Upside case
Bull case
$223+73.3%
CDW would need investors to value it at roughly 21x earnings — about 9x more generous than today's 12x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
CDW Corporation (CDW) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
18
analysts
12 bullish · 0 bearish · 18 covering CDW
Strong Buy
1
Buy
11
Hold
6
Sell
0
Strong Sell
0
Consensus Target
$145
+13.1% vs today
Scenario Range
$106 – $223
Model bear to bull value window
Coverage
18
Published analyst ratings
Valuation Context
12.0x
Forward P/E · Market cap $16.4B
CDW price targets
Three scenarios for where CDW stock could go
Current
~$128
Confidence
51 / 100
Updated
Jun 18, 2026
Where we are now
Current · $128
Bear
$106
Base
$169
Bull
$223
Market caseClosest to today
Base case
$169+31.6%
At 16x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$106-17.1%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push CDW down roughly 17% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
CDW Corporation
CDW · NASDAQTechnologyInformation Technology ServicesDecember year-end
CDW is a value-added IT reseller and solutions provider that helps businesses and government agencies procure, implement, and manage technology infrastructure. It makes money primarily through hardware sales (roughly 60% of revenue) and software/services (roughly 40%), earning margins on the products it resells plus fees for integration and managed services. Its key advantage is its massive scale and deep vendor relationships—which give it pricing power and technical expertise that smaller resellers can't match—along with its trusted advisor status with enterprise clients.
Market Cap
$16.4B
Revenue TTM
$22.9B
Net Income TTM
$1.1B
Net Margin
4.7%
CDW Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.60/$2.49
Revenue
$6.0B/$5.5B
Q4 2025
EPS
$2.71/$2.62
Revenue
$5.7B/$5.7B
Q1 2026
EPS
$2.57/$2.44
Revenue
$5.5B/$5.3B
Q2 2026
EPS
$2.28/$2.28
Revenue
$5.7B/$5.5B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.60/$2.49 | +4.4% | $6.0B/$5.5B | +8.4% |
| Q4 2025 | $2.71/$2.62 | +3.4% | $5.7B/$5.7B | -0.2% |
| Q1 2026 | $2.57/$2.44 | +5.3% | $5.5B/$5.3B | +3.4% |
| Q2 2026 | $2.28/$2.28 | +0.0% | $5.7B/$5.5B | +3.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$24.4B
+6.6% YoY
FY2
$25.7B
+5.3% YoY
EPS Outlook
FY1
$9.53
+14.6% YoY
FY2
$10.32
+8.3% YoY
Trailing FCF (TTM)$1.1B
FCF Margin: 4.7%
Next Earnings
August 5, 2026
Expected EPS
$2.77
Expected Revenue
$6.2B
CDW beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
CDW Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $22.4B
Product Mix
Latest annual revenue by segment or product family
Total Hardware
71.7%
+5.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Non-US
100.0%
+10.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Total Hardware is the largest disclosed segment at 71.7% of FY 2025 revenue, up 5.6% YoY.
Non-US is the largest reported region at 100.0%, up 10.3% YoY.
CDW Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $164 — implies +27.5% from today's price.
Upside to Fair Value
27.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
CDW
15.9x
vs
S&P 500
24.4x
35% discount
vs Technology Trailing P/E
CDW
15.9x
vs
Technology
29.0x
45% discount
vs CDW 5Y Avg P/E
Today
15.9x
vs
5Y Average
23.6x
33% discount
Forward PE
12.0x
S&P 500
18.8x
-36%
Technology
22.3x
-46%
5Y Avg
—
—
Trailing PE
15.9x
S&P 500
24.4x
-35%
Technology
29.0x
-45%
5Y Avg
23.6x
-33%
PEG Ratio
1.94x
S&P 500
1.66x
+17%
Technology
1.51x
+29%
5Y Avg
—
—
EV/EBITDA
11.3x
S&P 500
15.2x
-26%
Technology
16.6x
-32%
5Y Avg
16.6x
-32%
Price/FCF
15.1x
S&P 500
20.7x
-27%
Technology
19.2x
-22%
5Y Avg
24.1x
-37%
Price/Sales
0.7x
S&P 500
3.1x
-76%
Technology
2.4x
-70%
5Y Avg
1.2x
-37%
Dividend Yield
1.94%
S&P 500
1.91%
+1%
Technology
1.11%
+75%
5Y Avg
1.25%
+55%
| Metric | CDW | S&P 500 | Technology | 5Y Avg CDW |
|---|---|---|---|---|
| Forward PE | 12.0x | 18.8x-36% | 22.3x-46% | — |
| Trailing PE | 15.9x | 24.4x-35% | 29.0x-45% | 23.6x-33% |
| PEG Ratio | 1.94x | 1.66x+17% | 1.51x+29% | — |
| EV/EBITDA | 11.3x | 15.2x-26% | 16.6x-32% | 16.6x-32% |
| Price/FCF | 15.1x | 20.7x-27% | 19.2x-22% | 24.1x-37% |
| Price/Sales | 0.7x | 3.1x-76% | 2.4x-70% | 1.2x-37% |
| Dividend Yield | 1.94% | 1.91% | 1.11% | 1.25% |
CDW trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolCDW Financial Health
Verdict
Adequate
CDW 15.4% ROIC signals a durable competitive advantage — returns 5.9% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$22.9B
Revenue Growth
TTM vs prior year
+7.4%
Gross Margin
Gross profit as a share of revenue
21.6%
Operating Margin
Operating income divided by revenue
7.3%
Net Margin
Net income divided by revenue
4.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$8.32
Free Cash Flow (TTM)
Cash generation after capex
$1.1B
FCF Margin
FCF as share of revenue — the primary cash quality signal
4.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
15.4%
ROA
Return on assets, trailing twelve months
6.8%
Cash & Equivalents
Liquid assets on the balance sheet
$619M
Net Debt
Total debt minus cash
$5.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
5.3× FCF
~5.3 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
42.4%
* Elevated by buyback-compressed equity — compare ROIC (15.4%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
5.9%
Dividend
1.9%
Buyback
4.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$653M
Dividend / Share
Annualized trailing dividend per share
$2.49
Payout Ratio
Share of earnings distributed as dividends
30.8%
Shares Outstanding
Declining as buybacks retire shares
128M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageCDW Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Market shock sensitivity
CDW has historically underperformed the S&P 500 during systemic shocks, with an average drawdown of -15% compared to -13% for the broader market.
Medium
High debt levels
The company's strong cash flow is offset by high debt, which could limit financial flexibility in downturns.
Medium
Recent performance weakness
CDW has shown signs of operational or financial underperformance recently, potentially indicating broader challenges.
Lower
Segment reporting changes
Reclassification of CDW UK and Canada into an 'Other' category may obscure regional performance transparency.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why CDW Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Expanded buyback authorization
CDW increased its equity buyback authorization by US$1.00 billion to US$7.50 billion, signaling strong capital returns and confidence in financial health.
Strong IT demand
Recent strong quarterly results and healthier IT demand highlight CDW's ability to capitalize on growing technology needs across sectors.
Operational execution focus
Management's guidance emphasizes targeted execution and leveraging structural advantages to improve operating margins, not just top-line growth.
Diverse sector presence
CDW serves business, government, education, and healthcare sectors, providing resilience and multiple growth avenues.
Full-stack expertise
CDW's ability to design, orchestrate, and manage technologies end-to-end positions it as a comprehensive IT solutions provider.
Capital allocation discipline
The company maintains rigorous capital allocation practices, balancing growth investments with shareholder returns like buybacks.
Geographic stability
CDW UK and CDW Canada remain unchanged in reporting structure, indicating stable international operations alongside US growth.
Technology refresh opportunities
CDW's in-stock availability of devices like MacBooks positions it to capture business demand for equipment refreshes and new hires.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
CDW Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$128.37
52W Range Position
36%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$97.13
+32.2% from the low
52-Week High
$183.91
-30.2% from the high
1 Month
+23.39%
3 Month
+9.17%
YTD
-3.6%
1 Year
-24.5%
3Y CAGR
-10.2%
5Y CAGR
-5.0%
10Y CAGR
+12.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
CDW vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
12.0x
vs 14.6x median
-18% below peer median
Revenue Growth
+6.6%
vs +1.2% median
+455% above peer median
Net Margin
4.7%
vs 1.7% median
+169% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
CDW CDW CDW Corporation | $16.4B | 12.0x | +6.6% | 4.7% | Buy | +13.1% |
NSI NSIT Insight Enterprises, Inc. | $3.3B | 9.5x | +1.2% | 2.2% | Buy | -19.3% |
PC PC Premium Catering (Holdings) Limited | $188M | — | -1.0% | — | — | — |
SCS SCSC ScanSource, Inc. | $1.0B | 12.6x | +5.1% | 2.4% | Hold | -13.4% |
SNX SNX TD SYNNEX Corporation | $23.0B | 16.7x | +8.3% | 1.3% | Buy | -14.6% |
AVT AVT Avnet, Inc. | $7.5B | 17.8x | +1.2% | 0.9% | Hold | -13.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
CDW Dividend and Capital Return
CDW returns capital mainly through $653M/year in buybacks (4.0% buyback yield), with a modest 1.94% dividend — combining for 5.9% total shareholder yield. The dividend has grown for 12 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
5.9%
Dividend + buyback return per year
Buyback Yield
4.0%
Dividend Yield
1.94%
Payout Ratio
30.8%
How CDW Splits Its Return
Div 1.94%
Buyback 4.0%
Dividend 1.94%Buybacks 4.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.49
Growth Streak
Consecutive years of dividend increases
12Y
3Y Div CAGR
6.2%
5Y Div CAGR
10.2%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$653M
Estimated Shares Retired
5M
Approx. Share Reduction
4.0%
Shares Outstanding
Current diluted share count from the screening snapshot
128M
At 4.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.26 | — | — | — |
| 2025 | $2.50 | +0.8% | 3.6% | 5.5% |
| 2024 | $2.48 | +4.0% | 2.1% | 3.5% |
| 2023 | $2.39 | +14.4% | 1.6% | 2.7% |
| 2022 | $2.09 | +22.9% | 0.0% | 1.2% |
FAQ
7 questionsCDW Investor Questions
Common questions answered from live analyst data and company financials.
01Is CDW Corporation (CDW) stock a buy or sell in 2026?
CDW Corporation (CDW) is rated Buy by Wall Street analysts as of 2026. Of 18 analysts covering the stock, 12 rate it Buy or Strong Buy, 6 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $145, implying +13.1% from the current price of $128. The bear case scenario is $106 and the bull case is $223.
02What is the CDW stock price target for 2026?
The Wall Street consensus price target for CDW is $145 based on 18 analyst estimates. The high-end target is $180 (+40.2% from today), and the low-end target is $123 (-4.2%). The base case model target is $169.
03Is CDW Corporation (CDW) stock overvalued in 2026?
CDW trades at 12.0x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for CDW Corporation (CDW) stock in 2026?
The primary risks for CDW in 2026 are: (1) Market shock sensitivity — CDW has historically underperformed the S&P 500 during systemic shocks, with an average drawdown of -15% compared to -13% for the broader market. (2) High debt levels — The company's strong cash flow is offset by high debt, which could limit financial flexibility in downturns. (3) Recent performance weakness — CDW has shown signs of operational or financial underperformance recently, potentially indicating broader challenges. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is CDW Corporation's revenue and earnings forecast?
Analyst consensus estimates CDW will report consensus revenue of $24.4B (+6.6% year-over-year) and EPS of $9.53 (+14.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $25.7B in revenue.
06When does CDW Corporation (CDW) report its next earnings?
CDW Corporation is expected to report its next earnings on approximately 2026-08-05. Consensus expects EPS of $2.77 and revenue of $6.2B. Over recent quarters, CDW has beaten EPS estimates 67% of the time.
07How much free cash flow does CDW Corporation generate?
CDW Corporation (CDW) generated $1.1B in free cash flow over the trailing twelve months — a free cash flow margin of 4.7%. CDW returns capital to shareholders through dividends (1.9% yield) and share repurchases ($653M TTM).