CDWNEUTRAL

CDW Gross Margin Analysis

20.1%

Updated 489h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after deducting the cost of goods sold, and CDW’s current 20.1% means it keeps $0.201 of each sales dollar before other expenses.

Sector Performance

13th percentile

CDW

20.1%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

21.0%(Jul 2026)

↓ Declining

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Deep Analysis

Gross margin is the percentage of revenue left after deducting the cost of goods sold, and CDW’s current 20.1% means it keeps $0.201 of each sales dollar before other expenses.

This sits far below the sector median of 45.6%, placing CDW in the 14th percentile of its sector peers. The year-over-year change is not available, but the quarter-over-quarter change is -4.3%, and the two most recent historical values are 20.1% followed by 21.0%. A gross margin well under the sector norm combined with a recent quarterly decline suggests pricing pressure or rising input costs, which raises the risk of weaker future earnings. This metric contradicts the overall NEUTRAL verdict, as the low level and downward trend point toward a less favorable

Frequently Asked Questions

What does the Gross Margin tell investors about CDW?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are CDW's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.