CDW Corporation stock research
FY2025 Q4
CDW (CDW) Gross Margin — Quarter Ended Dec 31, 2025
Revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit remained stable sequentially while cost of revenue declined, resulting in an improved gross margin; versus the prior year, gross profit rose but cost of revenue grew more, leading to a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue decreased compared to the prior quarter but increased relative to the same quarter last year. Gross profit remained stable sequentially while cost of revenue declined, resulting in an improved gross margin; versus the prior year, gross profit rose but cost of revenue grew more, leading to a slightly weakened gross margin.
- The strongest observable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue fell less, directly lifting gross margin.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.8%
Gross profit
$1.3B
Revenue
$5.5B
Cost of revenue
$4.3B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $5.5B | $1.3B | $4.3B | 22.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.9 pts
Year-over-year change
Dec 31, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue declined while revenue fell less, directly lifting gross margin.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as its movement directly influenced gross margin this quarter.