Company Overview

CDW Corporation is a leading multi-brand provider of information technology (IT) solutions serving business, government, education, and healthcare customers across the United States, the United Kingdom, and Canada. Founded in 1984 and headquartered in Vernon Hills, Illinois, CDW is a Fortune 500 company and a member of the S&P 500 Index. The company helps its customers navigate a complex IT market and maximize their technology investments by offering a broad range of IT solutions and services.

Business Overview

The company's offerings encompass discrete hardware and software products, as well as integrated IT solutions and services. These include on-premises and cloud capabilities across hybrid infrastructure, digital experience, and security. CDW provides hardware products such as notebooks, tablets, network communications devices, collaboration hardware, data storage, servers, and desktop computers. Software products include cloud solutions, software assurance, application suites, security software, virtualization tools, collaboration and productivity applications, operating systems, and network management software. Additionally, CDW offers advisory and design services, software development, implementation, managed services, and warranties.

Operating Segments

CDW operates through five distinct segments:

- Corporate Segment: This segment generates the majority of CDW's revenue, serving US private sector business customers with over 250 employees.

- Small Business Segment: This segment focuses on US private sector business customers with up to 250 employees.

- Public Segment: This segment comprises government agencies, as well as education and healthcare institutions.

- International Operations: This segment covers CDW UK and CDW Canada.

Financial Performance and Market Position

CDW Corporation has demonstrated significant financial performance, particularly in its recent quarterly results, showcasing strong revenue growth driven by its core segments. While annual revenue saw a slight decrease in 2024, the company's market capitalization indicates a robust valuation, and its strategic focus on high-growth areas positions it well for future expansion.

Latest Quarterly Results (Q2 2025)

CDW Corporation reported second-quarter 2025 non-GAAP earnings per share (EPS) of $2.60, exceeding the Zacks Consensus Estimate of $2.49 and increasing by 3.9% year-over-year.

- Net Sales: Climbed to $5.98 billion, a solid 10.2% year-over-year increase.

- Non-GAAP Net Income: Grew by 1.4% to $343.7 million.

- Gross Profit Margin: Contracted slightly to 20.8% from 21.8% in Q2 2024, attributed primarily to lower pricing in hardware categories like data storage and servers.

Segment Performance (Q2 2025)

- Corporate and Small Business Segments: Showed strong expansion, growing by 17.6% and 12.6%, respectively.

- Public Sector: Experienced modest overall growth, with strong momentum in Healthcare and Government, partially offset by a decline in Education spending.

- Education Segment: Recorded a 10.9% decline in Q2 2025, highlighting sector-specific vulnerabilities.

Annual Performance (2024)

- Revenue: Was $21.00 billion, a decrease of -1.77% compared to the previous year's $21.38 billion.

- Earnings: Were $1.08 billion, a decrease of -2.40%.

Market Capitalization and Trading Information

- Market Capitalization: $21.7B (as of September 11, 2025)

- Trailing Twelve Month Revenue: $21.9B (as of June 30, 2025)

- Trailing Twelve Month EPS: $8.11

Strategic Focus Areas

CDW plans to concentrate on emerging trends such as cloud modernization, cybersecurity, AI-driven analytics, hybrid infrastructure, and digital workspace solutions. The company aims to achieve this by strengthening partnerships with over 1,000 technology OEMs and innovators. Looking ahead, CDW has reaffirmed its goal to outpace the U.S. IT market growth by 200–300 basis points at constant currency.

Capital Allocation and Shareholder Returns

In Fiscal Year 2024, CDW allocated $323.9 million to acquisitions, a significant increase from $76.4 million in FY 2023. This strategic investment aims to bolster its AI capabilities through partnerships, such as with Mission Cloud Services. The company announced a quarterly dividend of 62.5 cents, payable on September 10, 2025, to shareholders of record as of August.

Competitive Position

CDW operates in a competitive landscape with key players including International Business Machines, Lenovo, Fortinet, The ODP, and Dell Technologies, among others. CDW is recognized as a top U.S. IT solutions provider with a strong market presence across its Corporate, Public, and Small Business segments.

CDW's diversified customer base, comprehensive product portfolio, and strategic focus on high-growth technology trends position it favorably to capitalize on continued digital transformation initiatives across various industry sectors. Its diversified portfolio, spanning Corporate, Government, Healthcare, and Small Business, effectively mitigates sector-specific risks and ensures consistent demand.