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TD SYNNEX CORP

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Business Summary

TD SYNNEX Corporation is a Fortune 100 corporation and a leading global distributor and solutions aggregator for the information technology ecosystem, serving a critical role in bringing products from the world's leading and emerging technology vendors to market and helping customers create solutions to maximize business outcomes for their end-user customers. The company aggregates and distributes IT hardware, software, and systems including personal computing devices and peripherals, mobile phones and accessories, printers, server and datacenter infrastructure, hybrid cloud, security, networking, communications and storage solutions, and system components, and also designs and delivers purpose-built server, storage and networking solutions for the hyperscale computing infrastructure market. The IT product industry is characterized by intense competition based primarily on product availability, credit terms and availability, price, speed and accuracy of delivery, effectiveness of sales and marketing programs, ability to tailor specific solutions to customer needs, quality and depth of product lines and training, pre- and post-sale technical support, flexibility and timely response to design changes, technological capabilities and product quality, service and support. The distribution industry has historically undergone, and continues to undergo, consolidation, and the company has participated in this consolidation and expects to continue to assess opportunities.

The company competes with a variety of regional, national and international IT product distributors and manufacturers, including several international distributors such as Ingram Micro Holding Corporation, Arrow Electronics, Inc. and Westcon-Comstor, as well as regional distributors including ScanSource, Inc., ALSO Holding, Esprinet, VSTECS Holdings Ltd. and Synnex Technology International Corp., a separate and unrelated entity from the company. In the hyperscale computing infrastructure market, the company competes against companies including Jabil Inc., Celestica, Flex Ltd., Quanta Computer Inc. and Wiwynn Corporation. The company's products are marketed globally to an active reseller base of more than 150,000 customers , and one customer accounted for 11% of total revenue in fiscal year 2025. Sales of Apple Inc. products and services comprised approximately 12% of total revenue for fiscal year 2025, and sales from HP Inc. comprised approximately 10% of total revenue for fiscal year 2025.

The company generates revenue primarily from the sale of various IT products, recognizing revenue from the sale of IT hardware and software as control is transferred to customers at the point in time when the product is shipped or delivered. Revenue is recognized on a net basis on certain contracts where the company's performance obligation is to arrange for products or services to be provided by another party or the rendering of logistics services for the delivery of inventory for which the company does not assume the risks and rewards of ownership, by recognizing the margins earned in revenue with no associated cost of revenue. The company offers a comprehensive catalog of more than 200,000 technology products as measured by active SKUs from approximately 2,500 OEMs , and its reseller customers include value-added resellers, independent software vendors, corporate resellers, government resellers, system integrators, direct marketers, retailers and managed service providers. The company's business is characterized by low gross profit as a percentage of revenue, or gross margin, and low operating income as a percentage of revenue, or operating margin.

The company groups the majority of its offerings into two primary solutions portfolios: Endpoint Solutions and Advanced Solutions. The Endpoint Solutions portfolio primarily includes personal computing devices and peripherals, mobile phones and accessories, printers and supplies. The Advanced Solutions portfolio primarily includes data center technologies such as hybrid cloud, security, storage, networking, servers, software, converged and hyper-converged infrastructure and hyperscale computing infrastructure, via the Hyve business. The company's service offerings include systems design and integration solutions, logistics services, depot repair services, field services, customer management services, cloud services, online services, financial services, and marketing services. The company's proprietary cloud platform offers a complete package of cloud-based solutions and allows reseller customers and OEM suppliers to own the complete customer lifecycle through direct billing, provisioning, management, and support, covering solutions including pure public cloud solutions in productivity and collaboration, IaaS, PaaS, SaaS, Security, Mobility, AI and other hybrid solutions.

The company operates 168 distribution and administrative facilities globally covering approximately 15.2 million square feet , including warehouse, logistics and administrative facilities, owning approximately 2.7 million square feet of property and leasing the remainder. The facilities are located in the Americas with 62 facilities, Europe with 63 facilities, and APJ with 43 facilities. Approximately 48% of consolidated revenue for fiscal year 2025 was generated by international operations. As of November 30, 2025, the company had approximately 24,000 full-time co-workers and used temporary or contract workers who totaled approximately 6,000 on a full-time equivalent basis.

On July 1, 2025, the company completed the acquisition of Apptium Technologies, LLC and its subsidiaries, a software development company and provider of a cloud commerce platform, for a purchase price of approximately $105.1 million . In January 2023, the Board of Directors authorized a three-year $1.0 billion share repurchase program, and in March 2024, the Board of Directors authorized a new $2.0 billion share repurchase program supplementing the $196.7 million remaining authorization under the prior program. The company repurchased 4.4 million shares of common stock for $596.1 million in fiscal 2025. On October 10, 2025, the company issued and sold both $550.0 million senior notes due in 2029 and $600.0 million senior notes due in 2035, using the net proceeds to repay the remaining principal of the TD SYNNEX Term Loan and for general corporate purposes. The company declared cumulative cash dividends of $1.76 per share during fiscal year 2025, and on January 8, 2026, announced a cash dividend of $0.48 per share.

Consolidated revenue for fiscal year 2025 was $62,508,086 thousand , compared to $58,452,436 thousand in fiscal year 2024, representing an increase of 6.9% . Gross profit was $4,368,982 thousand in fiscal year 2025 versus $3,981,306 thousand in fiscal year 2024, with gross margin improving to 6.99% from 6.81% . Operating income was $1,414,919 thousand in fiscal year 2025 compared to $1,194,211 thousand in fiscal year 2024, and operating margin increased to 2.26% from 2.04% . Net income was $827,660 thousand in fiscal year 2025 versus $689,091 thousand in fiscal year 2024, and diluted EPS was $9.95 compared to $7.95 in the prior year. Non-GAAP diluted EPS was $13.19 in fiscal year 2025 versus $11.68 in fiscal year 2024.

Business Outlook

The company is focusing on expanding its addressable market through its unique vendor value proposition, capitalizing on end-to-end capabilities to support business currently operated by vendors. The company is also targeting new customers by leveraging its specialist go-to-market and trusted advisor approach to deliver tailored value propositions and personalized solutions that align closely with the unique business needs and priorities of each customer. Additionally, the company is diversifying its offerings within its end-to-end portfolio of products, services and solutions, including providing design, manufacturing and supply chain services to hyperscale computing infrastructure customers, and expanding and attaching its services capabilities to meet customers' evolving needs, enabling earlier engagement in the customer lifecycle, support for more complex deployments, driving renewals and deepening relationships with customers.

The company is focusing on unifying its reach by expanding its portfolio in both mature and developing markets through its targeted go-to-market strategy. The company's end market strategy is to continue expanding internationally on a selective basis in order to provide its distribution capabilities to OEM suppliers in locations that meet their regional requirements. The company also seeks to acquire new OEM relationships, enhance its supply chain and integration capabilities, the services it provides to its customers and OEM suppliers, and expand its geographic footprint, as it continually seeks to augment organic growth with strategic acquisitions of businesses and assets that complement and expand its existing capabilities.

The company's gross margin has fluctuated annually due to changes in the mix of products offered, the percentage of revenue that is presented on a net basis, customers sold to, incentives and rebates received from OEM suppliers, competition, seasonality, replacement of lower margin business, inventory obsolescence, and lower costs associated with increased efficiencies. The company's SG&A expenses consist primarily of personnel costs such as salaries, commissions, bonuses, share-based compensation and temporary personnel costs, and also include amortization of intangible assets, cost of warehouses, delivery centers and other non-integration facilities, depreciation on certain capital equipment, IT expenses, credit costs including bad debt expense, legal and professional fees, travel and entertainment, and non-income taxes. The company's adjusted selling, general and administrative expenses as a percentage of gross profit was 59.1% for both fiscal years 2025 and 2024.

The company's distribution processes are highly automated to ensure timely order fulfillment and accuracy, and enhance the efficiency of warehouse operations and back office administration. The company continues to enhance and invest in its IT systems to improve product and inventory management, streamline order and fulfillment processes, and increase operational flexibility. The company's proprietary IT systems and processes enable automation of many distribution operations, using radio frequency and bar code scanning technologies in warehouse operations to maintain real-time inventory records, facilitate strong inventory control and improve the speed and accuracy of order fulfillment. The company also uses robotic automation, order weight checks, bar code scanning, and serial number profile verification, and digital video imaging to record both receiving and shipping activities.

Purchases of property and equipment were $142,282 thousand in fiscal year 2025, compared to $175,112 thousand in fiscal year 2024. The company repurchased 4.4 million shares of common stock for $596.1 million in fiscal 2025, and as of November 30, 2025, had $1.2 billion available for future repurchases of common stock under the March 2024 share repurchase program. The company declared cumulative cash dividends of $1.76 per share during fiscal year 2025, and on January 8, 2026, announced a cash dividend of $0.48 per share. The company currently expects that comparable cash dividends will continue to be paid in the future.

The company is highly dependent on the end-market demand for IT products, and on its partners' strategic initiatives and business models, with end-market demand influenced by many factors including the introduction of new IT products and software by OEM suppliers, replacement cycles for existing IT products, trends toward cloud computing, overall economic growth and general business activity. A difficult and challenging economic environment due to the continued persistence of inflation, elevated interest rates, market volatility and adverse effects on product demand connected to geopolitical developments including tariff uncertainty, or other factors may also lead to decline in the IT industry or increased price-based competition. The company's systems design and integration solutions business is highly dependent on the demand for cloud infrastructure, and the number of key customers and suppliers in the market.

The company's business includes operations in the Americas, Europe and APJ, so it is affected by demand for its products in those regions, as well as the impact of fluctuations in foreign currency exchange rates compared to the U.S. dollar. Approximately 48% of the company's revenues in fiscal year 2025 were generated outside the United States, and most of its international revenue, cost of revenue and operating expenses are denominated in foreign currencies. Changes in exchange rates between foreign currencies and the U.S. dollar may adversely affect the company's operating margins, and the company hedges some of its exposure to changes in foreign exchange rates through the use of currency forward or option contracts. The company also faces risks related to its operations in China, where a significant portion of its IT systems support and software development activities are located, subjecting it to risks associated with economic, political and social events in China.

Risk Factors

The company's future success is highly dependent on relationships with a small number of OEM suppliers, with sales of Apple Inc. products comprising approximately 12% of total revenue and sales from HP Inc. comprising approximately 10% of total revenue for fiscal year 2025, and these supplier agreements are typically short-term and may be terminated without cause upon short notice. The company has significant credit exposure to its customers, with one customer accounting for 11% of total revenue in fiscal year 2025, and the failure of customers to pay could negatively impact cash flow and liquidity. The company had $4.6 billion in outstanding short and long-term borrowings as of November 30, 2025, and the terms of its debt arrangements impose restrictions on its ability to operate, including requirements to maintain specified financial ratios. The company's gross margins are low at 6.99% for fiscal year 2025, which magnifies the impact of variations in revenue and operating costs on operating results. The company faces risks related to its international operations, with approximately 48% of revenues generated outside the United States, exposing it to foreign currency exchange rate fluctuations, and a significant portion of its IT systems support and software development activities are located in China, subjecting it to risks associated with economic and political events in China.

Management Priorities

Management's message emphasizes the company's vision to be the vital solutions aggregator and orchestrator that connects the IT ecosystem, focusing on strategic imperatives including unifying reach by expanding the portfolio in both mature and developing markets, targeting new customers by leveraging a specialist go-to-market and trusted advisor approach, expanding the addressable market through a unique vendor value proposition, diversifying offerings within the end-to-end portfolio including providing design, manufacturing and supply chain services to hyperscale computing infrastructure customers, and expanding and attaching services capabilities to meet customers' evolving needs. The company is focusing on these strategic imperatives in pursuit of its vision, and management believes it is important to provide a broad, end-to-end portfolio with deep capabilities across the computing continuum to help customers manage the increasingly complex IT ecosystem and deliver the solutions and business outcomes the market desires.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Our Customers
  2. [2] Item 1, Business — Our Customers
  3. [3] Item 1, Business — Our Products and Suppliers
  4. [4] Item 1, Business — Our Products and Suppliers
  5. [5] Item 1, Business — Our Products and Suppliers
  6. [6] Item 1, Business — Our Products and Suppliers
  7. [7] Item 2, Properties
  8. [8] Item 2, Properties
  9. [9] Item 2, Properties
  10. [10] Item 2, Properties
  11. [11] Item 2, Properties
  12. [12] Item 2, Properties
  13. [13] Item 1, Business — International Operations
  14. [14] Item 1, Business — Human Capital Resources
  15. [15] Item 1, Business — Human Capital Resources
  16. [16] Item 7, MD&A — Acquisitions; Note 3 — Acquisition, Integration and Restructuring Costs
  17. [17] Item 5, Market for Registrant's Common Equity; Note 5 — Stockholders' Equity
  18. [18] Item 5, Market for Registrant's Common Equity; Note 5 — Stockholders' Equity
  19. [19] Item 5, Market for Registrant's Common Equity; Note 5 — Stockholders' Equity
  20. [20] Item 7, MD&A — Share Repurchase Program; Note 5 — Stockholders' Equity
  21. [21] Item 7, MD&A — Share Repurchase Program; Note 5 — Stockholders' Equity
  22. [22] Note 10 — Borrowings
  23. [23] Note 10 — Borrowings
  24. [24] Note 5 — Stockholders' Equity
  25. [25] Item 5, Market for Registrant's Common Equity; Note 5 — Stockholders' Equity
  26. [26] Item 8, Consolidated Statements of Operations
  27. [27] Item 8, Consolidated Statements of Operations
  28. [28] Item 7, MD&A — Revenue
  29. [29] Item 8, Consolidated Statements of Operations
  30. [30] Item 8, Consolidated Statements of Operations
  31. [31] Item 7, MD&A — Gross Profit
  32. [32] Item 7, MD&A — Gross Profit
  33. [33] Item 8, Consolidated Statements of Operations
  34. [34] Item 8, Consolidated Statements of Operations
  35. [35] Item 7, MD&A — Operating Income
  36. [36] Item 7, MD&A — Operating Income
  37. [37] Item 8, Consolidated Statements of Operations
  38. [38] Item 8, Consolidated Statements of Operations
  39. [39] Item 8, Consolidated Statements of Operations
  40. [40] Item 8, Consolidated Statements of Operations
  41. [41] Item 7, MD&A — Net Income and Diluted EPS
  42. [42] Item 7, MD&A — Net Income and Diluted EPS
  43. [43] Item 7, MD&A — Selling, General and Administrative Expenses
  44. [44] Item 8, Consolidated Statements of Cash Flows
  45. [45] Item 8, Consolidated Statements of Cash Flows
  46. [46] Item 7, MD&A — Share Repurchase Program; Note 5 — Stockholders' Equity
  47. [47] Item 7, MD&A — Share Repurchase Program; Note 5 — Stockholders' Equity
  48. [48] Item 7, MD&A — Share Repurchase Program; Note 5 — Stockholders' Equity
  49. [49] Note 5 — Stockholders' Equity
  50. [50] Item 5, Market for Registrant's Common Equity; Note 5 — Stockholders' Equity
  51. [51] Item 1, Business — International Operations
  52. [52] Item 1A, Risk Factors — Risks Related to Our Business and Operations
  53. [53] Item 1A, Risk Factors — Risks Related to Our Business and Operations
  54. [54] Item 1A, Risk Factors — Risks Related to Our Business and Operations
  55. [55] Item 7, MD&A — Liquidity and Capital Resources
  56. [56] Item 7, MD&A — Gross Profit
  57. [57] Item 1A, Risk Factors — Risks Related to the Macro-Economic and Regulatory Environment
  58. [58] Item 8, Consolidated Statements of Operations
  59. [59] Item 8, Consolidated Statements of Operations
  60. [60] Item 8, Consolidated Statements of Operations
  61. [61] Item 8, Consolidated Statements of Operations
  62. [62] Item 8, Consolidated Statements of Operations
  63. [63] Item 8, Consolidated Statements of Operations
  64. [64] Item 8, Consolidated Statements of Operations
  65. [65] Item 8, Consolidated Statements of Operations
  66. [66] Item 7, MD&A — Operating Income
  67. [67] Item 7, MD&A — Operating Income
  68. [68] Item 8, Consolidated Statements of Operations
  69. [69] Item 8, Consolidated Statements of Operations
  70. [70] Item 7, MD&A — Gross Profit
  71. [71] Item 7, MD&A — Gross Profit
  72. [72] Item 7, MD&A — Operating Income
  73. [73] Item 7, MD&A — Operating Income
  74. [74] Item 7, MD&A — Operating Income
  75. [75] Item 7, MD&A — Operating Income
  76. [76] Item 7, MD&A — Net Income and Diluted EPS
  77. [77] Item 7, MD&A — Net Income and Diluted EPS
  78. [78] Item 7, MD&A — Net Income and Diluted EPS
  79. [79] Item 7, MD&A — Net Income and Diluted EPS
  80. [80] Item 8, Consolidated Statements of Cash Flows
  81. [81] Item 8, Consolidated Statements of Cash Flows
  82. [82] Item 8, Consolidated Statements of Operations
  83. [83] Item 8, Consolidated Statements of Operations
  84. [84] Note 12 — Segment Information
  85. [85] Note 12 — Segment Information
  86. [86] Note 12 — Segment Information
  87. [87] Note 12 — Segment Information
  88. [88] Note 12 — Segment Information
  89. [89] Note 12 — Segment Information

Analysis on 6/8/2026