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CDW’s fourth-quarter gross margin was 22.8% , up 50 basis points year over year and up 90 basis points sequentially. Miralles attributed the sequential improvement to a higher mix of “netted down” revenues, improved product margins, and a slight sequential mix out of client devices.CFO Al Miralles said fourth-quarter gross profit growth came in above the company’s expectations for a low- to mid-single-digit increase. He also noted a moderate pull-forward of about $50 million in net sales tied to memory-rela ...

Core Insights - CDW Corporation reported fourth-quarter 2025 non-GAAP EPS of $2.57, exceeding the Zacks Consensus Estimate of $2.44, with a year-over-year increase of 3.8% [1] - The company achieved net sales of $5.51 billion in the fourth quarter, reflecting a 6.3% year-over-year growth, driven by increased customer spending in software, notebooks, mobile devices, and services [2] Financial Performance - For the full year 2025, net sales rose 6.8% year over year to $22.4 billion, with strong gross profit growth and disciplined working capital management allowing the return of approximately $982 million to shareholders through dividends and share repurchases [3] - Gross profit increased by 8.6% year over year to $1.25 billion, with gross margin expanding to 22.8% from 22.3% due to a higher contribution from software and services [10] Segment Analysis - The Corporate segment reported net sales of $2.37 billion, down 0.6% year over year, indicating caution among large enterprise customers [6] - The Small Business segment saw net sales rise 18.4% year over year to $457 million, reflecting improved investment activity among SMB customers [6] - The Public segment's revenues totaled $2.02 billion, up 7% year over year, with the Education sector leading growth at 12.9% [7] Future Outlook - CDW reaffirmed its long-term growth ambition, targeting 200–300 basis points of growth above the U.S. IT addressable market in 2026, driven by demand across hardware, software, services, and AI-related guidance [4] - The company announced a quarterly dividend of 63 cents, payable on March 10, 2026, to shareholders on record as of February 25 [4] Market Reaction - Following the strong performance, CDW's shares increased by 7% in pre-market trading, although shares have declined 38.8% over the past year compared to a 31.9% decline in the Zacks Computers-IT Services industry [5]

For the quarter ended December 2025, CDW (CDW) reported revenue of $5.51 billion, up 6.3% over the same period last year. EPS came in at $2.57, compared to $2.48 in the year-ago quarter.The reported revenue represents a surprise of +4.6% over the Zacks Consensus Estimate of $5.27 billion. With the consensus EPS estimate being $2.44, the EPS surprise was +5.54%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations ...

CDW (NasdaqGS:CDW) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Company ParticipantsAdam Tindle - Managing DirectorAl Miralles - CFOAmit Daryanani - Senior Managing Director of Equity ResearchChris Leahy - CEOErik Woodring - Managing Director of Equity ResearchRuplu Bhattacharya - DirectorSteven O'Brien - Head of Investor RelationsConference Call ParticipantsDavid Vogt - AnalystKeith Housum - Senior Research Analyst of Business ServicesOperatorHello, everyone, and thank you for joining the CDW fourth ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net sales of $5.5 billion, an increase of 5% year-over-year, and gross profit of $1.25 billion, up 9% [5][6] - Full-year 2025 results showed net sales of over $22 billion, up 7%, with gross profit nearly $5 billion, up 6% [8][9] - Non-GAAP operating income for Q4 was $503 million, up 1%, and non-GAAP net income per share was $2.57, up 4% [6][21] - Full-year non-GAAP net income per diluted share reached $10.02, up 5% [8][27] Business Line Data and Key Metrics Changes - Strong double-digit growth was observed in software, cloud, and professional managed services, contributing to the highest gross margin of the year [6][12] - Corporate sales were relatively flat, down 1%, while small business sales grew by 18% [10][11] - The healthcare segment increased by 5%, and education saw a 13% increase in top line [11][12] Market Data and Key Metrics Changes - U.K. and Canadian operations delivered sales of $2.7 billion in 2025, with strong performance in small business and state and local markets [10] - The public sector showed growth in healthcare and government, with state and local growth offsetting declines in federal due to the government shutdown [11][12] Company Strategy and Development Direction - The company aims to deliver sustainable, profitable growth by deepening customer value and deploying capital with discipline [19][32] - A focus on AI solutions is evident, with the company positioning itself to lead in the AI era through its full stack, full lifecycle offerings [15][16] - The company plans to maintain a target of returning 50%-75% of adjusted free cash flow to shareholders through dividends and share repurchases [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted that the IT addressable market is expected to grow in the low single digits in 2026, with CDW targeting 200-300 basis points of outperformance [18][35] - The company anticipates gross profit growth in the low single digits for 2026, with a slight increase in gross margin compared to 2025 [36][37] - Management expressed optimism about AI adoption among customers and its potential to drive growth [56][57] Other Important Information - The company reported adjusted free cash flow of $1.09 billion for the full year, representing 82% of non-GAAP net income [30] - The company has made a tuck-in acquisition to enhance capabilities in the education sector [31][32] Q&A Session Summary Question: Impact of memory price changes on demand - Management indicated that there is uncertainty regarding the impact of memory prices on demand, but they expect a similar pull forward in Q1 as seen in Q4 [40][41] Question: SG&A expenses and operating leverage - Management acknowledged that SG&A expenses are expected to show operating leverage in 2026, with a focus on optimizing costs [43][45] Question: IT budget allocation for 2026 - Management expects client device growth to remain strong, with cloud, SaaS, and security categories continuing to be important [59][60] Question: Corporate versus small business performance - Management noted differences in spending cycles, with small businesses being more agile in adopting AI compared to larger corporations [70][72]

CDW (NasdaqGS:CDW) Q4 2025 Earnings call February 04, 2026 08:30 AM ET Speaker2Hello, everyone, and thank you for joining the CDW fourth quarter 2025 earnings call. My name is Gabrielle, and I will be coordinating your call today. During the presentation, you can register a question by pressing Star followed by One on your telephone keypad. If you change your mind, please press Star followed by Two on your telephone keypad. Please kindly limit yourself to one question and one follow-up. If you have any furt ...

Core Viewpoint - CDW reported quarterly earnings of $2.57 per share, exceeding the Zacks Consensus Estimate of $2.44 per share, and showing an increase from $2.48 per share a year ago, indicating a positive earnings surprise of +5.54% [1] Financial Performance - CDW achieved revenues of $5.51 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.60% and up from $5.19 billion year-over-year [2] - The company has consistently exceeded consensus EPS estimates over the last four quarters [2] Stock Performance and Outlook - CDW shares have declined approximately 7.4% since the beginning of the year, contrasting with the S&P 500's gain of 1.1% [3] - The future performance of CDW's stock will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $2.14 on revenues of $5.18 billion, and for the current fiscal year, it is $10.39 on revenues of $22.51 billion [7] - The trend of estimate revisions for CDW was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Computers - IT Services industry, to which CDW belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Another company in the same industry, Unisys, is expected to report quarterly earnings of $0.60 per share, reflecting a year-over-year change of +81.8% [9]

CDW Corporation Webcast Conference Call February 4, 2026 Today's Agenda Fourth Quarter and Full Year 2025 Results Performance Drivers Outlook Q&A 2 Forward-Looking Statements Statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the future financial performance, 2026 outlook, capital allocation priori ...

CDW beat fourth-quarter sales and profit estimates on Wednesday, as clients continue to invest in artificial intelligence and cloud adoption. ...