CDW Corporation (Nasdaq: CDW), a premier multi-brand provider of information technology solutions across business, government, education, and healthcare sectors in the U.S., U.K., and Canada, announced strong financial results for the first quarter ended March 31, 2025. This earnings release reveals significant growth amid ongoing market variability, confirming CDW’s strategic strength and operational excellence.
Industry leader in IT solutions serving over 250,000 customers globally across diverse end-markets.
Net sales increased by 6.7% year-over-year, reaching \(5,199 million compared to \)4,873 million in Q1 2024.
On a constant currency and average daily sales basis, sales growth was even stronger at 8.7% and 8.4%, respectively.
Gross profit rose by 5.5% to $1,122 million, though gross margin slightly decreased to 21.6% from 21.8% in Q1 2024, impacted by product mix shifting towards higher volume but lower margin notebooks and mobile devices.
Operating income expanded by 10.2% to $361 million, with operating margin improving to 7.0% from 6.7%, demonstrating effective cost control despite increased selling and administrative expenses.
Net income achieved a 4.1% increase to \(225 million, with diluted earnings per share climbing 6.1% to \)1.69.
Non-GAAP metrics outperformed, with operating income up 10.0% to \(444 million and net income increasing 9.9% to \)287 million. Non-GAAP diluted EPS surged 11.9% to $2.15.
Results pertain to the first quarter ending March 31, 2025.
Operations spanned the United States, United Kingdom, and Canada.
Strong demand for notebooks/mobile devices, desktops, software, and services drove net sales growth.
Public sector revenues increased notably by 10.6%, led by 19.5% growth in healthcare and 11.1% in education sectors.
Corporate and small business segments also experienced sales growth of 6.3% and 7.9% respectively.
CDW’s UK and Canadian operations grew net sales by 9.5%, reflecting robust international demand.
Gross profit margin for FY 2024 stood at 21.92%, slightly above the Q1 2025 level, signaling sector-typical margin compression due to product mix.
Operating margin was 7.86% in FY 2024, slightly higher than 7.0% in Q1 2025, but Q1 showed improvement over the previous year’s quarter margin of 6.7%, indicating efficient expense management.
Net profit margin was 5.13% for FY 2024 compared to 4.3% in Q1 2024, with Q1 2025 showing steady improvement at current levels.
CDW’s management has emphasized a customer-centric strategy and diversification across end-markets, aligning with reported growth trends.
Prior calls highlighted focus on navigating economic uncertainty with balanced portfolio offerings, which has clearly translated into the improved financial performance witnessed this quarter.
CDW targets exceeding U.S. IT market growth by 200 to 300 basis points, leveraging its comprehensive technology stack expertise and partnerships with over 1,000 leading technology brands.
The approved quarterly dividend of $0.625 per share illustrates confidence in sustained cash flow and profitability.
Operational efficiencies and working capital optimization will support continued cash flow generation and capital flexibility.
CDW Corporation’s Q1 2025 results demonstrate robust growth, operational discipline, and strategic execution amidst ongoing economic challenges. Strong performances across market segments and geographies reinforce CDW’s position as a trusted advisor and technology partner. With solid financial metrics and growth outlook, CDW is well-positioned to capitalize on evolving technology demands.
Read the full CDW Q1 2025 Earnings Release on SEC.gov