CDW reported $22.424 billion in full-year 2025 net sales, up 6.8% from 2024—nearly 7% when rounded. The result came despite a federal funding lapse from October 1 through November 12, 2025, but it does not mean the shutdown had no effect. CDW said federal buying patterns were delayed and uneven, while corporate, small-business, healthcare, services, and cloud demand helped offset some public-sector weakness.
The “7%” figure is an annual sales result
CDW’s earnings release, issued on February 4, 2026, reported full-year net sales of $22.424 billion, compared with $20.999 billion in 2024. That represents growth of 6.8%, conventionally rounded to 7%.
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The number is not a measure of sales during the shutdown itself, nor does it show that the shutdown caused CDW’s growth. It covers the entire 2025 fiscal year, including periods before and after the funding lapse.
Fourth-quarter net sales were $5.511 billion, up 6.3% year over year. But the quarter included 63 selling days, compared with 62 in the prior-year quarter. On an average-daily-sales basis, Q4 growth was 4.6%. Full-year constant-currency sales growth was 6.6%.
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What the shutdown changed
The federal funding gap began October 1 and ended when funding legislation was signed into law on November 12. The Congressional Research Service describes the interruption as approximately six weeks; some coverage refers to it as a 43-day shutdown, depending on how the dates are counted. The CRS analysis notes that agencies had roughly seven weeks remaining in the fourth quarter after reopening to resume spending.
For CDW, the practical effect was not necessarily the permanent cancellation of technology demand. Rather, federal agencies faced delayed purchasing decisions, irregular order timing, and periods when purchases could not be made without available funding. Orders that were postponed could resume after reopening, creating the possibility of catch-up spending.
That possibility should not be confused with proof that the shutdown helped CDW. Management said the shutdown disrupted or altered buying patterns, particularly among federal customers. The company’s consolidated growth shows resilience across its broader customer base, not immunity from government disruption.
CDW’s growth was diversified
CDW sells to corporate, small-business, public-sector, and international customers. Its full-year segment results were:
| Segment | 2025 net sales | Year-over-year change |
|---|---|---|
| Corporate | $9.442 billion | 6.8% |
| Small Business | $1.727 billion | 13.3% |
| Public | $8.535 billion | 4.6% |
| Other, primarily the UK and Canada | $2.720 billion | 9.7% |
The mix explains why a federal shutdown did not automatically produce a companywide sales decline. Corporate and small-business customers continued buying, while the company’s international operations added growth. The public-sector segment also grew, although more slowly than the company overall.
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Public-sector performance was mixed
The public-sector headline conceals three very different markets:
- Healthcare sales rose 13.3%.
- Government sales rose 4.1%.
- Education sales fell 1.8%.
Healthcare was therefore a much stronger contributor than government, while education contracted. Saying that “government demand held up” is technically defensible only with qualification: CDW’s government business grew, but it lagged healthcare and the company’s total 6.8% growth rate.
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This distinction matters for investors, technology providers, and public-sector buyers. A supplier exposed to federal procurement may have experienced more timing volatility than CDW’s consolidated results suggest. Conversely, suppliers serving healthcare, state and local organizations, or commercial customers may have had different demand patterns.
Services, cloud, and hardware all contributed
CDW attributed growth to notebooks and mobile devices, software, desktops, services, and networking products. Coverage by CRN also highlighted cloud and professional and managed services.
Management commentary reported that cloud contributed approximately half of fourth-quarter gross-profit growth, while professional and managed services revenue increased at a double-digit rate. Those details point to a broader technology-spending pattern: customers were not buying only individual devices. They were also funding cloud, infrastructure, modernization, and managed IT work.
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That mix can make demand more resilient than a business based entirely on discretionary hardware purchases. Organizations may continue projects intended to reduce operating costs, modernize systems, consolidate IT management, or support hybrid infrastructure even when government budgets are temporarily constrained. However, hardware categories can carry lower or declining rates, so higher sales do not automatically translate into equivalent profit growth.
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Sales growth was stronger than full-year operating-profit growth
CDW’s earnings quality was more mixed than the sales headline suggests:
- Gross profit rose 5.9% to $4.873 billion.
- Gross margin declined to 21.7% from 21.9%, partly because of lower rates in certain hardware categories.
- Operating income rose just 0.3% to $1.656 billion.
- GAAP net income fell 1.0% to approximately $1.067 billion.
- Non-GAAP net income rose 2.8% to $1.323 billion.
- Non-GAAP diluted earnings per share rose 5.2% to $10.02.
The comparison is important: CDW expanded revenue at a healthy rate, but full-year operating income was nearly flat and GAAP net income declined. Non-GAAP earnings and diluted EPS were better, yet the figures still do not support treating 2025 as a straightforward, across-the-board acceleration in profitability. Fourth-quarter results were stronger, with gross profit up 8.6% and GAAP net income up 5.8%.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why CDW may be less exposed than a pure government contractor
Several features of CDW’s business can help absorb a federal procurement interruption:
- Customer diversification: Corporate and small-business sales can offset weakness in federal purchasing.
- Different public-sector markets: Healthcare, education, state and local governments, and federal agencies do not share identical budget calendars or buying priorities.
- A broad technology portfolio: Software, services, cloud, networking, devices, and infrastructure projects can be affected differently by a funding delay.
- Potential order timing: Delayed purchase orders may be released after funding resumes, shifting demand between quarters rather than eliminating it.
These are explanations for the company’s resilience, not individually proven causes of every dollar of growth. The reported results do not quantify how much post-shutdown catch-up spending occurred.
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What to watch in 2026
CDW management expected the U.S. IT market to grow in the low single digits in 2026. That is management’s expectation, not an independent market forecast or a guarantee of CDW’s performance.
Management also warned that public-sector spending patterns, tariffs, geopolitical uncertainty, and lingering shutdown effects could make demand uneven. For investors, the key questions are whether services and cloud continue to support gross profit, whether federal purchasing normalizes, and whether margin pressure in hardware persists.
The most useful indicators are therefore not just total sales. Watch the public-sector growth rate, the split between government, healthcare, and education, average daily sales, gross margin, and the relationship between revenue growth and operating income.
Bottom line
CDW did not literally grow 7% because of the government shutdown. It grew 6.8% for all of 2025 despite a six-week federal funding disruption that delayed and distorted some customer purchases.
The result demonstrates the value of a diversified IT seller: strong small-business and healthcare demand, corporate sales, international growth, and services and cloud activity helped cushion federal weakness. But the public segment grew only 4.6%, government sales rose 4.1%, education declined, and full-year GAAP net income fell. The right conclusion is resilience, not immunity.
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