Core Insights - TD SYNNEX reported revenue of $17.38 billion for the quarter ended November 2025, marking a year-over-year increase of 9.7% and exceeding the Zacks Consensus Estimate of $16.89 billion by 2.92% [1] - The company's EPS for the same period was $3.83, up from $3.09 a year ago, although it did not meet the consensus EPS estimate of $3.68 [1] Revenue Breakdown - Revenue from the Americas was $9.51 billion, slightly below the average estimate of $9.61 billion, reflecting a year-over-year change of +2.9% [4] - Revenue from Europe reached $6.49 billion, surpassing the estimated $5.69 billion, with a year-over-year increase of +18.1% [4] - Revenue from the Asia-Pacific and Japan (APJ) region was $1.38 billion, exceeding the average estimate of $1.24 billion, representing a year-over-year growth of +24.7% [4] Stock Performance - Over the past month, shares of TD SYNNEX have returned -3.4%, contrasting with the Zacks S&P 500 composite's increase of +0.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - TD SYNNEX Corporation reported strong earnings growth and positive investor actions, setting a favorable outlook for fiscal 2026 [1] Earnings Performance - The company achieved fourth-quarter revenue of $17.4 billion, exceeding analysts' expectations of $16.9 billion, representing a 9.7% year-over-year increase [2] - On a constant-currency basis, revenue increased by 7.5% year-over-year, driven by growth in Advanced Solutions and Endpoint Solutions, although a higher mix of net-reported sales reduced reported revenue by approximately 5% year-over-year [2] Segment Revenue Growth - Revenue growth was observed across all regions: Americas up 2.9% year-over-year to $9.5 billion, Europe up 18.1% year-over-year to $6.5 billion, and Asia-Pacific and Japan up 24.7% year-over-year to $1.4 billion [3] - Adjusted gross billings rose 14.7% year-over-year to $24.3 billion, surpassing the company's outlook [3] Profitability Metrics - Adjusted operating income increased to $497 million from $422 million in the same quarter last year, with operating margin improving to 2.9% from 2.7% [3] - Adjusted EPS for the quarter was reported at $3.83, exceeding the forecast of $3.73 per share, reflecting a 24.0% year-over-year growth [4] Cash Flow and Dividends - Operating cash flow grew to $1.5 billion from $562 million last year, while free cash flow rose to $1.4 billion from $513 million [4] - The company returned $209 million to shareholders through share repurchases and dividends, and announced a quarterly cash dividend of 48 cents per share, a 9.1% increase from the previous dividend of 44 cents [5] Future Outlook - The CEO expressed confidence in the company's positioning for the upcoming year, supported by a specialized business model and a focus on high-growth technologies [6] - For the first quarter of fiscal 2026, the company projects adjusted EPS between $3.00 and $3.50, compared to the consensus estimate of $3.21, and sales between $15.1 billion and $15.9 billion, against expectations of $15.43 billion [6] - Adjusted gross billings for the next quarter are projected to be between $22.7 billion and $23.7 billion [7] Stock Performance - TD SYNNEX shares increased by 3.26% to $155.92 at the time of publication [7]

Financial Data and Key Metrics Changes - For the full year, the business excluding Hive saw gross billings increase in the high single digits year over year, with improvements in both gross margin and operating margin [5] - In Q4, non-GAAP gross billings reached $24.3 billion, a 15% increase year over year, or 13% in constant currency, while non-GAAP diluted earnings per share rose 24% year over year to $3.83, setting new records for the company [5][6] - Net revenue for Q4 was $17.4 billion, up 10% year over year, with gross profit increasing 15% to $1.2 billion [17] Business Line Data and Key Metrics Changes - The Endpoint Solutions portfolio increased gross billings by 12% year over year, driven by demand for PCs due to the Windows 11 refresh [15] - The Advanced Solutions portfolio saw a 17% increase in gross billings year over year, with Hive contributing over 50% growth primarily from server and networking rack builds [16] - Hive's operating income also grew significantly year over year, becoming a larger portion of the overall mix [6] Market Data and Key Metrics Changes - North America experienced steady growth supported by demand across key customer segments and increased security requirements [7] - Europe outperformed expectations with growth driven by infrastructure software and PC device upgrades, despite a slow macroeconomic backdrop [7] - Asia-Pacific and Japan remained key growth engines, driven by rapid cloud expansion and strong demand from digitizing economies [7] Company Strategy and Development Direction - The company is focusing on four strategic pillars: omnichannel engagement, specialized go-to-market, best-in-class enablement, and expanding brand visibility [8][13] - Investments in the Partner-First Digital Bridge and AI capabilities are aimed at enhancing customer engagement and simplifying transactions [8] - The company aims to strengthen its competitive position as a strategic business partner, focusing on sustainable long-term growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value proposition of Hive and IT distribution, highlighting substantial untapped market opportunities [14] - The company anticipates continued growth in the PC market, driven by ongoing refresh cycles and AI compatibility [62] - Management remains focused on generating sustainable free cash flow and improving return on invested capital [22][24] Other Important Information - Free cash flow for FY25 was $1.4 billion, marking the third consecutive year of over $1 billion in free cash flow [19] - The company returned $742 million to shareholders over the fiscal year, representing approximately 61% of free cash flow [20] - The board approved a cash dividend of $0.48 per common share, payable on January 30, 2026 [22] Q&A Session Summary Question: Growth in Europe and Asia-Pacific - Management noted that growth in Asia-Pacific is driven by significant market share gains and investments in high-growth segments, particularly in India [27][28] - In Europe, the company is gaining market share by targeting technologies and customer segments that offer higher growth than the market average [30] Question: Impact of Component Costs on Demand - Management confirmed that while memory prices have increased, they have not seen demand destruction, and guidance reflects a bottom-up assessment from regions [34][37] Question: Visibility for Hyve Programs - Management expressed confidence in the margin profile of Hyve and noted ongoing investments to expand capabilities and capacity [51][60] Question: Net Revenue Conversion Dynamics - Management explained that the increase in gross-to-net adjustments is influenced by a higher mix of software and certain Hive programs, which are netted [70][71]

Financial Data and Key Metrics Changes - The company reported non-GAAP gross billings of $24.3 billion for Q4, representing a 15% year-over-year increase, or 13% in constant currency [5][15] - Non-GAAP diluted earnings per share reached $3.83, marking a 24% year-over-year increase, setting a new record for the company [5][18] - Gross profit increased by 15% year-over-year to $1.2 billion, with a gross margin percentage of 5%, remaining flat year-over-year [17] - Non-GAAP operating income rose 18% year-over-year to $497 million, with an operating margin of 2.04%, reflecting a 5 basis point improvement [17] Business Line Data and Key Metrics Changes - The Endpoint Solutions portfolio saw a 12% increase in gross billings year-over-year, driven by demand for PCs due to the Windows 11 refresh [15] - The Advanced Solutions portfolio increased gross billings by 17% year-over-year, with Hyve contributing over 50% growth, primarily from server and networking rack builds [16][19] - Hyve's gross billings increased by more than 50% year-over-year, indicating strong demand from hyperscaler customers [6][14] Market Data and Key Metrics Changes - North America experienced steady growth, supported by demand across key customer segments and increased security requirements [7] - Europe outperformed expectations, growing faster than anticipated due to infrastructure software and PC device upgrades [7] - Asia-Pacific and Japan remained key growth engines, driven by rapid cloud expansion and strong demand from digitizing economies [7] - Latin America delivered double-digit growth, reflecting strong engagement across the portfolio [7] Company Strategy and Development Direction - The company is focusing on four strategic pillars: omnichannel engagement, specialized go-to-market, best-in-class enablement, and expanding brand visibility [8][13] - Investments in the Partner-First Digital Bridge and AI capabilities are aimed at enhancing customer engagement and simplifying transactions [8][9] - The company aims to strengthen its competitive position as a strategic business partner, focusing on sustainable long-term growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value proposition of Hyve and IT distribution, highlighting substantial untapped market opportunities [14] - The company anticipates continued growth in the PC market, driven by ongoing refresh cycles and AI compatibility [62] - Management remains optimistic about sustaining growth rates in Asia-Pacific and Europe, attributing it to effective market share strategies [27][30] Other Important Information - Free cash flow for the fiscal year was $1.4 billion, marking the third consecutive year of generating over $1 billion in free cash flow [19][20] - The company returned $742 million to shareholders over the fiscal year, representing approximately 61% of free cash flow [20] - The board approved a cash dividend of $0.48 per common share, payable on January 30, 2026 [22] Q&A Session Summary Question: Growth in Europe and Asia-Pacific - Management confirmed significant market share gains in Asia-Pacific, with high double-digit growth driven by strategic investments [27] - In Europe, the company outperformed market growth, executing a well-defined strategy targeting high-growth technologies [30] Question: Impact of Component Costs on Demand - Management acknowledged rising memory prices but noted no significant demand destruction observed, with guidance reflecting regional insights [34][36] Question: Visibility and Margins for Hyve - Management expressed confidence in Hyve's margin profile and ongoing investments to support growth, indicating a healthy pipeline compared to the previous year [60] Question: Net Revenue and Cash Flow Dynamics - Management explained that the expected cash outflow in Q1 is typical for the business, with strong cash generation anticipated in the latter half of the year [47]

Financial Data and Key Metrics Changes - For Q4 2025, non-GAAP gross billings reached $24.3 billion, a 15% increase year over year, or 13% in constant currency, while non-GAAP diluted earnings per share rose 24% year over year to $3.83, setting new records for the company [4][5] - Gross operating margins expanded year over year due to operational efficiencies and disciplined margin management, with non-GAAP operating income increasing 18% year over year to $497 million [16][17] - Free cash flow for the quarter was $1.4 billion, contributing to a total of $1.4 billion for the fiscal year, marking the third consecutive year of generating over $1 billion in annual free cash flow [17][18] Business Line Data and Key Metrics Changes - The Endpoint Solutions portfolio saw a 12% increase in gross billings year over year, driven by demand for PCs and the Windows 11 refresh [14][15] - The Advanced Solutions portfolio increased gross billings by 17% year over year, with Hive contributing over 50% growth, primarily from server and networking rack builds [15][16] - Hive's operating income also grew significantly year over year, indicating its increasing importance in the overall business mix [5][12] Market Data and Key Metrics Changes - North America experienced steady growth, supported by demand across key customer segments and increased security requirements [6] - Europe outperformed expectations with growth driven by infrastructure software and PC device upgrades, despite a slow macroeconomic backdrop [6] - Asia-Pacific and Japan remained key growth engines, fueled by rapid cloud expansion and strong demand from digitizing economies [6][7] Company Strategy and Development Direction - The company is focusing on four strategic pillars: omnichannel engagement, specialized go-to-market, best-in-class enablement, and expanding brand visibility [8][12] - Investments in the Partner-First Digital Bridge and AI capabilities are aimed at enhancing customer engagement and simplifying transactions [8][9] - The company aims to strengthen its competitive position as a strategic business partner, focusing on sustainable long-term growth [12][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value proposition of Hive and IT distribution, highlighting substantial untapped market opportunities [13][14] - The company anticipates continued growth in the PC market, driven by ongoing refresh cycles and AI compatibility [62] - Guidance for Q1 2026 includes non-GAAP gross billings expected to range from $22.7 billion to $23.7 billion, reflecting a 12% increase at the midpoint [21][22] Other Important Information - The company returned $742 million to shareholders in FY25, representing approximately 61% of free cash flow during that period [18] - The board approved a cash dividend of $0.48 per common share, payable on January 30, 2026 [21] Q&A Session Summary Question: Growth in Europe and Asia-Pacific - Management noted that growth in Asia-Pacific is driven by market share gains and investments in high-growth segments, particularly in India [25][26] - In Europe, the company is gaining significant market share through a well-executed strategy targeting high-growth technologies [28][29] Question: Impact of Component Costs on Demand - Management confirmed that while memory prices have increased, they have not seen demand destruction, and guidance reflects regional forecasts [32][33] Question: Visibility for Hyve Programs - Management expressed confidence in the margin profile of Hyve and noted ongoing investments to expand capabilities and capture new programs [60][61] Question: Net Revenue Conversion and Software Growth - Management indicated that the increase in netted down effects is due to a higher mix of software and Hive programs, which are expected to grow as a portion of overall billings [70][71]

Financial Performance - FQ4'25 - Non-GAAP gross billings reached $24.3 billion, a 15% year-over-year increase[6, 8] - Non-GAAP diluted EPS was $3.83, up 24% year-over-year[6, 8] - Free cash flow was $1.4 billion[6] - The company returned approximately $209 million to stockholders[6] - Non-GAAP operating margin was 2.86%, a 20 bps year-over-year increase[6, 8] Geographic Performance - FQ4'25 - Americas non-GAAP gross billings were $14.1 billion, a 9% year-over-year increase[10] - Europe non-GAAP gross billings were $8.4 billion, a 21% year-over-year increase[10] - APJ (Asia-Pacific and Japan) non-GAAP gross billings were $1.8 billion, a 34% year-over-year increase[10] Strategic Technologies - Strategic technologies accounted for approximately 29% of non-GAAP gross billings[6, 22] - Advanced Solutions non-GAAP gross billings increased by 17%[15] - Endpoint Solutions non-GAAP gross billings increased by 12%[15] FQ1'26 Outlook - The company projects non-GAAP gross billings between $22.7 billion and $23.7 billion[12] - The company projects non-GAAP diluted earnings per share between $3.00 and $3.50[12]

Financial Performance - Revenue for Q4 FY25 was $17.4 billion, an increase of 9.7% year-over-year, exceeding the high end of the outlook[5] - Non-GAAP gross billings reached $24.3 billion, up 14.7% year-over-year, also above the high end of the outlook[5] - Diluted EPS was $3.04, a 32.8% increase from $2.29 in Q4 FY24, while non-GAAP diluted EPS was $3.83, up 24.0% year-over-year[3][5] - Operating income for Q4 FY25 was $399 million, a 22.7% increase from $325 million in Q4 FY24, with a non-GAAP operating income of $497 million, up 17.9%[3][5] - Cash provided by operations was $1.5 billion, compared to $562 million in the previous year, and free cash flow was $1.4 billion, up from $513 million[5][8] - The company's net income for the twelve months ended November 30, 2025, was $827,660, up 20.1% from $689,091 in 2024[28] - Net income for the three months ended November 30, 2025, was $248.4 million, an increase of 27.5% from $194.8 million in the same period last year[30] - Total revenue for the fiscal year 2025 reached $62.5 billion, up from $58.5 billion in fiscal year 2024, representing a growth of 3.5%[34] - Operating income for the Americas region in Q4 FY25 was $275.4 million, a 20.9% increase from $227.7 million in Q4 FY24[32] - Operating income for the three months ended November 30, 2025, was $398,664, a 22.7% increase compared to $324,812 in the same period of 2024[40] Cash Flow and Dividends - The company returned $209 million to stockholders through share repurchases and dividends, compared to $136 million in the prior year[5][8] - A quarterly cash dividend of $0.48 per common share was announced, representing a 9% increase year-over-year[10] - Net cash provided by operating activities for the twelve months ended November 30, 2025, was $1.5 billion, compared to $1.2 billion for the previous year, marking a 25.7% increase[30] - Cash and cash equivalents at the end of the period were $2.4 billion, significantly up from $1.1 billion at the end of the previous year[30] - Free cash flow for the three months ended November 30, 2025, was $1,422,085, significantly higher than $512,881 in the same period of 2024[46] Revenue by Region - The Americas region reported revenue of $9.5 billion, a 2.9% increase, while Europe saw revenue growth of 18.1% to $6.5 billion[8] - Revenue from the Americas for the three months ended November 30, 2025, was $9,510,048, a 2.9% increase from $9,241,168 in the same period of 2024[40] - Revenue for the Europe region in Q4 FY25 was $6.5 billion, an 18.1% increase from $5.5 billion in Q4 FY24[32] - The APJ region reported revenue of $1.4 billion in Q4 FY25, a 24.7% increase from $1.1 billion in Q4 FY24[32] - Revenue in constant currency for the consolidated entity was $17.0 billion for the three months ended November 30, 2025, compared to $15.8 billion in the same period last year, indicating a growth of 7.4%[34] Assets and Liabilities - Total current assets increased to $25,289,438 as of November 30, 2025, from $21,324,696 in 2024, marking a growth of 18.6%[26] - The company's total assets reached $34,250,898 as of November 30, 2025, compared to $30,274,479 in 2024, indicating a year-over-year increase of 13.2%[26] - Current liabilities rose to $20,960,840 as of November 30, 2025, from $17,221,235 in 2024, an increase of 21.3%[26] Non-GAAP Measures - The company's share-based compensation expense is a non-cash expense that can vary significantly between periods due to the timing of grants[19] - TD SYNNEX management uses non-GAAP financial measures to provide investors with a clearer understanding of operational results and trends[20] - Non-GAAP gross billings for the twelve months ended November 30, 2025, reached $89,423,923, up 11.7% from $80,065,019 in 2024[36] - Non-GAAP operating income for the twelve months ended November 30, 2025, was $1,784,785, compared to $1,627,030 in 2024, reflecting a growth of 9.7%[40] - Non-GAAP operating margin for the three months ended November 30, 2025, was 2.86%, compared to 2.66% in the same period of 2024[40] Future Outlook - For Q1 FY26, the company expects revenue between $15.1 billion and $15.9 billion, with non-GAAP gross billings projected at $22.7 billion to $23.7 billion[9] - Forward-looking statements include guidance related to the first quarter of 2026, highlighting the uncertainty of actual results due to various risks[21] - The forecast for non-GAAP net income for the three months ending February 28, 2026, is between $243 million and $283 million[46] - The company expects non-GAAP gross billings for the three months ending February 28, 2026, to be between $22.7 billion and $23.7 billion[46] Efficiency Metrics - Return on Invested Capital (ROIC) for the twelve months ended November 30, 2025, was 9.7%, up from 8.5% in 2024[48] - The cash conversion cycle improved to 16 days for the three months ended November 30, 2025, down from 18 days in the same period of 2024[50]

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Core Viewpoint - TD SYNNEX Corporation is expected to report a slight increase in quarterly earnings and revenue for the fourth quarter of 2024, with analysts projecting earnings of 94 cents per share and revenue of $1.99 billion, compared to 93 cents and $1.96 billion in the previous year [1] Group 1: Earnings and Revenue Expectations - The earnings report for TD SYNNEX is scheduled for January 8, 2025, before market opening [1] - Analysts anticipate a quarterly earnings increase to 94 cents per share, up from 93 cents in the same quarter last year [1] - The consensus revenue estimate for the quarter is $1.99 billion, an increase from $1.96 billion year-over-year [1] Group 2: Analyst Ratings and Price Target - Morgan Stanley analyst Erik Woodring has maintained an Overweight rating on TD SYNNEX while lowering the price target from $181 to $177 [2] - The company currently offers an annual dividend yield of 1.15%, translating to a quarterly dividend of 44 cents per share, or $1.76 annually [2] Group 3: Dividend Yield Calculation - To achieve a monthly income of $500 from dividends, an investment of approximately $522,054 or around 3,409 shares is required [3] - For a more modest monthly income of $100, an investment of about $104,441 or around 682 shares is necessary [3] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on stock price changes [4] Group 4: Impact of Stock Price on Dividend Yield - Changes in stock price directly affect the dividend yield; for instance, if a stock's price increases, the yield decreases, and vice versa [4] - If a company increases its dividend while the stock price remains constant, the yield will increase [5] - TD SYNNEX shares experienced a slight decline of 0.2%, closing at $153.14 [5]

Earnings Report - TD SYNNEX Corporation is set to release its fourth-quarter earnings results on January 8, 2025, before the market opens [1] - Analysts project quarterly earnings of 94 cents per share, an increase from 93 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.99 billion, up from $1.96 billion a year earlier [1] Analyst Rating and Price Target - Morgan Stanley analyst Erik Woodring has maintained an Overweight rating on TD SYNNEX, while lowering the price target from $181 to $177 [2] Dividend Information - TD SYNNEX currently has an annual dividend yield of 1.15%, translating to a quarterly dividend of 44 cents per share, or $1.76 annually [2] - To achieve a monthly income of $500 from dividends, an investment of approximately $522,054 or around 3,409 shares is required [3] - For a more modest monthly income of $100, an investment of $104,441 or around 682 shares is needed [3] Dividend Yield Calculation - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price [4] - Changes in stock price affect the dividend yield; for instance, if a stock priced at $50 pays a $2 annual dividend, the yield is 4%, but if the price rises to $60, the yield drops to 3.33% [4] Impact of Dividend Changes - Increases in dividend payments will raise the yield if the stock price remains constant, while decreases will lower the yield [5] - TD SYNNEX shares fell by 0.2% to close at $153.14 on Monday [5]