CDW Corporation ((CDW Quick QuoteCDW - Free Report) ) is slated to report third-quarter 2025 results on Nov. 4, before market open.

The Zacks Consensus Estimate for revenues is $5.7 billion, indicating 3% growth from the prior-year quarter. The Vernon Hills-based company, known for offering a wide range of technology solutions to business, government, education and healthcare clients, has historically shown resilient top- and bottom-line performance even during volatile cycles.

The consensus estimate for earnings is pegged at $2.62 per share, unchanged in the past 90 days, indicating a 0.4% decline from the year-ago quarter’s reported figure.

CDW’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once, with the average surprise being 4%.

Key Factors to Note

Increased sales and strong execution across multiple end markets, driven by notable gains in commercial and healthcare segments despite continued weakness in federal and education channels, are likely to have aided CDW’s third-quarter performance. CDW aims to maintain a balanced focus on growth, capability enhancement and superior customer experience, while achieving increased efficiency and cost optimization through the scale of its operations.

For the third quarter, we expect revenues from Small Business, Government, Education and Healthcare to be $357.6 million, $669.2 million, $952.2 million and $618.9 million, respectively. Revenues from the Corporate sector are estimated to be $2.2 billion, up 0.7%.

CDW remains committed to disciplined execution of its three-part growth strategy and ongoing investment in customer-focused initiatives that reinforce its position as a trusted advisor. The company continues to expand in high-growth areas, including cloud, cybersecurity, IT workflow optimization and AI, supported by its 2024 acquisition of Mission Cloud Services. Strong demand persists across its portfolio, particularly in security solutions. Despite a challenging macro environment, CDW remains confident of returning to growth, supported by expanding workloads, rising data volumes, increased security needs, aging devices and broader adoption of AI technologies.

Synergies from acquisitions are an added tailwind. It has strengthened its portfolio through several strategic acquisitions, including Mission Cloud Services, Enquizit, Locus Recruiting, Sirius Computer Solutions, Focal Point Data Risk, Amplified IT, IGNW, Aptris and Scalar Decisions. These deals expand its capabilities across cloud, cybersecurity, managed services and consulting, advancing its customer-focused growth strategy and reinforcing its position as a leading technology solutions provider.

CDW Corporation Price and EPS Surprise

CDW Corporation price-eps-surprise | CDW Corporation Quote

Growing momentum in the U.K. and Canada, with the U.K. benefiting from robust device demand and public sector projects, while Canada continues to grow despite tariff fluctuations, is a key catalyst for the to-be-reported quarter. U.K. and Canadian operations have jointly made sales of $2.5 billion in 2024. Steady demand for notebooks, mobile devices, software, networking, storage and servers remains a positive sign.

For the third quarter, CDW expects gross profit to increase at a low single-digit rate year over year and to remain flat to slightly higher than the second quarter. We expect the metric to be $1.24 billion, up 3.4% year over year.

It expects third-quarter operating expenses to rise slightly quarter over quarter, in line with gross profit and ongoing business investments, resulting in non-GAAP SG&A as a percentage of gross profit being above the previous year-quarter level but consistent with the prior quarter. Our estimate for non-GAAP SG&A is pegged at $690 million for the third quarter, up 3.5% year over year.

Nonetheless, market disruptions in government and education are expected to persist. Leveraging deep industry expertise and strong customer relationships, CDW is developing strategies to navigate these challenges and strengthen its position, supported by its scale and vertical integration capabilities. Rising inflation, recessionary risks, escalating geopolitical instability and unpredictable tariff changes remain unresolved and continue to weigh on the business environment.

What Our Model Says for CDW

Our proven model does not predict an earnings beat for CDW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

CDW currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.

Advanced Micro Devices ((AMD Quick QuoteAMD - Free Report) ) currently has an Earnings ESP of +0.18% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here

AMD is set to report third-quarter 2025 results on Nov. 4. The Zacks Consensus Estimate for AMD’s quarterly revenues and earnings is pegged at $8.72 billion and $1.17 per share, respectively.

Allient ((ALNT Quick QuoteALNT - Free Report) ) presently has an Earnings ESP of +8.00% and a Zacks Rank #3. ALNT is scheduled to report third-quarter 2025 results on Nov. 5. The Zacks Consensus Estimate for ALNT’s quarterly revenues and earnings is pegged at $134.7 million and 50 cents per share, respectively.

Affirm ((AFRM Quick QuoteAFRM - Free Report) ) presently has an Earnings ESP of +3.53% and a Zacks Rank #3. AFRM is scheduled to report first-quarter fiscal 2026 results on Nov. 6. The Zacks Consensus Estimate for AFRM’s quarterly revenues and earnings is pegged at $885 million and 11 cents per share, respectively.