CDW (CDW) Q4 2024 earnings summary

Executive summary

• Q4 net sales reached $5.2 billion, up 3.3%–5% year-over-year, while full-year net sales declined 1.8% to $21.0 billion.

• Q4 gross profit was flat at $1.16 billion, with full-year gross profit down 1.1% to $4.60 billion.

• Q4 non-GAAP EPS was $2.48 (down 3.7%–4%), and full-year non-GAAP EPS was $9.52 (down 3.6%).

• Adjusted free cash flow for the year exceeded $1 billion, with $832 million returned to shareholders via dividends and share repurchases.

• Board approved a $750 million increase to share repurchase authorization and a 1% dividend increase to $2.50 annually.

Financial highlights

• Q4 gross margin was 22.3%, up 50 bps sequentially but down from 23% prior year; full-year gross margin was 21.9%.

• Q4 non-GAAP operating income was $499 million (down 3.8%–4%); full-year non-GAAP operating income was $1.95 billion (down 4.5%).

• Q4 non-GAAP net income was $333 million, down 4.7% year-over-year.

• Q4 adjusted free cash flow was $315 million; full-year adjusted free cash flow was $1.08 billion.

• Q4 non-GAAP operating income margin was 9.6%; full-year non-GAAP operating income margin was 9.3%.

Outlook and guidance

• 2025 IT market expected to grow low single digits; company targets outperformance by 200–300 bps.

• Full-year 2025 guidance: low single-digit growth in gross profit and non-GAAP EPS.

• Gross margins expected to remain stable; Q1 2025 gross profit to decline sequentially but grow year-over-year.

• Annual non-GAAP effective tax rate expected at 25.5%–26.5%.

• Currency expected to be a slight headwind in 2025.