CDW (CDW) Q4 2025 Financial Results Summary
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CDW Corporation (CDW) Q4 2025 Financial Results Summary
On February 4, 2026, CDW Corporation announced its fourth quarter and year-end financial results for 2025. Below is a summary of the key financial metrics and highlights from the report.
Fourth Quarter Highlights (Q4 2025)
- Net Sales: $5,511 million, an increase of 6.3% from $5,186 million in Q4 2024.
- Average Daily Sales rose by 4.6% to $87.5 million.
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Net sales on a constant currency basis increased by 4.3%.
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Gross Profit: $1,254 million, up 8.6% from $1,155 million in the prior year.
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Gross Profit Margin improved to 22.8% from 22.3%.
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Operating Income: $431 million, an increase of 5.4% compared to $409 million in Q4 2024.
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Operating Income Margin slightly declined to 7.8% from 7.9%.
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Net Income: $280 million, up 5.8% from $264 million a year earlier.
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Net Income Per Diluted Share was $2.14, reflecting an 8.8% increase from $1.97 in Q4 2024.
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Non-GAAP Measures:
- Non-GAAP Operating Income: $502 million, a 0.6% increase from $499 million.
- Non-GAAP Net Income: $336 million, up 0.9% from $333 million.
- Non-GAAP Net Income Per Diluted Share: $2.57, an increase of 3.8% from $2.48.
Full Year Highlights (2025)
- Net Sales: $22,424 million, an increase of 6.8% from $20,999 million in 2024.
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Net sales on a constant currency basis increased by 6.6%.
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Gross Profit: $4,873 million, up 5.9% from $4,602 million in 2024.
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Gross Profit Margin decreased to 21.7% from 21.9%.
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Operating Income: $1,656 million, a modest increase of 0.3% from $1,651 million.
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Non-GAAP Operating Income: $1,997 million, a 2.6% increase from $1,947 million.
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Net Income: $1,067 million, reflecting a 1.0% decrease from $1,078 million.
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Net Income Per Diluted Share was $8.08, up 1.3% from $7.97.
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Non-GAAP Net Income: $1,323 million, a 2.8% increase from $1,287 million.
- Non-GAAP Net Income Per Diluted Share: $10.02, an increase of 5.2% from $9.52.
Dividend Declaration
- The Board of Directors approved a quarterly cash dividend of $0.630 per share, which will be paid on March 10, 2026, to stockholders of record as of February 25, 2026.
Share Repurchase and Capital Management
- CDW returned approximately $982 million to shareholders through dividends and share repurchases throughout the year.
- Strong cash flow generation facilitated growth investments and supported capital return strategies.
Segment Performance
- Corporate Segment: Net sales of $2,370 million, down 0.6% from the previous year.
- Small Business Segment: Net sales of $457 million, up 18.4%.
- Public Segment: Net sales of $2,016 million, up 7.0%, driven by segments like education (up 12.9%).
- Other Operations (UK and Canadian combined): Net sales of $669 million, an 8.4% increase.
Conclusion
CDW Corporation’s fourth quarter and full year results for 2025 reflect a strong performance with positive growth in sales and income metrics despite ongoing economic challenges. The company’s strategic approach toward managing its diversified customer base and maintaining its product portfolio appears key to its resilience in a competitive environment.
| Three Months Ended December | 31, 2025 | 31, 2024 | Percent Change | Year Ended December | 31, 2025 | 31, 2024 | Percent Change |
|---|---|---|---|---|---|---|---|
| -unaudited | -unaudited | -unaudited | |||||
| Net sales | $ 5,511.0 | $ 5,186.0 | 6.3 % | $ 22,424.1 | $ 20,998.7 | 6.8 % | |
| Cost of sales | 4,256.6 | 4,030.7 | 5.6 | 17,550.7 | 16,396.3 | 7.0 | |
| Gross profit | 1,254.4 | 1,155.3 | 8.6 | 4,873.4 | 4,602.4 | 5.9 | |
| Selling and administrative expenses | 823.7 | 746.7 | 10.3 | 3,217.8 | 2,951.1 | 9.0 | |
| Operating income | 430.7 | 408.6 | 5.4 | 1,655.6 | 1,651.3 | 0.3 | |
| Interest expense, net | -58.5 | -56.5 | 3.5 | -227.4 | -214.5 | 6.0 | |
| Other income (expense), net | -3.1 | -0.6 | *nm | -0.8 | -1.4 | *nm | |
| Income before income taxes | 369.1 | 351.5 | 5.0 | 1,427.4 | 1,435.4 | -0.6 | |
| Income tax expense | -89.6 | -87.3 | 2.6 | -360.8 | -357.6 | 0.9 | |
| Net income | $ 279.5 | $ 264.2 | 5.8 % | $ 1,066.6 | $ 1,077.8 | -1.0 % | |
| Net income per common share: Basic | $ 2.15 | $ 1.98 | 8.4 % | $ 8.13 | $ 8.06 | 0.9 % | |
| Net income per common share: Diluted | $ 2.14 | $ 1.97 | 8.8 % | $ 8.08 | $ 7.97 | 1.3 % | |
| Weighted-average common shares outstanding: Basic | 130.0 | 133.1 | 131.3 | 133.8 | |||
| Weighted-average common shares outstanding: Diluted | 130.6 | 134.4 | 132.1 | 135.2 |
*nm – Not meaningful
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | -unaudited | |
| Current assets: | ||
| Cash and cash equivalents | $ 618.7 | $ 503.5 |
| Short-term investments | — | 214.2 |
| Accounts receivable, net of allowance for credit losses of $65.2 and $43.3, respectively | 6,312.4 | 5,135.8 |
| Merchandise inventory | 563.4 | 605.3 |
| Miscellaneous receivables | 554.0 | 509.9 |
| Prepaid expenses and other | 452.0 | 404.4 |
| Total current assets | 8,500.5 | 7,373.1 |
| Operating lease right-of-use assets | 136.7 | 120.2 |
| Property and equipment, net | 171.5 | 192.0 |
| Goodwill | 4,662.3 | 4,620.4 |
| Other intangible assets, net | 1,186.4 | 1,356.6 |
| Accounts receivable and other assets, noncurrent | 1,370.8 | 1,016.1 |
| Total assets | $ 16,028.2 | $ 14,678.4 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable – trade | $ 4,220.1 | $ 3,381.3 |
| Accounts payable – inventory financing | 352.6 | 355.2 |
| Current maturities of long-term debt | 1,007.5 | 235.8 |
| Contract liabilities | 534.0 | 491.0 |
| Accrued expenses and other liabilities | 1,111.9 | 1,011.1 |
| Total current liabilities | 7,226.1 | 5,474.4 |
| Long-term liabilities: | ||
| Debt | 4,622.3 | 5,607.0 |
| Deferred income taxes | 171.8 | 167.4 |
| Operating lease liabilities | 157.8 | 149.1 |
| Accounts payable and other liabilities | 1,244.1 | 927.8 |
| Total long-term liabilities | 6,196.0 | 6,851.3 |
| Total stockholders’ equity | 2,606.1 | 2,352.7 |
| Total liabilities and stockholders’ equity | $ 16,028.2 | $ 14,678.4 |