CDW (CDW) investor relations material

Executive summary

• Q4 2025 net sales reached $5.5 billion, up 6.3% year-over-year, with gross profit of $1.25 billion, up 8.6%, and non-GAAP net income per share of $2.57, up 3.8%.

• Full-year 2025 net sales were $22.4 billion, up 6.8%, with gross profit of $4.87 billion, up 5.9%, and record non-GAAP net income per share of $10.02, up 5.2%.

• Strong performance in small business, state and local government, and education offset federal headwinds from the government shutdown.

• Cloud, software, and professional managed services delivered double-digit growth, driving the highest gross margin of the year.

• Board approved a quarterly cash dividend of $0.630 per share, payable March 10, 2026.

Financial highlights

• Q4 gross margin was 22.8%, up 50 basis points year-over-year; full year gross margin was 21.7%.

• Q4 non-GAAP operating income was $502 million, up 0.6%, with a margin of 9.1%; full year non-GAAP operating margin was 8.9%.

• Q4 non-GAAP net income was $336 million, up 0.9%, and non-GAAP EPS was $2.57, up 3.8%.

• Full-year adjusted free cash flow was $1.09 billion, converting 82% of non-GAAP net income.

• Net income per diluted share for the year was $8.08, up 1.3%.

Outlook and guidance

• 2026 U.S. IT addressable market expected to grow low single digits, with 200–300 basis points of outperformance targeted.

• Gross profit for 2026 expected to grow low single digits, with gross margin slightly higher than 2025.

• Full-year non-GAAP EPS projected to grow mid-single digits; Q1 non-GAAP EPS expected up mid-single digits year-over-year.

• Currency impact expected to be neutral; cash conversion cycle projected in high teens to low 20s.

• First half of 2026 to see stronger hardware growth, with a shift to higher-margin software and services in the second half.