TD SYNNEX Q3 Net Income Jumps 27% on Strong Revenue Growth

TL;DR

**TD SYNNEX is crushing it, buy the dip if you see one, their IT distribution engine is firing on all cylinders.**

AI Summary

TD SYNNEX CORP reported robust financial performance for the three and nine months ended August 31, 2025. Revenue increased by 6.58% to $15.65 billion for the three months ended August 31, 2025, up from $14.68 billion in the prior year period. Net income saw a significant jump of 27.02% to $226.80 million for the three months, compared to $178.56 million in the same period last year. For the nine months, revenue grew 5.92% to $45.13 billion from $42.61 billion, and net income rose 17.19% to $579.25 million from $494.29 million. Operating income also improved, reaching $383.66 million for the three months and $1.02 billion for the nine months. The company's current borrowings surged to $1.19 billion from $171.09 million, while long-term borrowings decreased to $3.04 billion from $3.74 billion. Cash and cash equivalents decreased by $185.03 million to $874.35 million over the nine-month period. Share repurchases totaled $426.79 million for the nine months ended August 31, 2025, reflecting ongoing capital allocation strategies. The company continues to face concentration risk with Apple, Inc. and HP Inc. each accounting for 10-12% of consolidated revenue.

Why It Matters

This strong performance by TD SYNNEX indicates a healthy demand for IT products and solutions, which is a positive signal for the broader technology distribution market. Investors should note the significant increase in net income and revenue, suggesting effective operational management and market penetration, especially with key vendors like Apple and HP. For employees, this growth could translate into job security and potential expansion opportunities. Customers benefit from a stable and growing distributor, ensuring consistent access to a wide range of IT products. Competitively, TD SYNNEX's ability to grow revenue and net income amidst a dynamic tech landscape positions it favorably against peers, potentially increasing its market share and influence.

Risk Assessment

Risk Level: medium — The company faces a medium risk level due to significant customer and vendor concentration. Apple, Inc. accounted for 11% of revenue for the three months ended August 31, 2025, and 12% for the nine months, while HP Inc. accounted for 10% of revenue for both periods. This reliance on a few key partners could expose TD SYNNEX to substantial revenue fluctuations if relationships with these vendors or customers change, or if their product demand shifts.

Analyst Insight

Investors should consider TD SYNNEX's consistent revenue and net income growth, alongside its share repurchase program, as indicators of financial health and shareholder value creation. However, monitor the company's reliance on key vendors like Apple and HP, as any shifts in these relationships could impact future performance. A diversified portfolio approach is recommended.

Financial Highlights

debt To Equity

2.75

revenue

$15.65B

operating Margin

2.45%

total Assets

$31.68B

total Debt

$4.24B

net Income

$226.80M

eps

$2.76

gross Margin

7.22%

cash Position

$874.35M

revenue Growth

+6.58%

Revenue Breakdown

Key Numbers

• $15.65B — Revenue (Up 6.58% for the three months ended August 31, 2025, from $14.68B in prior year.)
• $226.80M — Net Income (Up 27.02% for the three months ended August 31, 2025, from $178.56M in prior year.)
• $45.13B — Revenue (Up 5.92% for the nine months ended August 31, 2025, from $42.61B in prior year.)
• $579.25M — Net Income (Up 17.19% for the nine months ended August 31, 2025, from $494.29M in prior year.)
• $1.19B — Current Borrowings (Increased significantly from $171.09M as of November 30, 2024.)
• $3.04B — Long-term Borrowings (Decreased from $3.74B as of November 30, 2024.)
• $874.35M — Cash and Cash Equivalents (Decreased from $1.06B as of November 30, 2024.)
• $426.79M — Common Stock Repurchases (For the nine months ended August 31, 2025, demonstrating capital return to shareholders.)
• 11% — Revenue Concentration (Apple) (Percentage of consolidated revenue from Apple, Inc. for the three months ended August 31, 2025.)
• 10% — Revenue Concentration (HP) (Percentage of consolidated revenue from HP Inc. for the three months ended August 31, 2025.)

Key Players & Entities

• TD SYNNEX CORP (company) — Registrant
• Apple, Inc. (company) — Major vendor and customer, 11-12% of revenue
• HP Inc. (company) — Major vendor, 10% of revenue
• $15.65 billion (dollar_amount) — Revenue for three months ended August 31, 2025
• $226.80 million (dollar_amount) — Net income for three months ended August 31, 2025
• $45.13 billion (dollar_amount) — Revenue for nine months ended August 31, 2025
• $579.25 million (dollar_amount) — Net income for nine months ended August 31, 2025
• $1.19 billion (dollar_amount) — Current borrowings as of August 31, 2025
• $426.79 million (dollar_amount) — Repurchases of common stock for nine months ended August 31, 2025
• New York Stock Exchange (regulator) — Exchange where Common Stock is registered

FAQ

Risk Factors

• Customer Concentration [high — financial]: TD SYNNEX faces significant concentration risk with key vendors. For the three months ended August 31, 2025, Apple, Inc. accounted for 11% of consolidated revenue, and HP Inc. accounted for 10%. This reliance on a few major suppliers exposes the company to potential disruptions if these relationships change or if these vendors experience financial difficulties.
• Increased Short-Term Borrowings [medium — financial]: Current borrowings surged to $1.19 billion as of August 31, 2025, a substantial increase from $171.09 million as of November 30, 2024. This indicates a greater reliance on short-term debt, which could increase financial leverage and interest expense.
• Decreased Cash and Cash Equivalents [medium — financial]: Cash and cash equivalents decreased by $185.03 million to $874.35 million over the nine-month period ended August 31, 2025. While still a significant amount, the reduction, coupled with increased short-term debt, warrants monitoring.
• Inventory Management [medium — operational]: Inventories increased to $9.14 billion as of August 31, 2025, from $8.29 billion at the end of the prior fiscal year. Effective management of this growing inventory is crucial to avoid obsolescence and maintain healthy cash flow.
• Accounts Receivable Growth [medium — operational]: Accounts receivable, net, grew to $10.93 billion from $10.34 billion. While this aligns with revenue growth, the company must maintain robust credit evaluation processes to mitigate potential bad debt risks.

Industry Context

TD SYNNEX operates in the highly competitive IT distribution and solutions aggregation market. The industry is characterized by rapid technological advancements, evolving customer demands for integrated solutions, and a complex supply chain involving numerous hardware and software vendors. Key trends include the increasing demand for cloud services, cybersecurity solutions, and data analytics, which distributors like TD SYNNEX must adapt to by expanding their portfolios and value-added services.

Regulatory Implications

As a global distributor, TD SYNNEX is subject to various regulations concerning trade, data privacy (e.g., GDPR, CCPA), and competition laws in the regions it operates. Compliance with these regulations is critical to avoid fines and reputational damage. Changes in trade policies or tariffs could also impact its international operations and supply chain costs.

What Investors Should Do

1. Monitor customer concentration risk
2. Analyze debt structure and cash flow
3. Evaluate inventory turnover and management
4. Assess the impact of share repurchases

Key Dates

• 2025-08-31: End of Third Quarter and Nine Months — Reporting period for the financial results showing revenue growth and improved net income.
• 2024-11-30: End of Fiscal Year 2024 — Prior period balance sheet figures for comparison of assets, liabilities, and equity.

Glossary

Information Technology (IT) ecosystem

The interconnected network of hardware, software, services, and users involved in information technology. (TD SYNNEX operates as a distributor and solutions aggregator within this ecosystem.)

Solutions aggregator

A company that combines various products and services from different vendors into a comprehensive solution for customers. (This describes TD SYNNEX's role in the IT market, offering more than just distribution.)

Variable interest entities

Entities for which equity investors have no voting rights or have insufficient equity at risk for the entity to finance its activities without additional financial support from other parties. (TD SYNNEX consolidates these entities if it is the primary beneficiary, impacting its financial statements.)

Treasury stock

Stock that a company has repurchased from the open market. (TD SYNNEX holds a significant amount of treasury stock, reducing the number of outstanding shares and impacting equity.)

Operating income

A company's earnings before interest and taxes (EBIT), reflecting profitability from core business operations. (Shows the company's ability to generate profit from its primary activities, which improved year-over-year.)

Gross profit

Revenue minus the cost of goods sold. (Indicates the profitability of the company's products before considering operating expenses.)

Year-Over-Year Comparison

TD SYNNEX demonstrated strong top-line growth, with revenue increasing by 6.58% for the three months and 5.92% for the nine months ended August 31, 2025, compared to the prior year periods. Net income saw even more significant improvements, rising by 27.02% and 17.19% respectively, indicating enhanced profitability. However, the company's financial structure shows a notable shift, with current borrowings surging from $171.09 million to $1.19 billion, while cash and cash equivalents decreased by $185.03 million. This increased leverage and reduced liquidity, alongside continued vendor concentration risk, are key areas to monitor.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share SNX The New York Stock Exchan

Filing Documents

• snx-20250831.htm (10-Q) — 1460KB
• snxq3fy25-exx311.htm (EX-31.1) — 9KB
• snxq3fy25-exx312.htm (EX-31.2) — 9KB
• snxq3fy25-exx321.htm (EX-32.1) — 5KB
• snx-20250831_g1.jpg (GRAPHIC) — 29KB
• 0001628280-25-043406.txt ( ) — 7621KB
• snx-20250831.xsd (EX-101.SCH) — 46KB
• snx-20250831_cal.xml (EX-101.CAL) — 47KB
• snx-20250831_def.xml (EX-101.DEF) — 291KB
• snx-20250831_lab.xml (EX-101.LAB) — 604KB
• snx-20250831_pre.xml (EX-101.PRE) — 482KB
• snx-20250831_htm.xml (XML) — 1147KB

Financial Statements

Financial Statements 3 Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Comprehensive Income 5 Consolidated Statements of Stockholders' Equity 6 Consolidated Statements of Cash Flows 7 Notes to the Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 43 Item 4.

Controls and Procedures

Controls and Procedures 44 PART II OTHER INFORMATION 44 Item 1.

Legal Proceedings

Legal Proceedings 44 Item 1A.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 44 Item 5. Other Information 45 Item 6. Exhibits 46

Signatures

Signatures 47 2 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements TD SYNNEX CORPORATION CONSOLIDATED BALANCE SHEETS (currency and share amounts in thousands, except par value) (unaudited) August 31, 2025 November 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 874,350 $ 1,059,378 Accounts receivable, net 10,925,068 10,341,625 Receivables from vendors, net 843,648 958,105 Inventories 9,137,505 8,287,048 Other current assets 797,343 678,540 Total current assets 22,577,914 21,324,696 Property and equipment, net 489,256 457,024 Goodwill 4,103,604 3,895,077 Intangible assets, net 3,888,134 3,912,267 Other assets, net 624,294 685,415 Total assets $ 31,683,202 $ 30,274,479 LIABILITIES AND EQUITY Current liabilities: Borrowings, current $ 1,194,794 $ 171,092 Accounts payable 15,651,286 15,084,107 Other accrued liabilities 2,034,654 1,966,036 Total current liabilities 18,880,734 17,221,235 Long-term borrowings 3,044,048 3,736,399 Other long-term liabilities 463,900 468,648 Deferred tax liabilities 840,719 812,763 Total liabilities 23,229,401 22,239,045 Commitments and contingencies ( Note 13) Stockholders' equity: Preferred stock, $ 0.001 par value, 5,000 shares authorized, no shares issued or outstanding — — Common stock, $ 0.001 par value, 200,000 shares authorized, 99,012 shares issued as of both August 31, 2025 and November 30, 2024 99 99 Additional paid-in capital 7,457,713 7,437,688 Treasury stock, 18,146 and 15,289 shares as of August 31, 2025 and November 30, 2024, respectively ( 1,895,564 ) ( 1,513,017 ) Accumulated other comprehensive loss ( 333,063 ) ( 645,117 ) Retained earnings 3,224,616 2,755,781 Total stockholders' equity 8,453,801 8,035,434 Total liabilities and equity $ 31,683,202 $ 30,274,479 (Amounts may not add or compute due to rounding) The accompanying Notes are an integral part of these Consolidated Financial Statements (unaudited). 3 Table of Contents TD SYNNEX CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (currency

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025 and 2024 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) NOTE 1— ORGANIZATION AND BASIS OF PRESENTATION: TD SYNNEX Corporation (together with its subsidiaries, herein referred to as "TD SYNNEX", "SYNNEX" or the "Company") is a leading global distributor and solutions aggregator for the information technology ("IT") ecosystem, headquartered in Fremont, California and Clearwater, Florida and has operations in North and South America, Europe and Asia-Pacific and Japan. The Company operates in three reportable segments based on its geographic regions: the Americas, Europe and Asia-Pacific and Japan ("APJ"). The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities if the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated. The Company operates on a fiscal year that ends on November 30. The accompanying interim unaudited Consolidated Financial Statements as of August 31, 2025 and for the three and nine months ended August 31, 2025 and 2024 have been prepared by the Company, without audit, in accordance with the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles ("GAAP") in the U.S. have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, the accompanying unaudited Consolidated Financial Statements reflect all adjustments, consisting only of normal recurring adjustments, necessary to state fairly the financial position of the Company and its results of operations and cash flows as of and for the periods presented. These financial statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025 and 2024 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) Accounts receivable include amounts due from customers. Receivables from vendors, net, includes amounts due from original equipment manufacturer ("OEM") vendors primarily in the technology industry. The Company performs ongoing credit evaluations of its customers' financial condition and limits the amount of credit extended when deemed necessary, but generally requires no collateral. The Company also maintains allowances for expected credit losses. In estimating the required allowances, the Company takes into consideration the overall quality and aging of its receivable portfolio, the existence of credit insurance and specifically identified customer and vendor risks. The following table provides revenue generated from products purchased from vendors that exceeded 10% of our consolidated revenue for the periods indicated (as a percent of consolidated revenue): Three Months Ended Nine Months Ended August 31, 2025 August 31, 2024 August 31, 2025 August 31, 2024 Apple, Inc. 11 % 11 % 12 % 12 % HP Inc. 10 % N/A ( 1 ) 10 % N/A ( 1 ) _________________________ (1) Revenue generated from products purchased from this vendor was less than 10% of consolidated revenue during the period presented. One customer accounted for 11 % of the Company's total revenue during both the three and nine months ended August 31, 2025. One customer accounted for 13 % and 12 % of the Company's total revenue during the three and nine months ended August 31, 2024, respectively. As of August 31, 2025 and November 30, 2024, no single customer comprised more than 10% of the consolidated accounts receivable balance. Accounts Receivable The Company maintains an allowance for doubtful accounts as an estimate to cover the future expected credit losses resulting from uncertainty

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025 and 2024 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) Revenue Recognition The Company generates revenue primarily from the sale of various IT products. The Company recognizes revenue from the sale of IT hardware and software as control is transferred to customers, which is at the point in time when the product is shipped or delivered. The Company accounts for a contract with a customer when it has written approval, the contract is committed, the rights of the parties, including payment terms, are identified, the contract has commercial substance and consideration is probable of collection. Binding purchase orders from customers together with agreement to the Company's terms and conditions of sale by way of an executed agreement or other signed documents are considered to be the contract with a customer. Products sold by the Company are delivered via shipment from the Company's facilities, drop-shipment directly from the vendor, or by electronic delivery of software products. In situations where arrangements include customer acceptance provisions, revenue is recognized when the Company can objectively verify the products comply with specifications underlying acceptance and the customer has control of the products. Revenue is presented net of taxes collected from customers and remitted to government authorities. The Company generally invoices a customer upon shipment, or in accordance with specific contractual provisions. Payments are due as per contract terms and do not contain a significant financing component. In relation to product support, supply chain management and other services performed by the Company, revenue is recognized over time as the services are performed. Provisions for sales returns and allowances are estimated based on historical data and are recorded concurrently with the recognition

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended August 31, 2025 and 2024 ( Except per share amounts or as otherwise indicated, currency and share amounts in thousands ) (unaudited) Recently Issued Accounting Pronouncements In November 2023, the FASB issued an accounting standards update, ASU 2023-07, which requires the following enhanced segment disclosures on an annual and interim basis: (1) significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (2) other segment items by reportable segment and a description of its composition, and (3) the title of the chief operating decision maker, an explanation of how they use the reported measures of segment profit/loss in assessing segment performance and decide how to allocate resources, as well as clarifications if they use more than one measure of a segment's profit or loss in assessing segment performance. The amendments in ASU 2023-07 will first be applied in the Company's Annual Report on Form 10-K for the fiscal year ending November 30, 2025, and for subsequent interim periods. The Company is currently evaluating the impact the new accounting standard will have on its segment reporting disclosures in the notes to the consolidated financial statements. In December 2023, the FASB issued an accounting standards update, ASU 2023-09, which requires enhanced income tax disclosures. The enhanced disclosures required include disclosure of specific categories and disaggregation of information in the rate reconciliation table. ASU 2023-09 also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The amendments in ASU 2023-09 are effective for annual periods beginning after December 15, 2024, which for the Company would

View Full Filing

View this 10-Q filing on SEC EDGAR