CDW’s shares spiked yesterday as it unveiled market-busting Q1 results that benefitted from a 20% hike in client device sales.
The world’s largest reseller comfortably topped expectations for the first three months of 2025 as net sales rose 6.7% year on year (or 8.4% taking into account the decrease in selling days) to $5.2bn and operating income vaulted 10.2% to $361.4m.
International net sales – namely from the UK and Canada – leapt 9.5% to $680m, which CDW said was driven by strong PC refresh activity in the UK.
Client device prioritisation emerged as a key spending driver in Q1 as clients looked to get ahead of tariff-related price increases, CDW CEO Christine Leahy said on an earnings call – a transcript of which can be viewed here.
The “overall rhythm” of the 15,100-employee outfit “has been solid” and “spend in the commercial market remains healthy”, Leahy said as she confirmed that CDW is maintaining its 2025 outlook. This would see CDW expand 200-300 basis points faster than a US IT market set to grow low single digits.
Total hardware sales rose by 7% as a 20% hike in client device sales was partially offset by declines in netcomm and storage. Software sales grew 10%, meanwhile.
International growth was led by the UK – which has since October been spearheaded by new MD Penny Williams – Leahy said. This was thanks to PC refresh activity and “full-stack wins” with public sector customers, CFO Al Morales said. Canada faced “macroeconomic impacts that muted spending”, he added.
CDW is “fairly confident” that it will be able to pass along any price increases from tariffs, Leahy said.
“Customers indicate that while they are watchful of the environment, they do not intend to alter their course for now,” she added.
CDW’s shares rose by over 7% yesterday following the announcement, propelling its market value to $23.1bn.
“There is no doubt that we are operating in uncertain times, but we have experienced uncertainty in the past. During prior periods of uncertainty, most recently, the pandemic and post pandemic supply chain crisis, and before that, the financial crisis of two thousand and eight and 02/2009, our partners and customers turned to us,” Leahy concluded.
