additional 18,000 shares during the period. Finally, California State Teachers Retirement System raised its position in shares of CDW by 2.3% during the 4th quarter. California State Teachers Retirement System now owns 230,692 shares of the information technology services provider's stock valued at $31,420,000 after buying an additional 5,121 shares during the period. Hedge funds and other institutional investors own 93.15% of the company's stock.

Insider Transactions at CDW

In related news, Director David W. Nelms bought 18,000 shares of the business's stock in a transaction on Wednesday, May 27th. The stock was acquired at an average cost of $111.43 per share, with a total value of $2,005,740.00. Following the purchase, the director directly owned 51,025 shares of the company's stock, valued at $5,685,715.75. The trade was a 54.50% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.82% of the stock is currently owned by insiders.

CDW Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Monday, May 25th will be paid a dividend of $0.63 per share. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $2.52 dividend on an annualized basis and a yield of 1.8%. CDW's payout ratio is 30.66%.

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.

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