CDW shares drop to 52-week low after mixed Q1 results and margin pressure from AI investments.

CDW reported mixed first-quarter results with adjusted earnings of $2.28 per share, slightly below estimates, while revenue rose 9.2% to $5.68 billion, beating expectations. Despite strong demand across segments, margins narrowed due to a shift toward hardware sales and increased costs from AI-related investments. Management highlighted ongoing supply and pricing challenges and expressed cautious optimism about AI opportunities but warned of economic and geopolitical uncertainties. Following the report, CDW shares fell nearly 20% to a 52-week low, reflecting investor concerns about margin pressure and future growth risks.