NASDAQInformation TechnologyInformation Technology ServicesSnapshot 2026-07-07
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Track CDW free→CDW grows revenue about 9% yearly, beating the US IT market by 2-3 points. Profit margins stay stable with a PE of 13.7, well below peers at 50.9. The company returns cash to shareholders with a $1 billion buyback increase. Cash flow remains solid near $275 million quarterly.
CDW lags its growth target and struggles to improve cash flow. Revenue growth may slow to the 4% analysts expect. Profit margins could compress, and volatile management may hinder execution.
The stock trades about 25% below our fair value near $185, reflecting modest 4% revenue growth expected by analysts. Our fair value is 26% above the Street median, showing upside if CDW outperforms.
Breaks if: No further buyback authorization or reduction in repurchase program
CDW has increased its share repurchase program by $1 billion to enhance shareholder value.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: quarterly cash from operations falls below $275M
CDW focuses on optimizing cash flow generation through disciplined working capital management.
Stated in 4 of last 4 quarters. Cash from operating activities was $274.8M in 2026-Q1, down from $433.8M in 2025-Q4. Despite recurring emphasis, cash flow generation has shown limited progress this quarter.
“Strong cash flow generation through growth and disciplined working capital management enabled flexibility across our capital priorities.”
“We remain focused on optimizing cash flow generation through disciplined working capital management.”
“We continue to optimize cash flow generation through effective management of our working capital.”
“We will continue to optimize cash flow generation through effective management of our working capital.”
Breaks if: YoY revenue growth falls below 7% next year
CDW aims to surpass US IT market growth by 200-300 basis points on a constant currency basis.
Stated in 4 of last 4 quarters. Revenue grew from $5,199.1M in 2025-Q1 to $5,679.8M in 2026-Q1, a 9.2% increase. Despite the growth, the company has been behind its target of exceeding US IT market growth by 200-300 basis points, indicating limited progress.
“We remain confident in our ability to exceed US IT addressable market growth by 200 to 300 basis points.”
“We continue to target exceeding US IT market growth by 200 to 300 basis points.”
“We continue to target exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.”
“We continue to target exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.”
