Core Insights - CDW Corporation reported third-quarter 2025 non-GAAP earnings per share (EPS) of $2.71, exceeding the Zacks Consensus Estimate of $2.53, with a year-over-year increase of 3% [1][8] - Revenues rose 4% year over year to $5.74 billion, with constant currency sales growth of 3.8%, driven by demand across various product categories despite a slowdown in data storage and servers [2][8] Financial Performance - The Corporate segment net sales were $2.25 billion, up 4.4% year over year, while the Small Business segment saw a 14.2% increase to $434 million [4] - The Public segment's revenues reached $2.35 billion, a 0.6% increase, supported by growth in Government and Healthcare customers, although the Education sector declined by 8.5% [4] - Gross profit increased by 4.6% year over year to $1.26 billion, with a slight rise in gross profit margin to 21.9% [6] - Non-GAAP operating income fell 0.6% year over year to $530.6 million, with the operating margin decreasing to 9.2% [6] Future Outlook - CDW reaffirmed its goal to exceed U.S. IT market growth by 200–300 basis points at constant currency [3][8] - A quarterly dividend of 63 cents was announced, reflecting a 1% year-over-year increase, to be paid on December 10, 2025 [3] Balance Sheet and Cash Flow - As of September 30, 2025, CDW had cash and cash equivalents of $452.9 million, down from $946.7 million a year ago, with long-term debt increasing to $5.62 billion [9] - Cash flow from operating activities for the nine months ending September 30, 2025, was $771.4 million, compared to $932 million in the previous year [9]

Core Insights - ServiceNow (NOW) is experiencing significant growth with its AI Platform, securing 21 deals with five or more Now Assist products in Q2 2025, and over 50% sequential growth in deals including AI Pro Plus across ITSM, CSM, and HR [1][10] Group 1: Enterprise Adoption and Product Offerings - Major enterprises such as Adobe, Aptiv, Visa, EY, ExxonMobil, and Standard Chartered are utilizing ServiceNow AI to enhance sales cycles, service delivery, and operational efficiency [2] - The Workflow Data Fabric is included in 17 of ServiceNow's top 20 deals, combining data, analytics, and AI to deliver faster outcomes for enterprises [3][10] - The new Zurich platform and AI Experience are expected to drive rapid AI adoption through multi-agentic AI development and autonomous workflows [4][10] Group 2: Competitive Landscape - ServiceNow faces intense competition from Atlassian, Salesforce, and Oracle, with Atlassian seeing a 20 times year-over-year increase in AI interactions [6] - Salesforce is expanding its platform adoption by integrating various workflows, while Oracle leverages a strong partner ecosystem to enhance its offerings [7][8] Group 3: Financial Performance and Valuation - ServiceNow shares have declined by 14.8% year-to-date, underperforming the broader Zacks Computer and Technology sector's return of 21.6% [9] - The stock is considered overvalued with a forward price/sales ratio of 12.49X compared to the sector's 6.83X, and it carries a Value Score of F [12] - The Zacks Consensus Estimate for Q3 2025 earnings is $4.21 per share, indicating a 13.2% year-over-year growth, while Q4 2025 earnings are estimated at $4.40 per share, suggesting a 19.9% year-over-year improvement [14]

Core Viewpoint - CDW Corporation reported strong first-quarter 2025 results, with non-GAAP EPS of $2.15, exceeding estimates and showing a 12% year-over-year increase [1][2] Financial Performance - Revenues grew 6.7% year over year to $5.199 billion, driven by strong demand for notebooks, mobile devices, desktops, software, and services, despite declines in some hardware categories [2] - Quarterly revenues surpassed the consensus estimate of $4.89 billion [2] - Gross profit increased 5.5% year over year to $1.122 billion, while gross profit margin slightly decreased from 21.8% to 21.6% due to a higher mix of lower-margin products [6] - Non-GAAP operating income rose 10% year over year to $444 million, with the non-GAAP operating margin increasing to 8.5% from 8.3% [6] Segment Performance - Corporate segment net sales were $2.236 billion, up 6.3% year over year [4] - Small Business segment net sales increased 7.9% year over year to $405 million [4] - Public segment revenues reached $1.878 billion, representing a 10.6% growth, driven by significant increases in Healthcare (19.5%) and Education (11.1%) customer sales [5] - Other operations (Canadian and U.K.) saw net sales rise 9.5% to $680 million [5] Expenses and Cash Flow - Selling and administrative expenses rose 3.5% year over year to $761 million, influenced by lower performance-based compensation and transformation-related costs [8] - Cash flow from operating activities for the quarter was $287.2 million, down from $440 million in the previous year [9] Dividend Announcement - The company announced a quarterly dividend of 62.5 cents, payable on June 10, 2025, to shareholders on record as of May 26 [3] Stock Performance - Following the results, CDW's shares increased by 2% in pre-market trading on May 7, although shares have declined 25.6% over the past year compared to the industry growth of 4.2% [4]