Core Insights - TD SYNNEX (SNX) reported non-GAAP earnings of $3.83 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate by 4.1% and reflecting a 24% year-over-year increase [1][10] - Revenues for SNX increased by 9.7% year-over-year to $17.4 billion, surpassing the consensus mark by 7.9% [1][10] - The company anticipates Q1 fiscal 2026 revenues between $15.1 billion and $15.9 billion, with non-GAAP earnings projected to be in the range of $3.00 to $3.50 per share [9][10] Revenue Breakdown - Endpoint Solutions revenues reached $9.0 billion, marking a 12% year-over-year growth [3] - Advanced Solutions revenues totaled $8.3 billion, reflecting a 7% year-over-year growth [3] Profitability Metrics - Non-GAAP gross profit increased by 14.8% year-over-year to $1.19 billion, with gross margin expanding by 30 basis points to 6.87% [3] - Non-GAAP operating income rose by 17.9% to $497 million, with operating margin expanding by 20 basis points to 2.86% [4] Expenses and Cash Flow - Adjusted SG&A expenses increased to $697.72 million from $619.41 million year-over-year, with SG&A as a percentage of revenues expanding by 5 basis points to 4.56% [4] - Cash provided by operational activities was $1.5 billion in Q4, compared to $246 million in the previous quarter, with free cash flow of $1.4 billion [7] Shareholder Returns - The company returned $209 million to shareholders in Q4, including $173 million in share repurchases and $36 million in dividends [7] - A 9% increase in the quarterly cash dividend was announced, raising it to 48 cents per share [8] Balance Sheet Overview - As of November 30, 2025, cash and cash equivalents stood at $2.43 billion, up from $874.35 million as of August 31, 2025 [6] - Long-term debt increased to $3.59 billion from $3.04 billion in the prior quarter [6]

Core Insights - TD SYNNEX Corporation (NYSE: SNX) is a prominent distributor and solutions provider in the IT industry, competing with major players like Ingram Micro and Tech Data, and has recently reported strong financial results that positively impacted its stock performance [1] Financial Performance - On January 8, 2026, SNX reported an EPS of $3.83, surpassing the estimated $3.68, and marking a significant increase from the previous year's EPS of $3.09, reflecting strong operational performance and strategic initiatives [2][6] - The company achieved a revenue of approximately $17.38 billion, exceeding the estimated $16.95 billion, representing a 9.7% increase from the previous year, driven by advancements in Advanced Solutions and Endpoint Solutions, with a constant-currency growth of 7.5% year over year [3][6] - Adjusted gross billings rose by 14.7% year over year to $24.3 billion, indicating strong demand for SNX's offerings [4][6] Regional Performance - Revenue growth was observed across all regions, with the Americas seeing a 2.9% increase to $9.5 billion, Europe experiencing an 18.1% rise to $6.5 billion, and Asia-Pacific and Japan surging by 24.7% to $1.4 billion [4] Financial Metrics - The company has a price-to-earnings (P/E) ratio of approximately 14.51, indicating the market's valuation of its earnings, and a price-to-sales ratio of about 0.20, suggesting the market's valuation relative to its revenue [5] - SNX's debt-to-equity ratio is approximately 0.12, indicating a relatively low level of debt compared to its equity, which is favorable for its financial stability [5]

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 - 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]

Core Insights - TD SYNNEX (SNX) reported non-GAAP earnings of $3.58 per share for Q3 FY2025, exceeding the Zacks Consensus Estimate by 18.5% and reflecting a 25.2% year-over-year increase [1][9] - Revenues for the quarter reached $15.7 billion, a 6.6% year-over-year growth, surpassing the consensus mark by 3.4% [1][9] - The company provided optimistic guidance for Q4, expecting revenues between $16.5 billion and $17.3 billion, and non-GAAP earnings per share between $3.45 and $3.95 [10] Financial Performance - Endpoint Solutions revenues were $7.7 billion, marking an 11% year-over-year growth, while Advanced Solutions revenues reached $7.9 billion, reflecting a 2% year-over-year growth [3][9] - Non-GAAP gross profit increased by 17.6% year-over-year to $1.13 billion, with gross margin expanding by 68 basis points to 7.22% [3] - Adjusted SG&A expenses rose to $654.9 million from $568.2 million year-over-year, with SG&A as a percentage of revenues increasing by 27 basis points to 4.75% [4] Cash Flow and Shareholder Returns - Cash provided by operational activities was $246 million, down from $573.2 million in the previous quarter, while free cash flow was $214 million compared to $543 million in the prior quarter [7] - The company returned $210 million to shareholders through $174 million in share repurchases and $36 million in dividends [7] - A 10% increase in the quarterly cash dividend was announced, raising it to 44 cents per share, demonstrating commitment to shareholder value [8] Balance Sheet - As of August 31, 2025, cash and cash equivalents stood at $874.35 million, up from $767.1 million as of May 31, 2025 [6] - Long-term debt decreased to $3.04 billion from $3.72 billion in the previous quarter [6]

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]

Core Insights - TD SYNNEX reported strong Q2 fiscal 2025 earnings, with non-GAAP earnings of $2.99 per share, exceeding estimates by 11.15% and reflecting a 9.5% year-over-year increase [2] - Revenues for the quarter reached $14.9 billion, a 7.2% year-over-year growth, surpassing consensus estimates by 4.38% [2] - The company has seen a positive stock performance, with shares increasing by 5.8% since the last earnings report, outperforming the S&P 500 [1] Financial Performance - Endpoint Solutions revenues were $7.5 billion, showing a 12% year-over-year growth, while Advanced Solutions revenues reached $7.4 billion, reflecting a 2% year-over-year growth [3] - Non-GAAP gross profit increased by 7.5% year-over-year to $1,046.4 million, with a gross margin of 7%, up 2 basis points [3] - Adjusted SG&A expenses rose to $632.3 million from $585.5 million year-over-year, but as a percentage of revenues, they contracted to 4.8% [4] Cash Flow and Shareholder Returns - Cash provided by operational activities was $573.2 million, a significant improvement from a cash outflow of $748 million in the previous quarter [7] - Free cash flow for the quarter was $543 million, compared to a negative $790 million in the prior quarter [7] - The company announced a 10% increase in its quarterly cash dividend to 44 cents per share, demonstrating a commitment to returning value to shareholders [8] Future Guidance - For Q3 fiscal 2025, TD SYNNEX expects revenues between $14.7 billion and $15.5 billion, with non-GAAP earnings projected at $2.75 to $3.25 per share [9] - Non-GAAP net income is anticipated to be between $227 million and $268 million [9] Market Sentiment - Recent estimates for the stock have shown a downward trend, indicating cautious sentiment among investors [10] - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12]

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]