CDW Corporation Reports Q2 2025 Financial Results with 10.2% Increase in Net Sales

CDW Corporation reported its financial results for the second quarter and first half of 2025, showing a notable increase in net sales and a slight decline in net income compared to the same periods in 2024. For the three months ended June 30, 2025, net sales reached $5,976.6 million, a 10.2% increase from $5,423.4 million in the prior year. Gross profit for the quarter was $1,241.2 million, up 4.9% from $1,183.1 million, while net income decreased to $271.2 million from $281.1 million. For the six months ended June 30, 2025, net sales were $11,175.7 million, an 8.5% increase from $10,296.1 million, with net income slightly declining to $496.1 million from $497.2 million.

The company experienced significant changes in its operational metrics, with gross profit margins decreasing to 20.8% from 21.8% year-over-year for the second quarter, attributed to lower rates in certain hardware categories. Selling and administrative expenses rose by 9.5% to $821.0 million, driven by increased performance-based compensation and transformation costs. Operating income for the quarter fell to $420.2 million, a decrease of 3.0% from the previous year. The effective income tax rate for the quarter was 25.7%, down from 26.0% in the prior year, primarily due to higher excess tax benefits on equity-based compensation.

Strategically, CDW completed the acquisition of Mission Cloud Services, Inc. in November 2024 for $330 million, which is expected to enhance its service offerings. The company continues to focus on expanding its product lines, particularly in hardware and software, with notable demand for notebooks, mobile devices, and data storage solutions. The company’s workforce remains robust, with approximately 10,700 customer-facing employees, reflecting its commitment to maintaining a strong sales and support structure.

Geographically, CDW's operations span the United States, the United Kingdom, and Canada, with the U.S. market contributing the majority of sales. The Corporate segment saw a 17.6% increase in net sales, while the Public segment experienced a modest 2.2% growth. The company also reported a cash conversion cycle of 16 days, down from 17 days in the previous year, indicating improved efficiency in managing working capital.

Looking ahead, CDW anticipates continued growth driven by customer demand for IT solutions, despite ongoing economic uncertainties. The company remains focused on optimizing its operations and enhancing its service offerings to meet evolving customer needs. However, management acknowledges potential risks, including inflationary pressures and changes in government spending policies, which could impact future performance.