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VERNON HILLS, Ill. - On Wednesday, CDW Corporation (NASDAQ:CDW), a leading multi-brand provider of information technology solutions, reported first quarter 2025 results that exceeded analyst expectations, driven by robust customer demand across multiple segments.
Despite the strong results, CDW’s stock was down 1.66% in premarket trading following the earnings release.
The company reported Q1 adjusted earnings per share of $2.15, beating the analyst estimate of $1.96 by $0.19. Revenue for the quarter came in at $5.2 billion, up 6.7% YoY and above the consensus estimate of $4.93 billion.
Net sales increased 8.4% on an average daily sales basis, with growth across all segments. The Public segment saw particularly strong performance, with net sales up 10.6% YoY, driven by increases of 19.5% in Healthcare and 11.1% in Education customers.
"The team delivered an excellent start to 2025, as they once again helped customers navigate dynamic market conditions and accomplish mission critical outcomes," said Christine A. Leahy, chair and chief executive officer of CDW.
Gross profit margin decreased slightly to 21.6% from 21.8% in Q1 2024, primarily due to an increased mix of lower margin products like notebooks and mobile devices.
The company maintained its target of exceeding US IT market growth by 200 to 300 basis points on a constant currency basis for 2025.
Albert J. Miralles, chief financial officer, added: "Starting the year, customers turned to CDW to address compelling technology needs - which we delivered on, leading to our robust growth and firm gross margins."
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