CDW CDW.O on Wednesday reported third-quarter revenue below estimates, due to weaker demand for the company’s IT solutions as customers facing high borrowing costs cut spending and postponed plans.

“Continued economic uncertainty has led customers to focus on their business priorities, resulting in a reduction or postponement of their technology spending,” the company said.

CDW, whose products range from laptops to data center services, reported net sales of $5.63 billion in the third quarter, compared with analyst estimates of $5.86 billion, according to data of LSEG.

However, the company beat third-quarter earnings estimates thanks to higher margins and reduced discretionary spending.

CDW posted adjusted earnings of $2.72, compared with analyst estimates of $2.60 per share.

The Vernon Hills, Illinois-based company reported lower sales in the enterprise and small business segments, as well as its operations in the United Kingdom and Canada.

Only its public unit stood out, whose clients in the health and education sectors increased their sales by 1.5% compared to the previous year.

Gross margin for the third quarter was 21.8%, compared to 19.8% a year earlier, driven by higher-margin products such as software services.