CDW Corp. ( CDW ) shares tumbled Tuesday after the IT solutions provider beat third-quarter profit expectations but narrowly missed revenue estimates.

The company reported adjusted earnings of $2.71 per share, exceeding analysts’ estimates of $2.62, an increase from $2.63 per share in the same period a year earlier.

Net sales totaled $5.74 billion, narrowly missing the consensus forecast of $5.75 billion but up from $5.52 billion in the same period last year.

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The rise in net sales was driven by stronger customer demand for networking products, notebooks and mobile devices, desktops, software, and services, partly offset by lower sales of data storage and servers.

Revenue expanded year-over-year, but momentum eased.

Gross profit margin edged up to 21.9% from 21.8% a year earlier, while adjusted operating margin slipped to 9.2% from 9.7%.

Total selling and administrative expenses rose 12.9% year-over-year to $812.2 million in the quarter, climbing faster than revenue and pressuring margins.

The company ended the quarter with $453.1 million in cash, cash equivalents, and restricted cash.

CDW’s board approved a quarterly cash dividend of 63 cents per share, payable on Dec. 10, 2025, to shareholders of record as of Nov. 25, 2025.

Segment Performance

CDW’s sales by business segment varied notably in the quarter. In the Corporate segment, net sales rose to $2,255 million, up 4.4% year-on-year.

The Small Business unit posted strong growth, with net sales of $434 million, an increase of 14.2% compared to the prior year.

In the Public segment, net sales were $2,350 million, up just 0.6%, reflecting growth of 7.8% in Government and 6.9% in Healthcare, partially offset by an 8.5% drop in Education sales.

Finally, in the Other category (UK & Canada operations), net sales climbed to $698 million, up 9.1% from the prior year.

CEO Commentary

Christine A. Leahy, chair and chief executive officer, CDW, stated, “The team delivered resilient performance in Q3 as we continued to guide customers through evolving market dynamics and deliver mission critical outcomes across the full IT stack and lifecycle.”

“These results underscore the strength of our diversified customer base and expansive product and solutions portfolio, enabled by our strategic investments and customer-first approach.”

Price Action: CDW shares were trading lower by 9.43% to $140.23 at last check Tuesday.

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