CDW Corporation stock research
FY2025 Q2
CDW (CDW) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit rose sequentially but was unchanged from a year ago. Cost of revenue grew at a faster pace than revenue, resulting in a lower gross margin relative to both comparison periods.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared with both the prior quarter and the same quarter last year, while gross profit rose sequentially but was unchanged from a year ago. Cost of revenue grew at a faster pace than revenue, resulting in a lower gross margin relative to both comparison periods.
- The most observable margin driver is the relationship between revenue and cost of revenue: gross profit was flat year-over-year despite higher revenue, indicating that the additional revenue was fully offset by increased cost of revenue. Sequentially, cost of revenue increased more than revenue, directly compressing gross margin.
- Compared with the prior quarter, revenue was higher and gross profit was higher, but cost of revenue rose more sharply, leading to a weaker gross margin. Compared with the same quarter a year ago, revenue was higher while gross profit was unchanged, and cost of revenue was higher, resulting in a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.8%
Gross profit
$1.2B
Revenue
$6.0B
Cost of revenue
$4.7B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $6.0B | $1.2B | $4.7B | 20.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.8 pts
Year-over-year change
Jun 30, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the relationship between revenue and cost of revenue: gross profit was flat year-over-year despite higher revenue, indicating that the additional revenue was fully offset by increased cost of revenue. Sequentially, cost of revenue increased more than revenue, directly compressing gross margin.
Compared with the prior quarter, revenue was higher and gross profit was higher, but cost of revenue rose more sharply, leading to a weaker gross margin. Compared with the same quarter a year ago, revenue was higher while gross profit was unchanged, and cost of revenue was higher, resulting in a lower gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as the gap between their growth rates has driven margin compression in both comparisons.