How did CDW perform in the first quarter of 2025?

Net sales grew 6.7 percent to $5,199.1 million, and average daily sales grew 8.4 percent. Operating income rose 10.2 percent to $361.4 million, and net income rose 4.1 percent to $224.9 million.

Which segments drove growth?

The Public segment grew 10.6 percent on an average daily sales basis, with Healthcare and Education up 19.5 percent and 11.1 percent. Corporate grew 6.3 percent, Small Business grew 7.9 percent, and Other (UK and Canada) grew 9.5 percent.

Gross profit margin declined to 21.6 percent from 21.8 percent, mainly due to a higher mix of lower-margin notebooks/mobile devices, partly offset by a higher contribution of netted-down revenue within software as a service. Operating income margin improved to 7.0 percent from 6.7 percent.

What is the dividend and when is it payable?

The Board declared a quarterly cash dividend of $0.625 per common share, payable June 10, 2025 to stockholders of record as of the close of business on May 26, 2025. The company notes future dividends remain subject to Board approval.

How did cash flow and capital allocation look?

Net cash provided by operating activities was $287.2 million, compared with $440.0 million a year earlier, and free cash flow was $260.3 million versus $410.5 million. Management cited share repurchase activity and capital priorities including dividends, strategic M&A and managing the capital structure.

CDW 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 7, 2025. Cited figures are marked; the original filing is the authoritative source.

CDW Corporation reported first quarter 2025 results on May 7, 2025, with net sales of $5.20 billion^a, up 6.7 percent from $4.87 billion in the first quarter of 2024.

Net sales on an average daily sales basis rose 8.4 percent, and 8.7 percent on a constant currency basis, with 63 selling days versus 64 a year earlier. Growth was primarily driven by customer demand for notebooks/mobile devices, desktops, software and services, partially offset by declines across various hardware categories. The Public segment grew 10.6 percent on an average daily sales basis, led by Healthcare (19.5 percent) and Education (11.1 percent), while the Corporate segment rose 6.3 percent and Small Business rose 7.9 percent.

Profitability was mixed. Gross profit rose 5.5 percent to $1.12 billion^b, but gross profit margin declined to 21.6 percent from 21.8 percent, which the company attributed mainly to a higher mix of lower-margin notebooks/mobile devices. Operating income increased 10.2 percent to $361.4 million, and Non-GAAP operating income increased 10.0 percent to $444.0 million.

Net income was $224.9 million^c, up 4.1 percent, and Non-GAAP net income per diluted share was $2.15, up 11.9 percent from $1.92. The effective tax rate rose to 26.0 percent from 21.9 percent, mainly due to lower excess tax benefits on equity-based compensation. Free cash flow was $260.3 million, compared with $410.5 million a year earlier, and net cash provided by operating activities was $287.2 million.

Separately, the Board declared a quarterly cash dividend of $0.625^d per common share, payable June 10, 2025 to stockholders of record as of May 26, 2025. The company stated it continues to target exceeding US IT market growth by 200 to 300 basis points on a constant currency basis.

02—Key points

Key Highlights

Net sales of $5.20 billion, up 6.7 percent; average daily sales up 8.4 percent (8.7 percent constant currency) despite one fewer selling day (63 vs. 64).
Public segment net sales rose 10.6 percent on an average daily sales basis, with Healthcare up 19.5 percent and Education up 11.1 percent.
Gross profit margin eased to 21.6 percent from 21.8 percent, driven by a mix shift toward lower-margin notebooks/mobile devices.
Operating income rose 10.2 percent to $361.4 million; Non-GAAP operating income rose 10.0 percent to $444.0 million (8.5 percent margin).
Non-GAAP net income per diluted share was $2.15, up 11.9 percent from $1.92; GAAP diluted EPS was $1.69, up 6.1 percent.
Free cash flow declined to $260.3 million from $410.5 million, and total debt stood at $5.85 billion at March 31, 2025.
Board declared a quarterly cash dividend of $0.625 per share, payable June 10, 2025 to holders of record on May 26, 2025.

03—Questions

Frequently Asked Questions

How did CDW perform in the first quarter of 2025?
Net sales grew 6.7 percent to $5,199.1 million, and average daily sales grew 8.4 percent. Operating income rose 10.2 percent to $361.4 million, and net income rose 4.1 percent to $224.9 million.
Which segments drove growth?
The Public segment grew 10.6 percent on an average daily sales basis, with Healthcare and Education up 19.5 percent and 11.1 percent. Corporate grew 6.3 percent, Small Business grew 7.9 percent, and Other (UK and Canada) grew 9.5 percent.
Did margins change?
Gross profit margin declined to 21.6 percent from 21.8 percent, mainly due to a higher mix of lower-margin notebooks/mobile devices, partly offset by a higher contribution of netted-down revenue within software as a service. Operating income margin improved to 7.0 percent from 6.7 percent.
What is the dividend and when is it payable?
The Board declared a quarterly cash dividend of $0.625 per common share, payable June 10, 2025 to stockholders of record as of the close of business on May 26, 2025. The company notes future dividends remain subject to Board approval.
How did cash flow and capital allocation look?
Net cash provided by operating activities was $287.2 million, compared with $440.0 million a year earlier, and free cash flow was $260.3 million versus $410.5 million. Management cited share repurchase activity and capital priorities including dividends, strategic M&A and managing the capital structure.

04—Continue

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