CDW Reports Strong Q4 Results Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy CDW?
Source: Benzinga
- Earnings Beat: CDW reported an adjusted EPS of $2.57 for Q4 FY2025, surpassing analysts' expectations of $2.44 and increasing from $2.48 a year earlier, indicating enhanced profitability.
- Strong Sales Growth: Net sales reached $5.51 billion, up 6.3% year-over-year, exceeding the consensus forecast of $5.29 billion, primarily driven by robust demand for notebooks, mobile devices, software, and services, reflecting market vitality.
- Cost Pressure Evident: Despite sales growth, selling and administrative expenses rose 10.3% year-over-year to $824 million, outpacing revenue growth and pressuring margins, with adjusted operating margin declining from 9.6% to 9.1%.
- Increased Shareholder Returns: CDW's board approved a quarterly cash dividend of 63 cents per share, payable on March 10, 2026, demonstrating the company's commitment to shareholder returns while reflecting a healthy cash flow position.
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Analyst Views on CDW
Wall Street analysts forecast CDW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDW is 177.14 USD with a low forecast of 148.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
5 Buy
3 Hold
0 Sell
Moderate Buy
Current: 140.770
Low
148.00
Averages
177.14
High
200.00
Current: 140.770
Low
148.00
Averages
177.14
High
200.00
About CDW
CDW Corporation is a multi-brand provider of information technology (IT) solutions to business, government, education and healthcare customers in the United States, the United Kingdom and Canada. The Company’s array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premises and cloud capabilities across hybrid infrastructure, digital experience and security. The Company operates through three segments: Corporate, Small Business and Public. The Corporate segment primarily serves United States private sector business customers. The Small Business segment primarily serves United States private sector business customers. The Public segment comprises government agencies and education and healthcare institutions in the United States. The Company’s solutions are delivered in physical, virtual and cloud-based environments. The Company provides integrated IT solutions in more than 150 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CDW Corporation Q4 2025 Earnings Call Highlights
- Strong Financial Performance: CDW reported net sales of $5.5 billion for Q4 2025, a 5% increase year-over-year, with gross profit reaching $1.25 billion, up 9%, demonstrating the company's resilience and execution in a complex market environment.
- Strategic Growth Areas: Double-digit growth in high-margin sectors such as software, cloud, and professional services drove gross margin to 22.8%, enhancing overall profitability and strengthening competitive positioning in the market.
- AI-Driven Growth: Management emphasized the embedded growth potential of AI across all markets, with new AI solutions expected to deliver a 90-day payback for enterprise clients, further enhancing customer productivity and cost efficiency.
- Optimistic Future Outlook: CDW projects low single-digit growth for the U.S. IT addressable market in 2026, targeting outperformance of 200 to 300 basis points, with expectations for mid-single-digit growth in non-GAAP net income per share, reflecting confidence in future performance.
See More
CDW Reports Strong Q4 Results Exceeding Expectations
- Earnings Beat: CDW reported an adjusted EPS of $2.57 for Q4 FY2025, surpassing analysts' expectations of $2.44 and increasing from $2.48 a year earlier, indicating enhanced profitability.
- Strong Sales Growth: Net sales reached $5.51 billion, up 6.3% year-over-year, exceeding the consensus forecast of $5.29 billion, primarily driven by robust demand for notebooks, mobile devices, software, and services, reflecting market vitality.
- Cost Pressure Evident: Despite sales growth, selling and administrative expenses rose 10.3% year-over-year to $824 million, outpacing revenue growth and pressuring margins, with adjusted operating margin declining from 9.6% to 9.1%.
- Increased Shareholder Returns: CDW's board approved a quarterly cash dividend of 63 cents per share, payable on March 10, 2026, demonstrating the company's commitment to shareholder returns while reflecting a healthy cash flow position.
See More
Cirrus Logic Reports Strong Q3 Earnings, Shares Surge
- Earnings Beat: Cirrus Logic reported third-quarter earnings of $2.97 per share, surpassing the analyst consensus estimate of $2.44 per share, indicating a significant improvement in profitability and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: Cirrus Logic provided fourth-quarter sales guidance that is expected to exceed market estimates, further solidifying its competitive position in the semiconductor industry.
See More
CDW CORP STOCK RISES 10.1% FOLLOWING STRONG Q4 SALES AND PROFITS
- Company Performance: The company reported a 10.1% gain in shares following strong Q4 sales results.
- Profit Analysis: The profits exceeded expectations, indicating a positive financial outlook for the company.
See More
CDW Reports Significant Sales Growth in 2025 Financial Results
- Sales Performance Boost: CDW's net sales reached $5.511 billion in Q4 2025, a 6.3% increase from Q4 2024, indicating improved customer spending amidst economic uncertainty, particularly in software and mobile devices.
- Gross Profit Growth: The gross profit for Q4 was $1.254 billion, up 8.6% year-over-year, with a gross margin increase to 22.8%, reflecting the company's success in optimizing its product mix and controlling costs.
- Stable Net Income: Net income for Q4 2025 was $279.5 million, a 5.8% increase from 2024, despite a slight decline in annual net income, showcasing the company's resilience in maintaining profitability.
- Increased Shareholder Returns: CDW announced a quarterly cash dividend of $0.630 per share, set to be paid in March 2026, demonstrating the company's commitment to shareholders supported by strong cash flow and capital management.
See More
CDW Declares Quarterly Cash Dividend of $0.630
- Dividend Policy Reinforcement: CDW's Board of Directors has declared a quarterly cash dividend of $0.630 per share, payable on March 10, 2026, which underscores the company's ongoing commitment to shareholders and is expected to enhance investor confidence and attract more capital inflow.
- Significant Capital Returns: Since its IPO in 2013, CDW's dividends have increased nearly fifteen-fold, returning approximately $8.1 billion to shareholders through dividends and share repurchases, indicating the company's successful capital allocation strategy that further solidifies its market position.
- Future Buyback Plans: CDW plans to conduct share repurchases as market conditions permit, with approximately $685 million remaining under the current buyback program, and this flexible strategy is expected to boost earnings per share and enhance shareholder value.
- Strategic Investment Focus: CDW emphasizes that dividends, share repurchases, and strategic M&A are core to its capital allocation, and it will continue to focus on creating value for shareholders while maintaining its commitment to customer service to ensure long-term sustainable growth.
See More
CDW Corporation Q4 2025 Earnings Call Highlights
- Strong Financial Performance: CDW reported net sales of $5.5 billion for Q4 2025, a 5% increase year-over-year, with gross profit reaching $1.25 billion, up 9%, demonstrating the company's resilience and execution in a complex market environment.
- Strategic Growth Areas: Double-digit growth in high-margin sectors such as software, cloud, and professional services drove gross margin to 22.8%, enhancing overall profitability and strengthening competitive positioning in the market.
- AI-Driven Growth: Management emphasized the embedded growth potential of AI across all markets, with new AI solutions expected to deliver a 90-day payback for enterprise clients, further enhancing customer productivity and cost efficiency.
- Optimistic Future Outlook: CDW projects low single-digit growth for the U.S. IT addressable market in 2026, targeting outperformance of 200 to 300 basis points, with expectations for mid-single-digit growth in non-GAAP net income per share, reflecting confidence in future performance.
See More
CDW Reports Strong Q4 Results Exceeding Expectations
- Earnings Beat: CDW reported an adjusted EPS of $2.57 for Q4 FY2025, surpassing analysts' expectations of $2.44 and increasing from $2.48 a year earlier, indicating enhanced profitability.
- Strong Sales Growth: Net sales reached $5.51 billion, up 6.3% year-over-year, exceeding the consensus forecast of $5.29 billion, primarily driven by robust demand for notebooks, mobile devices, software, and services, reflecting market vitality.
- Cost Pressure Evident: Despite sales growth, selling and administrative expenses rose 10.3% year-over-year to $824 million, outpacing revenue growth and pressuring margins, with adjusted operating margin declining from 9.6% to 9.1%.
- Increased Shareholder Returns: CDW's board approved a quarterly cash dividend of 63 cents per share, payable on March 10, 2026, demonstrating the company's commitment to shareholder returns while reflecting a healthy cash flow position.
See More
Cirrus Logic Reports Strong Q3 Earnings, Shares Surge
- Earnings Beat: Cirrus Logic reported third-quarter earnings of $2.97 per share, surpassing the analyst consensus estimate of $2.44 per share, indicating a significant improvement in profitability and boosting investor confidence.
- Sales Growth: The company achieved quarterly sales of $580.620 million, exceeding the analyst consensus estimate of $533.890 million, demonstrating strong market demand and driving sustained performance growth.
- Stock Surge: Following the positive earnings report, Cirrus Logic's shares jumped 7.6% to $134.10 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: Cirrus Logic provided fourth-quarter sales guidance that is expected to exceed market estimates, further solidifying its competitive position in the semiconductor industry.
See More
CDW CORP STOCK RISES 10.1% FOLLOWING STRONG Q4 SALES AND PROFITS
- Company Performance: The company reported a 10.1% gain in shares following strong Q4 sales results.
- Profit Analysis: The profits exceeded expectations, indicating a positive financial outlook for the company.
See More
CDW Reports Significant Sales Growth in 2025 Financial Results
- Sales Performance Boost: CDW's net sales reached $5.511 billion in Q4 2025, a 6.3% increase from Q4 2024, indicating improved customer spending amidst economic uncertainty, particularly in software and mobile devices.
- Gross Profit Growth: The gross profit for Q4 was $1.254 billion, up 8.6% year-over-year, with a gross margin increase to 22.8%, reflecting the company's success in optimizing its product mix and controlling costs.
- Stable Net Income: Net income for Q4 2025 was $279.5 million, a 5.8% increase from 2024, despite a slight decline in annual net income, showcasing the company's resilience in maintaining profitability.
- Increased Shareholder Returns: CDW announced a quarterly cash dividend of $0.630 per share, set to be paid in March 2026, demonstrating the company's commitment to shareholders supported by strong cash flow and capital management.
See More
CDW Declares Quarterly Cash Dividend of $0.630
- Dividend Policy Reinforcement: CDW's Board of Directors has declared a quarterly cash dividend of $0.630 per share, payable on March 10, 2026, which underscores the company's ongoing commitment to shareholders and is expected to enhance investor confidence and attract more capital inflow.
- Significant Capital Returns: Since its IPO in 2013, CDW's dividends have increased nearly fifteen-fold, returning approximately $8.1 billion to shareholders through dividends and share repurchases, indicating the company's successful capital allocation strategy that further solidifies its market position.
- Future Buyback Plans: CDW plans to conduct share repurchases as market conditions permit, with approximately $685 million remaining under the current buyback program, and this flexible strategy is expected to boost earnings per share and enhance shareholder value.
- Strategic Investment Focus: CDW emphasizes that dividends, share repurchases, and strategic M&A are core to its capital allocation, and it will continue to focus on creating value for shareholders while maintaining its commitment to customer service to ensure long-term sustainable growth.
See More
