CDW Corp. (NASDAQ:CDW) reported fourth-quarter results that surpassed Wall Street’s expectations, led by a surge in demand from small businesses that helped the IT solutions provider finish 2025 on a high note.
The Vernon Hills, Illinois-based company said Wednesday that revenue for the quarter ended Dec. 31 rose 6.3% to $5.51 billion, clearing the $5.27 billion consensus estimate.
Adjusted earnings per share reached $2.57, comfortably ahead of the $2.44 analysts had projected.
The results represent a 3.8% year-over-year increase in adjusted profit.
The quarter was defined by an 18.4% jump in net sales within the Small Business segment, suggesting that smaller firms are beginning to re-engage with technology refreshes and cloud migrations after a period of cautious spending.
Performance in the Public segment was also healthy, rising 7% behind double-digit growth in Education and mid-single-digit gains in Healthcare and Government.
While most segments grew, the Corporate segment—CDW’s largest—was essentially flat, with net sales of $2.37 billion, down 0.6% on an average daily sales basis.
However, the company’s push into higher-margin services and software categories helped expand gross profit by 8.6% to $1.25 billion, with gross margins improving to 22.8%.