TD SYNNEX Reports Strong Second Quarter Performance

TD SYNNEX (NYSE: SNX) is a global distributor and solutions aggregator within the IT ecosystem, targeting over 150,000 customers across 100 countries. The company reported a notable performance in its second quarter of fiscal year 2025.

For Q2 FY25, TD SYNNEX achieved gross billings of $21.6 billion, reflecting a year-over-year increase of 12.1%, and surpassing the high end of its guidance. By constant currency, gross billings rose by 11.3%. Net revenue for the quarter reached $14.9 billion, an increase of 7.2% year-over-year, also above the high end of guidance. In constant currency, revenue grew by 6.3%.

Operating income increased to $328 million, representing a 24.3% rise compared to $263.9 million in the previous year. Non-GAAP operating income was reported at $414 million, a 6.7% increase year-over-year. Operating margins stood at 2.20%, up from 1.89% a year ago, while non-GAAP operating margins were consistent at 2.77%. The company’s gross profit was $1.046 billion, which marked a 7.5% increase from the previous year.

The diluted earnings per share (EPS) for the quarter was $2.21, compared to $1.66 for Q2 FY24, while non-GAAP diluted EPS reached $2.99, above the guidance range.

The company generated approximately $573 million in cash from operations, a significant recovery compared to cash used in operations of $114.7 million in Q2 FY24. Free cash flow for Q2 FY25 was approximately $543 million.

TD SYNNEX returned $186 million to its stockholders during this quarter, comprising $149 million in share repurchases and $37 million in dividends. The company announced a quarterly cash dividend of $0.44 per share, reflecting a 10% year-over-year increase.

Regional performance showed growth across all segments. Revenue in the Americas was $9.0 billion, up from $8.6 billion, marking a 5.3% increase. Europe saw revenue rise to $4.9 billion, a 10.5% increase from $4.4 billion. The Asia-Pacific region reported revenue of $1.0 billion, an 8.7% increase compared to the previous year.

Looking ahead, TD SYNNEX provided guidance for Q3 FY25, anticipating non-GAAP gross billings in the range of $21.0 billion to $22.0 billion, representing a midpoint growth of approximately 6%. The company expects net revenue between $14.7 billion and $15.5 billion and non-GAAP net income between $227 million and $268 million. Non-GAAP diluted earnings per share are forecasted to range from $2.75 to $3.25.

With these results, TD SYNNEX continues to demonstrate solid growth, reflecting strength in its IT distribution and hyperscaler markets.