CDW Corporation stock research
FY2025 Q3
CDW (CDW) Gross Margin — Quarter Ended Sep 30, 2025
Revenue decreased compared to the prior quarter while gross profit increased, leading to an improvement in gross margin. Cost of revenue declined more than proportionally relative to revenue, supporting the margin expansion.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue decreased compared to the prior quarter while gross profit increased, leading to an improvement in gross margin. Cost of revenue declined more than proportionally relative to revenue, supporting the margin expansion.
- The gross margin improved sequentially as gross profit rose despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. Compared to the same quarter last year, gross margin was stable.
- Compared to the immediately preceding quarter, gross margin was higher, driven by a larger relative decline in cost of revenue versus revenue. Versus the same quarter one year earlier, gross margin was essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.9%
Gross profit
$1.3B
Revenue
$5.7B
Cost of revenue
$4.5B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $5.7B | $1.3B | $4.5B | 21.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+1.1 pts
Year-over-year change
Sep 30, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as gross profit rose despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. Compared to the same quarter last year, gross margin was stable.
Compared to the immediately preceding quarter, gross margin was higher, driven by a larger relative decline in cost of revenue versus revenue. Versus the same quarter one year earlier, gross margin was essentially unchanged.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.