CDW beats Q3 expectations on strong services and cloud offerings

Investing.com - CDW Corporation (NASDAQ:CDW) on Tuesday reported third quarter 2025 results that exceeded analyst expectations, with adjusted earnings per share of $2.71, beating the consensus estimate of $2.62 by 9 cents.

Revenue for the quarter came in at $5.74 billion, slightly above the analyst projection of $5.72 billion.

The technology solutions provider saw revenue increase 4.0% YoY compared to the $5.52 billion reported in the same quarter last year. The company’s adjusted operating income was $530.6 million, representing a 9.2% margin, though this marked a slight decrease from the 9.7% margin in the year-ago period.

"The team delivered resilient performance in Q3 as we continued to guide customers through evolving market dynamics and deliver mission critical outcomes across the full IT stack and lifecycle," said Christine A. Leahy, chair and chief executive officer at CDW.

Performance varied across business segments, with Small Business showing the strongest growth at 14.2% YoY, while Corporate segment sales rose 4.4%. The Public segment saw more modest growth of 0.6%, with Government and Healthcare customers increasing 7.8% and 6.9% respectively, offset by an 8.5% decline in Education customers.

"Our ability to deliver on our robust services and cloud offerings was a key driver of both growth and margin performance," said Albert J. Miralles, chief financial officer at CDW. The company’s gross profit margin improved slightly to 21.9% from 21.8% in the prior-year quarter.

The company also announced a quarterly cash dividend of $0.630 per common share, payable on December 10, 2025, to stockholders of record as of November 25, 2025.

CDW continues to target exceeding US IT market growth by 200 to 300 basis points on a constant currency basis, leveraging its diversified customer base and expansive product and solutions portfolio.

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