Core Viewpoint - CDW Corporation, a leading IT solutions provider with a market cap of $19 billion, is experiencing significant stock price declines despite reporting better-than-expected earnings and revenue for Q3 2025 [1][5]. Company Overview - CDW Corporation is based in Vernon Hills, Illinois, and serves corporate, small business, and public sector clients across the U.S., U.K., and Canada [1]. - The company offers a wide range of IT solutions, including hardware, software, hybrid infrastructure, digital experience, and security solutions [1]. Stock Performance - CDW shares have fallen 34.4% from their 52-week high of $222.92 and have declined 12.9% over the past three months, underperforming the Dow Jones Industrials Average, which rose by 5.2% in the same period [3]. - Year-to-date, CDW stock is down nearly 16%, lagging behind the Dow's 12.5% gain, and has dipped 18.8% over the past 52 weeks compared to the Dow's 7.2% return [4]. - The stock has been trading mostly below its 50-day and 200-day moving averages since last year [4]. Financial Performance - In Q3 2025, CDW reported an adjusted EPS of $2.71 and revenue of $5.74 billion, which were better than expected [5]. - However, the stock tumbled 8.5% following the earnings report due to concerns over a 12.9% increase in selling and administrative expenses and a decline in demand in key areas, including an 8.5% revenue drop in the Education segment [5]. Competitive Landscape - In comparison, IBM has outperformed CDW, with its shares climbing 31.4% over the past 52 weeks and 42.3% year-to-date [6]. - Despite CDW's weak performance, analysts maintain a moderately optimistic outlook, with a consensus rating of "Moderate Buy" and a mean price target of $182, representing a 24.9% premium to current levels [6].