Core Insights - CDW Corporation reported second-quarter 2025 non-GAAP EPS of $2.60, exceeding the Zacks Consensus Estimate of $2.49, with a year-over-year increase of 3.9% [1][9] - Net sales for the quarter reached $5.98 billion, reflecting a solid 10.2% year-over-year growth, with a 9.8% increase on a constant currency basis [2][9] Financial Performance - The Corporate segment's net sales were $2.6 billion, up 17.6% year-over-year, while the Small Business segment reported $431 million in net sales, a 12.6% increase [7] - The Public segment generated $2.3 billion in revenues, representing a 2.2% growth, driven by a 24.1% increase in Healthcare and a 2.7% increase in Government, offset by a 10.9% decline in Education [7] - Gross profit grew 4.9% year-over-year to $1.24 billion, but gross margin declined from 21.8% to 20.8% due to pricing pressures [11] - Non-GAAP operating income increased 1.8% year-over-year to $519.7 million, with non-GAAP operating margin falling to 8.7% from 9.4% [11] Market Dynamics - Growth was supported by strong demand in IT lifecycle services, device refresh cycles, and international markets [9] - CDW's customer-focused approach and extensive product portfolio are crucial for addressing complex technology needs across the IT stack [4] Future Outlook - CDW aims to outpace U.S. IT market growth by 200–300 basis points on a constant currency basis, focusing on trends like cloud modernization and cybersecurity [5] - The company announced a quarterly dividend of 62.5 cents, payable on September 10, 2025 [5] Share Performance - Following strong demand across core commercial and international markets, CDW's shares rose 4.3% in pre-market trading on August 6 [6] - Over the past year, CDW's shares have declined by 21%, compared to a 3.1% decline in the Zacks Computers-IT Services industry [6] Balance Sheet and Cash Flow - As of June 30, 2025, CDW had $481 million in cash and cash equivalents, with long-term debt remaining at $5.623 billion [13] - For the first half of 2025, CDW generated $443.1 million in cash flow from operating activities, down from $589.9 million a year ago [13]