CDW Corp

Q4 & full-year 2025 performance was solid vs expectations (resilience + margin strength) - Q4 2025 net sales: $5.5B (+5% YoY); gross profit: $1.25B (+9%) - Q4 non-GAAP operating income: $503M (+1%); non-GAAP EPS: $2.57 (+4%) - Q4 gross margin: 22.8% (+50 bps YoY) and +90 bps QoQ (mix/netting, product margin, slight Appliant Devices sequential benefit) - Full-year 2025: net sales >$22B (+7%), gross profit ~+$5B (+6%), non-GAAP operating income ~+$2B (+3%) - Record full-year non-GAAP EPS: $10.02 (+5%)

Strategy is working: higher-margin categories + services/cloud drove the quarter - Cloud ~half of Q4 gross profit growth: both cloud revenue & gross profit up double digits; demand tied to AI-enabled cloud - Professional & managed services: top line up double digits; includes hybrid infra engagements for expense savings/budget optimization and AI-related implementation services - Security: top line and gross profit up mid-single/single digits; strong demand for vulnerability assessments, IAM, training, and security around safe AI adoption - Hardware: +2% overall (notebooks/servers up offset storage declines); client devices high-single-digit growth (but choppy due to memory/pricing and Windows 11 refresh slowdown + shutdown effects)

Key “surprising/negative” near-term factor: memory pricing/supply caused some pull-forward then uncertainty - Management quantified ~$50M of Q4 net sales pull-forward tied to memory price increases and supply chain concerns - For Q1 2026, they expect some pull-forward from memory categories (roughly equal to December or slightly more), but visibility for the back half is limited - Challenge framing: PCs/servers are memory-sensitive; investors asked how demand evolves—management indicated PCs remain strong but may get more choppy through the year