CDW Corp

CDW Corporation delivered a mixed but broadly encouraging third quarter, posting non-GAAP EPS of $2.71 — beating the $2.6221 consensus estimate by 3.35% — even as revenue of $5.74 billion came in just 0.21% below expectations while still growing 4.0% year-over-year. The earnings beat was fueled in part by a lower effective tax rate and a reduced diluted share count of 131.8 million, which helped non-GAAP net income edge up 0.6% to $357.2 million despite selling and administrative expenses surging 12.9% and squeezing GAAP operating income down 8.0%. On the top line, strength in netcomm products, notebooks, software, and services drove the revenue gain, with the Small Business segment leading all divisions at 14.2% growth. The board also raised its quarterly dividend to $0.63 per share, extending a twelve-year streak of increases — an encouraging sign for income-focused investors as demand trends in <a href="https://247wallst.com/investing/2025/10/30/western-digital-wdc-beats-estimates-again-despite-sky-high-expectations/">data storage and hardware</a> remain uneven. Management reiterated its target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.