results, time questions. of plenty views performance, with through capital I'll Al allocation and quickly have second begin of on outlook. strategic we provide the on a morning, our priorities progress Good for brief call to today's Steve. our ensure of move our detail everyone. as additional prepared you, will We'll half our our year. the remarks and usual our overview Thank
team market a persistent facing extremely Our executed challenges. well in
top public under expected, seasonality. pressure line normal more As and commercial remained return to
delivered in of team the down quarter, X% net the X% billion, down $X.X dollars, sales For in constant currency. U.S.
up demonstrate business income earnings of of results have outcomes uncertainty, most. broad need of million pivot ability and X%, address our the to customers relevance customer These $X.XX entire made across period continuum our operating of of when that share ongoing power to to solutions up and and priorities economic was An Non-GAAP enhance coupled with the X%. of technology resilient $XXX us IT enabled our In high-growth to we the per strategic portfolio where model deep investments solutions. our our an services. was the impact high ability drive reflects team and non-GAAP and
expansion margin Margin While that, remained to in with increases delivered under expense transactional business profitability. meaningful strong solutions expansion. discipline, contributed together ongoing pressure,
Let's drivers. take a at this look quarter's key performance
each customer portfolio Small size. from a First, end ranging balanced to channels, further focus customer Within annual XXXX verticals channel, $XX over our business Government, Each markets. including end meaningful of sales on own, teams and of sales billion to Education, is Business, geography, with are markets, segmented $X.X our its Healthcare, billion. on and X Corporate,
sales. factors U.K. USD Canadian the together that in markets operation, similarly billion different act X.X customer and given our segmented are macroeconomic which impact countercyclically, XXXX end external each. Teams in delivered unique often These and
greater customer reflected ongoing continue on focus sizes an projects. uncertainty once cautious smaller market, provide quarter this. results excellent Corporate that, elongated and the mission-critical Small Caution of Business both our again, example deal cycles, to results second commercial behavior. drove Economic and Our weigh and on sales
short-term on cloud posting Corporate spend. Small increases in double-digit drove customer with and also both focus that Caution ROI Business
quarter. the move overall forward Mission-critical up XX%. declined sales to continue projects slowly Corporate, For throughout and ticked
spending commercial improved. Large customer sequentially
of Continued product upgrades existing and devices. client decline utilization in a double-digit postponement resulted in of
remain the delivered the past sequential increase for first indication its X in on quarters, stability. volume While devices, cautious of Corporate client demand outlook we providing some
mix around and higher enhanced higher buoyed growth. excellent projects network into functionality value, increased Notably, double-digit coworker that units. delivered productivity growth Momentum cloud on client spend. device focused customer and projects held, experiences, in modernization Implementation ASPs of by drove and NetComm
caution employment. mission-critical hold, drove Small customers. double-digit around upgrades Business devices customer pending the security priorities the of and both to increases by and greater continued and reflecting software. impact XX%, clarity decline on cloud Focus declined sensitive on Client with ongoing around efficiency spend in economically economy
and strong performance pressure performance commercial first quarter X% upturn market Government, of another the quarter. than Public an in Sales partially and increased performance healthcare in was seasonally in higher with mitigated Education. year-over-year stable
benefit NetComm Government excellent hybrid and to strategic continued data. quarter, ability performance. services-enabled by efforts This Federal to growth and efficient target the protect increased XX% cloud manage and opportunities. implement solutions and agencies in delivered to driven more delivered help infrastructure team's from largely complex storage double-digit to the
relationships contributed The growth local through to Excellent success, gaps delivered training well engagement. as enhanced the performance and growth. professional team reflected state address Sirius Legacy helping and services talent in as services team's significant state double-digit services. also local municipalities
-- Talent across remained software to complex increasingly customers Cloud adoption drove care focus needs Health challenges. security focused address as and performance strong projects was performance. data remain flat. industry technology areas and leverage relatively center
focus dissipate and remained cloud projects that return devices to around short-term investment. pressure on customer adoption ongoing deliver under hesitancy increased Customer the meaningfully on in Client mission-critical given continued quarter.
institution's and X%. student dorm enrollment ed as experiences. room as double-digit sales the connectivity campus significantly Higher performance in offset well but year-over-year In education Education, and overall in investments enhanced increase security on drove was K-XX, emphasis lower still by higher ongoing improved decreased in
these units, solutions double-digit and strong by were drove mix decline software into volume The was cloud, across performance. Client to drove a higher-value ability deliver storage, as flat team's NetComm, growth which devices ASP security. offset
services, NetComm excellent storage. and in the their opportunities growth For team and continued K-XX, executing infrastructure on success delivered
improvement This devices. also quarter, the a delivered sequential team in client
With the buying. quarter we K-XX represents second XX hit see end, the the As the our of of summer height occasionally anticipated end quarter. summer sales June you know, season
significant back declined by aging with their improvements refresh combined execute well anticipated conditions. sequential higher experienced driving historical Other, driven a in the X%. team than breakage U.K. devices half take Canada and students Similar to Refresh, quarter profitability business off-campus. We to more continued devices and U.S., our improvement. under challenging given rates this sustained and the each
local We're the while ago. Canada customers low posted U.S. growing similar from digits. declined single-digit by a double to both U.K. quarter low in U.K. a commercial currency, we caution seeing customer in heard what decline Canada and
demonstrates first driver of of market of portfolio our see, the quarter our the benefit growth can performance, customer you end As the of diversity end this balanced markets.
and impact the Category space performance to solutions, support outsized of second driver, the have portfolio transactions benefit customers to which needed. Ongoing wherever demonstrates deep enables commercial continued pivot an performance and economic team solutions. in the and our on and of broad uncertainty products both our
of the While decline rate digits. moderated, transactions double down were
mid-single-digit major commercial performance Solutions deferral performance to of flat Similar pressure all growth solutions. services resulting with quarter. the impacted X services, hardware, volumes quarter, the of in first with improved in hardware lower our were projects by first in software categories, versus and and portfolio
meaningful and device end have Client performance, year-on-year. had decreased across Corporate greatest commercial markets. hardware continued category significantly Hardware increases quarter, the in NetComm all performance an space to customer impacted posting XX% impact. the exceptional
customers' modernization Growth and improvements in Services flat relatively customer widely by driven supply varied network and priorities, largely work tied was continued performance projects. strong attached hardware. with to were offset solutions by transactional This strength services on channel-specific year-on-year. to
sales was services solid, managed Professional activity solid. streams, minimal. revenue was and ratable given on And services net while impact were sales cycles extended the
Software continued categories customer by mid-single projects to decreased declines digits. software in software were spend management tied employment and a full Software network increases stack rate. by Driven by as double-digit mix at in software a and levels offset Service, mid-single-digit net database and sales increased into
for business area categories Security Top and management remained growth remained single e-mail and expansion challenged. endpoint Security spend security. up digits. included associated a growth customers with identity with key security, security, physical focus
an security was top cloud were quarter. in double-digit Productivity, driver and a our cloud important workloads across gross the profit. as contributing X business, profit. customer Each spend of Service posted again, markets end performance Infrastructure increases and meaningfully Once customer gross of the the in
Profitable XX growth organic cloud our that and both and our customers capabilities strategic stakeholders. capabilities past by deliver enabled made acquired, years, in over we've the investments, that the that enable for was us to
solutions And this growth, performance for leads driver the expand capabilities; of is which new our in customers our final acquire X-part our share; to third, our capabilities. and enhance the second, strategy first, and capture to: services quarter,
advise, Each need, our today technology pillar future. want to ability orchestrate our in the and manage design, crucial to and customers integrated is profitably solutions the and
example great action. data investment in of this in a strategy Our analytics is
all across value Like our many analytics delivers strategic data investments, pillars. of X
our data through Our years. relationships, by have the and deep capabilities XX customers, knowledge earned over are analytics we range knowledge which intimate long-lasting underpinned on average about
drive are also models. customer and product They services products data that across product buying that to analytics helps broad solutions. information verticals. tailored patterns customer our industries This targeted and powers robust Models and about and create portfolio, data-driven which proprietary knowledge provides needs by our outreach extensive underpinned personalized comprehensive and and predictive historical and identify create
Solutions that mission. help their customers achieve and accelerate our strategies their
in these advanced market learning invest breadth sales and have of analytics to other the machine in techniques continue utilizing and lift and tangible performance We relevancy. and models, produced conversion
our for are Today, delivering in training. bolsters practice. They CDW. have that customers. services particularly analytics our analytics across outcomes AI delivers significant data including in eye agility innovation, investments expertise of Expertise expertise we model our the and care consulting framework, server, in consultative that also capabilities delivering professional areas our experience, for data are construction and database, Clearly, our
AI much partner complexity Customers CDW, and evolutionary recognize proposition adviser. like choice as our trusted past. For a very that our yet and feels plays complexity the the technologies they AI choice, to transformative face strength benefits other of and of value adoption and incredible
made will make customers another help And the the invest we and for ensure example ready past, return to in continue to ready, market investments, lead the we today we to the how to on have just necessary ready and strategically are of we our future. have the their maximize excellent investments and as AI
for And to balance the expectations of that the the leads me year.
in moderate quarter's IT back normal to a the of seasonality environment decline digits You'll for post the single of expectations the year in a space. half market high assumed the This U.S. recall in on the and shared to XXXX. in last commercial return a public call, we our improvement conference
been currency organic U.S. Within basis. to environment outperforming U.S. market the demand has IT consistent the continue we XXX and by XXX with view points our on an expectations, unchanged. basis target date, constant our IT to the remains environment, market of To this
conditions business the competition. tightening do, through leverage and on remain, out-execute we'll our disruptions. for cards In continue as federal best, we meantime, an the move competitive as of we'll Wild government do we always advantages potential the the year. do environment, what budget credit and updated the provide macro further to And perspective we
also will or that flows strategy outcomes, place, that a reinforced serves when are macro judiciously hope cash market. most importantly, quarter's to our choice can tell ensure of for we you deliver to there the today our challenges, future. end market-specific designed to a to strategy well continue excellent that strategy comments profitably from our in my confidence continue the mission-critical that us a customers we enables customers' remain us outgrow the and strategy partner right confronted can ensure in their invest we and, and so achieve I to We with performance they this have
let our to over financial With more performance. will that, on share details turn Al? who Al, me it
