CDW shares results on the up despite economic uncertainties

Macro challenges impacted the VAR’s public sales

US-based reseller CDW has reported revenue on the up in Q3, driven by increased customer demand despite a decline in data storage and servers.

Earnings rose four per cent, from $5.52bn to $5.74bn (£4.4bn).

Public sales, the company’s main source of revenue, slightly increased 0.6 per cent to $2.35bn, compared to $2.33bn at the same time last year.

This segment, split between government, healthcare, and education, experienced mixed results.

Government sales grew 7.8 per cent, from $691m to $744.7m, and healthcare improved 6.9 per cent, from $649m to $694m.

On the other hand, education decreased 8.5 per cent, landing at $911.2m compared with $995.7m last year.

Beyond the demand dip in data storage and servers, figures were also reportedly impacted by persisting economic uncertainties.

Corporate sales went up 4.4 per cent to $2.25bn, compared to $2.16bn in Q3 FY24.

Net sales in the small business segment ramped up 14.2 per cent, reaching $434m compared to $379.7m the year prior.

The UK and Canada, combined as "Other" in the financial report, reached $698m, up 9.1 per cent from $640m in Q3 FY24.

Gross profit in the third quarter stood at $1.26bn compared to $1.2bn the year before, a 4.6 per cent increase.

Operating income was $443m, compared with $482m in Q3 FY24, an eight per cent year-on-year decline.

"The team delivered resilient performance in Q3 as we continued to guide customers through evolving market dynamics and deliver mission critical outcomes across the full IT stack and lifecycle," said Christine Leahy, chair and CEO of CDW.

"These results underscore the strength of our diversified customer base and expansive product and solutions portfolio, enabled by our strategic investments and customer-first approach.

"In this complex environment, our value proposition is more compelling than ever as customers turn to CDW as a trusted advisor with the breadth, depth, expertise, and scale across the full technology stack and lifecycle.”

Albert Miralles, CFO at CDW, added: "Our ability to deliver on our robust services and cloud offerings was a key driver of both growth and margin performance.”

So far this year, the organisation has seen a globally positive financial evolution, with revenue going up eight per cent year-on-year to $5.2bn in Q1, and up 10.2 per cent to $5.98bn in Q2.

Over the past 12 months, the firm has also been through various exec changes.

In November 2024, Carl Lawton, CTO and VP at CDW UK and International, left the business.

In May, it hired Trevor Nickolls as commercial director for sales.

Two months ago, Kevin Stavers, VP of sales and solutions at CDW UK, left the company a year and a half after joining.

The VAR’s UK branch ranks number five on CRN’s Top VARs list.