CDW Corporation (NASDAQ:CDW) reported stronger-than-expected fourth-quarter results on Wednesday, helped by solid demand across most of its customer groups, lifting the stock sharply in early trading.
Shares of the IT solutions provider climbed 7.06% in pre-market action following the release.
Adjusted earnings for the quarter came in at $2.57 per share, beating the analyst consensus of $2.44. Revenue totaled $5.51 billion, ahead of expectations of $5.33 billion and up 6.3% from the same quarter last year. On an average daily sales basis—adjusted for one additional selling day—net sales rose 4.6% year over year.
“The team delivered a strong finish to a dynamic year, driving value and mission critical outcomes for customers across the full IT stack and lifecycle,” said Christine A. Leahy, chair and chief executive officer at CDW. “Our position as a trusted advisor remains a clear differentiator, and our results highlight the resilience of our diversified customer base.”
Growth was led by the small business segment, where average daily sales surged 18.4% year over year. Public sector sales increased 7.0%, with education customers posting particularly strong growth of 12.9%. International operations in the UK and Canada expanded 8.4%, while the corporate segment was the only area to decline, slipping 0.6%.
Profitability also improved, with gross margin rising to 22.8% from 22.3% a year earlier, largely reflecting a higher contribution from netted-down revenue. CDW’s board also approved a quarterly cash dividend of $0.63 per share.
“While customers continued to experience uncertain business conditions, our ability to deliver outcomes across the hardware, software, and services continuum drove strong gross profit growth and margin,” said Albert J. Miralles, chief financial officer.
Looking ahead, CDW reiterated its ambition for 2026 to outperform growth in the U.S. IT addressable market by 200 to 300 basis points, as it continues to serve the evolving needs of more than 250,000 customers worldwide.