TD SYNNEX (NYSE:SNX) executives highlighted record fourth-quarter and full-year fiscal 2025 results, citing broad-based demand across its global distribution business and continued rapid expansion at Hyve. Management also outlined strategic priorities for fiscal 2026 and provided first-quarter guidance that implies continued double-digit gross billings growth, while noting that working-capital timing that benefited the fourth quarter is expected to reverse in the first quarter.
Record quarterly results and full-year momentum
CEO Patrick Zammit said the company delivered “another set of record results” to close fiscal 2025. For the fourth quarter, TD SYNNEX reported non-GAAP gross billings of $24.3 billion, up 15% year over year (or 13% in constant currency). Non-GAAP diluted EPS was $3.83, up 24% year over year, which management characterized as another company record.
On a full-year basis, Zammit said the business excluding Hyve increased gross billings in the “high single digits” year over year while improving gross margin and operating margin. He also said Hyve grew gross billings at a double-digit rate “well above” expectations and made progress expanding offerings and diversifying its customer base.
Regional trends: APJ leads growth; Europe outperforms expectations
Zammit pointed to strength across regions and technologies. He said North America grew steadily, supported by demand across key customer segments, increased security requirements, and shifts toward complex multi-cloud architectures. Europe, he said, grew faster than anticipated as customers prioritized infrastructure software, PC upgrades, and modernization of aging infrastructure despite a slow macroeconomic backdrop.
In the Q&A, Zammit said the European market grew “mid-single digit,” and he attributed TD SYNNEX’s stronger performance to ongoing share gains and a strategy focused on higher-growth technologies, vendors, and customer segments.
Asia-Pacific and Japan remained the company’s “key growth engine,” according to Zammit, driven by rapid cloud expansion, PC upgrades, accelerating AI development, and digitization across economies in the region. Responding to a question about sustainability and market share, he said TD SYNNEX’s share in APJ remains relatively low and the company is investing significantly to gain share, including in faster-growing markets such as India. He also noted that operating income in APJ has grown “overproportional[ly]” versus sales, helped by cost discipline alongside investment.
Zammit added that Latin America delivered double-digit top-line momentum with strong engagement across the portfolio and customer base.
Portfolio performance: PCs, strategic technologies, and Hyve
CFO David Jordan said fourth-quarter results exceeded the midpoint of guidance across key metrics, with gross operating margin expansion driven by operational efficiencies, favorable mix, and margin management.
Jordan highlighted strength in both major portfolios:
- Endpoint Solutions: Gross billings increased 12% year over year, supported by PC demand tied to the Windows 11 refresh and sustained demand for premium devices. Jordan said PCs have increased double digits globally for four consecutive quarters, and the company expects momentum into the initial months of fiscal 2026.
- Advanced Solutions: Gross billings increased 17% year over year, or 8% excluding Hyve, driven by growth in Cloud, Security, Software, and other strategic technologies.
Hyve, reported within Advanced Solutions, grew more than 50% year over year, driven primarily by server and networking rack-build programs. Zammit later added that Hyve’s ODM/CM business grew “in line, if not slightly better than the pace of the market,” and he pointed to a very strong quarter in “supply chain services,” which he described as more opportunistic and lumpy.
Management also discussed the impact of rising memory prices. Zammit said DRAM and NAND prices have increased “dramatically,” and the company is already seeing higher average selling prices (ASPs) across product families including PCs, servers, and storage. He called higher ASPs a near-term tailwind and said the key variable to watch will be volume elasticity, especially for PCs. He said TD SYNNEX is more focused on commercial PCs than consumer PCs and expressed optimism that elasticity should be relatively low for its mix, while also reiterating that the refresh cycle is not over. He added that the “weight” of AI PCs continues to increase.
On concerns about pull-forwards ahead of pricing increases, Zammit said it is difficult to assess but he was confident there were no material pull-forwards in the last quarter.
Margins, cash flow, and shareholder returns
Jordan said net revenue was $17.4 billion, up 10% year over year and above the high end of guidance, with an approximately 29% gross-billings-to-net-revenue reduction in the quarter. He noted the gross-to-net dynamic remains elevated versus the prior year due to a higher mix of software within distribution and increases in certain Hyve programs.
Gross profit increased 15% year over year to $1.2 billion, while gross margin as a percentage of gross billings was 5%, flat year over year. Non-GAAP SG&A was $698 million (about 3% of gross billings), and the company’s cost-to-gross-profit ratio improved by about 100 basis points year over year to 58%. Non-GAAP operating income rose 18% to $497 million, and non-GAAP operating margin as a percentage of gross billings was 2.04%, up 5 basis points year over year.
Free cash flow was $1.4 billion in the quarter, which Jordan said brought annual free cash flow to $1.4 billion, “well ahead” of expectations and marking the third consecutive year above $1 billion. The company returned $209 million to shareholders in the quarter through $173 million of repurchases and $36 million in dividends; for the fiscal year, TD SYNNEX returned $742 million, bringing three-year cumulative shareholder returns to over $2.2 billion. As of November 30, the company had $1.2 billion remaining on its repurchase authorization.
Jordan said year-end cash was elevated due to a new debt issuance intended to pay off $700 million of debt maturing in August 2026 and strong working-capital execution. He also said the quarter benefited from “a few larger” receipts that arrived just before period end, estimating Q4 benefited by “a few hundred million dollars” that should normalize in fiscal 2026. The company expects a cash outflow in Q1 due to seasonality and the reversal of those timing benefits, but Jordan said it still expects cumulative free cash flow across fiscal 2025 and 2026 to align with its medium-term target of 95% conversion of non-GAAP net income to free cash flow.
Q1 guidance and 2026 priorities
For the first quarter of fiscal 2026, Jordan guided to non-GAAP gross billings of $22.7 billion to $23.7 billion (about 12% growth at the midpoint), net revenue of $15.1 billion to $15.9 billion (assuming a 33% gross-to-net adjustment), non-GAAP net income of $243 million to $283 million, and non-GAAP EPS of $3.00 to $3.50, based on approximately 80.1 million weighted-average shares. The outlook assumes a euro-to-dollar exchange rate of 1.16.
Jordan also said planned capital expenditures for fiscal 2026 are expected to be similar to fiscal 2025, including investments to support Hyve’s growth.
Strategically, Zammit said the company is sharpening execution around four focus areas in 2026:
- Omnichannel engagement, including enhancements to its Partner-First Digital Bridge and a new AI Assistant designed to support self-service transactions and real-time support for customer-facing teams.
- Specialized go-to-market, highlighted by a global security RFP win intended to expand enterprise penetration and Cisco naming TD SYNNEX distributor of the year globally and in the Americas and EMEA.
- Best-in-class enablement, including the launch of an “AI Game Plan” workshop aimed at helping customers’ sales teams translate AI opportunities into business outcomes.
- Expanding brand visibility, reinforcing its “making IT personal” brand promise.
On Hyve, Zammit said demand remains strong among hyperscaler customers, citing differentiators such as production flexibility, a favorable U.S. footprint, co-development capabilities, and a secure supply chain. He also said the company continues to bid on new programs with existing customers and potential new customers, though he noted new programs can take time to ramp.
Jordan announced the board approved a quarterly cash dividend of $0.48 per share payable January 30, 2026, to shareholders of record on January 16, 2026.
About TD SYNNEX (NYSE:SNX)
TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the information technology industry. Formed in September 2021 through the merger of Tech Data and SYNNEX Corporation, the company provides a comprehensive range of products, services and solutions that span hardware, software, cloud, mobility, security and data center technologies. TD SYNNEX partners with vendors, resellers and system integrators to design, deploy and support IT infrastructures across diverse market segments, including commercial enterprises, public sector organizations and retail operations.
The company’s core business activities include the distribution of technology products from manufacturers such as servers, storage, networking equipment and peripherals, as well as the resale and provisioning of software licenses and cloud-based solutions.
