Madison Fund Flags CDW as Top-Five Q4 Detractor Despite 5% Sales Growth
Madison Large Cap Fund’s Q4 2025 update flagged CDW as a top-five detractor despite 5% growth to $5.5B, noting faster cost growth but expecting earnings to resume. CDW closed at $123.13 on February 23, its one-month return was -3.35% and 52-week return -34.05%, with a $16.14 billion market cap.
1. Fund's Q4 Letter Findings
The Madison Large Cap Fund outpaced the S&P 500 in Q4 2025 with a 3.43% gain versus 2.65%, but identified CDW as one of its bottom-five detractors. The fund attributed muted earnings to operating expenses rising faster than revenue.
2. Q4 Net Sales Growth
CDW reported consolidated net sales of $5.5 billion for Q4 2025, up 5% year-over-year, driven by continued demand for its IT solutions and value-added services.
3. Stock Price and Performance
On February 23, 2026, CDW shares closed at $123.13, marking a 3.35% decline over the past month and a 34.05% drop over the past 52 weeks, with a market capitalization of $16.14 billion.
4. Fund’s Long-Term Outlook
Despite Q4 headwinds, the Madison Large Cap Fund expects CDW’s cost growth to stabilize and for earnings growth to resume, reflecting confidence in the company’s long-term prospects.