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Mar 31, 2025
CDW Q1 2025 Earnings Report
CDW reported solid revenue and earnings growth in Q1 2025, driven by strong performance in public sector verticals and continued demand for mobility and software solutions.
Key Takeaways
CDW began 2025 with a 6.7% year-over-year revenue increase and notable strength in its healthcare and education segments, maintaining stable margins despite economic uncertainty.
Revenue rose to $5.2 billion, led by public sector demand, especially in healthcare and education.
Adjusted EPS grew 11.9% to $2.15, reflecting strong operational execution.
Free cash flow reached $260.3 million despite a seasonal decline in cash position.
Gross margin slightly declined due to higher mix of lower-margin products like mobile devices.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
CDW expects to outperform US IT market growth by 200–300 basis points and continue generating strong cash flows through disciplined capital deployment.
Positive Outlook
- Maintains goal of exceeding US IT market growth by 200–300 bps.
- Strong demand outlook across key public sector verticals.
- Disciplined capital management driving free cash flow optimization.
- Broad and balanced customer base provides resilience.
- Continued focus on high-growth solutions like software and services.
Challenges Ahead
- Economic uncertainty continues to impact certain hardware categories.
- Gross margin pressure from mix shift toward lower-margin products.
- Lower excess tax benefits negatively impacted effective tax rate.
- Slight decline in selling days (63 vs 64) reduced reported growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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