01—Abstract
Summary
Summary of the 10-Q filed July 2, 2025. Cited figures are marked; the original filing is the authoritative source.
TD SYNNEX Corporation's quarterly report for the three and six months ended May 31, 2025 shows revenue of $14.95 billiona for the quarter, up from $13.95 billion a year earlier, and $29.48 billion for the six months, up from $27.92 billion.
The filing states that revenue growth was partially offset by a greater percentage of sales presented on a net basis due to product mix, which the company says reduced revenue by approximately $700 millionb in the quarter. Operating income rose to $328.1 million from $263.9 million, and net income increased to $184.9 million from $143.6 million, with diluted EPS of $2.21 versus $1.66. Non-GAAP operating income was $414.0 million in the quarter versus $388.0 million a year earlier, and the filing attributes the change primarily to higher revenue partially offset by higher personnel costs.
The balance sheet and cash flow picture is more mixed. Cash and cash equivalents declined to $767.1 millionc from $1.06 billion at November 30, 2024, and net cash used in operating activities for the six months was $174.8 million, compared with cash provided of $270.0 million a year earlier. Accounts payable fell to $14.54 billion from $15.08 billion, and the filing notes higher inventories tied to strategic technologies products.
Total borrowings were approximately $4.1 billiond, and the cash conversion cycle was 23 days, compared with 18 days at fiscal year-end 2024. Capital returns continued during the period.
The company repurchased 2.1 million shares for $249.3 million in the six months, had $1.5 billion remaining under its March 2024 repurchase authorization, and declared a quarterly dividend of $0.44 per share payable July 25, 2025. The filing reports that the company was in compliance with all material financial covenants as of May 31, 2025.
02—Key points
Key Highlights
- Revenue of $14.95 billion for the quarter ended May 31, 2025, up from $13.95 billion; six-month revenue of $29.48 billion, up from $27.92 billion.
- Operating income of $328.1 million for the quarter versus $263.9 million a year earlier; net income of $184.9 million versus $143.6 million.
- Diluted EPS of $2.21 for the quarter versus $1.66; non-GAAP diluted EPS of $2.99 versus $2.73.
- Net cash used in operating activities of $174.8 million for the six months, compared with $270.0 million provided in the prior-year period, primarily due to timing of accounts receivable collections.
- Cash conversion cycle of 23 days at May 31, 2025, up from 18 days at November 30, 2024, driven by higher inventories tied to strategic technologies products.
- Repurchased 2.1 million shares for $249.3 million in the six months; $1.5 billion remained available under the March 2024 authorization; quarterly dividend of $0.44 per share declared.
- Total borrowings of approximately $4.1 billion, including $2.4 billion of Senior Notes and about $1.3 billion of term loans.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, TD Synnex kept $0.01.
- Revenue$14.95B100.0%
- Cost of revenue−$13.90B93.0%
- Gross profit$1.05B7.0%
- Operating costs−$718.2M4.8%
- Operating income$328.1M2.2%
- Interest, other & tax−$143.2M1.0%
- Net income$184.9M1.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 2, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $14.95B$13.95B | +7.2% |
| Cost of Revenue | $13.90B$12.97B | +7.1% |
| Gross Profit | $1.05B$973.55M | +7.5% |
| SG&A Expenses | $718.23M$671.71M | +6.9% |
| Operating Income | $328.14M$263.95M | +24.3% |
| Net Income | $184.92M$143.60M | +28.8% |
| EPS (Basic) | $2.22$1.67 | +32.9% |
| EPS (Diluted) | $2.21$1.66 | +33.1% |
| Shares Outstanding (Basic) | 82.63M85.45M | −3.3% |
| Shares Outstanding (Diluted) | 82.94M85.87M | −3.4% |
05—Questions
Frequently Asked Questions
How did TD SYNNEX perform in the quarter ended May 31, 2025?
Revenue rose 7.2% to $14.95 billion, and operating income increased to $328.1 million from $263.9 million. Net income was $184.9 million, or $2.21 per diluted share, compared with $143.6 million, or $1.66 per diluted share, a year earlier. The filing attributes the revenue growth to both the Endpoint Solutions and Advanced Solutions portfolios, partly offset by a greater share of sales presented on a net basis.
Why did operating cash flow turn negative in the first half of fiscal 2025?
The filing states that net cash used in operating activities was $174.8 million, compared with $270.0 million provided a year earlier. The decrease was primarily due to a larger decrease in accounts receivable in the prior-year period related to the timing of cash receipts, partially offset by a decrease in other accrued liabilities in the prior-year period.
How much debt does TD SYNNEX carry and is it in compliance with its covenants?
Total outstanding borrowings were approximately $4.1 billion as of May 31, 2025, up from $3.9 billion at November 30, 2024. This includes $2.4 billion of Senior Notes and about $1.3 billion of term loans. The company stated that it was in compliance with all material financial covenants as of May 31, 2025, and had $150.0 million outstanding under its $3.5 billion revolving credit facility.
What shareholder return actions did the company take?
In the six months ended May 31, 2025, the company repurchased 2.1 million shares for $249.3 million and paid dividends of $74.1 million. As of May 31, 2025, $1.5 billion remained available under the March 2024 share repurchase program, which has no expiration date. On June 24, 2025, the board declared a quarterly dividend of $0.44 per share payable July 25, 2025.
What drove the change in the company's cash conversion cycle?
The cash conversion cycle was 23 days as of May 31, 2025, compared with 18 days at November 30, 2024 and 23 days at May 31, 2024. The filing attributes the increase from year-end primarily to higher days inventory outstanding due to higher inventories related to strategic technologies products.
06—Continue