Zacks Research Issues Pessimistic Estimate for CDW Earnings

Key Points

• Zacks Research slightly lowered its Q3 2026 earnings estimate for CDW to $2.70 per share from $2.71, while maintaining a full-year consensus estimate of $10.08 per share. It also provided forecasts for several later quarters through 2027.
• Despite the cautious estimate, CDW’s latest quarterly results beat revenue expectations, with $5.68 billion in sales versus the $5.48 billion consensus, while EPS matched estimates at $2.28. Revenue rose 9.2% year over year.
• Analyst sentiment remains mixed but generally positive, with a MarketBeat average rating of “Moderate Buy” and an average price target of $140.63. Separately, director David W. Nelms bought 18,000 shares, and CDW announced a quarterly dividend of $0.63 per share.

CDW Corporation (NASDAQ:CDW - Free Report) - Investment analysts at Zacks Research dropped their Q3 2026 earnings estimates for shares of CDW in a report released on Wednesday, May 27th. Zacks Research analyst Team now expects that the information technology services provider will earn $2.70 per share for the quarter, down from their prior forecast of $2.71. The consensus estimate for CDW's current full-year earnings is $10.08 per share. Zacks Research also issued estimates for CDW's Q4 2026 earnings at $2.54 EPS, Q3 2027 earnings at $2.66 EPS and Q4 2027 earnings at $3.66 EPS.

A number of other research firms also recently weighed in on CDW. Barclays decreased their target price on CDW from $144.00 to $123.00 and set an "equal weight" rating on the stock in a research report on Thursday, May 7th. UBS Group decreased their target price on shares of CDW from $162.00 to $147.00 and set a "buy" rating on the stock in a research report on Thursday, May 7th. Raymond James Financial set a $150.00 target price on shares of CDW in a research report on Wednesday, May 6th. Morgan Stanley lifted their target price on shares of CDW from $141.00 to $142.00 and gave the company an "equal weight" rating in a research report on Thursday, February 5th. Finally, Royal Bank Of Canada upgraded shares of CDW to an "outperform" rating and set a $130.00 target price on the stock in a research report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, CDW has an average rating of "Moderate Buy" and an average price target of $140.63.

CDW Stock Up 12.4%

CDW stock opened at $140.98 on Tuesday. The company has a market capitalization of $18.01 billion, a P/E ratio of 17.15, a P/E/G ratio of 1.68 and a beta of 1.00. The firm's fifty day simple moving average is $121.20 and its 200-day simple moving average is $129.14. The company has a current ratio of 1.16, a quick ratio of 1.06 and a debt-to-equity ratio of 1.81. CDW has a 1-year low of $97.12 and a 1-year high of $183.91.

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

Hedge Funds Weigh In On CDW

Several institutional investors and hedge funds have recently modified their holdings of CDW. Hollencrest Capital Management grew its stake in CDW by 909.1% during the first quarter. Hollencrest Capital Management now owns 222 shares of the information technology services provider's stock worth $27,000 after buying an additional 200 shares in the last quarter. Root Financial Partners LLC raised its holdings in CDW by 54.7% in the 1st quarter. Root Financial Partners LLC now owns 263 shares of the information technology services provider's stock valued at $32,000 after buying an additional 93 shares during the last quarter. eCIO Inc. bought a new position in CDW during the 4th quarter worth approximately $61,000. Covestor Ltd grew its position in shares of CDW by 53.4% during the 4th quarter. Covestor Ltd now owns 741 shares of the information technology services provider's stock worth $101,000 after buying an additional 258 shares during the period. Finally, American National Bank & Trust acquired a new stake in shares of CDW during the 4th quarter worth approximately $110,000. 93.15% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at CDW

In other CDW news, Director David W. Nelms acquired 18,000 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were acquired at an average price of $111.43 per share, with a total value of $2,005,740.00. Following the completion of the transaction, the director directly owned 51,025 shares in the company, valued at $5,685,715.75. This trade represents a 54.50% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.82% of the stock is currently owned by corporate insiders.

CDW Dividend Announcement

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

CDW Company Profile

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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