CDW Q2 Earnings: Revenue Beats Expectations, Services Investments Shape Results Amid Market Uncertainty

CDW reported Q2 CY2025 results with revenue up 10.2% YoY to $5.98 billion, beating Wall Street expectations. Non-GAAP profit of $2.60 per share was 4.4% above analyst estimates. CEO Christine Leahy attributed the growth to strong demand for hardware upgrades, infrastructure projects, and commercial and healthcare channels. The company expects ongoing caution in public sector markets and continued investments in services and AI capabilities.

CDW Corporation (NASDAQ: CDW) reported its second quarter (Q2) CY2025 results, showcasing robust financial performance and revenue growth. The company's revenue climbed 10.2% year-over-year (YoY) to $5.98 billion, surpassing Wall Street's expectations of $5.55 billion. Non-GAAP profit per share stood at $2.60, which was 4.4% above analyst estimates of $2.49 [1].

CEO Christine Leahy attributed the strong performance to several factors, including robust demand for hardware upgrades and infrastructure projects. The commercial and healthcare channels were standouts, with corporate net sales up 18% and healthcare up 24%, respectively. These gains offset declines in education and federal government segments, which saw sales drop by 11% and soften amid shifting policies [1].

The company's adjusted EBITDA of $555.1 million exceeded analyst estimates of $539.6 million, marking a 9.3% margin and a 2.9% beat. The operating margin remained at 7%, in line with the same quarter last year. The company's market capitalization stood at $20.99 billion, with shares trading at $160.15 [1].

Looking ahead, CDW expects continued macro uncertainty and public sector funding volatility to shape near-term growth. The company is maintaining a prudent approach, with CFO Al Miralles expecting low single-digit growth for the IT market in 2025. CDW's strategy focuses on leveraging its full-stack solutions, particularly in consulting and managed services, to support customer digital transformation initiatives [1].

The company's AI Center of Excellence is seeing growing customer interest, with projects ranging from IT workflow automation to large-scale managed security engagements. CDW aims to deepen customer relationships and drive incremental growth through these investments [1].

Institutional investors and hedge funds have shown strong interest in CDW, with several notable increases in their stakes during the first quarter. Forsta AP Fonden, Citigroup Inc., Mitsubishi UFJ Asset Management Co. Ltd., Headlands Technologies LLC, Deutsche Bank AG, and Charles Schwab Investment Management Inc. all increased their holdings in CDW, indicating confidence in the company's prospects [2].

References:
[1] https://finance.yahoo.com/news/cdw-q2-deep-dive-diversified-071614632.html
[2] https://www.marketbeat.com/instant-alerts/filing-cdw-corporation-nasdaqcdw-shares-sold-by-forsta-ap-fonden-2025-08-10/