Synnex Stock Earnings Reports

TD SYNNEX reported record Q3 results with consolidated gross billings of $22.7 billion (up 12% in constant currency) and non-GAAP diluted EPS of $3.58, a 25% year-over-year increase and an all-time high. Net revenue was $15.7 billion (+7% YoY) and gross profit rose 18% to $1.1 billion; non-GAAP operating income was $475 million (+21% YoY). Gross margin improved to 5.0% (up 23 bps) and cost discipline drove a Q3 cost-to-gross-profit ratio improvement to 58%. Hive (their hyperscaler/data-center business) grew in the mid-30s, ODM/custom manufacturing grew 57% YoY, and software billings rose 26% driven by cybersecurity and infrastructure software. PCs continue to show double-digit growth led by Windows 11 refresh and a higher mix of AI PCs. Regionally, Latin America and APJ delivered strong double-digit billings growth; SMB/MSP end markets outpaced the company average. Balance sheet and cash: cash of $874 million, total debt $4.2 billion, net leverage ~1.8x; gross cash days ~16. Q3 free cash flow was $214 million, but full-year free cash flow expectations were revised to approximately $800–850 million due to stronger growth increasing working capital needs. Q4 guidance: gross billings $23.0–24.0 billion, net revenue $16.5–17.3 billion (implying ~28% gross-to-net), non-GAAP diluted EPS $3.45–3.95, non-GAAP tax rate ~23%, and interest expense of ~$91 million. Board approved a $0.44 per-share cash dividend payable Oct 31, 2025. Key investor considerations: strong execution and diversified growth (software, PCs, Hive), elevated gross-to-net mix (agent/Hive and software) impacting net revenue conversion, Hive remains lumpy but currently showing robust momentum, and higher working capital needs temper near-term free cash flow conversion despite improved operating results.