Question · Q3 2025
Adam Tindall from Raymond James asked Chris Leahy to reflect on how the 2026 planning cycle compares to prior years, particularly concerning strategic discussions around value creation in the services business and the potential for larger-scale M&A in that area. He also asked Al Miralles for a more detailed breakdown of the Q4 gross profit guidance, specifically how other segments might offset anticipated public sector weakness to align with historical seasonal trends.
Answer
Chris Leahy, Chair and CEO of CDW, stated that value creation is focused on high-growth, high-relevance offerings, including industry-specific expertise, professional advisory, and managed services, which are integral to delivering customer outcomes and solutions. He confirmed continued evaluation of M&A opportunities while investing in services. Al Miralles, CFO of CDW, explained that Q4 is a low season for federal, so the impact of adjustments is less significant. He noted that existing pipeline and business with open agencies contribute, and strong momentum in small business and the U.K. operations serve as offsets to public sector weakness, resulting in a modest overall adjustment for the quarter.