# CDW Corp (CDW)

Informational only - not investment advice.

CIK: 0001402057
SIC: 5961 Retail-Catalog & Mail-Order Houses
SIC breadcrumb: [Retail Trade](/division/G/) > [Miscellaneous Retail](/major-group/59/) > [SIC 5961 Retail-Catalog & Mail-Order Houses](/industry/5961/)
Latest 10-K filed: 2026-02-20
SEC page: https://www.sec.gov/edgar/browse/?CIK=1402057
Filing source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-20 · accession 0001402057-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001402057.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 22,424,100,000 USD | 2025 | verified |
| Net income | 1,066,600,000 USD | 2025 | verified |
| Assets | 16,028,200,000 USD | 2025 | verified |
| Free cash flow | 1,088,100,000 USD | 2025 | computed |
| Net margin | 4.76% | 2025 | computed |
| Operating margin | 7.38% | 2025 | computed |
| Revenue YoY | +6.79% | 2025 | computed |
| ROE | 40.93% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CDW | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 4.8% | 1.2% | 73 | 12 |
| Operating margin | 7.4% | 1.7% | 82 | 12 |
| Revenue growth | 6.8% | 6.5% | 55 | 12 |
| FCF margin | 4.9% | 3.5% | 91 | 12 |
| ROE | 40.9% | 9.5% | 90 | 11 |
| ROA | 6.7% | 1.5% | 73 | 12 |
| Liabilities / equity | 5.15 | 1.48 | 90 | 11 |
| Current ratio | 1.18 | 1.21 | 45 | 12 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 5961 Retail-Catalog & Mail-Order Houses, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 22424100000 | USD | 2025 | 2026-02-20 |
| Net income | 1066600000 | USD | 2025 | 2026-02-20 |
| Assets | 16028200000 | USD | 2025 | 2026-02-20 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001402057.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 13,672,700,000 | 14,832,900,000 | 16,240,500,000 | 18,032,400,000 | 18,467,500,000 | 20,820,800,000 | 23,748,700,000 | 21,376,000,000 | 20,998,700,000 | 22,424,100,000 |
| Net income | 425,100,000 | 523,100,000 | 643,000,000 | 736,800,000 | 788,500,000 | 988,600,000 | 1,114,500,000 | 1,104,300,000 | 1,077,800,000 | 1,066,600,000 |
| Operating income | 820,000,000 | 866,500,000 | 987,300,000 | 1,133,600,000 | 1,179,200,000 | 1,419,000,000 | 1,735,200,000 | 1,680,900,000 | 1,651,300,000 | 1,655,600,000 |
| Gross profit | 2,328,300,000 | 2,450,200,000 | 2,706,900,000 | 3,039,900,000 | 3,210,100,000 | 3,568,500,000 | 4,686,600,000 | 4,652,400,000 | 4,602,400,000 | 4,873,400,000 |
| Diluted EPS | 2.56 | 3.31 | 4.19 | 4.99 | 5.45 | 7.04 | 8.13 | 8.10 | 7.97 | 8.08 |
| Operating cash flow | 604,000,000 | 777,700,000 | 905,900,000 | 1,027,200,000 | 1,314,300,000 | 784,600,000 | 1,335,900,000 | 1,598,700,000 | 1,277,300,000 | 1,205,200,000 |
| Capital expenditures | 63,500,000 | 81,100,000 | 86,100,000 | 236,300,000 | 158,000,000 | 100,000,000 | 127,800,000 | 148,200,000 | 122,600,000 | 117,100,000 |
| Dividends paid | 78,700,000 | 106,900,000 | 139,400,000 | 183,400,000 | 219,600,000 | 234,800,000 | 282,600,000 | 321,500,000 | 332,100,000 | 328,600,000 |
| Share buybacks | 367,400,000 | 534,000,000 | 522,300,000 | 657,200,000 | 340,600,000 | 1,500,400,000 | 0.00 | 500,000,000 | 500,000,000 | 653,000,000 |
| Assets | 6,958,400,000 | 6,966,700,000 | 7,167,700,000 | 7,999,400,000 | 9,344,700,000 | 13,199,400,000 | 13,131,500,000 | 13,284,600,000 | 14,678,400,000 | 16,028,200,000 |
| Stockholders' equity | 1,047,900,000 | 985,600,000 | 975,200,000 | 960,300,000 | 1,297,100,000 | 705,700,000 | 1,603,300,000 | 2,042,500,000 | 2,352,700,000 | 2,606,100,000 |
| Cash and cash equivalents | 263,700,000 | 144,200,000 | 205,800,000 | 154,000,000 | 1,410,200,000 | 258,100,000 | 315,200,000 | 588,700,000 | 503,500,000 | 618,700,000 |
| Free cash flow | 540,500,000 | 696,600,000 | 819,800,000 | 790,900,000 | 1,156,300,000 | 684,600,000 | 1,208,100,000 | 1,450,500,000 | 1,154,700,000 | 1,088,100,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 3.11% | 3.53% | 3.96% | 4.09% | 4.27% | 4.75% | 4.69% | 5.17% | 5.13% | 4.76% |
| Operating margin | 6.00% | 5.84% | 6.08% | 6.29% | 6.39% | 6.82% | 7.31% | 7.86% | 7.86% | 7.38% |
| Return on equity | 40.57% | 53.07% | 65.94% | 76.73% | 60.79% | 140.09% | 69.51% | 54.07% | 45.81% | 40.93% |
| Return on assets | 6.11% | 7.51% | 8.97% | 9.21% | 8.44% | 7.49% | 8.49% | 8.31% | 7.34% | 6.65% |
| Liabilities / equity | 5.64 | 6.07 | 6.35 | 7.33 | 6.20 | 17.70 | 7.19 | 5.50 | 5.24 | 5.15 |
| Current ratio | 1.42 | 1.35 | 1.35 | 1.24 | 1.53 | 1.27 | 1.33 | 1.23 | 1.35 | 1.18 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001402057.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 2.17 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.68 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.92 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 5,628,300,000 | 315,500,000 | 2.32 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 5,018,500,000 | 296,100,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 4,872,700,000 | 216,100,000 | 1.59 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 5,423,400,000 | 281,100,000 | 2.07 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 5,516,600,000 | 316,400,000 | 2.34 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 5,186,000,000 | 264,200,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 5,199,100,000 | 224,900,000 | 1.69 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 5,976,600,000 | 271,200,000 | 2.05 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 5,737,400,000 | 291,000,000 | 2.21 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 5,511,000,000 | 279,500,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 5,679,800,000 | 235,400,000 | 1.82 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 6,572,200,000 | 274,400,000 | 2.15 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CDW's latest 10-K: [/company/CDW/business/](/company/CDW/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CDW's latest 10-K: [/company/CDW/risk-factors/](/company/CDW/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000065/cdw-20260630.htm

Extracted from a substantive MD&A body after the formal Item 2 span was a TOC or reference stub.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Overview

CDW Corporation (“Parent”) is a leading multi-brand provider of information technology (“IT”) solutions to business, government, education, and healthcare customers in the United States (“US”), the United Kingdom (“UK”), and Canada. Our broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.

Effective January 1, 2026, we realigned our customer-facing sales organization to better meet the evolving needs of our customer end markets. As a result, we have the following three reportable segments: Commercial, Government, and Education. Our Commercial reportable segment primarily serves corporate, financial services, and healthcare customers in the US, each of which represents a unique customer channel. Customers previously included in the Small Business segment are included across the customer channels within our Commercial reportable segment. Our Government reportable segment primarily serves federal, state, and local agencies in the US, along with certain private sector business customers that primarily support or interact with government agencies. The Education reportable segment primarily serves primary, secondary, and higher education institutions in the US. CDW UK and CDW Canada remain unchanged in this reporting structure, in an all other category (“Other”).

We are vendor, technology, and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual, and cloud-based environments through approximately 10,300 customer-facing coworkers, including sellers, highly skilled specialists, and engineers. We are a leading sales channel partner for many original equipment manufacturers (“OEMs”), software publishers, and cloud providers (collectively, our “vendor partners”), and wholesale distributors, whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise, and extensive customer access.

We may sell all or only select products that our vendor partners offer. Each vendor partner agreement provides for specific terms and conditions, which may include one or more of the following: product return privileges, price protection policies, purchase discounts, and vendor incentive programs, such as purchase or sales rebates and cooperative advertising reimbursements. We also resell software for major software publishers. Our agreements with software publishers allow the end-user customer to acquire software or licensed products and services. In addition to helping our customers determine the best software solutions for their needs, we help them manage their software agreements, including warranties and renewals. A significant portion of our advertising and marketing expenses are reimbursed through cooperative advertising programs with our vendor partners. These programs are at the discretion of our vendor partners and are typically tied to sales or other commitments to be met by us within a specified period of time.

Trends and Key Factors Affecting our Financial Performance

We believe the following key factors may have a meaningful impact on our business performance, influencing our ability to generate sales and achieve our targeted financial and operating results:

•General economic conditions are a key factor affecting our results as they can impact our customers’ willingness and ability to spend on IT. The prevailing economic conditions remain complex, largely due to ongoing uncertainty surrounding evolving global trade policies and geopolitical conditions, among other drivers. In addition, there has been increased demand for memory-intensive products driven by the rapid adoption of artificial intelligence (“AI”) applications and related data center investments. Collectively, these dynamics may continue to influence supply chains and drive pricing pressures, while the broader economic conditions may affect interest rates. The uncertainty in the current economic environment has impacted and may continue to impact the timing of our customers’ investments in technology.

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•The evolution of technology and AI adoption trends continue to drive customer purchasing decisions in the market. Current trends are focused on modernizing and optimizing technology environments to improve operational efficiency, agility, and cybersecurity while enabling organizations to leverage AI at scale. These trends are driving investment in AI-ready infrastructure, cloud and data modernization, cybersecurity solutions, and workflow automation technologies. As AI capabilities continue to evolve, organizations are increasingly focused on achieving practical, secure, and measurable business outcomes while managing complexity and risk. We have orchestrated outcome-driven solutions that bring together AI, security, software, and services to help customers achieve their objectives.

•Changes and uncertainty related to spending policies, budget priorities, timing, and funding levels are key factors influencing the purchasing levels of government, healthcare, and education customers. As the duration and ongoing impact of current economic conditions remain uncertain, including any US government shutdowns, current and future budget priorities and funding levels for government, healthcare, and education customers may be adversely affected, leading to lower IT spend.

Key Business Metrics

We monitor a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary. Financial measures are presented both in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), and non-GAAP, which excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. We believe that the most important of these measures and ratios include Gross profit, Gross profit margin, Operating income, Operating income margin, Non-GAAP operating income, Non-GAAP operating income margin, Net income, Non-GAAP net income, Net income per diluted share, Non-GAAP net income per diluted share, Average daily sales, Net debt, Cash conversion cycle, Net cash provided by operating activities, and Adjusted free cash flow. These measures and ratios are closely monitored by management, so that actions can be taken, as necessary, in order to achieve financial objectives.

For the definitions, discussion of management’s use of non-GAAP measures and reconciliations to the most directly comparable GAAP measure, see “Results of Operations - Non-GAAP Financial Measure Reconciliations.”

The results of certain key business metrics for the comparative periods are as follows:

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Six Months Ended June 30,"],["(dollars in millions, except per share amounts)","2026","","2025","","2026","","2025"],["Net sales","$","6,572.2","","","$","5,976.6","","","$","12,252.0","","","$","11,175.7"],["Gross profit","$","1,319.8","","","$","1,241.2","","","$","2,509.8","","","$","2,363.5"],["Gross profit margin","20.1","%","","20.8","%","","20.5","%","","21.1","%"],["Operating income","$","428.6","","","$","420.2","","","$","804.6","","","$","781.6"],["Operating income margin","6.5","%","","7.0","%","","6.6","%","","7.0","%"],["Non-GAAP operating income","$","556.0","","","$","519.7","","","$","1,007.9","","","$","963.7"],["Non-GAAP operating income margin","8.5","%","","8.7","%","","8.2","%","","8.6","%"],["Net income","$","274.4","","","$","271.2","","","$","509.8","","","$","496.1"],["Non-GAAP net income","$","370.4","","","$","343.7","","","$","665.7","","","$","630.2"],["Net income per diluted share","$","2.15","","","$","2.05","","","$","3.97","","","$","3.73"],["Non-GAAP net income per diluted share","$","2.91","","","$","2.60","","","$","5.18","","","$","4.74"],["Average daily sales(1)","$","102.7","","","$","93.4","","","$","96.5","","","$","88.0"]]
[[/GREPCENT_TABLE]]

(1)Defined as Net sales divided by the number of selling days. There were 64 selling days for both the three months ended June 30, 2026 and 2025. There were 127 selling days for both the six months ended June 30, 2026 and 2025.

[[GREPCENT_TABLE]]
[["(dollars in millions)","June 30, 2026","","June 30, 2025"],["Net debt(1)","$","5,455.2","","","$","5,151.7"],["Cash conversion cycle (in days)(2)","21","","","16"],["Net cash provided by operating activities","$","219.7","","","$","443.1"],["Adjusted free cash flow(3)","$","278.4","","","$","458.9"]]
[[/GREPCENT_TABLE]]

(1)Defined as total debt minus Cash and cash equivalents. As of June 30, 2026 and June 30, 2025, total debt was $5.8 billion and $5.6 billion, respectively, and Cash and cash equivalents was $362 million and $481 million, respectively.

(2)Defined as days of sales outstanding related to the current portion of Accounts receivable and certain receivables due from vendors, plus days of

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supply in Merchandise inventory, minus days of purchases outstanding related to the current portion of Accounts payable-trade and Accounts payable-inventory financing, based on a rolling three-month average.

(3)Defined as Net cash provided by operating activities less Capital expenditures, adjusted to include cash flows from financing activities that relate to the purchase of inventory.

Results of Operations

Results of operations, including Gross profit margin and Operating income margin, expressed as Gross profit and Operating income as a percentage of Net sales, respectively, for the three and six months ended June 30, 2026 and 2025 are below. For additional information on Net sales, Gross profit, and Operating income by segment, see the “Segment Results of Operations.”

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","","Six Months Ended June 30,"],["(dollars in millions)","2026","","2025","","Percent Change","","2026","","2025","","Percent Change"],["Net sales","$","6,572.2","","","$","5,976.6","","","10.0","%","","$","12,252.0","","","$","11,175.7","","","9.6","%"],["Cost of sales","5,252.4","","","4,735.4","","","10.9","","","9,742.2","","","8,812.2","","","10.6"],["Gross profit","1,319.8","","","1,241.2","","","6.3","","","2,509.8","","","2,363.5","","","6.2"],["Gross profit margin","20.1","%","","20.8","%","","","","20.5","%","","21.1","%"],["Selling and administrative expenses","891.2","","","821.0","","","8.6","","","1,705.2","","","1,581.9","","","7.8"],["Operating income","428.6","","","420.2","","","2.0","","","804.6","","","781.6","","","2.9"],["Operating income margin","6.5","%","","7.0","%","","","","6.6","%","","7.0","%"],["Interest expense, net","(60.2)","","","(56.8)","","","6.0","","","(115.5)","","","(113.9)","","","1.4"],["Other income (expense), net","4.5","","","1.5","","","nm*","","2.8","","","1.2","","","nm*"],["Income before income taxes","372.9","","","364.9","","","2.2","","","691.9","","","668.9","","","3.4"],["Income tax expense","(98.5)","","","(93.7)","","","5.1","","","(182.1)","","","(172.8)","","","5.4"],["Net income","$","274.4","","","$","271.2","","","1.2","%","","$","509.8","","","$","496.1","","","2.8","%"]]
[[/GREPCENT_TABLE]]

*nm - Not meaningful

Three months ended June 30, 2026 compared with the three months ended June 30, 2025

Net sales increased $596 million, or 10.0%, with higher Net sales across all operating segments. Net sales on a constant currency basis increased 9.9% for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Customer demand drove Net

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1402057/000140205726000011/cdw-20251231.htm
Complete FY 2025 MD&A: /company/CDW/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-20
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless otherwise indicated or the context otherwise requires, as used in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the terms “we,” “us,” “the Company,” “our,” “CDW,” and similar terms refer to CDW Corporation and its subsidiaries. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with the Consolidated Financial Statements and the related notes included elsewhere in this report. This discussion contains forward-looking statements that are subject to numerous risks and uncertainties. Actual results may differ materially from those contained in any forward-looking statements. See “Forward-Looking Statements” above.

Overview

CDW Corporation (“Parent”), a Fortune 500 company and member of the S&P 500 Index, is a leading multi-brand provider of information technology (“IT”) solutions to business, government, education, and healthcare customers in the United States (“US”), the United Kingdom (“UK”), and Canada. Our broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security.

We have three reportable segments: “Corporate,” “Small Business,” and “Public.” Our Corporate segment primarily serves US private sector business customers with more than 250 employees. Our Small Business segment primarily serves US private sector business customers with up to 250 employees. Our Public segment is comprised of government agencies and education and healthcare institutions in the US. We also have two other operating segments: CDW UK and CDW Canada, each of which do not meet the reportable segment quantitative thresholds and, accordingly, are included in an all other category (“Other”).

Effective January 1, 2026, we realigned our customer-facing organization to better meet the evolving needs of our customers and end markets. As a result, we will have the following three reportable segments: “Commercial,” “Government,” and “Education.” Our “Commercial” segment will be comprised of corporate, financial services, and healthcare customers in the US, each of which will represent a unique customer channel. Small business customers will be included across the customer channels within our “Commercial” segment. Our “Government” segment will be comprised of federal, state, and local agencies in the US. The “Education” segment will be comprised of primary, secondary, and higher education institutions in the US. CDW UK and CDW Canada will remain unchanged in this new reporting structure, in an all other category (“Other”). We will reflect this change in segment presentation, including the recasting of historical results, in our periodic and annual reports beginning with the period ending March 31, 2026.

We are vendor, technology, and consumption model unbiased, with a solutions portfolio including more than 100,000 products and services from more than 1,000 leading and emerging brands. Our solutions are delivered in physical, virtual, and cloud-based environments through approximately 10,500 customer-facing coworkers, including sellers, highly-skilled specialists, and engineers. We are a leading sales channel partner for many original equipment manufacturers (“OEMs”), software publishers, and cloud providers (collectively, our “vendor partners”) and wholesale distributors, whose products we sell or include in the solutions we offer. We provide our vendor partners with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage, technical expertise, and extensive customer access.

We may sell all or only select products that our vendor partners offer. Each vendor partner agreement provides for specific terms and conditions, which may include one or more of the following: product return privileges, price protection policies, purchase discounts, and vendor incentive programs, such as purchase or sales rebates and cooperative advertising reimbursements. We also resell software for major software publishers. Our agreements with software publishers allow the end-user customer to acquire software or licensed products and services. In addition to helping our customers determine the best software solutions for their needs, we help them manage their software agreements, including warranties and renewals. A significant portion of our advertising and marketing expenses are reimbursed through cooperative advertising programs with our vendor partners. These programs are at the discretion of our vendor partners and are typically tied to sales or other commitments to be met by us within a specified period of time.

For a discussion of results for the year ended December 31, 2024, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024, compared with the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 21, 2025.

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Trends and Key Factors Affecting our Financial Performance

We believe the following key factors may have a meaningful impact on our business performance, influencing our ability to generate sales and achieve our targeted financial and operating results:

•General economic conditions are a key factor affecting our results as they can impact our customers’ willingness and ability to spend on IT. The prevailing economic conditions remain challenging, largely due to ongoing uncertainty surrounding evolving global trade policies and geopolitical conditions along with other drivers. These dynamics may continue to influence supply chains, drive inflationary pressures, and affect interest rates. The uncertainty in the current economic environment has impacted and may continue to impact the timing of our customers’ investments in technology.

•Customers are evaluating the complex technology landscape in order to balance priorities and focus on solutions that lead to business optimization, cost management, and security risk management, among other factors, resulting in a more measured approach to their IT spending. We have orchestrated solutions that leverage security, software, artificial intelligence (“AI”), and hybrid and cloud offerings to help customers achieve their objectives.

•Changes and uncertainty related to spending policies, budget priorities, timing and funding levels are key factors influencing the purchasing levels of government, healthcare and education customers. As the duration and ongoing impact of current economic conditions remain uncertain, including any US government shutdowns, current and future budget priorities and funding levels for government, healthcare and education customers may be adversely affected, leading to lower IT spend.

•Technology trends drive customer purchasing behaviors in the market. Current technology trends are focused on delivering greater flexibility and efficiency, as well as designing and managing IT securely, while balancing product availability creating an inflationary environment. These trends are driving customer adoption of cloud, AI, software defined architectures and hybrid on-premise and off-premise combinations. The trends are further driven by the evolution of the IT consumption model to more “as a service” solutions, including software as a service and infrastructure as a service, in addition to ongoing managed and professional service arrangements. Technology trends are likely to evolve and customers will prioritize spend that will produce the most important outcomes for their business.

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Key Business Metrics

We monitor a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary. Financial measures are presented both in accordance with the accounting principles generally accepted in the United States of America (“GAAP”), and non-GAAP, which excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. We believe that the most important of these measures and ratios include Gross profit, Gross profit margin, Operating income, Operating income margin, Non-GAAP operating income, Non-GAAP operating income margin, Net income, Non-GAAP net income, Net income per diluted share, Non-GAAP net income per diluted share, Average daily sales, Net cash provided by operating activities, Adjusted free cash flow, Cash conversion cycle, and Net debt. These measures and ratios are closely monitored by management, so that actions can be taken, as necessary, in order to achieve financial objectives.

For the definitions, discussion of management’s use of non-GAAP measures and reconciliations to the most directly comparable GAAP measure, see “Results of Operations - Non-GAAP Financial Measure Reconciliations.”

The results of certain key business metrics for the comparative periods are as follows:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["(dollars in millions, except per share amounts)","2025","","2024"],["Net sales","$","22,424.1","","","$","20,998.7"],["Gross profit","$","4,873.4","","","$","4,602.4"],["Gross profit margin","21.7","%","","21.9","%"],["Operating income","$","1,655.6","","","$","1,651.3"],["Operating income margin","7.4","%","","7.9","%"],["Non-GAAP operating income","$","1,996.7","","","$","1,947.0"],["Non-GAAP operating income margin","8.9","%","","9.3","%"],["Net income","$","1,066.6","","","$","1,077.8"],["Non-GAAP net income","$","1,323.0","","","$","1,287.2"],["Net income per diluted share","$","8.08","","","$","7.97"],["Non-GAAP net income per diluted share","$","10.02","","","$","9.52"],["Average daily sales(1)","$","88.3","","","$","82.7"]]
[[/GREPCENT_TABLE]]

(1)Defined as Net sales divided by the number of selling days. There were 254 selling days for both the years ended December 31, 2025 and 2024.

[[GREPCENT_TABLE]]
[["(dollars in millions)","December 31, 2025","","December 31, 2024"],["Net debt(1)","$","5,011.1","","","$","5,125.1"],["Cash conversion cycle (in days)(2)","16","","","18"],["Net cash provided by operating activities","$","1,205.2","","","$","1,277.3"],["Adjusted free cash flow(3)","$","1,085.5","","","$","1,079.0"]]
[[/GREPCENT_TABLE]]

(1)Defined as total debt minus Cash and cash equivalents and Short-term investments.

(2)Defined as days of sales outstanding related to the current portion of Accounts receivable and certain receivables due from vendors, plus days of supply in Merchandise inventory, minus days of purchases outstanding related to the current portion of Accounts payable-trade and Accounts payable-inventory financing, based on a rolling three-month average.

(3)Defined as Net cash provided by operating activities less Capital expenditures, adjusted to include cash flows from financing activities that relate to the purchase of inventory.

28

Table of Contents

Results of Operations

Results of operations, including Gross profit margin and Operating income margin, expressed as Gross profit and Operating income as a percentage of Net sales, respectively, for the years ended December 31, 2025 and 2024 are below. For additional information on Net sales, Gross profit, and Operating income by segment, see the “Segment Results of Operations.”

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CDW/mda/fy2025/
All MD&A years: /company/CDW/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CDW/mda/fy2024/): filed 2025-02-21; accession 0001402057-25-000018 (https://www.sec.gov/Archives/edgar/data/1402057/000140205725000018/cdw-20241231.htm)
- [FY 2023 MD&A](/company/CDW/mda/fy2023/): filed 2024-02-26; accession 0001402057-24-000015 (https://www.sec.gov/Archives/edgar/data/1402057/000140205724000015/cdw-20231231.htm)
- [FY 2022 MD&A](/company/CDW/mda/fy2022/): filed 2023-02-24; accession 0001402057-23-000052 (https://www.sec.gov/Archives/edgar/data/1402057/000140205723000052/cdw-20221231.htm)
- [FY 2021 MD&A](/company/CDW/mda/fy2021/): filed 2022-02-28; accession 0001402057-22-000020 (https://www.sec.gov/Archives/edgar/data/1402057/000140205722000020/cdw-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5961 Retail-Catalog & Mail-Order Houses) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CDW.md · JSON record: /company/CDW.json · verified financials: /company/CDW/financials.json / /company/CDW/financials.csv · machine TOC for the whole site: /llms.txt