TD SYNNEX Reports Record Fiscal 2025 Third Quarter Results
TD SYNNEX, a leading global distributor and solutions aggregator for the IT ecosystem, has released its financial results for the fiscal third quarter ended August 31, 2025. The company reported record-breaking figures in several key financial metrics, reflecting strong performance and strategic execution.
Financial Highlights
For the fiscal third quarter of 2025, TD SYNNEX reported:
- Revenue: $15.7 billion, a 6.6% increase year-over-year, surpassing the high end of the company's outlook. On a constant currency basis, revenue increased by 4.4%.
- Non-GAAP Gross Billings: $22.7 billion, up 12.1% year-over-year, also exceeding the high end of the outlook. On a constant currency basis, non-GAAP gross billings increased by 10.1%.
- Diluted EPS: $2.74, with non-GAAP diluted EPS at $3.58, both above the high end of the outlook.
- Gross Profit: $1.1 billion, compared to $961 million in the previous year.
- Gross Margin: 7.2%, up from 6.5% in the prior year.
- Operating Income: $384 million, with non-GAAP operating income at $475 million.
- Operating Margin: 2.5%, with non-GAAP operating margin at 3.0%.
- Net Income: $227 million, compared to $179 million in the previous year.
- Cash Provided by Operations: $246 million, compared to $386 million in the previous year.
- Free Cash Flow: $214 million, compared to $339 million in the previous year.
Business and Operational Highlights
TD SYNNEX's performance was driven by growth in both its Advanced Solutions and Endpoint Solutions portfolios. The company also noted a greater percentage of sales presented on a net basis due to the mix of products sold, which impacted revenue negatively by approximately 5% compared to the prior fiscal third quarter.
Regionally, the Americas saw a 2.0% increase in revenue, Europe experienced a 12.7% increase, and the Asia-Pacific and Japan (APJ) region reported a 20.4% increase in revenue.
Strategic Initiatives and Corporate Developments
During the quarter, TD SYNNEX returned $210 million to stockholders through $174 million in share repurchases and $36 million in dividends. The company also announced a quarterly cash dividend of $0.44 per common share, a 10% increase year-over-year.
Management's Perspective
Patrick Zammit, CEO of TD SYNNEX, commented, "Our third quarter non-GAAP gross billings and diluted earnings per share established new records for our company. Our performance is a clear result of our teams’ strong execution, a differentiated go-to-market strategy, and a global, end-to-end portfolio of products and services that is unrivaled."
Future Outlook
For the fiscal fourth quarter of 2025, TD SYNNEX provided the following guidance:
- Revenue: $16.5 - $17.3 billion
- Non-GAAP Gross Billings: $23.0 - $24.0 billion
- Net Income: $204 - $245 million
- Non-GAAP Net Income: $281 - $322 million
- Diluted EPS: $2.50 - $3.00
- Non-GAAP Diluted EPS: $3.45 - $3.95
- Estimated Outstanding Diluted Weighted Average Shares: 80.7 million
SEC Filing: TD SYNNEX CORP [ SNX ] - 8-K - Sep. 25, 2025