CDW Corporation Reports 4% Sales Growth but 8% Decline in Net Income for Q3 2025

CDW Corporation reported its financial results for the third quarter and the first nine months of 2025, showing a net sales increase of 4.0% to $5.737 billion for the three months ended September 30, compared to $5.517 billion in the same period last year. For the nine months, net sales rose 7.0% to $16.913 billion from $15.813 billion. However, net income for the third quarter decreased by 8.0% to $291 million, or $2.21 per diluted share, down from $316 million, or $2.34 per diluted share, in the prior year. For the nine-month period, net income also fell by 3.3% to $787 million, or $5.94 per diluted share, compared to $814 million, or $6.00 per diluted share, in 2024.

The company experienced a rise in gross profit, which increased by 4.6% to $1.256 billion for the third quarter, and by 5.0% to $3.619 billion for the nine months. The gross profit margin slightly improved to 21.9% for the third quarter, up from 21.8% a year earlier, but decreased to 21.4% for the nine-month period compared to 21.8% in 2024. Selling and administrative expenses rose significantly, increasing by 12.9% to $812 million in the third quarter and by 8.6% to $2.394 billion for the nine months, primarily due to higher performance-based compensation and costs related to transformation initiatives.

Operationally, CDW's customer demand for netcomm products, notebooks, and software contributed to the sales growth, although there was a decline in data storage and servers. The company also reported a cash conversion cycle improvement, decreasing to 11 days from 17 days year-over-year, attributed to better management of accounts payable and inventory. The total employee headcount remained stable at approximately 10,700, supporting the company's operational capabilities.

In terms of strategic developments, CDW completed the acquisition of Mission Cloud Services, Inc. in late 2024 for $330 million, which is expected to enhance its service offerings. The company continues to focus on expanding its market presence in the U.S., U.K., and Canada, leveraging its extensive product portfolio and vendor partnerships. Looking ahead, CDW anticipates that ongoing economic uncertainties may impact customer spending patterns, but it remains committed to optimizing its operations and adapting to evolving technology trends. The company has also declared a quarterly cash dividend of $0.630 per share, reflecting its ongoing commitment to returning value to shareholders.