Financial Data and Key Metrics Changes - Overall revenue for Q4 2025 was $2 billion, a decrease of 1% compared to the previous year, primarily due to a 4% decline in product revenue, with on-prem software down 18% as clients shifted to cloud solutions [17][19] - Total gross profit increased by 9%, with EMEA gross profit rising by 30%, driven by demand in UAE and Saudi Arabia [18] - Adjusted diluted earnings per share were $2.96, reflecting an 11% increase [19] Business Line Data and Key Metrics Changes - Cloud gross profit was $138 million, an increase of 11%, with growth in both SaaS and Infrastructure as a Service [18] - Core services revenue increased by 7%, primarily due to acquisitions, with gross profit up 16% [17][18] - Hardware revenue grew by 2%, marking the fourth consecutive quarter of growth [17] Market Data and Key Metrics Changes - EMEA showed strong growth, particularly in the UAE and Saudi Arabia, contributing significantly to overall performance [6][18] - The company noted a cautious outlook for corporate and large enterprise client spending in 2026, with expectations of subdued growth [16][23] Company Strategy and Development Direction - The company aims to simplify complexity for clients and deliver measurable outcomes through integrated solutions, focusing on cloud modernization, security, and AI adoption [17][24] - Recent acquisitions, including Inspire11 and Sekuro, are expected to enhance technical expertise and cross-sell opportunities [15][16] - The company is committed to advancing its AI capabilities, with the launch of the Prism AI platform to assist clients in AI adoption [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating subdued spending across the industry and monitoring supply chain dynamics [16][23] - The company highlighted the importance of infrastructure investments as clients prepare for AI implementation [16][34] - Management acknowledged the challenges faced in 2025 but emphasized progress in transforming the company into a leading AI-first solutions integrator [14][25] Other Important Information - The company increased its share repurchase authorization by $150 million, bringing the total to $299 million at year-end [21] - Total debt at the end of Q4 was approximately $1.4 billion, up from $900 million a year ago, primarily due to acquisitions and share repurchases [21][22] - The company filed over 200 patent applications globally, with more than 70 patents issued to date, covering innovations in AI and machine learning [13] Q&A Session Summary Question: Guidance for 2026 and IT budgets - Management discussed the cautious approach to guidance for 2026, emphasizing the impact of market uncertainties and past performance [30][31] - IT budgets for large enterprises are expected to remain subdued, with a focus on preserving funds for AI-related investments [33][34] Question: Partner program changes impact - The impact of partner program changes was quantified at $70 million for 2025, with expectations of a tail effect into 2026, particularly in the second half [42][46] Question: AI data center opportunities - Management highlighted the complexity and potential for AI data center investments, indicating a significant growth vector for the business [49][51] Question: Memory cost and supply chain disruptions - Expectations of 10% to 25% increases in PC prices due to memory costs were discussed, along with the potential impact on customer spending [55][56]

Group 1 - TD SYNNEX has announced the acquisition of Japan-based Gateway Computer Corporation [1] - This acquisition is part of TD SYNNEX's strategy to expand its presence in the Japanese market [1] - The financial details of the acquisition have not been disclosed [1] Group 2 - The acquisition is expected to enhance TD SYNNEX's product offerings and customer base in the region [1] - Gateway Computer Corporation is known for its strong brand presence in Japan [1] - This move aligns with the growing trend of consolidation in the technology distribution industry [1]

Group 1 - European stocks opened positively after the U.S. Federal Reserve cut interest rates for the first time since December, indicating more cuts may follow due to signs of labor market weakness [1] - The pan-European STOXX 600 index increased by 0.7 percent to 554.35, with notable gains in major indices: the German DAX rose by 1.2 percent, France's CAC 40 surged by 1 percent, and the U.K.'s FTSE 100 added 0.3 percent [2] Group 2 - Domino's Pizza in Britain experienced a decline of 1.1 percent following the appointment of a new CFO [3] - Bytes Technology Group, operating in IT solutions and services, saw a rally of 2.2 percent after reporting a resilient performance in the first half [3] - Retailer Next Plc faced a significant drop of 5 percent after issuing a warning about slowing sales in the second half [3] - Engineering giant Renishaw surged by 7.5 percent after reporting record full-year revenue and stronger adjusted profit [3]

Financial Performance - Revenue remained relatively stable at $1.58 billion, reflecting a (0.1)% change at actual currency (AC) and a (1.1)% change at constant currency (CC) [6] - Adjusted operating margin increased from 3.7% to 5.4% [7] - Free cash flow was $(30) million, compared to $115 million in the previous year [8] - Adjusted earnings per share (EPS) improved to $0.29 from $(0.64) [10] Strategic Initiatives and Acquisitions - The company acquired Lexmark in July 2025, expecting to drive operating efficiencies and increase competitiveness in the A4 print segment [13] - The acquisition of ITsavvy doubled IT Solutions (ITS) revenue and enhanced the ITS offering [13] - The company expects to realize more than $250 million of total synergies within two years of the Lexmark transaction close [23] Segment Results - Print & Other segment revenue decreased by (8.6)% AC and (9.7)% CC to $1.366 billion [37] - IT Solutions segment revenue increased significantly by 153.6% AC and 152.4% CC to $213 million, driven by the acquisition of ITsavvy [40] Guidance and Outlook - The company expects Lexmark to contribute around $1 billion of revenue and $100 to $110 million of adjusted operating income in 2025 [34] - Free cash flow guidance for 2025 was revised to approximately $250 million, reflecting tariff expenses and accelerated Lexmark synergy implementation costs [34]