CDW posts first-quarter revenue beat on strong IT demand amid AI, cloud boom
CDW Corporation CDW | 0.00 |
May 6 (Reuters) - CDW CDW.O topped Wall Street expectations for first-quarter revenue on Wednesday, helped by resilient demand for its information technology solutions as businesses ramp up spending on artificial intelligence and cloud technology.
CDW provides security, cloud and hybrid infrastructure solutions to businesses, governments and sectors such as education and healthcare in the United States, United Kingdom and Canada.
It reported net sales of $5.68 billion for the quarter ended March 31, beating analysts' average estimate of $5.48 billion, according to data compiled by LSEG.
Adjusted earnings came in at $2.28 per share, slightly below analysts' estimate of $2.29 per share.
"As customers move from AI exploration into real, production environments, they are increasingly relying on partners with the integration, governance, and lifecycle expertise to execute at scale," CEO Christine Leahy said.
The company also benefited from rising demand for network security and cloud migration.
Net sales of CDW's commercial segment grew about 10% to $3.57 billion, primarily driven by an increase in sales to healthcare and financial services customers.
