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CDW
Stock ticker: NASDAQ
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CDW stock forecast, quote, news & analysis

CDW Corp is a multi-brand provider of information technology (IT) solutions to businesses, government, education, and healthcare customers in the United States, the United Kingdom, and Canada... Show more

CDW
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Why Is CDW Corporation (CDW) Stock Down -19.00% Today?

Key Takeaways

  • CDW Corporation (CDW) shares plunged approximately 19% during the session, closing around $110.80 from a previous close of $136.80.
  • Primary catalyst: Q1 2026 earnings release before market open showed revenue beat ($5.68 billion vs. $5.47 billion expected, +9.2% YoY) but non-GAAP EPS of $2.28 met/in-line with estimates amid margin compression.
  • Gross margin fell 60 bps to 21.0% due to product mix shift toward hardware; SG&A expenses up 7% on compensation and AI investments.
  • Trading volume surged to over 3 million shares, double the average of 1.65 million.
  • Move diverged sharply from S&P 500 (+1.13%) and tech sector peers/ETFs like XLK, which gained amid broader market strength.
  • Traders watching Q2 execution, AI demand sustainability, margin recovery, and analyst updates post-earnings.

Opening Summary

CDW Corporation (CDW), a leading provider of information technology solutions to business, government, education, and healthcare customers in the US, UK, and Canada, saw its shares plummet around 19% on May 6, 2026. The stock closed near $110.80, down from the prior session's close of $136.80. Markets reacted negatively to the company's Q1 2026 earnings, citing margin pressures despite a revenue beat driven by infrastructure and AI-related demand.

Earnings Results

CDW reported Q1 net sales of $5.68 billion, surpassing consensus estimates of $5.47 billion and marking 9.2% year-over-year growth (8.4% constant currency). Growth stemmed from robust demand across segments: Commercial +9.6%, Government +4.6%, Education +2.5%, and Other +17.9%. Key drivers included data storage, servers, netcomm products, software, and notebooks/mobile devices, fueled by customers shifting AI from exploration to production.

Non-GAAP EPS came in at $2.28, roughly in line with the $2.28 expected (GAAP EPS $1.82). Gross profit rose 6% to $1.19 billion, but gross margin contracted 60 basis points to 21.0%, primarily from a lower mix of netted-down revenues as clients prioritized hardware amid volatile pricing and supply dynamics. Non-GAAP operating income margin slipped 50 basis points to 8.0%, with selling and administrative expenses climbing 7% to $814 million due to higher compensation, coworker costs, and AI investments.

Market Reaction to Margins and Costs

Investors sold off aggressively post-earnings, interpreting the margin decline and elevated expenses as signs of profitability strain despite top-line strength. The lack of upward guidance revision or aggressive forward commentary amplified concerns over cost controls in a competitive IT distribution landscape. This "sell the news" dynamic overshadowed positives like resilient execution and AI positioning.

Market Context and Trading Activity

Volume exploded to 3.35 million shares, more than double the three-month average of 1.65 million, signaling intense reaction to the earnings. The plunge diverged from broader indices, with the S&P 500 up 1.13%, highlighting stock-specific catalysts. Tech-heavy XLK and peers like Arrow Electronics (ARW) and TD Synnex (SNX) advanced in line with the sector, underscoring CDW's underperformance. Technically, shares breached recent support near $130, testing 52-week lows around $112-106 intraday.

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What Comes Next for CDW

CDW’s Q2 results, due in August, will test sustained AI infrastructure demand and margin stabilization. Analysts maintain a Moderate Buy consensus with targets around $160-166, expecting FY2026 EPS near $10.50. Key watches include enterprise IT spending trends, services growth, and supply chain normalization. Risks encompass prolonged margin pressure, economic slowdowns impacting public sector budgets, and competition in cloud/AI solutions. Uncertainties around geopolitical factors and memory pricing volatility persist.

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.

A.I.Advisor
a Summary for CDW with price predictions
Jun 18, 2026

CDW sees MACD Histogram crosses below signal line

CDW saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on June 17, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for CDW moved out of overbought territory on June 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .

The Momentum Indicator moved below the 0 level on June 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CDW as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where CDW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

CDW broke above its upper Bollinger Band on May 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

CDW moved above its 50-day moving average on May 29, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for CDW crossed bullishly above the 50-day moving average on June 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a +2 3-day Advance, the price is estimated to grow further. Considering data from situations where CDW advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 248 cases where CDW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.418) is normal, around the industry mean (7.187). P/E Ratio (15.636) is within average values for comparable stocks, (67.266). CDW's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.008). Dividend Yield (0.020) settles around the average of (0.029) among similar stocks. P/S Ratio (0.735) is also within normal values, averaging (20.581).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CDW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CDW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.

A.I.Advisor
published Dividends

CDW paid dividends on June 10, 2026

CDW Corp CDW Stock Dividends
А dividend of $0.63 per share was paid with a record date of June 10, 2026, and an ex-dividend date of May 22, 2026. Read more...
A.I.Advisor
published Highlights

Notable companies

The most notable companies in this group are International Business Machines Corp (NYSE:IBM), Accenture PLC (NYSE:ACN), Unisys Corp (NYSE:UIS).

Industry description

The industry, whose total market cap runs into trillions, makes hardware/software that allows data to be stored, retrieved, transmitted, and manipulated on computers. With the ever-increasing relevance of data, the information technology (IT) industry has gained momentous growth over the years, and continues to thrive on innovation. Some of the behemoths in the industry are International Business Machines Corporation, Accenture, and VMware, Inc.

Market Cap

The average market capitalization across the Information Technology Services Industry is 8.86B. The market cap for tickers in the group ranges from 0 to 234.13B. IBM holds the highest valuation in this group at 234.13B. The lowest valued company is ARSC at 0.

High and low price notable news

The average weekly price growth across all stocks in the Information Technology Services Industry was -2%. For the same Industry, the average monthly price growth was -4%, and the average quarterly price growth was 7%. WYFI experienced the highest price growth at 47%, while GLE experienced the biggest fall at -32%.

Volume

The average weekly volume growth across all stocks in the Information Technology Services Industry was -43%. For the same stocks of the Industry, the average monthly volume growth was 12% and the average quarterly volume growth was -51%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 48
P/E Growth Rating: 69
Price Growth Rating: 63
SMR Rating: 72
Profit Risk Rating: 91
Seasonality Score: 32 (-100 ... +100)
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published General Information

General Information

a provider of information technology solutions

Industry InformationTechnologyServices

Profile
Details
Industry
Information Technology Services
Address
200 North Milwaukee Avenue
Phone
+1 847 465-6000
Employees
14800
Web
https://www.cdw.com
Why Is CDW Corporation (CDW) Stock Down -19.00% Today?