CDW Corp. (NASDAQ:CDW) shares fell Wednesday after the IT solutions provider reported mixed first-quarter results, with earnings narrowly missing Wall Street estimates despite stronger-than-expected revenue growth.
Mixed Q1 Results Pressure CDW Shares
The company reported adjusted earnings of $2.28 per share, missing analyst estimates of $2.29 per share.
Net sales increased 9.2% year over year to $5.68 billion, topping the consensus estimate of $5.48 billion. On a constant-currency basis, sales rose 8.4%.
CDW said demand remained strong across data storage, servers, networking products, software, and notebooks and mobile devices.
The company also noted improved customer spending trends across all business segments compared with the first quarter of 2025, despite continued economic and geopolitical uncertainty.
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Gross profit rose 6% year over year to $1.19 billion, while gross margin narrowed to 21% from 21.6%, primarily due to a lower contribution from netted-down revenue. CFO Al Miralles acknowledged that margins were hurt by the sales mix shift toward hardware.
Selling and administrative expenses climbed 7% to $814 million, driven by higher compensation costs, performance-based incentives, employee-related expenses and investments tied …