CDW Corp

Fourth Quarter Performance: CDW reported net sales of $5.2 billion in Q4 2024, reflecting a 5% increase year-over-year (YoY) on an average daily sales basis. However, non-GAAP operating income fell by 4% to nearly $500 million, and non-GAAP net income per share was $2.48, down 4% YoY. This indicates that while revenue grew, profitability faced pressure.

Mixed Growth Across Segments: The company experienced varying performances among its different business segments. Healthcare saw robust growth of 30% YoY, driven by cloud and service offerings, while Education and Government sectors faced declines, particularly due to the absence of stimulus funding in K-12 Education and budget hesitance in the Federal sector.

Cautious Outlook for 2025: CDW projects the overall U.S. IT market to grow by low single digits in 2025, with the company itself aiming for outperformance of 200 to 300 basis points above the market rate. This outlook accounts for expected challenges in public spending, particularly in federal markets, as well as a tough Canadian and U.K. landscape.