CDW earnings beat forecasts as server demand lifts sales
Earnings results
- EPS beat +9.4%
Actual: $3.26 · Cons.: $2.98 (Non-GAAP diluted EPS; MarketBeat consensus)
- Revenue beat +9.1%
Actual: $6.7545B · Cons.: $6.19B (Reported net sales; MarketBeat consensus)
- Guidance
Long-term target: grow 2–3 percentage points faster than the US IT market, excluding currency changes.
Earnings and the stock move
CDW released third-quarter earnings before open on November 4, reporting $6.75 billion of revenue and $3.26 of adjusted diluted EPS, both above the same-provider consensus. Management linked growth to storage and servers, notebooks and software, and described momentum in enterprise AI adoption. The pre-market rise follows that report. The useful investment question is whether broader technology spending can grow profit and cash flow despite a less favorable product mix.
Q3 2026 earnings recap
CDW earnings beat forecasts as demand for servers, storage and software lifted sales. Shares rose about 7.2% before open on November 4 compared with the previous close.
- Third-quarter revenue reached $6.75 billion, above roughly $6.19 billion expected. Sales grew 17.7% from a year earlier, with the same number of selling days.
- Adjusted EPS, or profit per share excluding selected costs, was $3.26 versus about $2.98 expected. Profit per share under standard accounting rules was $2.46.
- Commercial customers led the growth, with sales rising 20.8%. The company also reported higher government, education and international sales, showing demand extended beyond one customer group.
- Gross margin, the share of sales left after product costs, fell to 20.5% from 21.9%. A shift toward lower-margin products means rapid revenue growth is not all flowing through to profit.
- Adjusted profit rose 14.8%, while adjusted profit per share rose 20.4%. A lower share count helped the per-share result, so compare both measures.
- Operating cash flow for the first nine months fell to $619 million from $771 million. Watch cash collection and inventory funding alongside the strong sales growth.
The next test is whether demand stays strong without further margin pressure. The charts show the completed November 3 session, before the earnings release and pre-market rise.
Financials and technicals
Charts through Nov 3, 2026. The session move above may reflect later news.
Technical setup and risks
The November 3 close was $149.77, below the 20-day average near $153.59 but above the 50-day average near $147.69. Approximate support at $144.3–148.00 reflects October 30 through November 3 lows. Resistance at $163.7–166.20 reflects late-October highs. Holding above resistance would strengthen the recovery; losing support would weaken it. Earnings can move the stock through these levels, and the separate pre-market quote is not a completed daily candle.
AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.