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CDW Set to Report Q2 Earnings: Is a Beat in the Cards?
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Key Takeaways
{\"0\":\"CDW expects Q2 gross profit of $1.26B and non-GAAP EPS of $2.47, flat year over year.\",\"1\":\"A major AI-powered HR cloud project earned CDW $1M+ in services from a truck manufacturer.\",\"2\":\"Mission Cloud buy boosts CDW\'s AWS and AI edge, aligning with its customer-first growth strategy.\"}
CDW Corporation ((CDW - Free Report) ) is slated to report second-quarter 2025 results on Aug. 6, before market open.
The Zacks Consensus Estimate for revenues is $5.5 billion, indicating 1.6% growth from the prior-year quarter. The Vernon Hills-based company, known for offering a wide range of technology solutions to business, government, education and healthcare clients, has historically shown resilient top- and bottom-line performance even during volatile cycles.
The consensus estimate for earnings is pegged at $2.49 per share, raised once in the past 30 days, indicating a 0.4% decline from the year-ago quarter’s reported figure.
CDW’s earnings missed the Zacks Consensus Estimate in two of the last four quarters, while beating in the remaining ones, with the average surprise being 2.1%.
Key Things Note for CDW’s Q2 Earnings
CDW’s strong focus on helping customers navigate challenges like cloud workload growth, security threats and AI adoption is likely to have worked in favor of the company in the to-be-reported quarter. Regardless of a customer’s size, industry, or stage of digital transformation, CDW offers the right mix of products and services to meet their needs. As clients aim to cut costs, plan Windows 10 upgrades, or stock up on Chromebooks before prices rise, CDW stays ahead to deliver smart, budget-friendly solutions.
One standout project was a multimillion-dollar deal with a truck manufacturer, where CDW moved HR systems to a secure, AI-powered cloud setup, earning more than $1 million in service fees. Commercial market spending remains healthy, with solid underlying demand and balanced activity across transactional and project-driven business. Customers are increasingly cautious but remain focused on mission-critical projects, with CDW helping them scenario plan, optimize spend and test multiple brands for future projects.
The acquisition of Mission Cloud Services to boost AI and AWS capabilities is a key driver. This acquisition aligns perfectly with the company’s three-part growth strategy, which focuses on continued investment in a customer-centric approach. This approach helps CDW stay relevant, distinguish itself in the market and strengthen its position as a trusted advisor and top partner for vendors and customers. Moving forward, it is positioned to resume growth amid a changing macroeconomic environment, fueled by increasing workloads and data, growing security threats, aging client devices and the rising adoption of AI-powered tools and applications.
Healthcare sales were likely to have been boosted by demand for devices, cloud services and security, whereas the education vertical benefited from healthy demand in Chromebooks.
Federal government sales are expected to have been adversely impacted by the changing policy focus. For the second quarter, we expect revenues from Corporate, Government and Healthcare to be $2.2 billion, $654.9 million and $599.6 million, up 0.4%, 2.5% and 2.2%, respectively. Revenues from the Education sector and Small Business are estimated to be $1.05 billion and $356.6 million.
For the second quarter, CDW expects gross profit to grow sequentially in the mid to high single digits, resulting in modest year-over-year growth. This outlook reflects early client device purchases ahead of tariffs and lower seasonal spending in government and education. Gross margin is expected to have remained in line with 2024 levels.
Operating expenses are projected to have risen in the second quarter, following seasonal patterns and gross profit growth. However, non-GAAP SG&A as a percentage of gross profit is likely to have been lower than in the previous quarter. Non-GAAP EPS is expected to have increased at a mid-teens rate from the prior quarter, staying roughly flat year over year.
We expect gross profit, non-GAAP Opex and EPS to be $1.26 billion, $578 million and $2.47, respectively, for the quarter under discussion.
Key Recent Development
In July 2025, CDW partnered with Asato Corporation, an AI-native business observability platform designed for CIOs, to deliver AI-powered IT asset intelligence to a broad spectrum of customers from large enterprises to mid-market firms and SMBs, helping them navigate the growing complexity of modern IT infrastructures.
What Our Model Says for CDW
Our proven model predicts an earnings beat for CDW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
CDW currently has an Earnings ESP of +2.41% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other stocks you may want to consider, as our model shows that these, too, have the right elements to post an earnings beat in this reporting cycle.
The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.
BCE Inc. ((BCE - Free Report) ) is expected to release earnings on Aug. 7, currently has an Earnings ESP of +0.97% and a Zacks Rank of 2.
The consensus estimate for BCE’s earnings for second-quarter 2025 is pegged at 52 cents per share, indicating a year-over-year fall of 8.7%. BCE has a trailing four-quarter average surprise of 3.5%.
Watts Water ((WTS - Free Report) ) is expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.86% and a Zacks Rank of 2.
The consensus estimate for WTS’ earnings for second-quarter 2025 is pegged at $2.68 per share, indicating a year-over-year rise of 8.9%. WTS has a trailing four-quarter average surprise of 6.5%.
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CDW Set to Report Q2 Earnings: Is a Beat in the Cards?
Key Takeaways
CDW Corporation ((CDW - Free Report) ) is slated to report second-quarter 2025 results on Aug. 6, before market open.
The Zacks Consensus Estimate for revenues is $5.5 billion, indicating 1.6% growth from the prior-year quarter. The Vernon Hills-based company, known for offering a wide range of technology solutions to business, government, education and healthcare clients, has historically shown resilient top- and bottom-line performance even during volatile cycles.
The consensus estimate for earnings is pegged at $2.49 per share, raised once in the past 30 days, indicating a 0.4% decline from the year-ago quarter’s reported figure.
CDW’s earnings missed the Zacks Consensus Estimate in two of the last four quarters, while beating in the remaining ones, with the average surprise being 2.1%.
Key Things Note for CDW’s Q2 Earnings
CDW’s strong focus on helping customers navigate challenges like cloud workload growth, security threats and AI adoption is likely to have worked in favor of the company in the to-be-reported quarter. Regardless of a customer’s size, industry, or stage of digital transformation, CDW offers the right mix of products and services to meet their needs. As clients aim to cut costs, plan Windows 10 upgrades, or stock up on Chromebooks before prices rise, CDW stays ahead to deliver smart, budget-friendly solutions.
One standout project was a multimillion-dollar deal with a truck manufacturer, where CDW moved HR systems to a secure, AI-powered cloud setup, earning more than $1 million in service fees. Commercial market spending remains healthy, with solid underlying demand and balanced activity across transactional and project-driven business. Customers are increasingly cautious but remain focused on mission-critical projects, with CDW helping them scenario plan, optimize spend and test multiple brands for future projects.
The acquisition of Mission Cloud Services to boost AI and AWS capabilities is a key driver. This acquisition aligns perfectly with the company’s three-part growth strategy, which focuses on continued investment in a customer-centric approach. This approach helps CDW stay relevant, distinguish itself in the market and strengthen its position as a trusted advisor and top partner for vendors and customers. Moving forward, it is positioned to resume growth amid a changing macroeconomic environment, fueled by increasing workloads and data, growing security threats, aging client devices and the rising adoption of AI-powered tools and applications.
Healthcare sales were likely to have been boosted by demand for devices, cloud services and security, whereas the education vertical benefited from healthy demand in Chromebooks.
CDW Corporation Price and EPS Surprise
CDW Corporation price-eps-surprise | CDW Corporation Quote
Federal government sales are expected to have been adversely impacted by the changing policy focus. For the second quarter, we expect revenues from Corporate, Government and Healthcare to be $2.2 billion, $654.9 million and $599.6 million, up 0.4%, 2.5% and 2.2%, respectively. Revenues from the Education sector and Small Business are estimated to be $1.05 billion and $356.6 million.
For the second quarter, CDW expects gross profit to grow sequentially in the mid to high single digits, resulting in modest year-over-year growth. This outlook reflects early client device purchases ahead of tariffs and lower seasonal spending in government and education. Gross margin is expected to have remained in line with 2024 levels.
Operating expenses are projected to have risen in the second quarter, following seasonal patterns and gross profit growth. However, non-GAAP SG&A as a percentage of gross profit is likely to have been lower than in the previous quarter. Non-GAAP EPS is expected to have increased at a mid-teens rate from the prior quarter, staying roughly flat year over year.
We expect gross profit, non-GAAP Opex and EPS to be $1.26 billion, $578 million and $2.47, respectively, for the quarter under discussion.
Key Recent Development
In July 2025, CDW partnered with Asato Corporation, an AI-native business observability platform designed for CIOs, to deliver AI-powered IT asset intelligence to a broad spectrum of customers from large enterprises to mid-market firms and SMBs, helping them navigate the growing complexity of modern IT infrastructures.
What Our Model Says for CDW
Our proven model predicts an earnings beat for CDW this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is exactly the case here.
CDW currently has an Earnings ESP of +2.41% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other stocks you may want to consider, as our model shows that these, too, have the right elements to post an earnings beat in this reporting cycle.
Emerson Electric Co. ((EMR - Free Report) ), expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here
The consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.
BCE Inc. ((BCE - Free Report) ) is expected to release earnings on Aug. 7, currently has an Earnings ESP of +0.97% and a Zacks Rank of 2.
The consensus estimate for BCE’s earnings for second-quarter 2025 is pegged at 52 cents per share, indicating a year-over-year fall of 8.7%. BCE has a trailing four-quarter average surprise of 3.5%.
Watts Water ((WTS - Free Report) ) is expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.86% and a Zacks Rank of 2.
The consensus estimate for WTS’ earnings for second-quarter 2025 is pegged at $2.68 per share, indicating a year-over-year rise of 8.9%. WTS has a trailing four-quarter average surprise of 6.5%.