TD Synnex Corp Earnings Summary
TD Synnex Corp, a leading global IT distributor and solutions provider, has reported strong earnings for the fiscal third quarter ending August 31, 2025. The company surpassed market expectations and established new records, underscoring their robust operational execution and diversified product portfolio.
TD Synnex Corp Results
The company reported a solid financial performance with increases in key metrics, reflecting a thriving business strategy and market positioning. Below is a summary table of the key financial metrics from the fiscal third quarter:
| Financial Metric | Q3 2025 Actual | Q3 2024 Actual | Year-over-Year Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $15.7 billion | $14.7 billion | +6.6% | Above High End |
| Non-GAAP Gross Billings | $22.7 billion | $20.3 billion | +12.1% | Above High End |
| Gross Profit | $1.1 billion | $961 million | +14.5% | Not Available |
| Gross Margin | 7.2% | 6.5% | +0.7% | Not Available |
| Operating Income | $384 million | $303 million | +26.7% | Not Available |
| Non-GAAP Operating Income | $475 million | $393 million | +20.8% | Not Available |
| Diluted EPS | $2.74 | $2.08 | +31.7% | Above High End |
| Non-GAAP Diluted EPS | $3.58 | $2.86 | +25.2% | Above High End |
The impressive earnings showcase TD Synnex Corp's ability to leverage its strategy to meet and even exceed high expectations, with notable increases in revenue and earnings per share metrics.
Revenue Breakdown
A detailed breakdown of revenue performance across major geographic segments provides insights into the company's expansion and strategic focus:
| Region | Q3 2025 Revenue | Q3 2024 Revenue | Year-over-Year Change | Constant Currency Change |
|---|---|---|---|---|
| Americas | $9.3 billion | $9.1 billion | +2.0% | +2.0% |
| Europe | $5.2 billion | $4.6 billion | +12.7% | +6.0% |
| APJ (Asia-Pacific) | $1.2 billion | $1.0 billion | +20.4% | +19.2% |
Segment Analysis
- Americas : The Americas region saw a modest increase in revenue by 2.0% year-over-year. The region's sales presentation on a net basis impacted growth, but stable constant currency conditions helped address these challenges.
- Europe : European operations emerged as a strong performer with a 12.7% year-over-year increase. The region benefited from a favorable mix of products and increased demand for advanced solutions, albeit facing some currency exchange headwinds affecting constant currency change.
- APJ (Asia-Pacific and Japan) : This region outperformed others, with a substantial 20.4% growth. This was driven by significant increases in non-GAAP gross billings, underscoring demand for technological solutions in emerging markets within the region despite high adjustment factors due to product mix.
Key Developments
TD Synnex highlighted several significant developments and operational highlights for the quarter:
- The company achieved record levels of non-GAAP gross billings and diluted EPS, as noted by CEO Patrick Zammit.
- A differentiated strategy and an end-to-end portfolio of IT solutions propelled financial performance.
- The management's focus on increasing value through strategic execution and market-leading capabilities has opened new avenues and solidified TD Synnex's stance in the global IT distribution market.
Comments from Company Officers
CEO Patrick Zammit expressed enthusiasm, noting, "Our third-quarter 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." Under his leadership, TD Synnex has demonstrated adaptability and foresight in today's dynamic market environment.
Dividends and Share Repurchases
TD Synnex continues to prioritize returning value to shareholders with $210 million returned in the form of $174 million in share repurchases and $36 million as dividends during the quarter. Moreover, a recently announced quarterly cash dividend of $0.44 per common share reflects a 10% year-over-year increase, showing a commitment to constant value generation for its investors.
TD Synnex Corp Stock Forecast
Based on the comprehensive analysis of the fiscal third-quarter earnings, TD Synnex's financial robustness and strategic positioning suggest positive momentum. The current market conditions, driven by strong non-GAAP billings, indicate potential stock price movements between a high of $115 and a low of $100. These projections assume continued expansion of their portfolio and favorable market conditions across geographies, although they remain subject to broader economic factors and fluctuating market demands.
In conclusion, TD Synnex Corp showcases impressive fiscal strength and strategic acumen in its latest earnings report. Its focus on robust execution, expansion, and innovation highlights a promising outlook for the global IT distribution company.
