CDW beats expectations in Q1 owing to PC refresh, Windows 10 exit and itch to escape tariff price increases

Overseas performance was led by the UK while client device sales lead CDW to revenue growth

CDW saw shares vaulted by its 2025 Q1 results which saw growth flourish thanks to client device sales.

CDW’s stock price rose by 0.92 per cent, reaching $165.45 following the earnings announcement.

Revenues grew eight per cent year-on-year to $5.2bn for the three months ended March 31, 2025 to bear expectations. This was driven by strong client device and software sales.

Operating income climbed double digits with 10.2 per cent growth to $361.4m.

The NASDAQ-listed reseller saw strong customer demand for notebooks, mobile devices, desktops, software and services.

Client device sales swelled by more than 20 per cent.

Meanwhile software sales had a ten per cent rise, largely due to a shift towards software-defined networking.

“Broadly speaking, customers remain focused on mission critical projects and must dos, and their priorities were consistent with 2024,” said CDW chair and CEO Christine Leahy on an earnings call.

“Laser focus on operating efficiency and expense elasticity with one addition, client device prioritisation, which reflected three factors, need for refresh, the upcoming Windows 10 expiration, and the desire to get ahead of tariff related price increases.”

Net sales for the world’s largest reseller’s UK and Canadian operations were $680m, 9.5 per cent higher than 2024, led by the UK.

Net sales in CDW’s corporate arm grew 6.3 per cent to bring in $2.2bn

Small business net sales were up 7.9 per cent to $405m while public (government, education and healthcare) rose 10.6 per cent to $1.9bn, primarily driven by an increase in net sales to healthcare and education customers.

Albert J. Miralles, CFO added that customers turned to CDW to address “compelling technology needs” - which it delivered, leading to growth and “firm” gross margins.