TD SYNNEX (US:SNX)2026-01-27 21:03Company Operations - The company operates in three reportable segments: the Americas, Europe, and Asia-Pacific and Japan (APJ) [15]. - The company serves an active reseller base of more than 150,000 customers, including VARs, ISVs, corporate resellers, and government resellers [25]. - The company operates 168 distribution and administrative facilities globally, enhancing order fulfillment efficiency and reducing shipping costs [41]. - The company occupies 168 facilities covering approximately 15.2 million square feet, with 2.7 million square feet owned and the remainder leased [172]. Financial Performance - Revenue from Apple, Inc. accounted for 12% of consolidated revenue for the twelve months ended November 30, 2025, while HP Inc. contributed 10% [23]. - Consolidated revenue for fiscal year 2025 was $62,508,086, an increase of 6.9% from $58,452,436 in 2024 [204]. - Revenue in constant currency for fiscal year 2025 was $62,008,041, reflecting a 6.1% increase from 2024 [204]. - Gross profit for fiscal year 2025 increased to $4,368,982, up 9.7% from $3,981,306 in 2024 [208]. - The company reported a net income of 1.32% of total revenue for fiscal year 2025, compared to 1.18% in fiscal year 2024 [197]. - Gross profit margin increased to 6.99% in fiscal year 2025 from 6.81% in fiscal year 2024 [197]. - Selling, general and administrative (SG&A) expenses rose to $2,946,883, an increase of 8.5% from $2,715,781 in 2024 [211]. - Adjusted SG&A expenses for fiscal year 2025 were $2,584,197, reflecting a 9.8% increase from $2,354,276 in 2024 [211]. Customer and Supplier Relationships - One customer represented 11% of total revenue in fiscal years 2025, 2024, and 2023, indicating a stable revenue stream from key accounts [27]. - The company relies on a limited number of OEM suppliers, with significant sales concentration from major suppliers like Apple and HP [86]. - The company monitors customer creditworthiness and has purchased credit insurance in most geographies to control customer credit risks [51]. - The company has significant credit exposure to customers, with a risk of credit loss due to potential financial difficulties faced by customers [101]. Market and Economic Factors - Approximately 48% of consolidated revenue for fiscal year 2025 was generated by international operations [45]. - The company anticipates fluctuations in revenue and operating results due to various factors, including economic conditions and IT spending levels [81]. - The company faces low gross margins, which magnify the impact of variations in revenue and operating costs on operating results [90]. - The company is affected by economic factors such as inflation, interest rates, and geopolitical developments impacting IT product demand [193]. - Global economic conditions remain uncertain due to inflation, elevated interest rates, and geopolitical developments, which could negatively affect the company's stock price and operational costs [154]. Technology and Innovation - The company has a comprehensive catalog of over 200,000 technology products from approximately 2,500 OEMs, enabling it to offer extensive solutions to reseller and retail customers [18]. - The company provides cloud-based solutions, including IaaS, PaaS, and SaaS, to support reseller customers in migrating to hosted technologies [36]. - The company continues to invest in IT systems to improve product and inventory management and streamline order processes [53]. - The IT systems manage the entire order cycle, enhancing operational efficiency and providing visibility into operations [53]. - The company is dependent on IT and telecommunications systems, with potential disruptions impacting order processing and customer relationships [102]. Risk Management - The Board of Directors oversees the company's enterprise risk management process, including cybersecurity risks, with regular reporting from the Chief Information Security Officer [169]. - The company has engaged in various remedial actions, including enhancing data security and governance programs, to prevent further unauthorized access to its network [149]. - The company maintains cybersecurity insurance coverage deemed appropriate for its business size and complexity to cover costs related to cybersecurity incidents [166]. - The company faces risks related to the integration of acquired operations, which could increase expenses and divert management attention [99]. - The company may face legal and regulatory challenges related to AI technology, which could result in substantial costs and reputational damage [104]. Acquisitions and Investments - The company completed the acquisition of Apptium Technologies for approximately $105.1 million on July 1, 2025, enhancing its technology solutions [195]. - Acquisition costs related to the acquisition of Apptium in fiscal year 2025 amounted to $3.7 million [214]. - The company has pursued strategic acquisitions and investments in new markets, which may involve risks and additional costs [95]. Shareholder Actions - A cash dividend of $0.48 per share was announced for stockholders of record as of January 16, 2026, payable on January 30, 2026 [185]. - The company authorized a new $2.0 billion share repurchase program in March 2024, supplementing the remaining $196.7 million from a previous program [186]. - Total shares repurchased in the quarter ended November 30, 2025, amounted to 1,131 shares at an average price of $152.87 per share [187].