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VERNON HILLS, Ill. - CDW Corporation (NASDAQ:CDW) reported second quarter 2025 results that exceeded analyst expectations, with revenue climbing 10.2% to $5.98 billion compared to the consensus estimate of $5.51 billion. The IT solutions provider also delivered adjusted earnings per share of $2.60, beating analyst expectations of $2.49.
CDW shares rose 0.94% in pre-market trading following the earnings announcement.
The company’s strong performance was driven by increased customer demand across multiple product categories, particularly notebooks/mobile devices, software, networking equipment, and data storage and servers. Corporate segment sales surged 17.6% to $2.58 billion, while Small Business segment revenue increased 12.6% to $431 million.
"The team delivered strong performance as we helped customers navigate dynamic market conditions and accomplish mission critical outcomes across the full IT stack and lifecycle," said Christine A. Leahy, chair and chief executive officer of CDW.
Public sector sales grew modestly at 2.2%, with healthcare customer revenue jumping 24.1% and government sales increasing 2.7%, partially offset by a 10.9% decline in education customer spending. International operations in the UK and Canada saw sales increase 11.6% to $672 million.
Despite the revenue growth, CDW’s gross profit margin decreased to 20.8% from 21.8% in the prior year period, primarily due to lower margins in hardware categories and reduced contribution from netted down revenue.
"Our ability to deliver complex infrastructure solutions, coupled with comprehensive client device refresh solutions, drove strong topline growth with consistent cash flow," said Albert J. Miralles, chief financial officer.
The company maintained its target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis, emphasizing its focus on meeting evolving customer needs across its portfolio of more than 250,000 customers globally.
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