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Sep 30, 2025
CDW Q3 2025 Earnings Report
CDW reported its third quarter 2025 earnings, showing an increase in net sales and gross profit, but a decrease in net income and operating income compared to the previous year.
Key Takeaways
CDW delivered a resilient performance in the third quarter of 2025, with net sales increasing by 4.0% to $5.737 billion and gross profit rising by 4.6% to $1.256 billion. However, the company experienced a decline in operating income by 8.0% to $443 million and net income by 8.0% to $291 million. Non-GAAP diluted EPS saw a positive increase of 3.0% to $2.71.
Net sales increased by 4.0% to $5,737.4 million, driven by higher customer demand for netcomm products, notebooks/mobile devices, desktops, software, and services.
Gross profit rose by 4.6% to $1,255.5 million, with the gross profit margin expanding to 21.9% due to increased service rates and a higher contribution of netted down revenue.
Operating income decreased by 8.0% to $443.3 million, primarily due to a 12.9% increase in selling and administrative expenses.
Non-GAAP net income per diluted share increased by 3.0% to $2.71, reflecting a focus on optimizing cash flow generation and returning value to shareholders.
Revenue by Segment
Revenue by Geographic Location
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 maintaining strong 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.
- Remaining the partner of choice for more than 1,000 leading and emerging technology brands.
- Leveraging a diversified customer base and expansive product and solutions portfolio.
- Continuing strategic investments and a customer-first approach to deliver mission-critical outcomes.
Challenges Ahead
- Inflationary pressures and the level of interest rates could impact financial performance.
- Potential for substantial competition to reduce market share.
- Risks associated with the continuing development, maintenance, and operation of information technology systems.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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