What caused CDW's Q3 2024 earnings to miss forecasts?

CDW's Q3 2024 earnings missed forecasts due to a combination of factors:

1. **Revenue Decline**: The company's total revenue for Q3 2024 was $5.52 billion, which included a revenue surprise of -210 million. This decline was primarily attributed to ongoing economic uncertainty and a complex technology landscape, leading to cautious customer spending on technology.
2. **Segment Performance**: CDW's Corporate, Small Business, and Public segments experienced declines in net sales. The Corporate segment saw a 2.2% decrease, the Small Business segment faced a 3.4% decline, and the Public segment had a 2.3% drop in net sales compared to the previous year. The Other segment, which includes Canadian and U.K. operations, faced a significant plunge of 12.7% in net sales.
3. **Gross Profit Margin**: Despite the revenue decline, CDW's gross profit margin improved to 21.8% from 21.0% in the previous year, reflecting an increase of 80 basis points. This improvement was driven by the robust contribution of netted-down revenues, mainly from software as a service.
4. **Operating Income**: The company's operating income decreased by 3.7% year-over-year to $510 million, and the non-GAAP operating margin remained stable at 9.4%.

In summary, CDW's Q3 2024 earnings missed forecasts due to a combination of economic volatility, complex technology landscape, and soft results across its segments, despite efforts to improve gross margin and operating income.