Q4 2025 CDW Corp Earnings Call Transcript
Key Points
- CDW Corp (CDW) reported a strong finish to 2025 with fourth-quarter net sales of $5.5 billion, up 5% year-over-year.
- The company achieved a gross profit of $1.25 billion in Q4, marking a 9% increase compared to the previous year.
- CDW Corp (CDW) saw strong double-digit growth in software, cloud, and professional and managed services, contributing to the highest gross margin of the year.
- The company returned nearly $1 billion to shareholders through dividends and share repurchases in 2025.
- CDW Corp (CDW) is well-positioned to capture market share in the AI space, with strategic partnerships and a comprehensive AI offering spanning strategy, data modernization, and integration.
- CDW Corp (CDW) faced challenges due to the longest federal government shutdown on record, impacting customer buying behaviors.
- The corporate channel experienced a slight decline, with top-line performance down 1% year-over-year due to slowing hardware solutions and moderation in Windows 11 refresh activity.
- The company anticipates potential supply chain challenges and pricing pressures in the second half of 2026, particularly in memory-intensive product categories.
- Operating expenses increased by 14.6% year-over-year in Q4 2025, driven by higher performance-based expenses and commissions.
- CDW Corp (CDW) expects a cautious start to 2026, with potential dampening of growth in the second half due to economic and geopolitical uncertainties.
Hello, everyone, and thank you for joining the CDW fourth quarter 2025 earnings call. My name is Gabrielle, and I will be coordinating your call today. (Operator Instructions)
I will now hand over to your host, Steve O'Brien with Investor Relations. Please go ahead.
' -
Thank you, Gabby, and good morning, everyone. Joining me today to review our fourth quarter and full year 2025 results are Chris Leahy, our Chair and Chief Executive Officer; 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 this call.
I'd 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.
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