CDW's Q4 Earnings: Sales Surge, AI Focus, and Stock Buyback Boost

CDW Corporation (NASDAQ: CDW), a leading provider of information technology solutions, reported strong fourth-quarter earnings, driven by sales growth, a focus on artificial intelligence (AI), and a significant stock buyback program. The company's results highlight its resilience and strategic direction in the dynamic IT market.

CDW's net sales rose by 3.3% year-over-year to $5.186 billion, surpassing analyst estimates of $4.954 billion. This growth was supported by increases in the Corporate segment (4.2% Y/Y), Small Business segment (4.4% Y/Y), and Public segment (6.1% Y/Y). Notably, net sales for CDW's U.K. and Canadian operations also grew by 5.1% Y/Y to $607 million.

The company's focus on AI and cloud-based solutions has been a key driver of its growth. CDW's partnership with Microsoft Azure, a leading cloud platform, provides customers with access to a powerhouse portfolio of AI services designed for developers, operations, and data analysts. This collaboration enables CDW to offer tailored solutions that address the evolving needs of its customers, helping them to streamline operations, enhance customer experiences, and gain valuable insights.

CDW's commitment to AI and cloud-based solutions is also evident in its partnership with Digital Velocity, a cloud and cloud-native cloud expert. This collaboration allows CDW to provide customers with access to sophisticated AI models, including OpenAI models, through the most comprehensive portfolio of AI capabilities on the market. By leveraging Azure AI, CDW can help its customers achieve human parity in vision, speech, and language, as well as rapid start solutions tailored to their unique needs.



CDW's strong financial performance was further bolstered by a significant stock buyback program. The company's Board of Directors approved a $750 million increase to its share repurchase authorization, bringing the total authorization to approximately $1.338 billion. This move signals CDW's confidence in its financial health and future prospects, as well as its commitment to returning value to shareholders.

In addition to the stock buyback program, CDW declared a quarterly cash dividend of $0.625 per share, a 1% increase from the prior year period. This increase demonstrates the company's commitment to maintaining a strong financial position and returning value to shareholders.

Christine A. Leahy, chair and chief executive officer of CDW, stated, "In this dynamic environment, our value proposition is stronger than ever as customers turn to CDW to help them address mission-critical IT and operational needs across the full IT solutions stack and lifecycle and guide them through their AI journey." Leahy's comments underscore CDW's commitment to remaining a partner of choice for leading and emerging technology brands, as well as its focus on exceeding US IT market growth by 200 to 300 basis points in 2025.

In conclusion, CDW's strong Q4 earnings, driven by sales growth, a focus on AI, and a significant stock buyback program, highlight the company's resilience and strategic direction in the dynamic IT market. By leveraging its partnership with Microsoft Azure and Digital Velocity, CDW can provide customers with innovative solutions that help them address their most pressing IT and operational needs. As CDW continues to invest in AI and cloud-based solutions, it is well-positioned to capitalize on emerging opportunities and maintain its competitive edge in the long term.