CDW stock rises as Evercore ISI reiterates Outperform on strong earnings

Investing.com - CDW Corporation (NASDAQ:CDW), a prominent player in the Electronic Equipment, Instruments & Components industry, reported second-quarter results that exceeded analyst expectations, with revenues of $5.98 billion and earnings per share of $2.60, compared to consensus estimates of $5.51 billion and $2.49 respectively. According to InvestingPro data, the company maintains strong profitability with a trailing twelve-month revenue of $21.3 billion.

The technology solutions provider delivered 10% year-over-year sales growth, driven by strong performance in hardware and solutions categories. The corporate segment showed particularly robust growth of 17%, while the public vertical increased by approximately 2%, despite an 11% decline in the education sector. With a return on equity of 49% and a healthy current ratio of 1.32, CDW demonstrates solid operational efficiency.

Gross margins for the quarter came in at 20.8%, down 100 basis points year-over-year, which the company attributed to mix-related headwinds as client devices momentum remained strong while netted down revenues decreased compared to the previous year. InvestingPro analysis identifies weak gross profit margins as a key challenge, though the company’s overall financial health score remains fair. Subscribers can access 10+ additional ProTips and comprehensive valuation metrics.

For the full year 2025, CDW maintained its revenue growth outlook of approximately 7-8%, which represents IT spending growth plus 200-300 basis points of market share gains. The company expects gross profits to increase in the low-to-mid single digits range.

Evercore ISI analyst Amit Daryanani reiterated an Outperform rating on CDW with a $215 price target, noting this marks "the 3rd quarter where CDW has reported a strong beat on top and bottom line" while suggesting the company’s second-half guidance remains "conservative given headwinds across the education and federal vertical."

In other recent news, CDW Corp reported its financial results for the second quarter of 2025, exceeding Wall Street’s expectations. The company achieved an earnings per share (EPS) of $2.60, which was higher than the projected $2.49. Additionally, CDW Corp’s revenue reached $5.98 billion, surpassing the anticipated $5.51 billion. These results highlight the company’s strong performance in the recent quarter. Analysts had forecasted lower earnings, but CDW Corp’s actual results outperformed these predictions. The positive earnings report reflects robust business operations and management effectiveness. Investors often look to such earnings and revenue figures as indicators of a company’s health and growth potential. The recent developments at CDW Corp are likely to be of interest to stakeholders and market observers.

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