01—Abstract
Summary
Summary of the 10-K filed February 20, 2026. Cited figures are marked; the original filing is the authoritative source.
CDW Corporation, a Fortune 500 company and S&P 500 member, reported 2025 Net sales of $22.42 billiona, up 6.8% from $21.00 billion in 2024, with all operating segments contributing growth.
Gross profit rose 5.9% to $4.87 billionb, but gross profit margin declined 20 basis points to 21.7%, and selling and administrative expenses rose 9.0% to $3.22 billion, leaving Operating income nearly flat at $1.66 billion (up 0.3%). Net income was $1.07 billion, down 1.0% from $1.08 billion, and diluted EPS rose to $8.08 from $7.97. Non-GAAP net income per diluted share was $10.02, versus $9.52 in 2024.
Cash generation weakened modestly, with net cash from operating activities of $1.21 billionc, down from $1.28 billion, mainly due to a $1.17 billion increase in accounts receivable. Adjusted free cash flow was $1.09 billion. The company repurchased 4.0 million shares for $653 million and paid $328.6 million in dividends.
Total debt was $5.6 billiond at December 31, 2025, and net debt was $5.01 billion. In December 2025 CDW entered a new five-year $2.25 billion revolving loan facility and a $634.5 million term loan, and it had $1.9 billion of revolver availability at year-end.
CDW also announced that, effective January 1, 2026, it will report three segments (Commercial, Government, and Education) in place of Corporate, Small Business, and Public, with historical results recast beginning with the period ending March 31, 2026. The company declared a quarterly dividend of $0.630 per share for payment on March 10, 2026.
02—Key points
Key Highlights
- Net sales rose 6.8% to $22.42 billion in 2025, with growth in every operating segment, led by notebooks/mobile devices, software, and desktops.
- Gross profit margin fell 20 basis points to 21.7%, driven by lower rates in certain hardware categories, while Selling and administrative expenses grew 9.0% to $3.22 billion.
- Operating income was $1.66 billion, essentially flat (up 0.3%), with operating margin declining to 7.4% from 7.9%.
- Diluted EPS increased to $8.08 from $7.97, while Non-GAAP net income per diluted share rose to $10.02 from $9.52.
- Net cash provided by operating activities fell to $1.21 billion from $1.28 billion, primarily because accounts receivable increased by $1.17 billion.
- The company repurchased $653 million of stock and paid $328.6 million in dividends during 2025, with $685 million remaining under its repurchase program.
- Effective January 1, 2026, CDW will report three new segments (Commercial, Government, and Education), with historical results recast starting with the March 31, 2026 period.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, CDW kept $0.05.
- Revenue$22.42B100.0%
- Cost of revenue−$17.55B78.3%
- Gross profit$4.87B21.7%
- Operating costs−$3.22B14.3%
- Operating income$1.66B7.4%
- Interest, other & tax−$589.0M2.6%
- Net income$1.07B4.8%
Where FY2025 revenue went
$22.42B- Cost of revenue: $17.55B, 78% of revenue
- SG&A: $3.22B, 14% of revenue
- Net income: $1.07B, 4.8% of revenue
- Interest, other & tax: $589.0M, 2.6% of revenue
Kept 4.8% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 20, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $22.42B$21.00B | +6.8% |
| Cost of Revenue | $17.55B$16.40B | +7.0% |
| Gross Profit | $4.87B$4.60B | +5.9% |
| SG&A Expenses | $3.22B$2.95B | +9.0% |
| Operating Income | $1.66B$1.65B | +0.3% |
| Net Income | $1.07B$1.08B | −1.0% |
| EPS (Basic) | $8.13$8.06 | +0.9% |
| EPS (Diluted) | $8.08$7.97 | +1.4% |
| Shares Outstanding (Basic) | 131.30M133.80M | −1.9% |
| Shares Outstanding (Diluted) | 132.10M135.20M | −2.3% |
05—Questions
Frequently Asked Questions
Why did operating income barely grow despite strong sales growth?
Net sales grew $1.43 billion, but Gross profit margin declined 20 basis points to 21.7%, and Selling and administrative expenses rose $267 million (9.0%). The filing attributes the expense increase mainly to higher performance-based compensation, transformation-related costs, and coworker-related costs. Operating income therefore rose only $4 million, to $1.66 billion.
How did cash flow and balance sheet leverage change in 2025?
Operating cash flow fell to $1.21 billion from $1.28 billion, mainly due to a $1.17 billion increase in accounts receivable. Net debt declined to $5.01 billion from $5.13 billion. Total debt was $5.6 billion, including $635 million of variable-rate debt, and the company stated it was in compliance with its debt covenants.
What do the new reportable segments mean for investors?
Starting January 1, 2026, CDW will report Commercial, Government, and Education segments instead of Corporate, Small Business, and Public. CDW UK and CDW Canada remain in an 'Other' category. Historical results will be recast in filings beginning with the period ending March 31, 2026, so segment comparisons should be made against the recast figures.
What are the main risks highlighted in the filing?
The filing highlights dependence on vendor partner relationships, with Ingram Micro and TD SYNNEX together representing over 25% of total purchases. It also cites competition from hyperscaler marketplaces, public sector spending and funding policy changes, AI-related supply constraints for memory and storage, and a Civil Investigative Demand from the DOJ related to E-Rate Program bids.
What capital return and dividend actions did CDW take?
In 2025 CDW repurchased 4.0 million shares for $653 million and paid dividends of $2.505 per share totaling $328.6 million. On February 4, 2026, the board declared a quarterly dividend of $0.630 per share, payable March 10, 2026. About $685 million remained under the share repurchase program at year-end.
06—Continue