CDW Corp. (CDW) shares jumped more than 9% Wednesday after the IT solutions provider delivered fourth-quarter results that handily beat analyst expectations, powered by what CEO Christine Leahy described as an inflection point in customer AI adoption.

The Numbers Tell a Strong Story

CDW reported adjusted earnings per share of $2.57 for the fourth quarter of fiscal 2025, comfortably ahead of the $2.44 Wall Street consensus and up from $2.48 in the same quarter last year. Revenue climbed 6.3% year-over-year to $5.51 billion, beating expectations of $5.29 billion.

The revenue growth came from exactly where you'd want to see it: stronger customer demand for notebooks and mobile devices, software, and services. That's the bread and butter of modern IT infrastructure spending.

Gross profit margin improved to 22.8% from 22.3% a year earlier, which is good news. The less good news? Total selling and administrative expenses rose 10.3% year-over-year to $824 million, climbing faster than revenue and putting pressure on operating margins. The adjusted operating margin contracted to 9.1% from 9.6% in the prior-year period.

CDW ended the quarter with $618.7 million in cash and cash equivalents. The board also approved a quarterly dividend of 63 cents per share, payable March 10 to shareholders of record as of February 25, 2026.

Segment Performance Shows Mixed Picture

Breaking down the business segments reveals an interesting story. The Corporate segment saw net sales slip 0.6% year-over-year to $2.370 billion. Not exactly alarming, but worth watching.

The Small Business unit, however, absolutely crushed it with net sales of $457 million, up 18.4% year-over-year. That's the kind of growth that gets investors excited.

The Public segment delivered solid performance with net sales of $2.016 billion, up 7% year-over-year. Within that segment, Government grew 4.3%, Healthcare climbed 4.6%, and Education surged 12.9%.

Finally, the Other category covering UK and Canada operations posted net sales of $669 million, up 8.4% year-over-year.

AI Is Transforming Everything

Here's where things get really interesting. CEO Christine Leahy made it clear that AI isn't just another tech trend for CDW. "In today's complex environment, our value proposition continues to strengthen as customers turn to CDW for mission-critical IT and operational needs across the full solutions stack and lifecycle, including guidance on their AI journeys," she said.

The company is targeting growth that exceeds the U.S. IT addressable market by 200 to 300 basis points in 2026. That's an ambitious goal, but Leahy seems confident given the company's relationships with more than 250,000 customers globally and partnerships with over 1,000 technology brands.

During the earnings call, Leahy emphasized the company's AI positioning: "We are at the point of inflection with our customers and AI." CFO Al Miralles added that the company feels good about margins going forward.

What makes the AI opportunity different, according to Leahy, is that unlike cloud computing which was primarily a consumption model, AI is transforming the entire technology stack. That means more comprehensive solutions, more complexity, and more opportunity for a company like CDW that helps customers navigate these transitions. She said the company is increasingly confident about growth prospects in 2026 and beyond.

CDW Price Action: CDW shares were trading up 9.29% at $137.88 at the time of publication Wednesday.