TD SYNNEX (SNX) Q1 2025 earnings summary

Executive summary

• Q1/FQ1 FY25 non-GAAP gross billings reached $20.7 billion, up 7.5–8% year-over-year, with broad-based growth across all regions and major technologies.

• Revenue rose 4% year-over-year to $14.5–$14.53 billion, driven by Endpoint and Advanced Solutions portfolios.

• Non-GAAP diluted EPS was $2.80 (down from $2.99), and GAAP diluted EPS was $1.98 (up from $1.93), both within guidance.

• Strategic technologies accounted for 26% of non-GAAP gross billings, with double-digit growth in cloud, cybersecurity, and data analytics.

• Returned $138 million to shareholders via $101 million in share repurchases and $37 million in dividends; dividend per share increased 10% year-over-year.

Financial highlights

• Gross profit was $998 million, with gross margin at 6.87% (4.82% of non-GAAP gross billings), down year-over-year due to product mix and Hyve.

• Non-GAAP operating income was $399 million (1.92% of gross billings), and non-GAAP net income was $237 million.

• Free cash flow was negative $790–800 million, mainly due to working capital and Hyve inventory.

• Cash and cash equivalents ended at $541.9–$542 million; total borrowings increased to $4.3 billion.

• Adjusted ROIC for Q1 was 9.7%; cash conversion cycle increased to 27 days.

Outlook and guidance

• Q2/FQ2 2025 non-GAAP gross billings expected between $19.7–$20.7 billion; revenue guidance $13.9–$14.7 billion.

• Non-GAAP net income guidance: $205–$247 million; non-GAAP diluted EPS: $2.45–$2.95.

• Dividend of $0.44 per share declared, payable April 25, 2025.

• Fiscal 2025 targets mid-single-digit gross billings growth and $1.1 billion free cash flow.

• Management expects sufficient liquidity for at least the next twelve months.