TD SYNNEX (SNX): Q2 2025 Performance Fuels Strategic Tech Surge

TD SYNNEX Corporation (SNX recently reported a significant surge in its Q2 2025 performance, with revenue climbing to $14.9 billion, marking a notable +7.20% increase year-over-year. This growth, fueled by a +12.10% jump in gross billings to $21.6 billion, underscores the company's strategic success in capitalizing on the escalating demand for advanced technology solutions, particularly in the realms of AI, cloud, and cybersecurity.

This robust quarterly performance provides fresh context to SNX's financial trajectory, especially when viewed against its detailed annual results. While the comprehensive annual financial statements from Monexa AI provide a deep dive into fiscal years ending November 30, 2024, the latest Q2 2025 figures indicate a powerful continuation of strategic momentum, highlighting the company's agility in navigating the dynamic IT distribution landscape.

TD SYNNEX's Strategic Pivot and Q2 2025 Performance#

The strong Q2 2025 results are a testament to TD SYNNEX Corporation's focused efforts on high-growth technology segments. The company's strategic expansion into cloud computing, artificial intelligence (AI), security solutions, and data analytics has been pivotal. These areas are not just buzzwords; they represent the core pillars of modern digital transformation, and SNX has positioned itself as an indispensable conduit for these technologies.

The emphasis on expanding its Advanced Solutions portfolio—which encompasses these critical offerings—has yielded tangible results. The reported +20.00% growth in software billings in Q2 2025 is particularly telling, as software solutions often carry higher margins and generate recurring revenue streams, signaling a favorable shift in SNX's revenue mix. As organizations globally accelerate their digital initiatives, TD SYNNEX Corporation's comprehensive portfolio and its ability to deliver integrated solutions are proving to be key differentiators in a competitive market.

Furthermore, the company's deep-rooted vendor partnerships, notably with industry giants such as Dell Technologies and Hewlett Packard Enterprise (HPE, have amplified its market reach and bolstered its solution offerings. This collaborative approach allows SNX to bring cutting-edge technologies to its vast network of resellers and end-users, solidifying its role as a vital link in the global IT supply chain. The consistent growth across diverse segments and geographies reflects a well-executed strategy that aligns with prevailing industry trends.

Financial Health and Profitability Trajectories#

While Q2 2025 provided a snapshot of recent success, a deeper look into TD SYNNEX Corporation's annual financials from Monexa AI reveals a resilient and improving profitability trend over the past fiscal years. For the fiscal year ending November 30, 2024 (FY2024), SNX reported revenue of $58.45 billion, a +1.56% increase from FY2023's $57.56 billion. This marks a rebound from the slight revenue dip seen in FY2023 compared to FY2022's $62.34 billion, demonstrating the company's ability to navigate fluctuating market conditions.

Gross profit for FY2024 stood at $3.98 billion, a modest increase from $3.96 billion in FY2023. More importantly, the gross profit ratio for FY2024 was 6.81%, maintaining stability and showing an improvement from 6.26% in FY2022 and 5.98% in FY2021. This indicates effective cost management relative to revenue. Net income for FY2024 reached $689.09 million, a robust +9.92% increase over FY2023's $626.91 million. Consequently, the net income ratio improved from 1.09% in FY2023 to 1.18% in FY2024, signaling enhanced operational efficiency and a stronger bottom line.

EBITDA also saw a positive trajectory, increasing to $1.59 billion in FY2024 from $1.50 billion in FY2023. These figures underscore the company's ability to generate strong operational earnings. The strategic focus on higher-margin software and advanced solutions, as highlighted by the Q2 2025 software billings growth, is expected to continue supporting these profitability metrics in the future. The consistency in these margins, particularly the gross and operating margins, showcases SNX's disciplined approach to managing its vast distribution network.

Here’s a snapshot of TD SYNNEX Corporation's historical profitability ratios:

Metric (FY End Nov 30)	2021	2022	2023	2024
Gross Margin	5.98%	6.26%	6.87%	6.81%
Operating Margin	1.97%	1.69%	1.87%	2.04%
Net Margin	1.25%	1.04%	1.09%	1.18%
EBITDA Margin	2.45%	2.43%	2.60%	2.73%

Source: Monexa AI

Capital Allocation and Shareholder Returns#

TD SYNNEX Corporation's approach to capital allocation reflects a balanced strategy of investing in growth and returning value to shareholders. While net cash provided by operating activities saw a decrease in FY2024 to $1.22 billion (down * -13.48%* from FY2023's $1.41 billion), and free cash flow (FCF) similarly declined to $1.04 billion (down * -17.08%* from FY2023's $1.26 billion), this can be partly attributed to changes in working capital and increased capital expenditures, which rose to -$175.11 million in FY2024 from -$150.01 million in FY2023. These investments are crucial for supporting future growth initiatives and maintaining technological competitiveness.

Despite the year-over-year dip in cash flow, the company's overall financial health remains robust. The current ratio TTM stands at 1.26x, indicating solid short-term liquidity. More impressively, the debt-to-equity ratio TTM is a remarkably low 0.05x (or 4.58%), showcasing a very strong balance sheet with minimal reliance on debt financing. The net debt to EBITDA TTM of * -0.35x* further suggests a net cash position relative to its operational earnings, providing significant financial flexibility.

In terms of shareholder returns, SNX has maintained a consistent dividend policy. The company paid out $138.08 million in dividends in FY2024, an increase from $130.37 million in FY2023. The TTM dividend per share is $1.68, translating to a dividend yield of 1.25%. The recent declaration of a $0.44 quarterly dividend on June 24, 2025, payable on July 25, 2025, to shareholders of record on July 11, 2025, reinforces this commitment. Furthermore, SNX continued its share repurchase program, buying back -$636.6 million in stock in FY2024, slightly less than the -$639.59 million in FY2023. These repurchases contribute to enhancing shareholder value by reducing the share count and boosting earnings per share.

Here are some key financial health metrics for TD SYNNEX Corporation:

Metric	TTM Value
Current Ratio	1.26x
Debt-to-Equity Ratio	0.05x
Net Debt to EBITDA	-0.35x
Return on Equity (ROE)	11.37%
Return on Capital (ROIC)	9.31%

Source: Monexa AI

Competitive Landscape and Strategic Positioning#

TD SYNNEX Corporation's competitive edge is multifaceted, stemming from its expansive product portfolio, robust strategic vendor partnerships, and diversified geographic footprint, all underpinned by a sharp focus on high-growth technology segments. The company's ability to rapidly adapt to emerging technological trends and deliver integrated solutions—particularly in the domains of cloud, AI, and cybersecurity—is a key differentiator in a crowded IT distribution market.

The strategic alliances with industry leaders like Dell Technologies and HPE are not merely transactional; they are foundational to SNX's ability to offer cutting-edge solutions and maintain a competitive advantage. These partnerships ensure access to a broad spectrum of innovative hardware and software, enabling TD SYNNEX Corporation to meet the complex and evolving demands of its enterprise clients. For instance, the collaboration with Dell facilitates the distribution of critical IT infrastructure, while the partnership with HPE strengthens SNX's offerings in data center and edge computing solutions.

Geographic diversification also plays a crucial role in SNX's resilience and growth. The Q2 2025 revenue growth saw Europe leading with +10.50%, complemented by solid performances in the Americas and the Asia-Pacific Japan (APJ) regions. This global presence not only provides a diversified revenue base, mitigating risks associated with reliance on any single market, but also allows TD SYNNEX Corporation to tap into various regional digital acceleration initiatives. The company's comprehensive solutions and strategic alliances collectively enable it to capture a larger share of the IT distribution landscape, reinforcing its market positioning.

Valuation and Future Growth Outlook#

From a valuation perspective, TD SYNNEX Corporation appears to present an attractive proposition, particularly when considering its forward growth projections. The current price-to-earnings (P/E) ratio stands at 15.75x based on the latest stock quote. However, looking at future earnings estimates, the forward P/E ratio drops to 10.9x for 2025, further to 9.68x for 2026, and 8.54x for 2027. This suggests that the stock may be trading at a discount relative to its anticipated future earnings growth, assuming analyst estimates hold true.

Analysts project a future revenue compound annual growth rate (CAGR) of +3.45% and an even more compelling earnings per share (EPS) CAGR of +9.24%. These projections underscore the positive sentiment surrounding SNX's ability to expand its top and bottom lines. The continued focus on high-margin segments like software, cloud, and AI solutions is expected to be a primary driver of this future profitability. The company's robust financial health, as evidenced by its low debt-to-equity ratio and strong free cash flow generation, provides a solid foundation for funding these growth initiatives.

Here are the analyst estimates for TD SYNNEX Corporation's future performance:

Fiscal Year End Nov 30	Estimated Revenue (Avg)	Estimated EPS (Avg)
2024	$57.83B	$11.64
2025	$60.39B	$12.06
2026	$63.04B	$13.56
2027	$66.02B	$15.40

Source: Monexa AI

The positive analyst sentiment, as indicated by most recommendations leaning towards