olivLaw · US equity research
CDW Corporation CDW
Retail-Catalog & Mail-Order Houses · SIC 5961 · Vertical: Retail-Catalog & Mail-Order Houses (SIC 5961)
CDW is a multi-brand provider of IT solutions to businesses, governments, education and healthcare institutions in the United States, the United Kingdom and Canada, combining hardware, software and integrated services. Its net sales reached 22424.1 million USD in fiscal 2025, and in the second quarter of 2026 sales grew 10.0 percent as customers invested in infrastructure, cloud and AI.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, CDW Corporation (CDW) stock was 168.75 USD (+12.67% on the day), with market capitalisation 21.1 bn USD, P/E 19.7 on diluted EPS of 8.57 USD over the last 12 months, dividend yield 1.49%, beta 1.05, 52-week range 99.30–168.75 USD. Latest reported quarter (Q3 2026): revenue of 6.8 bn USD (+17.7% YoY), net income of 309.8 m USD (+6.5% YoY), diluted EPS 2.46 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 63.8
- strong (55–70)
- Bollinger (20, 2)
- 139.11 – 171.27
- in the upper half of the band · %B 0.92 · band width 20.7%
- SMA 50 / 200
- 148.23 / 133.54
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 4.21 / 4.33
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +26.0% | −1.1% | +27.1 pp | — |
| 3 months | +20.4% | −0.5% | +20.9 pp | — |
| 6 months | +54.8% | +4.4% | +50.4 pp | — |
| Year to date | +23.9% | +12.3% | +11.6 pp | — |
| 1 year | +19.1% | +13.5% | +5.6 pp | −2.6% |
| 3 years | −19.4% | +76.4% | −95.8 pp | +16.0% |
| 5 years | −9.8% | +63.7% | −73.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5.2 bn | 5.2 bn | 6.0 bn | 5.7 bn | 5.5 bn | 5.7 bn | 6.6 bn | 6.8 bn |
| Cost of revenue | 4.0 bn | 4.1 bn | 4.7 bn | 4.5 bn | 4.3 bn | 4.5 bn | 5.3 bn | 5.4 bn |
| Gross profit | 1.2 bn | 1.1 bn | 1.2 bn | 1.3 bn | 1.3 bn | 1.2 bn | 1.3 bn | 1.4 bn |
| SG&A | 746.7 m | 760.9 m | 821.0 m | 812.2 m | 823.7 m | 814.0 m | 891.2 m | 895.8 m |
| Operating income | 408.6 m | 361.4 m | 420.2 m | 443.3 m | 430.7 m | 376.0 m | 428.6 m | 489.5 m |
| Depreciation & amortisation | 69.5 m | 74.9 m | 73.3 m | 73.3 m | 74.1 m | 74.9 m | 75.3 m | 75.1 m |
| Pre-tax income | 351.5 m | 304.0 m | 364.9 m | 389.4 m | 369.1 m | 319.0 m | 372.9 m | 423.9 m |
| Income tax | 87.3 m | 79.1 m | 93.7 m | 98.4 m | 89.6 m | 83.6 m | 98.5 m | 114.1 m |
| Net income | 264.2 m | 224.9 m | 271.2 m | 291.0 m | 279.5 m | 235.4 m | 274.4 m | 309.8 m |
| Diluted EPS | 1.97 ≈ | 1.69 | 2.05 | 2.21 | 2.14 ≈ | 1.82 | 2.15 | 2.46 |
| Operating cash flow | 345.3 m | 287.2 m | 155.9 m ≈ | 328.3 m ≈ | 433.8 m | 274.8 m | -55.1 m ≈ | 398.8 m ≈ |
| Capex | 28.6 m | 26.9 m | 22.5 m ≈ | 29.8 m ≈ | 37.9 m | 26.4 m | 27.5 m ≈ | 26.8 m ≈ |
| Dividends paid | 83.1 m | 82.8 m | 82.3 m ≈ | 81.8 m ≈ | 81.7 m | 81.1 m | 79.8 m ≈ | 78.7 m ≈ |
| Share repurchases | 146.0 m | 200.1 m | 150.0 m ≈ | 149.9 m ≈ | 153.0 m | 201.0 m | 343.7 m ≈ | 108.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 25 percentile of its own 44-quarter history (min 14.7, median 22.1, max 31.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 16.2 bn | 18.0 bn | 18.5 bn | 20.8 bn | 23.7 bn | 21.4 bn | 21.0 bn | 22.4 bn |
| Revenue YoY | +9.5% | +11.0% | +2.4% | +12.7% | +14.1% | −10.0% | −1.8% | +6.8% |
| Net income | 643.0 m | 736.8 m | 788.5 m | 988.6 m | 1.1 bn | 1.1 bn | 1.1 bn | 1.1 bn |
| Net income YoY | +22.9% | +14.6% | +7.0% | +25.4% | +12.7% | −0.9% | −2.4% | −1.0% |
| Diluted EPS | 4.19 | 4.99 | 5.45 | 7.04 | 8.13 | 8.10 | 7.97 | 8.08 |
| Diluted EPS YoY | +26.6% | +19.1% | +9.2% | +29.2% | +15.5% | −0.4% | −1.6% | +1.4% |
| net % | 4.0% | 4.1% | 4.3% | 4.7% | 4.7% | 5.2% | 5.1% | 4.8% |
| Free cash flow | 819.8 m | 790.9 m | 1.2 bn | 684.6 m | 1.2 bn | 1.5 bn | 1.2 bn | 1.1 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 618.7 m USD
- Financial debt
- 5.6 bn USD
- Net debt
- 5.0 bn USD
- Equity
- 2.6 bn USD
- Total assets
- 16.0 bn USD
- Debt / equity
- 2.16x
- Current ratio
- 1.18x
- ROE
- 43.0%
- ROA
- 6.9%
- FCF margin
- 4.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 18.5 bn | 20.8 bn | 23.7 bn | 21.4 bn | 21.0 bn | 22.4 bn | SEC (XBRL)· 20 Feb 2026verified |
| Cost of revenue | 15.3 bn | 17.3 bn | 19.1 bn | 16.7 bn | 16.4 bn | 17.6 bn | SEC (XBRL)· 20 Feb 2026verified |
| Gross profit | 3.2 bn | 3.6 bn | 4.7 bn | 4.7 bn | 4.6 bn | 4.9 bn | SEC (XBRL)· 20 Feb 2026verified |
| SG&A | 2.0 bn | 2.1 bn | 3.0 bn | 3.0 bn | 3.0 bn | 3.2 bn | SEC (XBRL)· 20 Feb 2026verified |
| Operating income | 1.2 bn | 1.4 bn | 1.7 bn | 1.7 bn | 1.7 bn | 1.7 bn | SEC (XBRL)· 20 Feb 2026verified |
| Depreciation & amortisation | 425.6 m | 191.2 m | 290.6 m | 270.7 m | 275.3 m | 295.6 m | SEC (XBRL)· 20 Feb 2026verified |
| EBITDA | 1.6 bn ≈ | 1.6 bn ≈ | 2.0 bn ≈ | 2.0 bn ≈ | 1.9 bn ≈ | 2.0 bn ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Pre-tax income | 1.0 bn | 1.3 bn | 1.5 bn | 1.5 bn | 1.4 bn | 1.4 bn | SEC (XBRL)· 20 Feb 2026verified |
| Income tax | 213.8 m | 309.2 m | 373.3 m | 345.9 m | 357.6 m | 360.8 m | SEC (XBRL)· 20 Feb 2026verified |
| Net income | 788.5 m | 988.6 m | 1.1 bn | 1.1 bn | 1.1 bn | 1.1 bn | SEC (XBRL)· 20 Feb 2026verified |
| Diluted EPS | 5.45 | 7.04 | 8.13 | 8.10 | 7.97 | 8.08 | SEC (XBRL)· 20 Feb 2026verified |
| Weighted average diluted shares | 144.8 m | 140.5 m | 137.0 m | 136.3 m | 135.2 m | 132.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Dividend per share | 1.54 | 1.70 | 2.09 | 2.39 | 2.49 | 2.51 | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.4 bn | 258.1 m | 315.2 m | 588.7 m | 503.5 m | 618.7 m | SEC (XBRL)· 20 Feb 2026verified |
| Receivables | 3.2 bn | 4.5 bn | 4.5 bn | 4.6 bn | 5.1 bn | 6.3 bn | SEC (XBRL)· 20 Feb 2026verified |
| Inventories | 760.0 m | 927.6 m | 800.2 m | 668.1 m | 605.3 m | 563.4 m | SEC (XBRL)· 20 Feb 2026verified |
| Current assets | 6.0 bn | 6.5 bn | 6.6 bn | 6.7 bn | 7.4 bn | 8.5 bn | SEC (XBRL)· 20 Feb 2026verified |
| Property, plant & equipment, net | 175.5 m | 195.8 m | 188.8 m | 195.5 m | 192.0 m | 171.5 m | SEC (XBRL)· 20 Feb 2026verified |
| Goodwill | 2.6 bn | 4.4 bn | 4.3 bn | 4.4 bn | 4.6 bn | 4.7 bn | SEC (XBRL)· 20 Feb 2026verified |
| Intangibles (excl. goodwill) | 445.1 m | 1.6 bn | 1.5 bn | 1.4 bn | 1.4 bn | 1.2 bn | SEC (XBRL)· 20 Feb 2026verified |
| Total assets | 9.3 bn | 13.2 bn | 13.1 bn | 13.3 bn | 14.7 bn | 16.0 bn | SEC (XBRL)· 20 Feb 2026verified |
| Short-term debt | 70.9 m | 102.7 m | 56.3 m | 613.1 m | 235.8 m | 1.0 bn | SEC (XBRL)· 20 Feb 2026verified |
| Long-term debt | 3.9 bn | 6.8 bn | 5.9 bn | 5.0 bn | 5.6 bn | 4.6 bn | SEC (XBRL)· 20 Feb 2026verified |
| Current liabilities | 3.9 bn | 5.1 bn | 4.9 bn | 5.4 bn | 5.5 bn | 7.2 bn | SEC (XBRL)· 20 Feb 2026verified |
| Equity | 1.3 bn † | 705.7 m † | 1.6 bn † | 2.0 bn † | 2.4 bn † | 2.6 bn † | SEC (XBRL)· 20 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.3 bn | 784.6 m | 1.3 bn | 1.6 bn | 1.3 bn | 1.2 bn | SEC (XBRL)· 20 Feb 2026verified |
| Capex | 158.0 m | 100.0 m | 127.8 m | 148.2 m | 122.6 m | 117.1 m | SEC (XBRL)· 20 Feb 2026verified |
| Free cash flow | 1.2 bn ≈ | 684.6 m ≈ | 1.2 bn ≈ | 1.5 bn ≈ | 1.2 bn ≈ | 1.1 bn ≈ | SEC (XBRL)· 20 Feb 2026derived |
| Investing cash flow | -201.0 m | -2.8 bn | -164.5 m | -229.6 m | -659.2 m | 70.2 m | SEC (XBRL)· 20 Feb 2026verified |
| Financing cash flow | 138.8 m | 832.8 m | -1.1 bn | -1.1 bn | -686.9 m | -1.2 bn | SEC (XBRL)· 20 Feb 2026verified |
| Dividends paid | 219.6 m | 234.8 m | 282.6 m | 321.5 m | 332.1 m | 328.6 m | SEC (XBRL)· 20 Feb 2026verified |
| Share repurchases | 340.6 m | 1.5 bn | 0 | 500.0 m | 500.0 m | 653.0 m | SEC (XBRL)· 20 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 48 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 21.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation57
- Returns86
- Quality73
- Balance sheet20
- Growth0
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 32.92 – 261.49 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDA162.91 – 217.82 (Mid 216.06)3 companies used · median multiple 16.1x · quartiles 12.8x – 16.2xAMZN, BZUN, NSIT
- Peers: P/E150.82 – 261.49 (Mid 186.71)7 companies used · median multiple 21.8x · quartiles 17.6x – 30.5xAMZN, CHWY, GCT, HOUR, NSIT, RVLV, VIPS
- Dividend discount (DDM)32.92 – 44.27 (Mid 37.76)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 48/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 16.0% | 67 (vs peers) | 11% |
| Net margin · Quality | 4.5% | 79 (vs peers) | 7% |
| FCF conversion · Quality | 85.0% | 79 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | -1.9% | 0 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -0.2% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 2.8x | 13 (vs peers) | 11% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.3x | 39 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 19.7x | 75 (vs peers) | 11% |
| EV/EBITDA · Valuation | 13.2x | 40 (vs peers) | 11% |
| FCF yield · Valuation | 4.4% | 55 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 5.4% | 76 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 34.4% | 100 (on a fixed band) | 4% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet20/100 · 2/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality73/100 · 3/3 factors with a value
- Returns86/100 · 2/2 factors with a value
- Valuation57/100 · 3/3 factors with a value
Memo
CDW CORP (CDW). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 22.4 bn USD in 2025; YoY growth 6.8%; net margin 4.5%; ROE 42.5%; net debt/EBITDA 2.8x.
The estimated value range is 150.82–217.82 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 186.71 USD, the price of 168.75 USD leaves a potential of 10.6% (value / price − 1) and a margin of safety of 9.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 48/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 4.5%
- FCF conversion: 85.0%
- P/E (TTM): 19.7x
- Shareholder yield (distributions): 5.4%
- Payout ratio (FCF): 34.4%
What contradicts it
- Revenue CAGR 3Y: -1.9%
- EPS CAGR 3Y: -0.2%
- Net debt / EBITDA: 2.8x
Not assessed (insufficient data or a ratio without meaning): Interest coverage.
Versus the vertical median
Retail-Catalog & Mail-Order Houses (SIC 5961) · same industry (4-digit SIC) · compared with 28 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AMZNAmazon.com, Inc. | 2,876.6 bn | 21.5 | 27.4% | 16.9% | +12.4% | +14% / +82% |
| CDWCdw Corp | 21.1 bn | 19.7 | 42.5% | 4.5% | +6.8% | +19% / −19% |
| NSITInsight Enterprises, Inc. | 5.2 bn | 25.7 | 13.1% | 2.5% | −5.2% | +103% / +16% |
| JMIAJumia Technologies AG | 1.3 bn | — | -108.9% | -32.6% | +12.8% | −57% / +60% |
| BZUNBaozun Inc. | 597.0 m | — | -6.6% | -2.4% | +10.2% | +21% / +16% |
| LITBLightInTheBox Holding Co., Ltd. | 590.4 m | 68.0 | — | 3.7% | −12.1% | +42% / −63% |
| GCTGigacloud Technology Inc | 539.8 m | 13.7 | 32.3% | 10.6% | +11.1% | +56% / +495% |
| HNSTThe Honest Company, Inc. | 476.3 m | — | -6.9% | -3.6% | −1.9% | +65% / +86% |
| TDUPThredUp Inc. | 290.9 m | — | -39.2% | -6.9% | +19.5% | −71% / +12% |
| DIBS1stdibs.com, Inc. | 186.9 m | — | -9.2% | -8.5% | +1.5% | −3% / +30% |
| NXHNeighborhood Intelligence, Inc. | 163.0 m | — | -47.0% | -7.1% | −25.1% | −72% / −91% |
| AKAa.k.a. Brands Holding Corp. | 116.0 m | — | -29.5% | -4.8% | +4.4% | −26% / +9% |
| SFIXStitch Fix, Inc. | 79.5 m | — | -6.3% | -0.9% | +6.4% | −31% / −21% |
| HOURHour Loop, Inc. | 53.9 m | 37.0 | 21.8% | 1.1% | +3.0% | −28% / +3% |
| GROVGrove Collaborative Holdings, Inc. | 47.4 m | — | — | -4.1% | −14.6% | −19% / −44% |
| LVLULulu’s Fashion Lounge Holdings, Inc. | 31.0 m | — | -602.9% | -3.2% | −10.6% | +107% / −74% |
| UZXLinkage Global Inc | 21.7 m | — | -63.1% | -144.5% | −50.5% | −98% / unavailable |
| GIFTGiftify, Inc. | 21.1 m | — | -36.2% | -8.8% | −6.5% | −47% / −85% |
| CHWYChewy, Inc. | 2.3 k | 35.3 | 72.0% | 2.1% | +6.2% | −33% / +34% |
| QVCGQVC Group, Inc. | 8 | — | -6.3% | -0.2% | −7.8% | unavailable / unavailable |
| PTRNPattern Group Inc. | — | — | 6.6% | 0.9% | +39.3% | +22% / unavailable |
| HEPSD-MARKET Electronic Services & Trading | — | — | -39.7% | -2.8% | +11.1% | +19% / +100% |
| LUXELuxExperience B.V. | — | — | 63.3% | 45.2% | +50.1% | +7% / +224% |
| VIPSVipshop Holdings Limited | — | 1.4 | 18.3% | 6.8% | +2.0% | −30% / −14% |
| WWayfair Inc. | — | — | — | -1.2% | +5.1% | +12% / +121% |
1- and 3-year price returns: for CDW from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 95.91 Total return -42% · Per year -42% | 170.12 Total return 2% · Per year 2% | 257.01 Total return 54% · Per year 54% |
| 3 years | 81.50 Total return -49% · Per year -20% | 163.73 Total return 1% · Per year 0% | 273.22 Total return 68% · Per year 19% |
| 5 years | 69.26 Total return -54% · Per year -14% | 157.59 Total return 1% · Per year 0% | 290.45 Total return 82% · Per year 13% |
- Exit P/E± 40.93
- Net margin± 28.65
- Annual revenue growth± 25.06
- Annual dilution± 2.41
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
In brief
CDW is a multi-brand provider of IT solutions to businesses, governments, education and healthcare institutions in the United States, the United Kingdom and Canada, combining hardware, software and integrated services. Its net sales reached 22424.1 million USD in fiscal 2025, and in the second quarter of 2026 sales grew 10.0 percent as customers invested in infrastructure, cloud and AI 13.
SWOT
Strengths
- The company has a broad customer base and a diversified segment mix, which has helped it weather economic cycles and gain share 1.
- Certifications from major vendor partners at the highest level provide access to favorable pricing and incentive programs 1.
- Sales growth in the second quarter of 2026 was supported by solid demand for infrastructure, and management reported solid gross profit growth 3.
Weaknesses
- Gross and operating margins declined versus the prior year, reflecting product mix and personnel costs 13.
- Net debt increased and operating cash flow fell sharply in the first half of 2026 2.
- Dependence on a small number of large vendor partners and distributors exposes the company to changes in contract terms 1.
Opportunities
- Demand for AI infrastructure, cloud and cybersecurity could bring new categories of sales and higher-value services 23.
- Expanding consulting, integration and managed services could support margins above those of hardware 1.
- The realignment into Commercial, Government and Education could sharpen growth strategy within each vertical market 12.
Threats
- Vendors selling directly to customers or through cloud platforms could reduce the role of traditional resellers 1.
- Trade uncertainty and tariff policies could slow customer investment decisions and raise supply costs 12.
- Growing regulation of artificial intelligence could raise compliance costs and liability exposure 1.
Risks
- Dependence on vendors and distributorshigh
Contracts with vendor partners are mostly short-term and often terminable on notice, and a reduction in programs or funding could affect results 1.
- Competitive price pressuremedium
Competitors cutting prices could require the company to sell more products to achieve the same sales and gross profit 1.
- Risks from artificial intelligencemedium
Development and use of AI can raise ethical, safety and privacy issues, and new regulation could increase compliance burden 1.
- Information systems securitymedium
Disruption or attacks on IT systems could affect operations, reputation and the ability to meet obligations to customers 1.
- Leverage and cash flowlow
Rising net debt and lower operating cash flow could limit financial flexibility if the trend continues 2.
Investment thesis
What would need to be true (bull case)
- Sales growth in the second quarter of 2026 and higher earnings per share, supported by AI and cloud infrastructure demand, suggest the multi-brand model can keep attracting customers 3.
- If consulting and integration grow faster than hardware, margins could gradually recover toward earlier levels 13.
- Diversification across segments and countries could help the company withstand economic cycles and remain an important partner for vendors 1.
What would break the thesis
- Lower gross margin and weaker operating cash flow could signal persistent profitability pressure if the mix toward low-margin hardware continues 23.
- Direct vendor sales and cloud platforms could gradually reduce the role of resellers, limiting long-term growth 1.
- Rising net debt and financing costs could reduce financial flexibility if demand slows 2.
What to watch
- Gross margin trajectory in the new Commercial, Government and Education segmentsQ3 2026
- Growth pace of sales in AI- and infrastructure-related categories2026
- Level of net debt and operating cash flownext 10-K
- Trends in US government and education budgets2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (04 Nov 2026 · results).
The business
CDW Corporation is a multi-brand provider of IT solutions headquartered in the United States, delivering hardware and software products as well as integrated solutions with on-premise and cloud capabilities 1. The company describes itself as vendor, technology and consumption model unbiased, with more than 100000 products and services from more than 1000 vendor partners 1. Net sales in fiscal 2025 were 22424.1 million USD, with a gross profit margin of 21.7 percent 1.
The business sits in the middle of the IT ecosystem: CDW buys from manufacturers, software publishers, cloud providers and wholesale distributors, then adds value through advisory, integration and managed services 1. Drop-shipment arrangements represented about 51 percent of North America net sales in 2025, and the company operates two distribution centers in North America and one in the UK 1. In the quarter ended June 30, 2026, net sales reached 6572.2 million USD and net income per diluted share was 2.15 USD 23.
Since January 1, 2026 the reportable segments were realigned into Commercial, Government and Education, while UK and Canadian operations remain in Other 12. Management has said demand for infrastructure and AI-related solutions supported growth in the second quarter of 2026 3.
Segments
Commercial (formerly Corporate and Small Business)
The Corporate segment generated 9442.4 million USD of net sales in fiscal 2025, serving private sector customers with more than 250 employees, and Small Business added 1726.7 million USD 1. From 2026 these are combined into Commercial, which reported net sales of 3965 million USD in the second quarter 13.
Market context
Trends
- AI and infrastructure modernizationtailwind
Customers are investing in AI-ready infrastructure, cloud and security, and CDW has pointed to these solutions as drivers of second-quarter 2026 sales growth 23. Some customers still evaluate priorities carefully, which could delay certain purchases.
- Trade and geopolitical uncertaintymixed
Global trade policies and geopolitical tensions can affect supply chains and the pace of customer decisions, and management describes these factors as still unclear 12. The effect is mixed, as it can delay spending while also increasing demand for resilience solutions.
- Public sector budgetsheadwind
Budget changes and funding levels for agencies, hospitals and schools directly influence public-sector purchasing, and a new federal government shutdown could slow demand 12. This is a potential headwind for growth.
Competitive position
The IT solutions market is highly competitive and depends on the ability to tailor solutions, service quality, price and delivery speed 1. CDW faces resellers, manufacturers selling direct, system integrators, cloud providers, hyperscaler marketplaces, e-commerce companies and office supply retailers 1.
Management warns that hyperscaler marketplaces and direct vendor sales could change the role of traditional resellers and pressure margins 1. The company cites scale, a performance-driven culture and services capabilities as advantages, but competitors cutting prices could force CDW to lower its own prices 1.
- Insight EnterprisesNSIT
IT solutions reseller and integrator competing in the same channel, named by category in the sources.
- Ingram Micro
Wholesale distributor that supplies CDW and is named among its two key distributors.
- TD SYNNEX
Wholesale distributor, also a supplier and competitor in technology distribution, named in the risk factors.
- Cloud providers and hyperscaler marketplaces
Platforms that sell directly to customers, which could reduce the role of traditional resellers.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report04 Nov 2026
- Current report04 Nov 2026Results of operations · Other events · Financial statements and exhibits
- Current report19 Oct 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report21 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report15 Sept 2026Material agreement · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report05 Aug 2026Results of operations · Other events · Financial statements and exhibits
- Current report26 May 2026Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Current report13 May 2026Regulation FD disclosure · Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / CDW Corporation · 20 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / CDW Corporation · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / CDW Corporation · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.