CDW Corporation (CDW) · Q3 2026 results and valuation

At −1.9% growth a year (3-year revenue growth), the model's fair value is $43.17 a share — the stock trades 301% above it. Today's price assumes 10.7% growth a year.

1. Key theme

   Free cash flow

   Source quote

   “Net sales on a constant currency basis, free cash flow, and adjusted ...certain non-GAAP financial measures, for instance, non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, and non-GAAP earnings per diluted share, non-GAAP selling and administrative expenses, and non-GAAP effective tax rate. Non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules.”

2. Guidance

   Healthy written production in an elevated backlog support its view that underlying demand will remain durable in q4 at the same time CDW remains balanced given the complex...

3. Guidance

   CDW now expects full-year non-GAAP net income

4. Figure

   For the quarter, net sales increased 18% to $6.8 billion.

5. Fading

   I will begin with details on CDW's second quarter performance, move to Turning to its results.

   Source quote

   “I will begin with details on our second quarter performance, move to Turning to our results. Second quarter gross profit of $1.3 billion was up 6.3% year-over-year.”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“The increase is primarily incentive-related, reflecting higher performance-based compensation tied to stronger gross profit growth.”

“We remain laser-focused on our goals to balance growth, expansion of capabilities, and exceptional customer experience with greater efficiency and cost leverage from our broader operations.”

“So if we look at the areas of greatest strength, server storage, definitely strong unit growth, strong volume of customer spend coming through.”