CDW Corporation reports on Wednesday 4 November, before the market opens. The company is a multi-brand provider of information technology to organisations in the United States, United Kingdom and Canada. Revenue over the twelve months to Q2 2026 was $23.5 billion, which rose 7.4% on the year before, and that growth rate was up 0.0 percentage points on the rate a quarter earlier. The report will test whether this flat growth persists while operating margin and free cash flow have both fallen over the past year.
Source: reported quarterly EPS and aggregated third-party estimates. Historical surprises are context, not a forecast.
View chart data
| Period | Reported EPS | Analysts' estimate |
|---|---|---|
| Sep '25 | $2.71 | $2.62 |
| Dec '25 | $2.57 | $2.44 |
| Mar '26 | $2.28 | $2.29 |
| Jun '26 | $2.91 | $2.80 |
What analysts expect from CDW
For the quarter, the analysts' average EPS estimate is $2.98, in a range from $2.88 to $3.20. The average revenue estimate is $6.2 billion. The full-year EPS estimate is $10.98, which would be up 9.6% on last year (based on 9 analysts), and that estimate has risen 2.1% over the past 90 days. Of the analysts' recommendations, 7 are positive, 3 neutral and 0 negative.
Earnings surprise model
Our model estimates EPS could land above the analysts' average estimate by 1.8%. The estimated chance of an EPS beat is 62.5%, based on the last 4 quarters. The model shrinks the median recent surprise toward zero and uses a neutral prior for beat frequency; this small sample is a reference estimate, not company guidance.
CDW's record against estimates
The company reported EPS above the analysts' average estimate in 3 of the last 4 quarters. Last quarter, EPS of $2.91 compared with an estimate of $2.80, above it by 4.0%.
Profit is lagging sales
Revenue growth of 7.4% was up 0.0 percentage points on the rate a quarter earlier. The trailing operating margin was 7.1%, down 0.5 percentage points from a year earlier, while the trailing net margin was 4.6% and net income of $1.1 billion rose 0.3% on the year before. Gross margin was 21.4% over the trailing period.
Operating cash flow over the twelve months was $981.8 million, down 13.2% on the year before, while net income over the same period rose 0.3%. Capital spending was $121.6 million, or 0.5% of revenue, leaving free cash flow of $860.2 million, down 15.6% on the year before. The free-cash-flow margin was 3.7%, down 1.0 percentage points from a year earlier. The average diluted share count fell 2.9% over the year.
Set against the company's own history, the operating margin of 7.1% is higher than 77% of past readings (4.1% to 8.1%), while the free-cash-flow margin of 3.7% is higher than only 45% of past readings (1.4% to 7.2%). The twelve-month revenue growth rate of 7.4% is higher than 47% of past readings (−10.0% to 17.8%).
Questions this report will answer
The report will answer whether revenue growth continues to pick up, whether results land above or below the analysts' expectations set out above, and whether margins hold at the trailing levels described here.
The value hinges on margins more than growth
In our model, growth 5 percentage points lower would lower the value by 34.6%, and growth 5 percentage points higher would raise it by 45.1%. A free-cash-flow margin 1 percentage point lower would lower it by 38.0%.
