CDW Corporation stock research
FY2025 Q1
CDW (CDW) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both moved in opposite directions, resulting in a slightly lower gross margin. Versus the same quarter a year ago, revenue was higher and cost of revenue increased proportionally, leaving gross profit nearly unchanged and gross margin slightly weakened.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was stable compared to the prior quarter, while gross profit and cost of revenue both moved in opposite directions, resulting in a slightly lower gross margin. Versus the same quarter a year ago, revenue was higher and cost of revenue increased proportionally, leaving gross profit nearly unchanged and gross margin slightly weakened.
- The gross margin declined from the prior quarter as cost of revenue increased while revenue held steady, compressing the spread between revenue and cost. Compared to the year-ago quarter, the margin was slightly lower despite higher revenue, indicating that cost of revenue grew at a faster pace.
- Sequentially, gross margin weakened as cost of revenue rose while revenue was unchanged. Year-over-year, gross margin was slightly lower, with revenue growth offset by a proportional increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.6%
Gross profit
$1.1B
Revenue
$5.2B
Cost of revenue
$4.1B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $5.4B | $1.2B | $4.2B | 21.8% |
| Sep 30, 2024 | $5.5B | $1.2B | $4.3B | 21.8% |
| Dec 31, 2024 | $5.2B | $1.2B | $4.0B | 22.3% |
| Mar 31, 2025 | $5.2B | $1.1B | $4.1B | 21.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.7 pts
Year-over-year change
Mar 31, 2024
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined from the prior quarter as cost of revenue increased while revenue held steady, compressing the spread between revenue and cost. Compared to the year-ago quarter, the margin was slightly lower despite higher revenue, indicating that cost of revenue grew at a faster pace.
Sequentially, gross margin weakened as cost of revenue rose while revenue was unchanged. Year-over-year, gross margin was slightly lower, with revenue growth offset by a proportional increase in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its increase without corresponding revenue growth pressured margin in the current quarter.