CDW Corp. is deepening its push into artificial intelligence services and cloud solutions as customers move from testing AI tools to putting them into everyday use.
The IT solutions provider and distributor said demand for software, cloud and services helped offset uneven hardware spending and public-sector disruption in the fourth quarter and throughout 2025.
For the fourth quarter ending Dec. 31, CDW reported sales of $5.51 billion, up about 6% from a year earlier.
For the full year, sales rose 7% to $22.42 billion.
CEO Christine Leahy said AI is increasingly embedded in customers’ technology systems rather than treated as a side experiment.
“AI is not a discrete contributor; it is a pervasive one,” Leahy told analysts, describing projects that range from early planning and data preparation to full deployment and ongoing management.
CDW said growth in professional and managed services was fueled partly by AI-related work, including:
- Hybrid data center projects that allow companies to run AI workloads while managing sensitive data and controlling costs.
- AI-powered customer service systems.
- “Agentic AI” tools designed to automate routine tasks.
Cloud services continued to be a key growth drive and accounted for half of the quarter’s increase in gross profit. Executives said demand is being supported by AI applications that rely on cloud infrastructure.
Unlike the shift to cloud computing years ago — which changed how companies purchased and used infrastructure — AI is affecting hardware, software, and services all at once. CDW is positioning itself as a guide, helping customers select tools, integrate them into existing systems, and operate them securely.
The company highlighted two recent examples:
- A large enterprise deploys advanced computing systems to support AI workloads in a hybrid environment, aimed at improving performance and lowering long-term costs.
- A small, multi-location business that adopted an AI-powered IT help desk platform, using a virtual assistant to resolve frequent questions and reduce strain on internal staff.
Leahy said CDW works with major AI providers, including OpenAI and Anthropic, but emphasized that its role is helping customers apply those technologies inside complex, real-world environments.
Software revenue increased 12% in the quarter, with particularly strong demand for tools that help companies manage networks, applications, and data centers.
Security remained a priority across customer segments. CDW reported continued demand for vulnerability testing, identity and access management and AI-related governance services.
Hardware revenue rose 2%, reflecting growth in notebooks and servers that was partly offset by weaker storage sales. Client device sales increased at a high single-digit rate, supported by education demand and some purchases moved forward ahead of expected memory price increases.
CDW said about $50 million in sales were pulled into the fourth quarter because customers anticipated higher prices for memory-intensive products. Similar activity is expected in the first quarter of 2026.
CDW’s diverse customer base helped cushion federal weakness caused by a 43-day U.S. government shutdown during the quarter.
Robust growth in state and local government and small business more than offset softer federal spending. Education revenue rose 13%, supported by a major Chromebook rollout for New York City public schools and steady higher-education demand.
Health care sales increased 5% despite strong comparisons to the prior year. Operations in the United Kingdom and Canada delivered high single-digit growth for the year.
CDW expects overall U.S. IT spending to grow in the low single digits in 2026 and aims to grow faster than the broader market.
Executives said growth could be uneven as companies manage higher memory prices, shifting public spending and geopolitical uncertainty. Still, CDW expects earnings per share to rise at a mid-single digit rate this year, with stronger performance in the second half.
For CDW, the strategy entering 2026 centers on helping customers turn AI from pilot programs into everyday tools — while using its services and cloud capabilities to drive steady, sustainable growth in a cautious market.
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