TD SYNNEX Corporation reported its financial results for the three months ended February 28, 2025, revealing a revenue increase of 4% to $14.5 billion, compared to $14.0 billion in the same period last year. The company's gross profit slightly decreased to $998.0 million, resulting in a gross margin of 6.87%, down from 7.20% in the prior year. Operating income rose marginally to $304.5 million, while net income was reported at $167.5 million, a decrease from $172.1 million year-over-year. Earnings per share (EPS) for the quarter were $1.98, compared to $1.93 in the previous year.
The company experienced notable changes in its financial metrics compared to the previous fiscal period. While revenue grew, the gross profit decline was attributed to a less favorable product mix and increased competition, which pressured margins. Additionally, selling, general, and administrative expenses rose by 3.1% to $692.5 million, primarily due to higher personnel costs and share-based compensation. The company incurred $1.1 million in acquisition, integration, and restructuring costs during the quarter, a significant reduction from $31.6 million in the prior year, reflecting the completion of integration activities related to its merger with Tech Data.
Operationally, TD SYNNEX reported a cash and cash equivalents balance of $541.9 million as of February 28, 2025, down from $1.1 billion at the end of the previous fiscal year. The company’s accounts receivable decreased to $9.4 billion, while inventories increased to $8.4 billion. The cash conversion cycle lengthened to 27 days, compared to 18 days at the end of the previous quarter, primarily due to a decrease in accounts payable and an increase in inventory levels. The company also reported a total of 99,012 shares of common stock outstanding as of the latest date.
Looking ahead, TD SYNNEX remains focused on strategic growth initiatives, including investments in hybrid cloud, security, and artificial intelligence technologies. The company plans to enhance its product offerings and expand its global footprint while continuing to optimize its operations. Management expressed confidence in the company’s ability to navigate market challenges and capitalize on growth opportunities, supported by its robust financial position and ongoing share repurchase program, which has $1.7 billion available for future repurchases.
About TD SYNNEX CORP
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