CDW (CDW) Morgan Stanley Technology, Media & Telecom Conference summary

Market environment and strategic initiatives

• Navigated extreme macroeconomic and hardware cyclicality post-pandemic, with uneven performance across segments in the past two years.

• Adjusted fixed cost base to drive efficiency while continuing to invest in strategic growth areas, notably cloud and SaaS.

• Acquired Mission Cloud to strengthen presence in high-growth, profitable cloud sectors.

• Investments in business strategy are expected to provide resilience in volatile periods.

Demand landscape and end market performance

• Corporate and Small Business segments showed signs of stabilization and modest growth, though caution remains due to recent volatility.

• Healthcare experienced strong growth, driven by verticalization, transformation initiatives, and increased cloud adoption.

• Government exposure is contained, with most friction in the federal civilian sector; State and Local government spending grew in 2024.

• International markets lag behind the U.S., experiencing ongoing unevenness and currency headwinds.

Product and solutions trends

• PC and client device refresh cycles contributed to growth, though not yet driven by Windows 11 or AI adoption.

• Solutions segment showed improvement, with storage leading growth, followed by networking and servers.

• AI is becoming less of a friction point for infrastructure spend as clarity and offerings improve, presenting medium-term upside.