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Jun 30
CDW Q2 2025 Earnings Report
CDW reported its second quarter 2025 earnings, showing growth in net sales and non-GAAP net income, despite a slight decrease in GAAP net income and operating income.
Key Takeaways
CDW delivered a strong performance in the second quarter of 2025, with net sales increasing by 10.2% to $5,976.6 million. This growth was driven by increased customer demand across various IT categories and improved spending in certain end-markets. While GAAP net income and operating income saw slight declines, non-GAAP measures showed positive growth, reflecting the company's ability to navigate dynamic market conditions and optimize cash flow.
Net sales increased by 10.2% to $5,976.6 million in Q2 2025, compared to $5,423.4 million in Q2 2024.
Non-GAAP net income per diluted share rose by 3.9% to $2.60, while GAAP net income per diluted share slightly decreased by 1.2% to $2.05.
The Corporate segment led revenue growth with a 17.6% increase, and the Public segment saw significant growth in Healthcare (24.1%) and Government (2.7%) customers.
Gross profit margin decreased to 20.8% from 21.8% in the prior year, primarily due to decreased rates in certain hardware categories and lower contribution from netted down revenue.
CDW
CDW
CDW Revenue by Segment
CDW Revenue by Geographic Location
Revenue by Segment
Corporate Revenue
CapyFin.comSmall Business Revenue
CapyFin.comPublic Revenue
CapyFin.comOther (UK & Canada) Revenue
CapyFin.comRevenue by Geographic Location
Government Revenue
CapyFin.comEducation Revenue
CapyFin.comHealthcare Revenue
CapyFin.com Forward Guidance
CDW aims to exceed US IT market growth by 200 to 300 basis points on a constant currency basis by focusing on customer needs and partnerships with technology brands.
Positive Outlook
- Targeting to exceed US IT market growth by 200 to 300 basis points on a constant currency basis.
- Maintaining a laser focus on meeting the evolving needs of over 250,000 customers globally.
- Continuing to be the partner of choice for more than 1,000 leading and emerging technology brands.
- Optimizing cash flow generation through effective management of working capital.
- Commitment to returning cash to shareholders through dividends.
Challenges Ahead
- Economic uncertainty continues to persist, potentially impacting future customer spending.
- Potential for decreased rates in certain hardware categories to continue affecting gross profit margin.
- Increased selling and administrative expenses due to higher performance-based compensation and transformation costs.
- Interest expense increased due to lower interest income and higher fixed interest rates.
- Potential for fluctuations in foreign currency to impact reported net sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income