With a market cap of $16.5 billion, Vernon Hills, Illinois-based CDW Corporation (CDW) is a leading provider of information technology solutions across the United States, United Kingdom, and Canada, serving corporate, small business, and public sector clients. The company delivers a wide range of hardware, software, and integrated IT services, including hybrid infrastructure, digital experience, and security solutions.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and CDW fits this criterion perfectly. CDW continues to support organizations with comprehensive advisory, implementation, and managed services.
Shares of the information technology company have fallen 31% from its 52-week high of $183.91. Shares of CDW have gained 7.7% over the past three months, underperforming the broader State Street Technology Select Sector SPDR ETF's (XLK) 27.3% increase over the same time frame.
CDW stock is down nearly 6% on a YTD basis, lagging behind XLK’s 24.1% gain. Longer term, shares of the company have dipped 27.1% over the past 52 weeks, compared to XLK’s 48.7% surge over the same time frame.
Despite a few fluctuations, the stock has been trading below its 50-day and 200-day moving averages since last year.
CDW shares tumbled 20.3% on May 6 after the company reported Q1 2026 margin pressure, as gross margin declined 60 basis points to 21.0% due to a higher mix of lower-margin hardware sales and a lower contribution from cloud and SaaS-related revenue. Operating income of $376 million increased 4% year-over-year but fell short of analyst expectations.
Although revenue rose 9% to $5.67 billion, beating the consensus estimate, flat "netted down" sales and a decline in the share of gross profit to 34.5%, along with a 9% increase in SG&A expenses to $738 million, weighed on market sentiment.
In comparison, rival International Business Machines Corporation (IBM) has shown a steeper decline than CDW stock on a YTD basis, with IBM shares declining 8.1%. However, IBM stock has dropped 3.4% over the past 52 weeks, a less pronounced decline than CDW stock.
Despite CDW’s weak performance over the past year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts covering it, and the mean price target of $147.30 is a premium of 15.8% to current levels.
