Strong Q2 Performance Amidst Challenges: CDW reported consolidated net sales of $6 billion in Q2 2025, reflecting a 10% year-over-year (YOY) growth, despite headwinds in the federal and education markets. Gross profit rose by 5% to $1.2 billion, and non-GAAP net income per share increased 4% to $2.60.

Market Outlook and Growth Expectations: The company maintains its full year 2025 outlook, forecasting low single-digit growth for the broader U.S. IT market, with CDW expecting to outperform this growth by 200-300 basis points. However, there are expectations of a deceleration in growth rates in the back half of 2025, particularly in government and education segments due to ongoing regulatory changes and budget uncertainties.

Operational Strategy and Investments in Services: CDW's strategic focus on full stack solutions and services continues to pay off, with significant growth in infrastructure solutions and client devices. The company has also made substantial investments in its services portfolio, driving a competitive edge via customer-centric offerings such as AI and cybersecurity managed services.