How did TD SYNNEX perform on revenue and gross billings in fiscal Q1 2025?

Revenue rose 4.0% to $14.53 billion, or 6.0% in constant currency. Non-GAAP gross billings rose 7.5% to $20.72 billion, or 9.5% in constant currency. The company said a greater share of sales were presented on a net basis, which reduced revenue growth by approximately 4%.

Why did non-GAAP earnings decline even though GAAP EPS increased?

GAAP diluted EPS rose to $1.98 from $1.93, but non-GAAP diluted EPS fell 6.4% to $2.80 from $2.99. Non-GAAP results exclude acquisition, integration and restructuring costs, amortization of intangibles, and share-based compensation. Non-GAAP operating income declined 6.1% to $398.8 million, and non-GAAP net income fell 10.8% to $237.4 million. The filing attributes the gross margin decline mainly to higher prior-year margins in strategic technologies and product mix.

What drove the negative free cash flow in the quarter?

Cash used in operating activities was $748 million, compared with cash provided of $385 million a year earlier. The cash flow statement shows accounts payable decreased by $1.97 billion, while accounts receivable released $854 million. Capital expenditures were $42 million, giving free cash flow of negative $790 million.

What is the dividend and capital return picture?

The board declared a quarterly cash dividend of $0.44 per common share, payable April 25, 2025 to holders of record on April 11, 2025. This is up 10% from the prior-year first quarter. During the quarter the company returned $138 million to stockholders, including $101 million in share repurchases and $37 million in dividends.

What does management expect for the second quarter of fiscal 2025?

The outlook calls for revenue of $13.9 to $14.7 billion, non-GAAP gross billings of $19.7 to $20.7 billion, GAAP net income of $137 to $179 million, and non-GAAP net income of $205 to $247 million. Diluted EPS is expected at $1.64 to $2.14, and non-GAAP diluted EPS at $2.45 to $2.95, based on an estimated 83.2 million diluted weighted average shares.

SNX 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed March 27, 2025. Cited figures are marked; the original filing is the authoritative source.

TD SYNNEX Corporation (NYSE: SNX) reported results for its fiscal first quarter ended February 28, 2025.

Revenue was $14.53 billion^a, up 4.0% from the prior-year quarter, or 6.0% on a constant currency basis. Non-GAAP gross billings rose 7.5% to $20.72 billion, at the top end of the company's outlook, and were up 9.5% on a constant currency basis. The filing notes that a greater share of sales were presented on a net basis, which reduced revenue growth by approximately 4% and improved gross margin by about 23 basis points.

Profitability was mixed. GAAP diluted EPS rose to $1.98^b from $1.93, while non-GAAP diluted EPS fell 6.4% to $2.80 from $2.99, and GAAP net income declined 2.7% to $167.5 million. Gross margin contracted to 6.87% from 7.20%, mainly due to higher prior-year margins in strategic technologies and product mix.

Cash used in operations was $748 million^c, producing negative free cash flow of $790 million, compared with positive free cash flow of $344 million a year earlier. Accounts payable declined by $1.97 billion during the quarter.

The company returned $138 million^d to stockholders through $101 million of share repurchases and $37 million of dividends, and declared a quarterly cash dividend of $0.44 per share, up 10% from the prior-year first quarter, payable April 25, 2025. For fiscal Q2 2025, management guided to revenue of $13.9 to $14.7 billion, non-GAAP gross billings of $19.7 to $20.7 billion, and non-GAAP diluted EPS of $2.45 to $2.95.

02—Key points

Key Highlights

Revenue of $14.53 billion, up 4.0% year over year (6.0% in constant currency), with a greater share of sales presented on a net basis reducing growth by approximately 4%.
Non-GAAP gross billings of $20.72 billion, up 7.5% (9.5% in constant currency), at the top end of the company's outlook.
GAAP diluted EPS of $1.98 vs. $1.93 a year earlier; non-GAAP diluted EPS of $2.80, down from $2.99.
Gross margin of 6.87% vs. 7.20%, reflecting higher prior-year margins in strategic technologies and product mix.
Negative free cash flow of $790 million, versus positive free cash flow of $344 million in the prior-year quarter, driven by cash used in operations of $748 million.
Quarterly dividend declared at $0.44 per share, up 10% from the prior-year first quarter; $138 million returned to stockholders in the quarter.
Fiscal Q2 2025 outlook: revenue of $13.9 to $14.7 billion, non-GAAP gross billings of $19.7 to $20.7 billion, and non-GAAP diluted EPS of $2.45 to $2.95.

03—Questions

Frequently Asked Questions

How did TD SYNNEX perform on revenue and gross billings in fiscal Q1 2025?
Revenue rose 4.0% to $14.53 billion, or 6.0% in constant currency. Non-GAAP gross billings rose 7.5% to $20.72 billion, or 9.5% in constant currency. The company said a greater share of sales were presented on a net basis, which reduced revenue growth by approximately 4%.
Why did non-GAAP earnings decline even though GAAP EPS increased?
GAAP diluted EPS rose to $1.98 from $1.93, but non-GAAP diluted EPS fell 6.4% to $2.80 from $2.99. Non-GAAP results exclude acquisition, integration and restructuring costs, amortization of intangibles, and share-based compensation. Non-GAAP operating income declined 6.1% to $398.8 million, and non-GAAP net income fell 10.8% to $237.4 million. The filing attributes the gross margin decline mainly to higher prior-year margins in strategic technologies and product mix.
What drove the negative free cash flow in the quarter?
Cash used in operating activities was $748 million, compared with cash provided of $385 million a year earlier. The cash flow statement shows accounts payable decreased by $1.97 billion, while accounts receivable released $854 million. Capital expenditures were $42 million, giving free cash flow of negative $790 million.
What is the dividend and capital return picture?
The board declared a quarterly cash dividend of $0.44 per common share, payable April 25, 2025 to holders of record on April 11, 2025. This is up 10% from the prior-year first quarter. During the quarter the company returned $138 million to stockholders, including $101 million in share repurchases and $37 million in dividends.
What does management expect for the second quarter of fiscal 2025?
The outlook calls for revenue of $13.9 to $14.7 billion, non-GAAP gross billings of $19.7 to $20.7 billion, GAAP net income of $137 to $179 million, and non-GAAP net income of $205 to $247 million. Diluted EPS is expected at $1.64 to $2.14, and non-GAAP diluted EPS at $2.45 to $2.95, based on an estimated 83.2 million diluted weighted average shares.

04—Continue

← View all 8-K filings