Q1 2025 CDW Corp Earnings Call Transcript
Key Points
- CDW Corp (CDW) reported a strong start to 2025 with net sales of $5.2 billion, an 8% increase from the previous year.
- Gross profit increased by 7% to $1.1 billion, and non-GAAP operating income rose by 10% to $444 million.
- The company experienced robust growth in the healthcare sector, with net sales up 20%, driven by client devices, cloud, and services.
- CDW Corp (CDW) maintained a balanced performance across hardware, software, and services, each increasing by high-single-digits or better.
- The company successfully managed expenses, achieving a non-GAAP SG&A efficiency ratio of 60.4%, down 170 basis points from the previous year.
- Tariff uncertainty has slowed down major infrastructure investments, impacting the growth of certain product categories like NetComm and storage.
- Federal government market growth was subdued due to new policy priorities, affecting IT planning and budgets.
- The company anticipates a more muted environment in the education and federal sectors due to pull-forward demand and government efficiency initiatives.
- CDW Corp (CDW) expects potential economic uncertainty and caution to impact growth, with no assumptions of recessionary conditions factored into their outlook.
- Gross margins were slightly compressed due to a mix shift towards client devices, which comprised a higher percentage of net sales compared to the previous year.
Good morning and thank you for joining us for the CDW first call to 2025 earnings call. My name is Carly and I'll be coordinating the call today. (Operator Instructions)
Iâd now like to hand over to our host, Steve O'Brien of Investor Relations. The floor is yours.
' -
Thank you, Carly. Good morning, everyone. Joining me today to review our first quarter 2025 results are Chris Leahy, our Chair and CEO and Al Miralles, our Chief Financial Officer. Our earnings release was distributed this morning and is available on our website, investor.cdw.com, along with supplemental slides that you can use to follow along during the call.
Iâd like to remind you that certain comments made in this presentation are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Those statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Additional information concerning these risks and uncertainties is
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