CDW Corp. (NASDAQ:CDW) stock rose Wednesday after the company reported better-than-expected fourth-quarter fiscal 2025 results.
Details
The company reported adjusted EPS of $2.57, exceeding analysts’ estimates of $2.44, an increase from $2.48 per share in the same period a year earlier.
Net sales totaled $5.51 billion, up 6.3% year over year (Y/Y), surpassing the consensus forecast of $5.29 billion.
The rise in net sales was driven by stronger customer demand for notebooks and mobile devices, software, and services.
Total selling and administrative expenses rose 10.3% Y/Y to $824 million in the quarter, climbing faster than revenue and pressuring margins.
Gross profit margin expanded to 22.8% from 22.3% a year earlier, while adjusted operating margin contracted to 9.1% from 9.6%.
The company ended the quarter with $618.7 million in cash and cash equivalents.
CDW’s board approved a quarterly cash dividend of 63 cents per share, payable on March 10, to shareholders of record as of February 25, 2026.
Segment Performance
CDW’s sales by business segment varied notably in the quarter. In the Corporate segment, net sales fell 0.6% Y/Y to $2.370 billion in the quarter.
The Small Business unit posted strong growth, with net sales of $457 million, an increase of 18.4% Y/Y.
In the Public segment, net sales were $2.016 billion, up 7.0% Y/Y, reflecting growth of 4.3% in Government, 4.6% in Healthcare and 12.9% in Education sales.
Finally, in the Other category (UK & Canada operations), net sales climbed 8.4% Y/Y to $669 million.
CEO Commentary
Christine A. Leahy, chair and chief executive officer, CDW, stated, “In today’s complex environment, our value proposition continues to strengthen as customers turn to CDW for mission-critical IT and operational needs across the full solutions stack and lifecycle, including guidance on their AI journeys. For 2026, we continue to target exceeding US IT addressable market growth by 200 to 300 basis points.”
“To achieve this, we will maintain our laser focus on meeting the evolving needs of our more than 250,000 customers around the globe and remaining the partner of choice for more than 1,000 leading and emerging technology brands.”
In the earnings call, the CEO emphasized the company’s leadership in AI, stating, “We are at the point of inflection with our customers and AI.” CFO Al Miralles expressed confidence in profitability, noting, “We feel good about margins.”
The CEO said AI demand is accelerating across all end markets, noting that unlike cloud computing, which was mainly a consumption model, AI is transforming the entire technology stack. She added the company is increasingly confident about growth prospects in 2026 and beyond.
CDW Price Action: CDW shares were up 9.29% at $137.88 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
