Financial Data and Key Metrics Changes - Consolidated gross billings reached $22.7 billion, growing 12%, or 10% in constant currency, with non-GAAP diluted earnings per share of $3.58, a 25% year-over-year increase [3][4][10] - Net revenue was $15.7 billion, up 7% year over year, with gross profit increasing 18% to $1.1 billion [12][14] - Non-GAAP operating income rose 21% year over year to $475 million, with a non-GAAP operating margin of 2.09%, representing a 15 basis point improvement [13][14] Business Line Data and Key Metrics Changes - The Endpoint Solutions portfolio saw a 10% increase in gross billings, driven by demand for PCs and a higher mix of AI PCs [10][11] - Advanced Solutions portfolio gross billings increased by 13% year over year, with HIVE reporting mid-30s growth due to strong demand in cloud infrastructure [11][12] - Software gross billings increased by 26%, driven by cybersecurity and infrastructure software [4] Market Data and Key Metrics Changes - Latin America and Asia Pacific & Japan experienced strong double-digit growth in gross billings, validating the company's go-to-market strategy [5] - The U.S. public sector business saw low single-digit growth, with state and local strength offset by federal softness [6] Company Strategy and Development Direction - The company is focused on expanding its addressable market by onboarding new vendors and enhancing its go-to-market strategy [6][9] - The Destination AI Enablement Program is being enhanced to support partners in adopting AI solutions [7] - A unified portal, TD SYNNEX Partner First, is being launched to optimize partner experience and streamline operations [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance, particularly in HIVE and distribution, driven by healthy demand from hyperscalers [19][30] - The company anticipates gross billings in Q4 to be in the range of $23 to $24 billion, representing an increase of approximately 11% at the midpoint [16] Other Important Information - Free cash flow for the year is expected to be approximately $800 million, with Q4 free cash flow projected around $850 million [24][25] - The board approved a cash dividend of $0.44 per common share, payable on October 31, 2025 [15] Q&A Session Summary Question: HIVE dynamics in fiscal forecast - Management noted that HIVE had significant growth across all programs and customers, with expectations for continued demand in Q4 [19][20] Question: Comments on PC pull forward and free cash flow expectations - Management indicated limited pull forward for PCs, driven mainly by the Windows 11 refresh and AI PCs, with free cash flow expectations adjusted to approximately $800 million for the year [22][24] Question: Sustainability of current performance - Management believes the overperformance is sustainable, driven by strong demand in PCs, software, and cybersecurity [30] Question: Progress in onboarding new customers for HIVE - Management confirmed ongoing progress in diversifying the customer base, with growth primarily from networking and traditional compute [33][34]

Financial Performance and Key Metrics Changes - Consolidated gross billings reached $22.7 billion, growing 12%, or 10% in constant currency, with non-GAAP diluted earnings per share of $3.58, a 25% year-over-year increase [3][4][10] - Net revenue was $15.7 billion, up 7% year-over-year, with gross profit increasing 18% to $1.1 billion [12][14] - Non-GAAP operating income rose 21% year-over-year to $475 million, with a non-GAAP operating margin of 2.09%, representing a 15 basis point improvement [13][14] Business Line Data and Key Metrics Changes - The Endpoint Solutions portfolio saw a 10% year-over-year increase in gross billings, driven by demand for PCs and a higher mix of AI PCs [10][11] - Advanced Solutions portfolio gross billings increased by 13% year-over-year, with HYVE reporting mid-30s growth due to strong demand in cloud infrastructure [11][12] - Software gross billings increased by 26%, driven by cybersecurity and infrastructure software [4] Market Data and Key Metrics Changes - Latin America and Asia Pacific & Japan experienced strong double-digit growth in gross billings, validating the company's go-to-market strategy [5] - The U.S. public sector business saw low single-digit growth, with state and local strength offset by federal softness [6] Company Strategy and Development Direction - The company is enhancing its Destination AI Enablement Program to support partners in adopting AI solutions [7] - A unified portal, TD SYNNEX PartnerFirst, was launched to optimize partner experience and streamline operations [9] - The company continues to onboard new vendors and expand its addressable market, particularly in cybersecurity [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for HYVE and distribution, with expectations for strong performance in Q4 [19][30] - The company anticipates gross billings in Q4 to be between $23 billion and $24 billion, representing an approximate 11% increase at the midpoint [16] Other Important Information - Free cash flow for the year is expected to be approximately $800 million, with Q4 free cash flow projected around $850 million [24][25] - The board approved a cash dividend of $0.44 per common share, payable on October 31, 2025 [15] Q&A Session Summary Question: Insights on HYVE dynamics in fiscal forecast - Management noted significant growth across all programs and customers, with confidence in continued demand for Q4 [19][20] Question: Comments on PC pull forward and free cash flow expectations - Management indicated limited pull forward for PCs, driven mainly by the Windows 11 refresh and AI PCs, with free cash flow expectations adjusted to approximately $800 million for the year [22][24] Question: Sustainability of current performance - Management believes the overperformance is sustainable, driven by strong demand in PCs, software, and cybersecurity [30] Question: Progress in onboarding new customers for HYVE - Management reported healthy progress in diversifying the customer base, with growth primarily from networking and traditional compute [32][34]

Financial Data and Key Metrics Changes - Consolidated gross billings reached $22.7 billion, growing 12% year over year, with a 10% increase in constant currency [3][4] - Non-GAAP diluted earnings per share was $3.58, a 25% increase year over year, exceeding guidance [4][14] - Net revenue was $15.7 billion, up 7% year over year, above the high end of guidance [12][14] - Gross profit increased 18% year over year to $1.1 billion, with a gross margin of 5%, up 23 basis points year over year [12][13] Business Line Data and Key Metrics Changes - Endpoint Solutions portfolio gross billings increased 10% year over year, driven by demand for PCs and AI PCs [10][14] - Advanced Solutions portfolio gross billings increased 13% year over year, with HIVE showing mid-30s growth due to server and networking rack builds [10][11] - Software gross billings increased 26% year over year, driven by cybersecurity and infrastructure software [4] Market Data and Key Metrics Changes - Strong double-digit growth in gross billings was observed in Latin America and Asia Pacific & Japan [5] - SMB and MSP segments grew substantially above the company average in most geographies [5] - U.S. public sector business saw low single-digit growth, with state and local strength offset by federal softness [6] Company Strategy and Development Direction - The company is focused on a differentiated go-to-market strategy, expanding its addressable market by onboarding new vendors [6][9] - The Destination AI Enablement Program is being enhanced to support partners in adopting AI solutions [7] - A unified portal, TD SYNNEX Partner First, is being launched to optimize partner experience and streamline operations [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance, particularly in HIVE and distribution, with expectations for Q4 to reflect similar strength [20][28] - The company anticipates gross billings in Q4 to be in the range of $23 to $24 billion, representing an increase of approximately 11% at the midpoint [16] - Free cash flow expectations for the year are approximately $800 million, with Q4 expected to contribute around $850 million [24][25] Other Important Information - The company returned $210 million to stockholders in the quarter, with $174 million in share repurchases and $36 million in dividends [14] - The board approved a cash dividend of $0.44 per common share, payable on October 31, 2025 [15] Q&A Session Summary Question: HIVE dynamics in fiscal forecast and next year outlook - Management noted strong growth across all programs and customers in HIVE, with confidence in continued demand for Q4 [19][20] Question: Comments on PC pull forward and free cash flow expectations - Management indicated limited pull forward for PCs, driven by Windows 11 refresh and AI PCs, with free cash flow expected to be around $800 million for the year [22][24] Question: Sustainability of current performance and potential pull forward - Management believes the overperformance is sustainable, driven by strong demand in distribution and HIVE [28] Question: Progress in onboarding new customers for HIVE - Management confirmed ongoing progress in diversifying the customer base, with growth primarily from traditional compute and networking [30][31]

Core Insights - TD SYNNEX reported record third-quarter results, exceeding revenue and earnings forecasts, but shares declined despite strong growth and a 10% dividend increase [1][2]. Financial Performance - The company achieved revenue of $15.65 billion, surpassing analysts' expectations of $15.11 billion, and reflecting a 6.6% increase from $14.69 billion in the previous year [1]. - Adjusted earnings per share were reported at $3.58, exceeding the forecast of $3.05 per share, marking a 25.2% growth from $2.86 per share a year ago [2]. - Adjusted gross billings increased by 12.1% year over year to $22.73 billion, exceeding the high end of the company's outlook [3]. Dividend Announcement - The board approved a quarterly cash dividend of 44 cents per share, representing a 10% year-over-year increase, payable on October 31, 2025, to shareholders of record as of October 17 [3]. Future Outlook - For the fourth quarter of 2025, the company anticipates adjusted earnings between $3.45 and $3.95 per share, higher than the market expectation of $3.33 per share [4]. - Revenue for the upcoming quarter is projected to be between $16.50 billion and $17.30 billion, exceeding the anticipated $15.99 billion [4]. - Adjusted gross billings for the next quarter are expected to range between $23 billion and $24 billion [4]. Stock Performance - Despite the positive financial results, SNX shares were trading lower by 3.26% to $145.44 in premarket trading [5].

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Financial Highlights - Q3 2025 - Non-GAAP gross billings reached an all-time high of $22.7 billion, a 12% year-over-year increase[5, 6] - Non-GAAP diluted EPS also hit a record high at $3.58, up 25% year-over-year[5, 6] - Strategic technologies accounted for approximately 31% of non-GAAP gross billings[6, 22] - Free cash flow was $214 million[6] - The company returned $210 million to stockholders[6] - Non-GAAP operating margin was 3.03%, a 35 bps year-over-year increase[6] Regional Performance - Q3 2025 - Americas non-GAAP gross billings were $14.2 billion, a 9% year-over-year increase[10] - Europe non-GAAP gross billings were $6.9 billion, a 14.9% year-over-year increase[10] - APJ (Asia-Pacific and Japan) non-GAAP gross billings were $1.7 billion, a 29.7% year-over-year increase[10] Technology Category Performance - Advanced Solutions non-GAAP gross billings grew by 13%[16] - Endpoint Solutions non-GAAP gross billings grew by 10%[16] Q4 2025 Outlook (Non-GAAP) - Gross billings are projected to be between $23.0 billion and $24.0 billion[13] - Diluted earnings per share are expected to be in the range of $3.45 to $3.95[13]

Company Performance - TD SYNNEX reported quarterly earnings of $3.58 per share, exceeding the Zacks Consensus Estimate of $3.02 per share, and up from $2.86 per share a year ago, representing an earnings surprise of +18.54% [1] - The company posted revenues of $15.65 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 3.41%, compared to revenues of $14.68 billion in the same quarter last year [2] - Over the last four quarters, TD SYNNEX has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - TD SYNNEX shares have increased approximately 28.2% since the beginning of the year, outperforming the S&P 500's gain of 12.9% [3] - The current consensus EPS estimate for the upcoming quarter is $3.32 on revenues of $16.09 billion, and for the current fiscal year, it is $12.13 on revenues of $60.7 billion [7] - The estimate revisions trend for TD SYNNEX was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Electronics - Miscellaneous Products industry, to which TD SYNNEX belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Executive Summary](index=1&type=section&id=Executive%20Summary) TD SYNNEX reported record fiscal Q3 2025 performance with significant growth in key financial metrics and strong shareholder returns, driven by effective execution and a robust portfolio [Record Fiscal 2025 Third Quarter Performance Overview](index=1&type=section&id=Record%20Fiscal%202025%20Third%20Quarter%20Performance%20Overview) TD SYNNEX reported record non-GAAP gross billings and diluted earnings per share for fiscal Q3 2025, attributing the strong performance to execution, a differentiated go-to-market strategy, and a comprehensive product and services portfolio - TD SYNNEX achieved **record non-GAAP gross billings and diluted EPS** in fiscal Q3 2025, driven by strong execution, a differentiated go-to-market strategy, and an unrivaled global portfolio[2](index=2&type=chunk) [Consolidated Financial Highlights (GAAP & Non-GAAP)](index=1&type=section&id=Consolidated%20Financial%20Highlights%20(GAAP%20%26%20Non-GAAP)) The company reported significant year-over-year growth in both GAAP and non-GAAP financial metrics for Q3 FY25, including revenue, gross profit, operating income, net income, and diluted EPS Consolidated GAAP Financial Highlights (Q3 FY25 vs Q3 FY24) | Metric | Q3 FY25 ($ Million) | Q3 FY24 ($ Million) | Net Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 15,650.9 | 14,684.7 | 6.6 % | | Gross profit | 1,129.9 | 961.0 | 17.6 % | | Gross margin | 7.22 % | 6.54 % | 68 bps | | Operating income | 383.7 | 302.9 | 26.7 % | | Operating margin | 2.45 % | 2.06 % | 39 bps | | Net income | 226.8 | 178.6 | 27.0 % | | Diluted EPS | 2.74 | 2.08 | 31.7 % | Consolidated Non-GAAP Financial Highlights (Q3 FY25 vs Q3 FY24) | Metric | Q3 FY25 ($ Million) | Q3 FY24 ($ Million) | Net Change (%) | | :--- | :--- | :--- | :--- | | Gross billings | 22,731.2 | 20,282.5 | 12.1 % | | Gross to net % | (31.1)% | (27.6)% | (350) bps | | Revenue | 15,650.9 | 14,684.7 | 6.6 % | | Gross profit | 1,129.9 | 961.0 | 17.6 % | | Gross margin | 7.22 % | 6.54 % | 68 bps | | Operating income | 474.9 | 392.9 | 20.9 % | | Operating margin | 3.03 % | 2.68 % | 35 bps | | Net income | 296.2 | 245.4 | 20.7 % | | Diluted EPS | 3.58 | 2.86 | 25.2 % | [Key Operational and Shareholder Return Highlights](index=1&type=section&id=Key%20Operational%20and%20Shareholder%20Return%20Highlights) TD SYNNEX exceeded its outlook for revenue and non-GAAP gross billings, generated strong cash flow from operations, and significantly increased shareholder returns through share repurchases and a 10% higher quarterly dividend - **Revenue of $15.7 billion**, up **6.6% YoY** (4.4% constant currency), exceeding outlook[5](index=5&type=chunk) - **Non-GAAP gross billings of $22.7 billion**, up **12.1% YoY** (10.1% constant currency), exceeding outlook[5](index=5&type=chunk) - **Cash provided by operations was $246 million**, with **free cash flow of $214 million**[5](index=5&type=chunk) - **Returned $210 million to stockholders** ($174 million in share repurchases, $36 million in dividends), and announced a **10% YoY increase in quarterly cash dividend to $0.44 per share**[5](index=5&type=chunk) [Detailed Fiscal 2025 Third Quarter Performance Analysis](index=2&type=section&id=Detailed%20Fiscal%202025%20Third%20Quarter%20Performance%20Analysis) This section provides an in-depth analysis of TD SYNNEX's Q3 FY25 consolidated and regional financial performance, highlighting revenue growth, margin improvements, and cash flow dynamics [Consolidated Performance Details](index=2&type=section&id=Consolidated%20Performance%20Details) TD SYNNEX's consolidated performance in Q3 FY25 showed robust growth across key financial metrics, with revenue increasing by 6.6% and non-GAAP gross billings by 12.1% year-over-year, both exceeding outlooks. Gross margin improved by 68 basis points, partly due to a higher percentage of sales presented on a net basis - **Revenue increased by 6.6% to $15.7 billion** (4.4% constant currency), driven by growth in Advanced Solutions and Endpoint Solutions portfolios, despite a negative 5% impact from sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings rose 12.1% to $22.7 billion** (10.1% constant currency)[8](index=8&type=chunk) - **Gross profit increased to $1.1 billion** from $961 million, with **gross margin improving to 7.2% from 6.5%**, positively impacted by approximately 35 basis points due to net basis revenue presentation[8](index=8&type=chunk) - **GAAP diluted EPS grew 31.7% to $2.74**, and **non-GAAP diluted EPS grew 25.2% to $3.58**[8](index=8&type=chunk) - **Cash provided by operations decreased to $246 million** from $386 million, and **free cash flow decreased to $214 million** from $339 million[8](index=8&type=chunk) - **Shareholder returns significantly increased to $210 million** from $91 million in the prior year[8](index=8&type=chunk) [Regional Performance Analysis](index=2&type=section&id=Regional%20Performance%20Analysis) TD SYNNEX reported varied regional performance, with APJ showing the strongest revenue and non-GAAP gross billings growth, followed by Europe, while Americas also contributed positively despite a negative impact from sales mix on revenue [Americas Region](index=2&type=section&id=Americas%20Region) The Americas region saw a 2.0% increase in revenue to $9.3 billion and a 9.0% increase in non-GAAP gross billings, with operating income growing by 28.4% to $284 million - **Revenue increased 2.0% to $9.3 billion** (2.0% constant currency), negatively impacted by approximately 7% due to sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings grew 9.0% to $14.2 billion** (9.0% constant currency)[8](index=8&type=chunk) - **Operating income rose 28.4% to $284 million**, with **non-GAAP operating income up 23.4% to $336 million**[8](index=8&type=chunk) - **Operating margin improved to 3.1% from 2.4%**, and **non-GAAP operating margin to 3.6% from 3.0%**[8](index=8&type=chunk) [Europe Region](index=2&type=section&id=Europe%20Region) Europe's revenue grew by 12.7% to $5.2 billion, and non-GAAP gross billings increased by 14.9%, with operating income rising 22.6% to $70 million - **Revenue increased 12.7% to $5.2 billion** (6.0% constant currency), negatively impacted by approximately 2% due to sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings grew 14.9% to $6.9 billion** (8.4% constant currency)[8](index=8&type=chunk) - **Operating income rose 22.6% to $70 million**, with **non-GAAP operating income up 14.2% to $107 million**[8](index=8&type=chunk) - **Operating margin improved to 1.4% from 1.3%**, while **non-GAAP operating margin remained stable at 2.1%**[8](index=8&type=chunk) [Asia-Pacific and Japan (APJ) Region](index=2&type=section&id=Asia-Pacific%20and%20Japan%20(APJ)%20Region) The APJ region demonstrated strong growth, with revenue increasing by 20.4% to $1.2 billion and non-GAAP gross billings surging by 29.7%, while operating income grew by 20.5% to $30 million - **Revenue increased 20.4% to $1.2 billion** (19.2% constant currency), negatively impacted by approximately 9% due to sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings surged 29.7% to $1.7 billion** (28.7% constant currency)[14](index=14&type=chunk) - **Operating income rose 20.5% to $30 million**, with **non-GAAP operating income up 18.5% to $31 million**[14](index=14&type=chunk) - **Operating margin remained stable at 2.5%**, while **non-GAAP operating margin slightly decreased to 2.6% from 2.7%**[14](index=14&type=chunk) [Fiscal 2025 Fourth Quarter Outlook](index=3&type=section&id=Fiscal%202025%20Fourth%20Quarter%20Outlook) TD SYNNEX provided an outlook for the fiscal 2025 fourth quarter, projecting revenue between $16.5 billion and $17.3 billion, and non-GAAP diluted EPS between $3.45 and $3.95 Q4 FY25 Financial Outlook | Metric | Q4 2025 Outlook (Range) | | :--- | :--- | | Revenue | $16.5 - $17.3 billion | | Non-GAAP gross billings | $23.0 - $24.0 billion | | Net income | $204 - $245 million | | Non-GAAP net income | $281 - $322 million | | Diluted earnings per share | $2.50 - $3.00 | | Non-GAAP diluted earnings per share | $3.45 - $3.95 | | Estimated outstanding diluted weighted average shares | 80.7 million | [Dividend Announcement](index=3&type=section&id=Dividend) TD SYNNEX's Board of Directors declared a quarterly cash dividend of $0.44 per common share, payable on October 31, 2025, to stockholders of record as of October 17, 2025 - Quarterly cash dividend declared: **$0.44 per common share**[10](index=10&type=chunk) - Payable on October 31, 2025, to stockholders of record as of October 17, 2025[10](index=10&type=chunk) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast) TD SYNNEX hosted a conference call on September 25, 2025, to discuss its fiscal 2025 third-quarter results, with a live audio webcast and replay available on its investor relations website - Conference call held on September 25, 2025, at 6:00 AM (PT)/9:00 AM (ET)[11](index=11&type=chunk) - Live audio webcast and replay available at ir.tdsynnex.com[11](index=11&type=chunk) [About TD SYNNEX](index=3&type=section&id=About%20TD%20SYNNEX) TD SYNNEX is a global IT ecosystem distributor and solutions aggregator, serving over 150,000 customers in 100+ countries with a comprehensive edge-to-cloud portfolio focused on high-growth technology segments like cloud, cybersecurity, AI, and IoT. The company emphasizes its commitment to corporate citizenship, diversity, and inclusion - Leading global distributor and solutions aggregator for the IT ecosystem, serving **over 150,000 customers in 100+ countries**[12](index=12&type=chunk) - Portfolio anchored in high-growth technology segments including cloud, cybersecurity, big data/analytics, AI, IoT, mobility, and everything as a service[12](index=12&type=chunk) - Committed to corporate citizenship, diversity, and inclusion[13](index=13&type=chunk) [Use of Non-GAAP Financial Information](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) This section clarifies the definitions and rationale behind TD SYNNEX's use of non-GAAP financial measures, explaining their exclusion of certain costs to provide a clearer view of operational performance [Non-GAAP Metrics Definitions](index=4&type=section&id=Non-GAAP%20Metrics%20Definitions) This section defines various non-GAAP financial measures used by TD SYNNEX, including non-GAAP gross billings, constant currency adjustments, gross to net percentage, adjusted selling, general and administrative expenses, non-GAAP operating income and margin, EBITDA and Adjusted EBITDA, non-GAAP net income and diluted EPS, free cash flow, and trailing fiscal four quarters return on invested capital (ROIC) - **Non-GAAP gross billings** represent amounts billed to customers before ASC Topic 606 adjustments, useful for understanding business volume[16](index=16&type=chunk) - **Constant currency adjustments** remove foreign currency translation effects to facilitate period-to-period performance comparisons[16](index=16&type=chunk) - **Non-GAAP operating income and margin, net income, and diluted EPS** exclude acquisition, integration, and restructuring costs, amortization of intangible assets, and share-based compensation expense[16](index=16&type=chunk) - **Free cash flow** is cash from operating activities minus property and equipment purchases, providing an additional liquidity measure[16](index=16&type=chunk) [Rationale for Non-GAAP Measures](index=5&type=section&id=Rationale%20for%20Non-GAAP%20Measures) TD SYNNEX uses non-GAAP financial measures to provide investors with a clearer understanding of its operational results and underlying business performance by excluding certain non-recurring or non-cash expenses like acquisition costs, intangible asset amortization, and share-based compensation - **Acquisition, integration, and restructuring costs are excluded** as they are primarily professional services, severance, and debt extinguishment fees not related to ordinary operations[17](index=17&type=chunk) - **Amortization of intangible assets is excluded** because it does not directly relate to product sales and fluctuates with acquisition activity, not underlying business performance[18](index=18&type=chunk) - **Share-based compensation expense is excluded** due to its non-cash nature, variability, and subjective assumptions, allowing for better period-to-period comparisons of operating results[19](index=19&type=chunk) - Management uses non-GAAP measures internally for business understanding, goal setting, and performance evaluation, believing they offer greater transparency for investors[20](index=20&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) This section contains a safe harbor statement, cautioning that forward-looking statements in the news release are subject to inherent uncertainties and various risks, which may cause actual results to differ materially from expectations - Forward-looking statements are subject to inherent uncertainties and risks, which may cause actual results to differ materially from expectations[21](index=21&type=chunk) - Risks include legal proceedings, key personnel retention, economic conditions, IT spending weakness, seasonality, customer buying patterns, supplier/customer concentration, competitive conditions, and changes in tax laws, among others[22](index=22&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated balance sheets, statements of operations, and cash flows, providing a comprehensive overview of the company's financial position and performance [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present TD SYNNEX's financial position as of August 31, 2025, and November 30, 2024, showing total assets, liabilities, and stockholders' equity Consolidated Balance Sheet Highlights (August 31, 2025 vs November 30, 2024) | Metric | August 31, 2025 ($ Thousand) | November 30, 2024 ($ Thousand) | | :--- | :--- | :--- | | Total assets | 31,683,202 | 30,274,479 | | Total liabilities | 23,229,401 | 22,239,045 | | Total stockholders' equity | 8,453,801 | 8,035,434 | | Cash and cash equivalents | 874,350 | 1,059,378 | | Accounts receivable, net | 10,925,068 | 10,341,625 | | Inventories | 9,137,505 | 8,287,048 | | Current borrowings | 1,194,794 | 171,092 | | Accounts payable | 15,651,286 | 15,084,107 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations detail the company's revenues, expenses, and net income for the three and nine months ended August 31, 2025, and 2024, reflecting growth in revenue and profitability Consolidated Statements of Operations Highlights (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 15,650,924 | 14,684,712 | | Gross profit | 1,129,853 | 961,048 | | Operating income | 383,657 | 302,879 | | Net income | 226,795 | 178,556 | | Diluted EPS | 2.74 | 2.08 | Consolidated Statements of Operations Highlights (Nine Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 45,128,946 | 42,607,873 | | Gross profit | 3,174,232 | 2,940,361 | | Operating income | 1,016,255 | 869,399 | | Net income | 579,253 | 494,289 | | Diluted EPS | 6.92 | 5.67 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows show the cash generated from operating, investing, and financing activities for the three and nine months ended August 31, 2025, and 2024, indicating a decrease in cash from operating activities but an overall net increase in cash and cash equivalents for the quarter Consolidated Statements of Cash Flows Highlights (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 246,141 | 385,782 | | Net cash used in investing activities | (105,679) | (80,776) | | Net cash used in financing activities | (59,366) | (637,952) | | Net increase (decrease) in cash and cash equivalents | 107,251 | (319,725) | | Cash and cash equivalents at end of period | 874,350 | 853,923 | Consolidated Statements of Cash Flows Highlights (Nine Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 71,326 | 655,783 | | Net cash used in investing activities | (176,757) | (181,573) | | Net cash used in financing activities | (185,964) | (655,436) | | Net increase (decrease) in cash and cash equivalents | (185,028) | (179,853) | | Cash and cash equivalents at end of period | 874,350 | 853,923 | [Regional Financial Highlights (Supplemental Table)](index=10&type=section&id=Regional%20Financial%20Highlights%20-%20Fiscal%202025%20Third%20Quarter) This supplemental table provides a detailed breakdown of revenue, non-GAAP gross billings, operating income, and operating margins for the Americas, Europe, and APJ regions for Q3 FY25 compared to Q3 FY24 Regional Financial Highlights (Q3 FY25 vs Q3 FY24) | Region | Metric | Q3 FY25 ($ Million) | Q3 FY24 ($ Million) | Net Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Americas** | Revenue | 9,267.9 | 9,090.0 | 2.0 % | | | Non-GAAP gross billings | 14,200.7 | 13,025.9 | 9.0 % | | | Operating income | 283.6 | 220.9 | 28.4 % | | | Non-GAAP operating income | 336.1 | 272.3 | 23.4 % | | | Operating margin | 3.06 % | 2.43 % | 63 bps | | | Non-GAAP operating margin | 3.63 % | 3.00 % | 63 bps | | **Europe** | Revenue | 5,174.8 | 4,591.2 | 12.7 % | | | Non-GAAP gross billings | 6,863.5 | 5,971.2 | 14.9 % | | | Operating income | 70.4 | 57.4 | 22.6 % | | | Non-GAAP operating income | 107.3 | 94.0 | 14.2 % | | | Operating margin | 1.36 % | 1.25 % | 11 bps | | | Non-GAAP operating margin | 2.07 % | 2.05 % | 2 bps | | **APJ** | Revenue | 1,208.2 | 1,003.5 | 20.4 % | | | Non-GAAP gross billings | 1,667.0 | 1,285.4 | 29.7 % | | | Operating income | 29.6 | 24.6 | 20.5 % | | | Non-GAAP operating income | 31.5 | 26.6 | 18.5 % | | | Operating margin | 2.45 % | 2.45 % | 0 bps | | | Non-GAAP operating margin | 2.60 % | 2.65 % | (5) bps | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20financial%20measures) This section provides detailed reconciliations between GAAP and non-GAAP financial measures, including revenue, gross billings, operating income, net income, diluted EPS, EBITDA, and free cash flow [Revenue in Constant Currency Reconciliation](index=11&type=section&id=Revenue%20in%20constant%20currency) This section reconciles GAAP revenue to revenue in constant currency for consolidated and regional results, showing the impact of foreign currency fluctuations on reported revenue for the three and nine months ended August 31, 2025 Consolidated Revenue in Constant Currency (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 15,650,924 | 14,684,712 | | Impact of changes in foreign currencies | (315,675) | — | | Revenue in constant currency | 15,335,249 | 14,684,712 | Regional Revenue in Constant Currency (Three Months Ended August 31, FY25) | Region | Revenue ($ Thousand) | Impact of FX ($ Thousand) | Constant Currency Revenue ($ Thousand) | | :--- | :--- | :--- | :--- | | Americas | 9,267,939 | 2,093 | 9,270,032 | | Europe | 5,174,835 | (306,316) | 4,868,519 | | APJ | 1,208,150 | (11,452) | 1,196,698 | [Non-GAAP Gross Billings Reconciliation](index=12&type=section&id=Non-GAAP%20gross%20billings) This section reconciles GAAP revenue to non-GAAP gross billings for consolidated and regional results, including the impact of costs netted against revenue for third-party supplier service contracts and SaaS arrangements, and also presents non-GAAP gross billings in constant currency Consolidated Non-GAAP Gross Billings (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 15,650,924 | 14,684,712 | | Costs netted against revenue | 7,080,243 | 5,597,768 | | Non-GAAP gross billings | 22,731,167 | 20,282,480 | | Impact of changes in foreign currencies | (401,400) | — | | Non-GAAP gross billings in constant currency | 22,329,767 | 20,282,480 | Regional Non-GAAP Gross Billings (Three Months Ended August 31, FY25) | Region | Revenue ($ Thousand) | Costs Netted Against Revenue ($ Thousand) | Non-GAAP Gross Billings ($ Thousand) | Constant Currency Non-GAAP Gross Billings ($ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Americas | 9,267,939 | 4,932,726 | 14,200,665 | 14,203,734 | | Europe | 5,174,835 | 1,688,636 | 6,863,471 | 6,471,141 | | APJ | 1,208,150 | 458,881 | 1,667,031 | 1,654,892 | [Adjusted Selling, General and Administrative Expenses Reconciliation](index=13&type=section&id=Adjusted%20selling%2C%20general%20and%20administrative%20expenses) This section reconciles GAAP selling, general and administrative (SG&A) expenses to adjusted SG&A expenses by excluding amortization of intangibles and share-based compensation, and presents these as percentages of revenue, non-GAAP gross billings, and gross profit Adjusted SG&A Expenses Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Selling, general and administrative expenses | 743,892 | 657,513 | | Amortization of intangibles | (76,541) | (73,173) | | Share-based compensation | (12,427) | (16,176) | | Adjusted selling, general and administrative expenses | 654,924 | 568,164 | - Adjusted SG&A expenses as a percentage of non-GAAP gross billings were **2.88% in Q3 FY25**, up from 2.80% in Q3 FY24[38](index=38&type=chunk) - Adjusted SG&A expenses as a percentage of gross profit were **58.0% in Q3 FY25**, down from 59.1% in Q3 FY24[38](index=38&type=chunk) [Non-GAAP Operating Income & Margin Reconciliation](index=14&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20Consolidated) This section provides a detailed reconciliation of GAAP operating income and margin to non-GAAP operating income and margin for consolidated results and each geographical region, by adjusting for acquisition, integration, and restructuring costs, amortization of intangibles, and share-based compensation [Consolidated Operating Income & Margin](index=14&type=section&id=Consolidated%20Operating%20Income%20%26%20Margin) Consolidated non-GAAP operating income for Q3 FY25 was $474.9 million, up 20.9% YoY, with non-GAAP operating margin improving to 3.03% from 2.68% Consolidated Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 383,657 | 302,879 | | Acquisition, integration and restructuring costs | 2,304 | 656 | | Amortization of intangibles | 76,541 | 73,173 | | Share-based compensation | 12,427 | 16,176 | | Non-GAAP operating income | 474,929 | 392,884 | | Operating margin | 2.45 % | 2.06 % | | Non-GAAP operating margin | 3.03 % | 2.68 % | [Americas Operating Income & Margin](index=14&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20Americas) Americas non-GAAP operating income for Q3 FY25 increased to $336.1 million, up 23.4% YoY, with non-GAAP operating margin improving to 3.63% from 3.00% Americas Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 283,647 | 220,900 | | Acquisition, integration and restructuring costs | 1,526 | 259 | | Amortization of intangibles | 42,429 | 41,459 | | Share-based compensation | 8,512 | 9,703 | | Non-GAAP operating income | 336,114 | 272,321 | | Operating margin | 3.06 % | 2.43 % | | Non-GAAP operating margin | 3.63 % | 3.00 % | [Europe Operating Income & Margin](index=14&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20Europe) Europe's non-GAAP operating income for Q3 FY25 was $107.3 million, up 14.2% YoY, with non-GAAP operating margin slightly increasing to 2.07% from 2.05% Europe Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 70,419 | 57,415 | | Acquisition, integration and restructuring costs | 375 | 224 | | Amortization of intangibles | 33,299 | 30,896 | | Share-based compensation | 3,251 | 5,459 | | Non-GAAP operating income | 107,344 | 93,994 | | Operating margin | 1.36 % | 1.25 % | | Non-GAAP operating margin | 2.07 % | 2.05 % | [APJ Operating Income & Margin](index=15&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20APJ) APJ's non-GAAP operating income for Q3 FY25 reached $31.5 million, up 18.5% YoY, with non-GAAP operating margin slightly decreasing to 2.60% from 2.65% APJ Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 29,591 | 24,564 | | Acquisition, integration and restructuring costs | 403 | 173 | | Amortization of intangibles | 813 | 818 | | Share-based compensation | 664 | 1,014 | | Non-GAAP operating income | 31,471 | 26,569 | | Operating margin | 2.45 % | 2.45 % | | Non-GAAP operating margin | 2.60 % | 2.65 % | [EBITDA & Adjusted EBITDA Reconciliation](index=15&type=section&id=EBITDA%20%26%20adjusted%20EBITDA) This section reconciles net income to EBITDA and Adjusted EBITDA by adding back interest, taxes, depreciation, amortization, other income/expense, acquisition/restructuring costs, and share-based compensation EBITDA & Adjusted EBITDA Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net income | 226,795 | 178,556 | | Interest expense and finance charges, net | 91,188 | 80,447 | | Provision for income taxes | 66,466 | 42,358 | | Depreciation | 29,295 | 25,015 | | Amortization of intangibles | 76,541 | 73,173 | | EBITDA | 490,285 | 399,549 | | Other (income) expense, net | (792) | 1,518 | | Acquisition, integration and restructuring costs | 2,304 | 656 | | Share-based compensation | 12,427 | 16,176 | | Adjusted EBITDA | 504,224 | 417,899 | [Non-GAAP Net Income & Diluted EPS Reconciliation](index=16&type=section&id=Non-GAAP%20net%20income%20%26%20non-GAAP%20diluted%20EPS) This section reconciles GAAP net income and diluted EPS to their non-GAAP counterparts by adjusting for acquisition/restructuring costs, amortization of intangibles, share-based compensation, and their related tax effects Non-GAAP Net Income & Diluted EPS Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net income | 226,795 | 178,556 | | Acquisition, integration and restructuring costs | 2,304 | 656 | | Amortization of intangibles | 76,541 | 73,173 | | Share-based compensation | 12,427 | 16,176 | | Income taxes related to the above | (21,823) | (23,122) | | Non-GAAP net income | 296,244 | 245,439 | | Diluted EPS | 2.74 | 2.08 | | Non-GAAP Diluted EPS | 3.58 | 2.86 | [Free Cash Flow Reconciliation](index=17&type=section&id=Free%20cash%20flow) This section reconciles net cash provided by operating activities to free cash flow by deducting purchases of property and equipment Free Cash Flow Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 246,141 | 385,782 | | Purchases of property and equipment | (32,221) | (47,142) | | Free cash flow | 213,920 | 338,640 | [Non-GAAP Outlook Reconciliation](index=17&type=section&id=Non-GAAP%20net%20income%20and%20non-GAAP%20Diluted%20EPS) This section provides a reconciliation of the fiscal Q4 2025 outlook for GAAP net income and diluted EPS to their non-GAAP equivalents, adjusting for estimated amortization of intangibles, share-based compensation, and related tax effects. It also reconciles revenue to non-GAAP gross billings for the outlook period Q4 FY25 Non-GAAP Net Income & Diluted EPS Outlook Reconciliation (Range) | Metric | Low ($ Million) | High ($ Million) | | :--- | :--- | :--- | | Net income | 204 | 245 | | Amortization of intangibles | 75 | 75 | | Share-based compensation | 25 | 25 | | Income taxes related to the above | (23) | (23) | | Non-GAAP net income | 281 | 322 | | Diluted EPS | 2.50 | 3.00 | | Non-GAAP Diluted EPS | 3.45 | 3.95 | Q4 FY25 Non-GAAP Gross Billings Outlook Reconciliation (Range) | Metric | Low ($ Billion) | High ($ Billion) | | :--- | :--- | :--- | | Revenue | 16.5 | 17.3 | | Costs incurred and netted against revenue | 6.5 | 6.7 | | Non-GAAP gross billings | 23.0 | 24.0 | [Calculation of Financial Metrics](index=18&type=section&id=Calculation%20of%20Financial%20Metrics) This section details the calculation of key financial metrics, including Return on Invested Capital (ROIC) and the Cash Conversion Cycle, providing insights into the company's efficiency and liquidity [Return on Invested Capital (ROIC)](index=18&type=section&id=Return%20on%20Invested%20Capital%20(ROIC)) This section details the calculation of both GAAP ROIC and Adjusted ROIC, showing the company's efficiency in generating returns from its invested capital over the trailing fiscal four quarters ROIC Calculation (Trailing Fiscal Four Quarters) | Metric | August 31, 2025 ($ Thousand) | August 31, 2024 ($ Thousand) | | :--- | :--- | :--- | | Operating income after taxes | 1,055,734 | 921,183 | | Total invested capital (last five quarters average) | 11,515,934 | 11,249,490 | | ROIC | 9.2 % | 8.2 % | Adjusted ROIC Calculation (Trailing Fiscal Four Quarters) | Metric | August 31, 2025 ($ Thousand) | August 31, 2024 ($ Thousand) | | :--- | :--- | :--- | | Non-GAAP operating income after taxes | 1,324,702 | 1,266,719 | | Total non-GAAP invested capital (last five quarters average) | 13,186,982 | 12,616,916 | | Adjusted ROIC | 10.0 % | 10.0 % | [Cash Conversion Cycle](index=19&type=section&id=Cash%20Conversion%20Cycle) This section calculates the cash conversion cycle, a key liquidity metric, by combining days sales outstanding, days inventory outstanding, and days payable outstanding for the three months ended August 31, 2025, and 2024 Cash Conversion Cycle (Three Months Ended August 31) | Metric | FY25 (Days) | FY24 (Days) | | :--- | :--- | :--- | | Days sales outstanding | 64 | 63 | | Days inventory outstanding | 58 | 51 | | Days payable outstanding | 99 | 93 | | Cash conversion cycle | 23 | 21 |

FREMONT, Calif. and CLEARWATER, Fla.--(BUSINESS WIRE)--TD SYNNEX (NYSE: SNX) today announced financial results for the fiscal third quarter ended August 31, 2025. Consolidated Financial Highlights for the Fiscal 2025 Third Quarter: GAAP ($ in millions, except earnings per share)       Q3 FY25 Q3 FY24 Net Change from Q3 FY24 Revenue $ 15,650.9 $ 14,684.7 6.6 % Gross profit $ 1,129.9 $ 961.0 17.6 % Gross margin 7.22 % 6.54 % 68 bps  Operating income  . ...

Company Overview - TD SYNNEX Corporation is a significant player in the business process services sector, distributing a variety of products including PC systems, mobile phones, IT systems, and consumer electronics. The company also offers systems design, logistics, cloud services, and marketing services to resellers, system integrators, and retailers, positioning itself as a key player in the technology distribution industry [1] Price Target Trends - The consensus price target for TD SYNNEX has shown an upward trend over the past year, increasing from $148.22 a year ago to $155.6 in the last quarter, and further to $173 in the past month, indicating growing optimism among analysts regarding the company's stock performance [2][6] Financial Performance - In the second quarter, TD SYNNEX reported strong financial results, surpassing guidance with significant revenue growth, improved profit margins, and impressive cash generation. The company's business model, focusing on scale and efficient management of working capital, supports its high-quality economic framework [3][6] Upcoming Earnings Report - The upcoming third-quarter earnings report is expected to reflect higher earnings for TD SYNNEX, with the stock having already increased by 5.8% since the last earnings report 30 days ago. Despite a lower price target of $130 from analyst Matthew Sheerin, the overall sentiment remains positive, with a valuation analysis suggesting a fair value between $170 and $175 [4][5] Investment Case - The strong financial performance of TD SYNNEX, along with a trailing free cash flow yield of 6% and steady dividend growth, strengthens the investment case for the company [5]