CDW Corp

CDW delivered a strong second quarter, posting revenue of $5.98 billion — up 10.2% year-over-year and well ahead of the $5.51 billion consensus — while Non-GAAP EPS of $2.60 cleared the $2.49 estimate by 4.36%, driven by a powerful corporate client device refresh cycle that lifted the Corporate segment to 17.6% growth. The headline strength masked some underlying margin pressure, however: gross profit margin compressed from 21.8% to 20.8% as lower hardware rates in <a href="https://247wallst.com/investing/2025/10/30/western-digital-wdc-beats-estimates-again-despite-sky-high-expectations/">data storage and servers</a> and netcomm products weighed on product profitability, contributing to a 3.5% decline in GAAP net income even as revenue surged. Small Business added to the momentum with 12.6% growth, while Healthcare within the Public segment jumped 24.1%, though Education slipped 10.9%. Despite an initial stock dip on the announcement, Evercore ISI reiterated its Outperform rating, reflecting confidence in CDW's trajectory. Management maintained its target of exceeding U.S. IT market growth by 200 to 300 basis points on a constant currency basis, signaling continued conviction in the company's positioning even as broader economic uncertainty persists.