Core Insights - DarcyIQ has launched the AWS Partner Edition, aimed at automating deal flow management and enhancing sales cycles for AWS partners [1][2] - The platform is designed to address the administrative complexities faced by AWS partners, thereby increasing deal velocity [2][3] Product Features - Partner Opportunity Discovery automates the identification and engagement of potential customers, streamlining the lead generation process [3] - Partner Opportunity Submission tracks deals and automates submissions to the AWS ACE platform, ensuring proper attribution and reducing administrative tasks [4] - Funding Discovery and Submission analyzes deal specifics to identify relevant AWS funding programs, maximizing co-funding opportunities [4] Benefits for Partners - The platform enhances lead quality by focusing on pre-qualified opportunities that align with partners' expertise [7] - It accelerates sales cycles by reducing the time from opportunity identification to deal closure through intelligent automation [7] - Subscription plans for the DarcyIQ AWS Partner Edition start at $150 per month, making it accessible for various partner organizations [6] Company Background - DarcyIQ is developed by Innovative Solutions, an AWS Premier consulting partner with over three decades of cloud expertise and a 99.7% customer retention rate [8] - Innovative Solutions specializes in cloud migrations, generative AI solutions, and strategic cloud consulting [8] - TD SYNNEX, a global distributor and solutions aggregator, collaborates with Innovative Solutions to enhance partner capabilities within the AWS ecosystem [10]

PART I FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarterly period ended May 31, 2025, providing a comprehensive view of the company's financial position and performance [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of May 31, 2025, TD SYNNEX reported total assets of $30.51 billion, a slight increase from $30.27 billion at the end of the previous fiscal year, primarily driven by higher inventories and goodwill Consolidated Balance Sheet Summary (in thousands) | | May 31, 2025 | November 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $21,492,779 | $21,324,696 | | **Total assets** | $30,509,182 | $30,274,479 | | **Total current liabilities** | $17,122,402 | $17,221,235 | | **Total liabilities** | $22,166,815 | $22,239,045 | | **Total stockholders' equity** | $8,342,367 | $8,035,434 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended May 31, 2025, revenue increased 7.2% year-over-year to $14.95 billion, with net income rising 28.8% to $184.9 million, resulting in a diluted EPS of $2.21 Key Performance Indicators (Three Months Ended May 31) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $14,946,315 | $13,947,908 | +7.2% | | Gross Profit | $1,046,373 | $973,547 | +7.5% | | Operating Income | $328,139 | $263,948 | +24.3% | | Net Income | $184,921 | $143,605 | +28.8% | | Diluted EPS | $2.21 | $1.66 | +33.1% | Key Performance Indicators (Six Months Ended May 31) | Metric | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $29,478,022 | $27,923,161 | +5.6% | | Gross Profit | $2,044,379 | $1,979,313 | +3.3% | | Operating Income | $632,598 | $566,520 | +11.7% | | Net Income | $352,458 | $315,733 | +11.6% | | Diluted EPS | $4.19 | $3.60 | +16.4% | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the three months ended May 31, 2025, was $469.0 million, primarily driven by a significant positive foreign currency translation adjustment Comprehensive Income Summary (in thousands) | | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | | :--- | :--- | :--- | | Net income | $184,921 | $143,605 | | Other comprehensive income (loss) | $284,051 | ($13,212) | | **Comprehensive income** | **$468,972** | **$130,393** | [Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) For the six months ended May 31, 2025, total stockholders' equity increased to $8.34 billion, driven by net income, partially offset by common stock repurchases and cash dividends - Key changes in stockholders' equity for the six months ended May 31, 2025 include: - Net Income: **+$352.5 million** - Repurchases of common stock: **-$251.5 million** - Cash dividends declared: **-$74.1 million**[19](index=19&type=chunk) - Cash dividends declared per share increased to **$0.44** for the quarter and **$0.88** for the six-month period, compared to **$0.40** and **$0.80** in the respective prior-year periods[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended May 31, 2025, the company experienced a net cash outflow from operating activities of $174.8 million, a significant shift from a net inflow in the prior-year period Cash Flow Summary (Six Months Ended May 31, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($174,815) | $270,001 | | Net cash used in investing activities | ($71,078) | ($100,797) | | Net cash used in financing activities | ($126,598) | ($17,484) | | **Net (decrease) increase in cash** | **($292,279)** | **$139,872** | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed disclosures supporting the consolidated financial statements, including segment information, revenue concentration, debt facilities, and derivative instruments - The company operates in three reportable segments based on geographic regions: the Americas, Europe, and Asia-Pacific and Japan (APJ)[22](index=22&type=chunk) Revenue Concentration from Key Vendors | Vendor | Three Months Ended May 31, 2025 | Six Months Ended May 31, 2025 | | :--- | :--- | :--- | | Apple, Inc. | 11% | 12% | | HP Inc. | 11% | 10% | - Acquisition, integration, and restructuring activities related to the Tech Data merger were completed in the first half of fiscal 2024, with no related expenses in Q2 2025[48](index=48&type=chunk) Segment Performance (Three Months Ended May 31, 2025) | Segment | Revenue (in thousands) | Operating Income (in thousands) | | :--- | :--- | :--- | | Americas | $9,009,195 | $252,646 | | Europe | $4,889,997 | $50,312 | | APJ | $1,047,123 | $25,181 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a 7.2% year-over-year revenue increase, improved operating margin, and details on liquidity and capital resources [Overview](index=27&type=section&id=Overview) TD SYNNEX operates as a leading global distributor and solutions aggregator for the IT ecosystem, characterized by low gross and operating margins across its Endpoint and Advanced Solutions portfolios - The company's strategic imperatives include expanding its portfolio, targeting new customers, growing its addressable market with new vendors, diversifying offerings, and accelerating its focus on services[107](index=107&type=chunk) - The company's two primary solutions portfolios are Endpoint Solutions (personal computing, mobile phones) and Advanced Solutions (data center, hybrid cloud, security, AI)[105](index=105&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) For the second quarter of 2025, revenue grew 7.2% year-over-year to $14.9 billion, with operating income increasing 24.3% to $328.1 million, primarily due to significantly lower merger integration costs Revenue by Segment (Three Months Ended May 31) | Segment | Revenue 2025 (in thousands) | Revenue 2024 (in thousands) | % Change | Constant Currency % Change | | :--- | :--- | :--- | :--- | :--- | | **Consolidated** | **$14,946,315** | **$13,947,908** | **7.2%** | **6.3%** | | Americas | $9,009,195 | $8,557,573 | 5.3% | 5.7% | | Europe | $4,889,997 | $4,426,775 | 10.5% | 7.3% | | APJ | $1,047,123 | $963,560 | 8.7% | 7.6% | - Consolidated revenue growth for Q2 was partially offset by a greater percentage of sales being presented on a net basis, which had a negative impact of approximately **$700 million**, or **5%**, compared to the prior-year quarter[118](index=118&type=chunk) - Q2 Gross margin was relatively consistent at **7.00%** vs **6.98%** YoY. The presentation of more revenue on a net basis positively impacted gross margin by approximately **31 basis points**[126](index=126&type=chunk)[127](index=127&type=chunk) - Acquisition, integration, and restructuring costs were minimal at **$0.7 million** in Q2 2025, compared to **$37.9 million** in Q2 2024, which was the primary driver for the increase in operating income[133](index=133&type=chunk)[137](index=137&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company's business is working capital intensive, with a cash conversion cycle of 23 days, maintaining significant liquidity through various credit facilities and borrowing arrangements Cash Conversion Cycle (in days) | Period Ended | DSO | DIO | DPO | CCC | | :--- | :--- | :--- | :--- | :--- | | May 31, 2025 | 62 | 57 | 96 | 23 | | Nov 30, 2024 | 60 | 51 | 93 | 18 | | May 31, 2024 | 59 | 50 | 86 | 23 | - Net cash used in operating activities for the six months ended May 31, 2025 was **$174.8 million**, compared to net cash provided by operating activities of **$270.0 million** in the prior year period, primarily due to changes in working capital[164](index=164&type=chunk) - As of May 31, 2025, the company had total outstanding borrowings of approximately **$4.1 billion**, including **$2.4 billion** in Senior Notes and **$1.3 billion** in term loans[175](index=175&type=chunk) - During the three months ended May 31, 2025, the company repurchased **1.4 million shares** for **$148.8 million**. As of May 31, 2025, **$1.5 billion** remained available for future repurchases[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that there have been no material changes in its market risks since the fiscal year ended November 30, 2024 - No material changes have occurred in the Company's market risks since November 30, 2024[181](index=181&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's management concluded that its disclosure controls and procedures were effective as of May 31, 2025, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by the report[183](index=183&type=chunk) - There were no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[184](index=184&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) This section details ongoing legal matters, including an appealed fine from the French Competition Authority and a related civil lawsuit where the company believes the likelihood of a material loss is remote - The company is appealing a fine from the French Competition Authority, which was reduced from **€76.1 million** to **€24.9 million**. The reduced amount has been paid[94](index=94&type=chunk) - A related civil lawsuit by eBizcuss was dismissed by the Paris Commercial Court, but eBizcuss has appealed the ruling. The company believes the likelihood of a material loss is remote[94](index=94&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The company reports that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended November 30, 2024 - There have been no material changes to the risk factors disclosed in the Company's 2024 Annual Report on Form 10-K[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details its share repurchase activity, including a new $2.0 billion program authorized in March 2024, with $148.8 million spent on repurchases during the quarter Issuer Purchases of Equity Securities (Quarter Ended May 31, 2025) | Period | Total Shares Purchased (thousands) | Average Price Paid per Share | Maximum Dollar Value Remaining for Purchase (in thousands) | | :--- | :--- | :--- | :--- | | March 2025 | 110 | $122.95 | $1,669,962 | | April 2025 | 1,001 | $102.29 | $1,567,594 | | May 2025 | 273 | $120.28 | $1,534,704 | | **Total** | **1,384** | **$107.49** | **$1,534,704** | [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) On May 12, 2025, Marshall Witt, the company's Chief Financial Officer, established a Rule 10b5-1 trading arrangement for the pre-arranged sale of company common stock through June 30, 2026 - On May 12, 2025, CFO Marshall Witt adopted a Rule 10b5-1 trading plan for the sale of company common stock, which will be in effect until June 30, 2026[190](index=190&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, an amendment to a receivables funding agreement, and certifications by the CEO and CFO - The exhibits filed with this report include: - Corporate governance documents (Certificate of Incorporation, Bylaws) - Sixth Omnibus Amendment to the Receivables Funding and Administration Agreement - Rule 13a-14(a) Certifications of the CEO and CFO - Section 906 Certifications of the CEO and CFO[193](index=193&type=chunk)

Company Overview - TD SYNNEX is a leading global IT distributor and solutions aggregator, providing a comprehensive range of technology distribution, logistics, and integration services [12] - The company was rebranded from SYNNEX Corporation to TD SYNNEX in September 2021 after merging with Tech Data Corporation, significantly expanding its global reach and vendor partnerships [12] Investment Analysis - TD SYNNEX currently holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [13] - The company has a Momentum Style Score of A, with shares increasing by 12.3% over the past four weeks [13] - For fiscal 2025, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.12 to $11.95 per share [13] - TD SYNNEX has an average earnings surprise of 3%, suggesting a positive outlook for earnings performance [13] - With a strong Zacks Rank and top-tier Momentum and VGM Style Scores, TD SYNNEX is recommended for investors' consideration [14]

Group 1 - The analyst previously downgraded TD Synnex Corp. (NYSE: SNX) to a hold rating due to concerns about demand outlook and disappointing performance from Hyve [1] - The analyst has now upgraded the rating, indicating a change in perspective regarding the company's potential [1] - The analyst emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies [1] Group 2 - The article serves as a platform for tracking investment ideas and connecting with like-minded investors [1]

Group 1 - TD Synnex Corporation (NYSE: SNX) distributes IT hardware and software, including personal computing, cloud, networking, storage, and other tech solutions [1] - The company has strategically shifted its focus to its advanced solutions portfolio, which includes data center solutions and hyper-converged infrastructure-related hardware [1]

Core Insights - TD SYNNEX reported revenue of $14.95 billion for the quarter ended May 2025, reflecting a year-over-year increase of 7.2% and surpassing the Zacks Consensus Estimate by 4.38% [1] - Earnings per share (EPS) for the quarter was $2.99, up from $2.73 in the same quarter last year, exceeding the consensus EPS estimate of $2.69 by 11.15% [1] Revenue Breakdown - Revenue from the Americas was $9.01 billion, exceeding the two-analyst average estimate of $8.74 billion, with a year-over-year change of 5.3% [4] - Revenue from the Asia-Pacific and Japan region was $1.05 billion, surpassing the two-analyst average estimate of $1.03 billion, representing an 8.7% year-over-year increase [4] - Revenue from Europe reached $4.89 billion, compared to the average estimate of $4.54 billion based on two analysts, showing a year-over-year change of 10.5% [4] Stock Performance - Over the past month, TD SYNNEX shares have returned 5.1%, outperforming the Zacks S&P 500 composite's return of 3.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - TD SYNNEX reported quarterly earnings of $2.99 per share, exceeding the Zacks Consensus Estimate of $2.69 per share, and up from $2.73 per share a year ago, representing an earnings surprise of +11.15% [1] - The company posted revenues of $14.95 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 4.38%, compared to revenues of $13.95 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 Performance - TD SYNNEX shares have increased approximately 8.8% since the beginning of the year, outperforming the S&P 500's gain of 2.4% [3] - The current consensus EPS estimate for the upcoming quarter is $2.99 on revenues of $15.05 billion, and for the current fiscal year, it is $11.82 on revenues of $60.19 billion [7] Industry Outlook - The Zacks Industry Rank for Electronics - Miscellaneous Products is currently in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly impact stock performance [5][8]

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 [6][13] - Net revenue rose by 7% year over year to $14.9 billion, exceeding guidance [14] - Non-GAAP diluted EPS was $2.99, above the upper end of guidance [18] Business Line Data and Key Metrics Changes - Endpoint Solutions portfolio gross billings grew by 13% year over year, driven by a PC refresh cycle [14] - Advanced Solutions portfolio gross billings increased by 12% year over year, with a 10% growth when excluding Hive [14] - Software billings grew by 20%, supported by cloud, cybersecurity, and infrastructure software [7] 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 [7] - APJ region showed strong performance, particularly in India and Japan, contributing to overall growth [88] Company Strategy and Development Direction - The company aims to unify reach, target new customers, expand distribution markets, diversify offerings, and accelerate services [8] - The strategy includes leveraging digital capabilities to enhance customer operational efficiency and drive sales growth [10] - The company is focused on generating profitable growth and free cash flow while being a valued partner to vendors and customers [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in strong financial positioning heading into the second half of the year [20] - The company expects non-GAAP gross billings for Q3 to be in the range of $21 billion to $22 billion, representing approximately 6% growth at the midpoint [20] - Management remains cautiously optimistic about demand trends, particularly in the public sector and technology segments [34][56] Other Important Information - Free cash flow generation for the quarter was approximately $543 million, with $186 million returned to shareholders [18] - The company ended the quarter with $767 million in cash and cash equivalents and a gross leverage ratio of 2.4 times [19] 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 [31] Question: Are there any weaknesses observed in regions or product lines? - Management stated that current demand is in line with guidance, but uncertainties regarding tariffs and geopolitical issues could impact future performance [58] Question: What is the current status of the PC refresh cycle? - Management believes the company is in the middle of the refresh cycle, which began one to two quarters ago, contributing positively to growth [77] Question: What is driving the sequential margin improvement in the PC business? - Management attributed margin improvement to increased demand and a stronger pricing environment during the refresh cycle, along with favorable product mix [81][84]

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]

Investor Presentation June 2025 Safe harbor statement Statements in this presentation regarding TD SYNNEX that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward- looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from TD SYNNEX expectations as a result of a variety of fact ...