Financial Data and Key Metrics Changes - Gross billings increased by 12% year over year, reaching $21.6 billion, with a 11% growth in constant currency [12] - Net revenue rose by 7% year over year to $14.9 billion, exceeding guidance [13] - Non-GAAP diluted EPS was $2.99, above the upper end of guidance [16] - Free cash flow generation for the quarter was approximately $543 million [17] Business Line Data and Key Metrics Changes - Endpoint Solutions portfolio gross billings grew by 13% year over year, driven by the ongoing PC refresh cycle [13] - Advanced Solutions portfolio gross billings increased by 12% year over year, with a 10% growth when excluding Hive [13] - Software billings grew by 20%, driven by cloud, cybersecurity, and infrastructure software [6] Market Data and Key Metrics Changes - All regions and major technologies experienced growth during the quarter, with strong demand from SMB, MSPs, and Public Sector, all growing in double digits [6] - Europe showed strong growth at 17% year over year, while North America also enjoyed solid growth [90] Company Strategy and Development Direction - The company shared five strategic imperatives aimed at delivering above-market growth, including unifying reach, targeting new customers, and expanding distribution markets [7] - The focus on digital capabilities is intended to help new customers scale and improve operational efficiencies [9] - The company aims to generate profitable growth and free cash flow while being a valued partner to vendors and customers globally [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a volatile environment due to global trade developments but expressed confidence in the company's strong financial position [18] - For Q3, the company expects non-GAAP gross billings in the range of $21 billion to $22 billion, representing approximately 6% growth at the midpoint [18] - Management remains cautiously optimistic about demand, particularly in the public sector, despite macroeconomic uncertainties [32] Other Important Information - The company returned $186 million to shareholders in Q2, including $149 million in share repurchases and $37 million in dividends [17] - The Board of Directors approved a cash dividend of $0.44 per common share, payable on July 25, 2025 [18] Q&A Session Summary Question: Can you provide more details on the demand pull forward mentioned? - Management noted a pull forward in demand, particularly in PCs, estimating a benefit of $100 million to $200 million in sales [23][24] Question: Why is Q3 guidance similar to last year despite the pull forward? - Management indicated that while there was a pull forward, they expect demand to soften in the second half of the year, leading to cautious guidance [30] Question: Are you seeing any weakness in any region or product line? - Management stated that current demand is in line with guidance, but they remain cautious due to potential impacts from tariffs and geopolitical issues [60] Question: What is the current status of the PC refresh cycle? - Management believes the company is in the middle of the PC refresh cycle, which began one to two quarters ago [79] Question: What is driving the sequential margin improvement in the Endpoint Solutions business? - Management attributed margin improvement to increased demand and a stronger pricing environment during the refresh cycle [83]

Financial Performance - FQ2 2025 - Non-GAAP gross billings reached $2164 billion, a 12% year-over-year increase[6,8] - Non-GAAP diluted EPS was $299, up 10% year-over-year[6,8] - Free cash flow amounted to $543 million[6] - The company returned $186 million to stockholders[6] - Non-GAAP operating margin was 277%[6] Geographic Performance - FQ2 2025 - Americas non-GAAP gross billings were $133 billion, a 90% increase year-over-year[10] - Europe non-GAAP gross billings were $68 billion, a 167% increase year-over-year[10] - Asia-Pacific and Japan non-GAAP gross billings were $15 billion, a 220% increase year-over-year[10] Technology Category Performance - FQ2 2025 - Advanced Solutions non-GAAP gross billings grew by 12%[16] - Endpoint Solutions non-GAAP gross billings grew by 13%[16] Strategic Technologies - Strategic technologies accounted for approximately 28% of FQ2 2025 non-GAAP gross billings[6,22] FQ3 2025 Outlook - The company projects non-GAAP gross billings to be between $210 billion and $220 billion[13] - The company projects non-GAAP diluted earnings per share to be between $275 and $325[13]

Financial Performance - Revenue for Q2 FY25 was $14.9 billion, a 7.2% increase year over year, exceeding the high end of the outlook[5] - Non-GAAP gross billings reached $21.6 billion, up 12.1% year over year, also above the high end of the outlook[5] - Diluted EPS was $2.21, a 33.1% increase from $1.66 in Q2 FY24, while non-GAAP diluted EPS was $2.99, up 9.5% from $2.73[5] - Operating income increased to $328 million, a 24.3% rise from $263.9 million in Q2 FY24, with a non-GAAP operating income of $414 million, up 6.7%[5] - Cash provided by operations was $573 million, compared to cash used in operations of $115 million in the prior year, with free cash flow of $543 million[5] - Net income for the three months ended May 31, 2025, was $184,921, a 28.8% increase compared to $143,605 in the prior year[28] - Basic earnings per share increased to $2.22 from $1.67, reflecting a 32.9% year-over-year growth[28] - Operating income for the three months ended May 31, 2025, was $328,139, representing a 24.4% increase from $263,948 in the same period of 2024[40] - Non-GAAP operating income for the six months ended May 31, 2025, was $54,020, down from $58,500 in the same period of 2024, reflecting a decrease of 7.5%[42] - Adjusted EBITDA for the six months ended May 31, 2025, was $871,440, slightly up from $868,394 in the same period of 2024[42] Cash Flow and Dividends - The company returned $186 million to stockholders through share repurchases and dividends, compared to $288 million in the previous year[5] - A quarterly cash dividend of $0.44 per common share was announced, representing a 10% increase year over year[10] - The company reported a net cash provided by operating activities of $573.2 million for the three months ended May 31, 2025, compared to a net cash used of $114.7 million in the same period last year[30] - Free cash flow for the three months ended May 31, 2025, was $542,939, a significant recovery from a negative $152,530 in the same period of 2024[46] Regional Performance - The Americas region reported revenue of $9.0 billion, a 5.3% increase, while Europe saw a 10.5% increase to $4.9 billion[8] - Operating income for the Americas segment rose to $252.6 million, a 20.7% increase compared to $209.3 million in Q2 FY24[32] - Revenue in constant currency for the Americas segment was $9.05 billion, reflecting a 5.7% increase from the previous year[34] - Operating income for the Europe segment surged by 46.4% to $50.3 million compared to $34.4 million in Q2 FY24[32] Financial Position - Total current assets as of May 31, 2025, were $21,492,779, slightly up from $21,324,696 as of November 30, 2024[26] - Total liabilities decreased marginally to $22,166,815 from $22,239,045, indicating improved financial stability[26] - The company’s cash and cash equivalents decreased to $767,099 from $1,059,378, highlighting a reduction in liquidity[26] - Total cash and cash equivalents at the end of the period were $767.1 million, down from $1.17 billion at the end of the same period last year[30] Guidance and Outlook - For Q3 FY25, the company expects revenue between $14.7 billion and $15.5 billion, with non-GAAP gross billings projected between $21.0 billion and $22.0 billion[9] - The forecast for non-GAAP net income for the three months ending August 31, 2025, is between $227,000 and $268,000[46] - Non-GAAP gross billings for the three months ending August 31, 2025, are projected to be between $21.0 billion and $22.0 billion[46] - Forward-looking statements indicate that the company expects to navigate various risks and uncertainties, including economic conditions and competitive pressures, in the upcoming quarters[21] Operational Metrics - Management emphasizes the use of non-GAAP financial measures to provide investors with a clearer understanding of operational results and trends[20] - The company's ROIC for the twelve months ended May 31, 2025, improved to 8.8%, up from 7.7% in the previous year[48] - The cash conversion cycle remained stable at 23 days for both the three months ended May 31, 2025, and 2024[50] Cost and Expenses - Adjusted selling, general and administrative expenses as a percentage of revenue was 4.80% for the three months ended May 31, 2025, slightly down from 4.82% in the same period of 2024[38] - Selling, general and administrative expenses as a percentage of gross profit was 68.6% for the three months ended May 31, 2025, compared to 69.0% in the same period of 2024[38] - The company incurred costs related to sales of third-party supplier service contracts totaling $6,701,215 for the three months ended May 31, 2025, compared to $5,356,701 in the same period of 2024[38] Currency Impact - The company experienced a negative impact of $114.6 million from changes in foreign currencies on consolidated revenue for the three months ended May 31, 2025[34] - The impact of changes in foreign currencies on non-GAAP gross billings was a decrease of $153,712 for the three months ended May 31, 2025[36]

Core Viewpoint - Analysts expect TD SYNNEX to report quarterly earnings of $2.69 per share, reflecting a year-over-year decline of 1.5%, with revenues projected at $14.32 billion, an increase of 2.7% from the previous year [1] Earnings Estimates - There has been a 1% upward revision in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [1][2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Revenue Forecasts - Analysts estimate 'Revenue- Americas' to reach $8.74 billion, representing a 2.2% increase from the prior year [4] - 'Revenue- Europe' is expected to be $4.54 billion, indicating a 2.6% year-over-year change [4] - 'Revenue- Asia-Pacific and Japan' is projected at $1.03 billion, reflecting a year-over-year increase of 6.4% [4] Stock Performance - TD SYNNEX shares have returned +1.3% over the past month, outperforming the Zacks S&P 500 composite's +0.6% change [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [5]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for TD SYNNEX despite an increase in revenues when it reports results for the quarter ended May 2025 [1] Earnings Expectations - The consensus EPS estimate for TD SYNNEX is $2.69 per share, reflecting a -1.5% change year-over-year [3] - Expected revenues are projected at $14.32 billion, which is a 2.7% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 1% higher in the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for TD SYNNEX is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.28%, suggesting a bearish outlook from analysts [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [10] Historical Performance - In the last reported quarter, TD SYNNEX was expected to post earnings of $2.87 per share but delivered $2.80, resulting in a surprise of -2.44% [13] - Over the past four quarters, the company has beaten consensus EPS estimates two times [14] Conclusion - TD SYNNEX does not appear to be a compelling candidate for an earnings beat based on current estimates and revisions [17] - Investors should consider other factors beyond earnings results when making investment decisions regarding TD SYNNEX [15][17]

Core Insights - Trifork has partnered with TD SYNNEX to provide scalable AI and digital transformation solutions to enhance business outcomes for customers [1][2] - The partnership aims to leverage Trifork's expertise in AI, spatial computing, and user-centric applications across various industries [2][6] Company Overview: TD SYNNEX - TD SYNNEX is a leading global distributor and solutions aggregator for the IT ecosystem, serving over 150,000 customers in more than 100 countries [4] - The company employs 23,000 individuals and collaborates with over 2,500 technology vendors, focusing on high-growth segments such as cloud, cybersecurity, and AI [4] Company Overview: Trifork - Trifork operates with 1,229 professionals across 73 business units in 16 countries, specializing in advanced software solutions for sectors like healthcare, manufacturing, and finance [6][7] - The company emphasizes innovation through Trifork Labs, its R&D hub, which invests in high-potential technology companies [6]

Financial Performance - For the three months ended February 28, 2025, the company's revenue was 100% of total revenue, with a gross profit margin of 6.87%, down from 7.20% in the same period last year[111]. - The cost of revenue increased to 93.13% of total revenue compared to 92.80% in the prior year, indicating rising costs impacting profitability[111]. - Operating income for the period was 2.10%, slightly down from 2.17% year-over-year, reflecting ongoing challenges in maintaining margins[111]. - The company reported a net income of 1.15% of total revenue, a decrease from 1.23% in the previous year, highlighting a decline in overall profitability[111]. - Consolidated revenue for the three months ended February 28, 2025, was $14,531,707, representing a 4.0% increase from $13,975,253 in the prior year[118]. - Revenue for the three months ended February 28, 2025, was $1,004,604,000, an increase of 5.2% compared to $954,905,000 for the same period in 2024[139]. - Net income for the three months ended February 28, 2025, was $167,537,000, down from $172,128,000 in the prior year[147]. Strategic Initiatives - The company plans to invest in strategic technologies such as hybrid cloud, security, data analytics, AI, and hyperscale infrastructure to enhance its service offerings[108]. - The merger with Tech Data Corporation was completed for a total consideration of $1.6 billion in cash and approximately $5.6 billion in SYNNEX stock, aimed at expanding capabilities and market reach[110]. - The company is focused on expanding its global footprint and enhancing operational excellence across its businesses[108]. - The strategic focus includes strengthening the end-to-end portfolio of products and services, including technology-as-a-service and recurring revenue models[108]. Cost and Expenses - Selling, general and administrative expenses increased by 3.1% to $692,485, representing 4.77% of revenue, slightly down from 4.81%[126]. - Operating income decreased by 28.1% to $24,845,000 from $34,565,000 year-over-year, primarily due to a decrease in strategic technologies gross margins[139]. - Non-GAAP operating income also decreased by 25.6% to $27,108,000 from $36,441,000[139]. - Interest expense and finance charges increased by 15.8% to $87,880,000 compared to $75,891,000 in the prior year[141]. - Provision for income taxes decreased by 8.4% to $47,346,000 from $51,669,000, reflecting lower income and a slightly lower effective tax rate[145]. Revenue Breakdown - Revenue in constant currency increased by $840.2 million, driven by growth in Endpoint Solutions and Advanced Solutions portfolios, partially offset by a negative impact of approximately $490 million due to changes in product mix[119]. - Americas revenue increased by $486.2 million to $8,389,338, with a constant currency increase of $552.5 million, despite a negative impact of approximately $150 million from product mix changes[120]. - Europe revenue increased by $20.5 million to $5,137,765, with a constant currency increase of $219.2 million, negatively impacted by approximately $200 million from product mix changes[121]. - APJ revenue increased by $49.7 million to $1,004,604, with a constant currency increase of $68.5 million, negatively impacted by approximately $130 million from product mix changes[122]. Cash Flow and Financing - Net cash used in operating activities was $748.0 million, a significant decrease from net cash provided of $384.7 million in the prior year[153]. - Net cash provided by financing activities was $288.6 million, compared to net cash used of $311.2 million in the prior year, driven by increased short-term borrowings[155]. - The company entered into a $750.0 million Term Loan Credit Agreement, maturing on September 1, 2027, to repay a portion of the TD SYNNEX Term Loan[161]. - As of February 28, 2025, the company had total outstanding borrowings of approximately $4.3 billion, including Senior Notes of $2.4 billion and term loans of approximately $1.3 billion[164]. - The company had $1.3 billion of trade accounts receivable sold to financial institutions under purchase agreements as of February 28, 2025, with discount fees totaling $12.0 million for the three months ended February 28, 2025[165]. - A new $2.0 billion share repurchase program was authorized in March 2024, supplementing the previous $1.0 billion program, with $1.7 billion available for future repurchases as of February 28, 2025[166]. - The company repurchased 0.7 million shares for $100.5 million in the three months ended February 28, 2025, compared to 2.0 million shares for $199.2 million during the same period in 2024[166]. - As of February 28, 2025, the company had a borrowing capacity of approximately $566.0 million, with $201.0 million outstanding at a weighted average interest rate of 5.78%[162]. Compliance and Risk Management - As of February 28, 2025, the company was in compliance with all material financial covenants related to its credit facilities[167]. - The company has historically renewed its accounts receivable securitization program and parent company credit facilities prior to expiration, maintaining good credit standing[163]. - There were no material changes to the company's critical accounting policies and estimates during the three months ended February 28, 2025[168]. - No material changes in market risks have occurred since November 30, 2024, as disclosed in the company's Annual Report[170].

I wrote about TD Synnex Corp. (NYSE: SNX ) previously (in January 2025) with a buy rating, as I was very bullish about the growth outlook, especially with regard to the strong demand from data center Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking ...

TD SYNNEX CORP (SNX) reported non-GAAP earnings of $2.80 per share for the first-quarter fiscal 2025, which missed the Zacks Consensus Estimate by 2.44%. The bottom line declined 6.4% year over year due to rising expenses.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.SNX’s revenues increased 4% year over year to $14.53 billion but missed the consensus mark by 1.78%.On a constant-currency (cc) basis, revenues represent 6% year-over-year growth, driven by advancements in the Endpoint ...

Financial Data and Key Metrics Changes - Gross billings increased by 7.5% year over year in Q1, and 9.5% in constant currency, reaching $20.7 billion [7][22] - Net revenue was $14.5 billion, up 4% year over year, with a gross to net adjustment of approximately 30% [23][30] - Gross profit was $1 billion, representing 4.82% of gross billings, with a year-over-year decline of 40 basis points [24] - Non-GAAP net income was $237 million, with diluted earnings per share at $2.80, both within guidance range [27][30] Business Line Data and Key Metrics Changes - Advanced Solutions grew by 7% year over year, driven by demand for integrated IT solutions [7][23] - Endpoint solutions grew by 8% year over year, with growth across PCs and mobile [7][23] - Hive experienced double-digit growth year over year but was below expectations due to component shipment delays and demand shortfalls [8][39] Market Data and Key Metrics Changes - Latin America and APJ regions grew by double digits in Q1 in constant currency, indicating strong market performance [11][12] - The company expanded its reach to 30,000 active partners and 500,000 end users through its cloud marketplace [10] Company Strategy and Development Direction - The company focuses on profitable growth and free cash flow, with a commitment to mid-single-digit gross billings growth for fiscal 2025 [21][33] - The strategy includes enhancing digital capabilities and expanding partnerships in high-growth markets [10][16] - The company aims to adapt to the evolving IT landscape, driven by trends such as cloud, cybersecurity, and AI [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalization of business conditions despite temporary softness in Hive [9][40] - The company remains optimistic about the demand environment and its ability to grow, particularly in strategic technologies [42][78] - Management highlighted the importance of maintaining specialized resources to support future demand [61][68] Other Important Information - The company returned $138 million to stockholders in Q1, including $101 million in share repurchases and $37 million in dividends [28] - The Board of Directors approved a cash dividend of $0.44 per common share, payable on April 25, 2025 [29] Q&A Session Summary Question: Can you provide more details on Hive and the reasons for the softer demand? - Management acknowledged that Hive experienced double-digit growth but faced temporary demand pauses and shipment delays, which are expected to normalize in Q2 [39][40] Question: Did you see any pre-buying by customers to avoid tariff increases? - Management indicated that the impact of tariffs has been limited, with growth driven by PC refresh cycles rather than pre-buying [46][48] Question: What are the expectations regarding price increases from vendors? - Management noted that while some vendors are increasing prices, it is not widespread and is being monitored closely [54] Question: Can you clarify the impact of Hive on cash flow and capital allocation? - Management explained that elevated inventory and payables impacted cash flow, but they expect recovery in cash conversion days moving forward [63][67] Question: How does the company view its geographic exposure relative to competitors? - Management highlighted strong market positions in North America and Europe, with opportunities for growth in Latin America and APJ [99][100]