Core Insights - Commvault announced the winners of the inaugural Commvault Fearless Awards 2025, recognizing partners who have demonstrated resilience against cyber threats and business disruptions [1][2][8] - The awards highlight a customer-first mindset and a unified, cloud-native approach to resilience among 24 standout partners globally [2][3] Award Winners - The Global Champion Award was awarded to HPE, with CDW, Softcat, and Logicalis Australia receiving regional champion awards for AMER, EMEA, and APAC respectively [6][12] - Other notable awards included Global AI Innovation Award to AWS, Global Cloud Partner of the Year to Microsoft, and Global Cyber Readiness Award to Bytes [7] Partner Statements - HPE emphasized the importance of comprehensive cyber resilience and data protection, reflecting a shared vision with Commvault [4] - Softcat highlighted the strength of their long-standing partnership with Commvault, focusing on innovation and customer-centric solutions [4] - Logicalis Australia expressed commitment to helping customers strengthen resilience and navigate complexity in the APAC region [4] Event Context - The awards were unveiled at SHIFT NYC, which also featured significant announcements including the Commvault Cloud Unity platform release [9][11] - The Commvault Fearless Awards aim to honor partners who show unwavering commitment to resilience amid evolving threats [8]

Core Viewpoint - The analyst previously rated CDW Corp as a buy due to its attractive valuation at 16x forward PE and strong growth drivers, but has now downgraded it to a hold rating due to reduced conviction in the investment thesis [1]. Summary by Relevant Sections - **Valuation and Growth Drivers** - CDW Corp was initially considered undervalued at a forward PE of 16x, indicating potential for growth [1]. - The growth drivers for the company were identified as clear and strong, supporting the initial buy rating [1]. - **Change in Rating** - The downgrade to a hold rating reflects a shift in the analyst's confidence regarding the investment in CDW Corp [1].

Core Viewpoint - The article discusses the recent volatility in the stock market and highlights four companies that have recently increased their dividends, providing potential investment opportunities for cautious investors seeking steady income amidst economic uncertainty [2][3]. Economic Context - Major stock indexes have reached all-time highs, but investor sentiment remains low due to a lack of economic data from the government shutdown, the impact of tariffs imposed by President Trump, and uncertainty regarding a potential interest rate cut by the Federal Reserve [2][4]. - The Federal Reserve recently cut interest rates by 0.25 percentage points, but this did not positively affect stock prices, as Chairman Jerome Powell expressed doubts about further cuts this year [4][5]. - The ongoing government shutdown has deprived investors of key economic data, contributing to fears of a recession as the labor market continues to shrink [6]. Company Highlights - **CDW Corporation**: Announced a dividend of $0.63 per share, with a dividend yield of 1.76%. Over the past five years, CDW has increased its dividend six times, with a payout ratio of 26% of earnings [9][8]. - **California Resources Corporation**: Declared a dividend of $0.41 per share, yielding 3.32%. The company has increased its dividend four times in the last five years, with a payout ratio of 34% of earnings [11][10]. - **Exxon Mobil Corporation**: Announced a dividend of $1.03 per share, yielding 3.47%. Exxon has increased its dividend five times over the past five years, with a payout ratio of 57% of earnings [13][12]. - **Entergy Corporation**: Declared a dividend of $0.64 per share, yielding 2.49%. Entergy has increased its dividend six times in the last five years, with a payout ratio of 59% of earnings [14][12].

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Market Overview - Wall Street experienced significant volatility, with major indexes reaching all-time highs, yet investor sentiment remains low due to economic uncertainties [1][3] - The ongoing government shutdown has resulted in a lack of key economic data, complicating investors' ability to gauge the economy's future [5] Federal Reserve Actions - The Federal Reserve recently cut interest rates by 0.25 percentage points for the second time this year, but this did not boost stock performance [3] - Chairman Jerome Powell expressed uncertainty regarding further rate cuts, indicating differing views among Fed officials on future monetary policy [4] Economic Concerns - The labor market is showing signs of contraction, raising fears of a potential recession [5] - Tariffs imposed by President Trump, particularly in relation to China, have contributed to market volatility and increased concerns among investors [6] Dividend-Paying Stocks - In light of market uncertainties, investors may consider dividend-paying stocks for steady income and capital protection [2] - Four companies recently announced dividend increases: - **CDW Corporation**: Dividend of $0.63 per share with a yield of 1.76%, increased dividends six times in five years, payout ratio at 26% [8][7] - **California Resources Corporation**: Dividend of $0.41 per share with a yield of 3.32%, increased dividends four times in five years, payout ratio at 34% [10][9] - **Exxon Mobil Corporation**: Dividend of $1.03 per share with a yield of 3.47%, increased dividends five times in five years, payout ratio at 57% [12][11] - **Entergy Corporation**: Dividend of $0.64 per share with a yield of 2.49%, increased dividends six times in five years, payout ratio at 59% [13]

Core Viewpoint - UBS has set a price target of $190 for CDW Corporation, indicating a potential price increase of approximately 33.61% from its current price of $142.21, following the company's Q3 2025 earnings call [2][5] Company Overview - CDW Corporation is a leading provider of technology solutions for various sectors including business, government, education, and healthcare, offering a wide range of products and services such as hardware, software, and integrated IT solutions [1] - The company competes with other technology service providers like Insight Enterprises and SHI International [1] Financial Performance - CDW's stock price is currently at $141.59, showing a slight decrease of 0.07, or approximately -0.05% [3] - The stock has fluctuated between a low of $141.11 and a high of $144.46 on the current trading day [3] - Over the past year, CDW's stock has experienced significant volatility, with a high of $222.92 and a low of $137.31 [3][5] Market Position - The company has a market capitalization of approximately $18.56 billion, indicating its substantial presence in the technology solutions industry [4] - Today's trading volume for CDW is 1,108,491 shares, reflecting active investor interest [4]

Financial Performance - Net sales for the three months ended September 30, 2025, increased by $221 million, or 4.0%, to $5,737.4 million compared to $5,516.6 million in the same period of 2024[110] - Gross profit for the three months ended September 30, 2025, increased by $55 million, or 4.6%, to $1,255.5 million, with a gross profit margin of 21.9%[111] - Operating income for the three months ended September 30, 2025, decreased by $38 million, or 8.0%, to $443.3 million, resulting in an operating income margin of 7.7%[112] - Net income for the three months ended September 30, 2025, decreased by $25.4 million, or 8.0%, to $291.0 million, with a net income per diluted share of $2.21[109] - For the nine months ended September 30, 2025, net sales increased by $1,100 million, or 7.0%, to $16,913.1 million compared to $15,812.7 million in the same period of 2024[114] - Gross profit for the nine months ended September 30, 2025, increased by $172 million, or 5.0%, to $3,619.0 million, with a gross profit margin of 21.4%[115] Expenses and Cash Flow - Selling and administrative expenses for the nine months ended September 30, 2025, increased by $190 million, or 8.6%, to $2,394.1 million[116] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $771.4 million, down from $932.0 million in the same period of 2024[106] - Adjusted free cash flow for the nine months ended September 30, 2025, was $668.0 million, compared to $764.1 million in the same period of 2024[106] - Free cash flow for the nine months ended September 30, 2025, was $692.2 million, down from $838.0 million in 2024[156] - Net cash provided by operating activities decreased by $160.6 million to $771.4 million for the nine months ended September 30, 2025, compared to $932.0 million in 2024[164][166] Debt and Financing - Net debt as of September 30, 2025, was $5,175.9 million, an increase from $4,872.3 million as of September 30, 2024[106] - Total unsecured indebtedness as of September 30, 2025, was $5.6 billion, with compliance to covenants under credit agreements[159] - The company repaid $211 million of the 4.125% Senior Notes due 2025 during the second quarter of 2025[159] - The company has entered into inventory financing agreements to enhance working capital without incurring interest expenses[161] - The company repurchased 2.9 million shares of common stock for $500 million during the nine months ended September 30, 2025[162] Segment Performance - Corporate segment net sales increased by $94.2 million, or 4.4%, primarily due to higher sales of netcomm products, software, and desktops[126] - Small Business segment net sales rose by $54.1 million, or 14.2%, driven by increased sales of notebooks/mobile devices, software, and desktops[128] - Public segment net sales increased by $14 million, or 0.6%, mainly due to growth in government and healthcare services, offset by a decline in education hardware sales[131] - Corporate segment gross profit increased by $11.2 million, or 2.2%, despite a decrease in gross profit margin to 23.1%[127] - Small Business segment gross profit rose by $10.9 million, or 12.4%, with a gross profit margin decrease to 22.8%[129] - Public segment gross profit increased by $13.3 million, or 2.8%, with a gross profit margin of 20.9%[132] Other Financial Metrics - Non-GAAP operating income for the three months ended September 30, 2025, was $530.6 million, representing a margin of 9.2%, compared to $534.0 million and 9.7% in 2024[149] - Non-GAAP net income for the nine months ended September 30, 2025, was $987.4 million, with a net income per diluted share of $7.45, compared to $954.5 million and $7.04 in 2024[151] - The cash conversion cycle improved to 11 days as of September 30, 2025, from 17 days in 2024[169] Future Outlook - The company anticipates potential impacts from inflationary pressures, interest rates, and competition on future performance[182] Dividend and Shareholder Returns - The quarterly cash dividend declared on November 4, 2025, is $0.630 per share, payable on December 10, 2025[162]

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Core Insights - CDW Corporation reported third-quarter 2025 non-GAAP earnings per share (EPS) of $2.71, exceeding the Zacks Consensus Estimate of $2.53, with a year-over-year increase of 3% [1][8] - Revenues rose 4% year over year to $5.74 billion, with constant currency sales growth of 3.8%, driven by demand across various product categories despite a slowdown in data storage and servers [2][8] Financial Performance - The Corporate segment net sales were $2.25 billion, up 4.4% year over year, while the Small Business segment saw a 14.2% increase to $434 million [4] - The Public segment's revenues reached $2.35 billion, a 0.6% increase, supported by growth in Government and Healthcare customers, although the Education sector declined by 8.5% [4] - Gross profit increased by 4.6% year over year to $1.26 billion, with a slight rise in gross profit margin to 21.9% [6] - Non-GAAP operating income fell 0.6% year over year to $530.6 million, with the operating margin decreasing to 9.2% [6] Future Outlook - CDW reaffirmed its goal to exceed U.S. IT market growth by 200–300 basis points at constant currency [3][8] - A quarterly dividend of 63 cents was announced, reflecting a 1% year-over-year increase, to be paid on December 10, 2025 [3] Balance Sheet and Cash Flow - As of September 30, 2025, CDW had cash and cash equivalents of $452.9 million, down from $946.7 million a year ago, with long-term debt increasing to $5.62 billion [9] - Cash flow from operating activities for the nine months ending September 30, 2025, was $771.4 million, compared to $932 million in the previous year [9]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales were $5.7 billion, up 4% year-over-year [6] - Gross profit was $1.3 billion, up 5% [6] - Non-GAAP operating income was $531 million, down 1% [6] - Non-GAAP net income per share was $2.71, up 3% [23] - Adjusted free cash flow was $209 million [25] Business Line Data and Key Metrics Changes - Small Business delivered double-digit growth in top line and gross profit, driven by cloud and client device solutions [9] - Corporate delivered mid-single-digit top line growth with low single-digit gross profit [9] - Government net sales increased 8%, with state and local showing double-digit growth [10] - Healthcare gross profit grew faster than its 7% top line growth, driven by cloud solutions [11] - Services grew 9% top line, with managed and professional services up 14% [60] Market Data and Key Metrics Changes - U.K. and Canadian operations reported a 9% increase in net sales [11] - Demand for client devices remained strong, driven by Windows 10 end-of-life transitions [20] - Netted down revenues represented 36% of gross profit, up from 35.7% in Q3 2024 [20] Company Strategy and Development Direction - The company is embedding AI into its operations to enhance productivity and efficiency [15] - Focus on delivering enterprise-grade AI solutions that are practical and scalable [16] - Maintaining a prudent full-year outlook with expectations for low single-digit growth in the U.S. IT market [17] Management's Comments on Operating Environment and Future Outlook - The current environment is characterized by volatility and uncertainty, impacting investment decisions [50] - The company is navigating a complex environment with a focus on execution and customer value [28] - Expectation for continued frictional impacts in government education segments and potential funding shortfalls in healthcare [28] Other Important Information - Non-GAAP SG&A totaled $725 million, up 8.7% year-over-year [21] - The company returned approximately $150 million in share repurchases and $82 million in dividends [25] - The dividend was increased by approximately 1% to $2.52 annually [26] Q&A Session Summary Question: Impact of government shutdown on federal contribution - Management has taken a conservative view of Q4, expecting some pipeline and backlog but acknowledging constraints due to the shutdown [34][35] Question: Drivers of small business growth - Small businesses are leaning more into technology for competitive advantage, showing resilience [37][39] Question: Outlook for PC and endpoint market - Solid demand is expected to continue in the near term, driven by Windows 10 end-of-life and AI productivity initiatives [42][43] Question: Complexity of current spending environment - The primary issue is volatility and uncertainty affecting investment commitments [50][52] Question: Healthcare market dynamics - Healthcare has been strong, but funding shifts may create some lumpiness in growth [78] Question: Profitability and margin outlook - Non-netted down margins have held up, with expectations for stability in Q4 [81]