NASDAQInformation TechnologyInformation Technology ServicesSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Maintain strong cash flow generation: Q1 FY26 OCF $274.8M vs $275M target.
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.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent growth. The current thesis state is intact, supported by recent financial performance that remains strong relative to its industry.
The valuation suggests that the market sees CDW as cheap compared to its peers, with a slight expectations gap. This indicates that investors are not fully pricing in the potential for stronger performance.
Fundamentals are likely to remain stable, given management's focus on exceeding market growth and maintaining strong cash flow. However, recent volatility in management and sector headwinds present some near-term risks.
The thesis hinges on sector performance, particularly the results and guidance from major players like IBM, ACN, and CTSH. Any changes in their performance could significantly impact CDW's trajectory.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. CDW raised its 2026 outlook to the high end of high single-digit EPS growth. This reflects strong demand for AI infrastructure, supporting growth objectives. However, the company faced challenges with a margin miss, indicating potential growth hurdles.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
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
Breaks if: YoY revenue growth falls below 7% next year
Overall, CDW presents a stable long-term thesis with potential upside depending on broader sector trends. Not investment advice.
