CDW Corporation (NASDAQ: CDW) has reported its fourth-quarter and full-year 2025 earnings, showing a continued upward trend in various key metrics.
In the fourth quarter of 2025, net sales increased by 6.3% to $5,511 million compared to the same period in 2024. Notably, net sales on an average daily basis increased by 4.6%, indicating sustained growth. Gross profit for the quarter was $1,254 million, up 8.6% from the previous year, driven by higher net sales and gross profit margin, which increased to 22.8% from 22.3% in the fourth quarter of 2024. Operating income also saw a 5.4% increase to $430.7 million, with a marginal increase in the operating income margin to 7.8%.
For the full year 2025, CDW reported a 6.8% increase in net sales, reaching $22,424 million. This growth was seen across all segments, with the corporate segment net sales up by 6.8%, small business segment by 13.3%, and public segment by 4.6%. Gross profit for the year increased by 5.9% to $4,873 million, although the gross profit margin slightly decreased to 21.7% from 21.9% in 2024. Operating income for the full year saw a marginal increase of 0.3% to $1,655.6 million, with the non-GAAP operating income increasing by 2.6% to $1,996.7 million.
The company's focus on managing costs is evident in the slight increase in selling and administrative expenses by 9.0% for the full year, primarily driven by higher performance-based compensation, transformation-related costs, and coworker-related expenses.
Despite these cost increases, CDW's ability to generate strong cash flows is reflected in its return of approximately $982 million to shareholders through dividends and share repurchases in 2025.
Following these announcements, the company's shares moved -0.41%, and are now trading at a price of $131.75. If you want to know more, read the company's complete 8-K report here.
