CDW Corporation (CDW) FY2025 10-K Annual Report

Filed: Feb 20, 2026
Consumer Discretionary
Retail-Catalog & Mail-Order HousesSEC EDGAR

CDW Corporation (CDW) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 20, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

CDW Corporation FY2025 10-K Analysis

Business Overview

  • Core business: multi-brand IT solutions provider serving business, government, education, healthcare in US, UK, Canada
  • New reporting segments effective 1/1/2026: Commercial (includes small business), Government, Education versus prior Corporate, Small Business, Public
  • Strategic focus on evolving customer-facing organization to better meet market needs and consolidate segments for enhanced specialization
  • $2.7B net sales from UK and Canada in 2025; US business 90% of sales with five dedicated customer channels, each >$1.7B net sales in 2025
  • Distribution centers ship ~22 million units annually; drop-ship accounts for 51% of North America net sales in 2025 indicating expanded logistics efficiency

Management Discussion & Analysis

  • Revenue $22,424M, up 6.8% YoY ($1,425M increase) driven by notebooks, software, desktops, services, and netcomm products
  • Operating margin 7.4% vs 7.9%, gross profit margin 21.7% vs 21.9%, net income down 1.0% to $1,067M
  • Best segment: Corporate with sales $9,442M (+6.8%), gross profit margin 23.3%, operating income $889M
  • Worst segment: Education with sales decline of 1.8% (-$58M); Other segments grew but lower margin than Corporate
  • Operating cash flow $1,205M, adjusted free cash flow $1,086M; capital expenditures $117M; no specific buybacks/dividends disclosed
  • Management cites ongoing economic uncertainty, inflation, geopolitical risks, shifting IT spending to AI, cloud, security, and “as a service” models as key risks and opportunities

Risk Factors

  • Regulatory risk: compliance with EU General Data Protection Regulation and California Privacy Rights Act due to potential data breaches and associated penalties
  • Geopolitical risk: exposure to cyberattacks from state-sponsored organizations increasing during armed conflicts affecting system security
  • Operational risk: dependence on Ingram Micro and TD SYNNEX wholesale distributors constituting over 25% of total purchases
  • Market disruption risk: competitive threat from cloud marketplaces like AWS Marketplace, Google Cloud Marketplace, Microsoft Marketplace reducing reseller access
  • Financial risk: key-person dependency on leadership, specialists, and engineers amid a highly competitive talent market with rising labor costs

CDW Corporation FY2025 Key Financial Metrics
XBRL

Revenue

$22.4B

+6.8% YoY

Net Income

$1.1B

-1.0% YoY

Gross Margin

21.7%

-18bp YoY

Operating Margin

7.4%

-48bp YoY

Net Margin

4.8%

-38bp YoY

ROE

40.9%

-488bp YoY

Total Assets

$16.0B

+9.2% YoY

EPS (Diluted)

$8.08

+1.4% YoY

Operating Cash Flow

$1.2B

-5.6% YoY

Source: XBRL data from CDW Corporation FY2025 10-K filing on SEC EDGAR. All figures in USD.

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