CDW reported robust third quarter results with net sales of $6.75 billion, a 17.7% year-over-year increase that significantly exceeded market expectations. The performance was powered by broad-based strength in data center infrastructure, software, and notebooks, specifically supported by enterprise AI adoption and ongoing hardware refresh cycles.
Key Highlights
- Net sales rose 17.7% to $6.75 billion, significantly ahead of the $6.12 billion consensus estimate.
- Non-GAAP diluted EPS reached $3.26, a 20.4% increase over the prior year and 17.7% above the $2.77 expectation.
- Commercial segment revenue grew 20.8% to $3.98 billion, with the Financial Services sub-segment surging 73.2% year-over-year.
- Gross profit margin contracted to 20.5% from 21.9% in the prior-year period, pressured by product mix and competitive margins in certain categories.
- Weighted-average diluted shares outstanding decreased 4.6% to 126 million, reflecting active capital management that bolstered per-share growth.