TD SYNNEX CORP - 10-K Filing Summary
Business Context and Reporting Period
Company: TD SYNNEX Corporation (NYSE: SNX)
Filing Type: Annual Report on Form 10-K
Reporting Period: Fiscal Year ended November 30, 2025
Business Overview: A Fortune 100 global distributor and solutions aggregator for the IT ecosystem. The company operates in three geographic segments: Americas, Europe, and Asia-Pacific and Japan (APJ). It distributes IT hardware, software, and systems, and provides design, integration, and logistics services.
Key Financial Metrics (Fiscal Year 2025)
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue | $62.51 billion | $58.45 billion | +6.9% |
| Gross Profit | $4.37 billion | $3.98 billion | +9.7% |
| Gross Margin | 6.99% | 6.81% | +18 bps |
| Operating Income | $1.41 billion | $1.19 billion | +18.5% |
| Operating Margin | 2.26% | 2.04% | +22 bps |
| Net Income | $827.7 million | $689.1 million | +20.1% |
| Diluted EPS | $9.95 | $7.95 | +25.2% |
| Operating Cash Flow | $1.53 billion | $1.22 billion | +25.8% |
| Total Debt (Short & Long Term) | $4.61 billion | $3.91 billion | +17.9% |
| Cash & Equivalents | $2.44 billion | $1.06 billion | +130.2% |
Material Changes vs. Prior Period
- Revenue Growth: Consolidated revenue increased by $4.1 billion (6.9%), driven by growth in both Advanced Solutions and Endpoint Solutions portfolios. Constant currency revenue grew 6.1%. The Americas segment grew 4.0%, Europe 10.5%, and APJ 15.2%.
- Margin Expansion: Gross margin improved to 6.99% from 6.81%, aided by the presentation of additional revenue on a net basis and margin expansion in the Endpoint Solutions portfolio.
- Cost Reductions: Acquisition, integration, and restructuring costs dropped significantly to $7.2 million in 2025 from $71.3 million in 2024, as the major Tech Data merger integration activities concluded.
- Debt Structure: Total borrowings increased to $4.6 billion. The company repaid the remaining principal of the TD SYNNEX Term Loan in October 2025 and issued new Senior Notes ($550M due 2029 and $600M due 2035) to refinance debt and fund general corporate purposes.
- Acquisition: Completed the acquisition of Apptium Technologies, LLC for approximately $105.1 million in July 2025 to enhance cloud commerce platform capabilities.
Guidance, Outlook, and Risks
Management Commentary: Management attributes performance to a broad, end-to-end portfolio strategy and deep capabilities across the computing continuum. The company continues to focus on unifying its reach, targeting new customers, and expanding services capabilities. Dividends were increased to $0.48 per share for the first quarter of fiscal 2026.
Key Risks:
- Supplier Concentration: Apple Inc. accounted for 12% of revenue and HP Inc. for 10% in fiscal 2025. Loss of these relationships could materially impact results.
- Customer Concentration: One customer accounted for 11% of total revenue in fiscal 2025.
- Low Margins: The business operates on low gross margins, making it sensitive to pricing pressure and cost fluctuations.
- Cybersecurity: The company faces ongoing risks from cyberattacks, noting incidents in 2021, 2022, 2023, and a partner breach in November 2024.
- Geopolitical & Economic: Exposure to foreign currency fluctuations (48% of revenue is international), trade policies, tariffs, and global economic conditions.
Investor Verification Checklist
- Supplier Dependency: Verify the stability of distribution agreements with Apple and HP, which collectively represent 22% of revenue.
- Net Revenue Presentation: Assess the impact of the shift to net revenue presentation on reported top-line growth versus actual volume growth.
- Debt Servicing: Review the ability to service $4.6 billion in debt, particularly with $1.02 billion due in fiscal 2026, amidst potential interest rate volatility.
- Inventory Valuation: Monitor inventory levels ($9.5 billion) and write-down risks given the rapid obsolescence cycle in IT hardware.
- Legal Contingencies: Track the status of the French Competition Authority antitrust fine (reduced to €24.9 million) and the related eBizcuss civil lawsuit appeal.