CDW Set to Report Q2 Earnings: Is a Beat in the Cards?

Core Insights - CDW Corporation is set to report its second-quarter 2025 results on August 6, with revenue expectations of $5.5 billion, reflecting a 1.6% year-over-year growth [1] - The consensus estimate for earnings per share is $2.49, indicating a 0.4% decline from the previous year's quarter [2] - CDW has a history of resilient performance, with earnings missing estimates in two of the last four quarters but beating in the others, averaging a surprise of 2.1% [2] Revenue Breakdown - Expected revenues for the second quarter are projected as follows: Corporate at $2.2 billion (up 0.4%), Government at $654.9 million (up 2.5%), Healthcare at $599.6 million (up 2.2%), Education at $1.05 billion, and Small Business at $356.6 million [7] Profitability and Expenses - CDW anticipates gross profit of $1.26 billion for Q2, with non-GAAP EPS expected to be $2.47, remaining flat year-over-year [10][11] - Operating expenses are projected to rise in line with seasonal patterns, but non-GAAP SG&A as a percentage of gross profit is expected to be lower than the previous quarter [9] Strategic Initiatives - The acquisition of Mission Cloud Services is a key driver for enhancing CDW's AI and AWS capabilities, aligning with its customer-centric growth strategy [5] - CDW's focus on addressing customer challenges related to cloud workload growth, security threats, and AI adoption is expected to positively impact performance [3] Market Trends - Demand in the healthcare sector is likely boosted by the need for devices, cloud services, and security, while the education sector benefits from strong Chromebook demand [6] - Despite cautious spending, commercial market activity remains healthy, with CDW assisting clients in optimizing spending and planning for future projects [4] Recent Developments - In July 2025, CDW partnered with Asato Corporation to deliver AI-powered IT asset intelligence, enhancing its service offerings to a wide range of customers [12] Earnings Prediction - CDW's earnings model indicates a potential earnings beat, supported by a positive Earnings ESP of +2.41% and a Zacks Rank of 2 [13]