0001628280-26-003598
SEC filingRevenue grew 6.9% to $62.5B, gross margin expanded 18 bps, and operating income rose 18.5%, driven by portfolio growth and lower acquisition costs.
TD SYNNEX Corporation is a Fortune 100 global distributor and solutions aggregator for the information technology ecosystem. The company was originally incorporated in 1980 and changed its name to TD SYNNEX following the acquisition of Tech Data Corporation in September 2021. Headquartered in Clearwater, Florida and Fremont, California, the company serves a critical role in bringing products from leading and emerging technology vendors to market and helping customers create solutions for their end-users.
The company operates in three reportable segments based on geographic regions: the Americas, Europe, and Asia-Pacific and Japan (APJ). The filing does not disclose the revenue share for individual segments within the Business section; however, it notes that approximately 48% of consolidated revenue in fiscal 2025 was generated by international operations.
TD SYNNEX aggregates and distributes IT hardware, software, and systems including personal computing devices, mobile phones, printers, server and datacenter infrastructure, hybrid cloud, security, networking, storage, and system components. It offers a catalog of more than 200,000 technology products from approximately 2,500 OEMs. The company groups its offerings into two primary portfolios:
Additionally, TD SYNNEX provides a range of services including systems design and integration, logistics, depot repair, field services, customer management, cloud services (via a proprietary cloud platform), online services (EDI, XML, APIs), financial services (net terms, leasing, floor plan financing), and marketing services.
TD SYNNEX markets its products globally to an active reseller base of over 150,000 customers. Reseller types include value-added resellers (VARs), independent software vendors (ISVs), corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers (MSPs). The company also has a direct sales approach for its design and integration solutions business. One customer accounted for 11% of total revenue in fiscal year 2025. Key suppliers include Apple Inc. (12% of revenue in fiscal 2025) and HP Inc. (10% in fiscal 2025), with distribution agreements that are generally nonexclusive, short-term, and terminable without cause.
The IT distribution industry is highly competitive. TD SYNNEX competes with international distributors such as Ingram Micro Holding Corporation, Arrow Electronics, Inc., and Westcon-Comstor, as well as regional distributors including ScanSource, Inc., ALSO Holding, Esprinet, VSTECS Holdings Ltd., and Synnex Technology International Corp. (an unrelated entity). In the hyperscale computing infrastructure market, competitors include Jabil Inc., Celestica, Flex Ltd., Quanta Computer Inc., and Wiwynn Corporation. Competition is based on product availability, credit terms, price, delivery speed, sales and marketing programs, and technical support.
TD SYNNEX's vision is "to be the vital solutions aggregator and orchestrator that connects the IT ecosystem." The company focuses on five strategic imperatives: (1) unifying its reach by expanding its portfolio in mature and developing markets; (2) targeting new customers through a specialist go-to-market and trusted advisor approach; (3) expanding its addressable market via its unique vendor value proposition; (4) diversifying offerings, including design, manufacturing, and supply chain services for hyperscale customers; and (5) expanding and attaching services capabilities to engage earlier in the customer lifecycle and drive renewals.
As of November 30, 2025, TD SYNNEX had approximately 24,000 full-time co-workers and about 6,000 temporary or contract workers (on a full-time equivalent basis). The company emphasizes diversity and inclusion, pay equity, co-worker engagement, training and development, and health, safety, and wellness. In fiscal 2025, it established a Chief Learning and Belonging Officer and launched initiatives such as TD SYNNEX Learning Labs and AI enablement transformation.
TD SYNNEX reported solid financial results for fiscal year 2025. Consolidated revenue increased 6.9% to $62.5 billion, driven by growth in both Advanced Solutions and Endpoint Solutions portfolios across all regions. However, reported growth was tempered by a shift in product mix that resulted in approximately $2.8 billion of revenue being recognized on a net basis, which reduced reported revenue growth by about 500 basis points. Gross profit rose 9.7% to $4.37 billion, with gross margin expanding 18 basis points to 6.99%. The margin improvement was supported by the net revenue presentation effect (approximately +30 bps) and margin expansion in the Endpoint Solutions portfolio, partially offset by higher strategic technologies margins in the prior year. Operating income grew 18.5% to $1.41 billion, and operating margin improved 22 basis points to 2.26%. The operating margin gain reflected gross margin expansion, lower acquisition, integration and restructuring costs ($7.2 million versus $71.3 million in FY24), and disciplined expense management. Net income increased 20.1% to $827.7 million, and diluted EPS rose to $9.95 from $7.95, aided by lower share count due to share repurchases.
The Americas segment contributed $36.2 billion in revenue, up 4.0% year over year. Operating income increased 23.0% to $1.01 billion, and operating margin expanded 43 basis points to 2.78%, benefiting from lower acquisition costs and gross margin expansion. Europe revenue grew 10.5% to $21.7 billion, with operating income up 13.6% to $299.8 million and operating margin slightly improved to 1.38%. A slight decline in gross margin was offset by lower acquisition costs. APJ revenue surged 15.2% to $4.6 billion, but operating income decreased 2.7% to $109.7 million, and operating margin contracted 43 basis points to 2.37%. The decline was driven by lower strategic technologies gross margins and higher personnel costs, partially offset by the net revenue presentation effect. Overall, segment dynamics reflect strong top-line momentum, especially in APJ, but margin compression in that region warrants attention.
Management did not provide explicit quantitative guidance for fiscal 2026 but highlighted several strategic priorities and risks. The company continues to focus on organic growth and strategic acquisitions, as evidenced by the July 2025 acquisition of Apptium Technologies. The MD&A notes ongoing economic uncertainties, including inflation, elevated interest rates, geopolitical tensions, and tariff risks, which could impact IT demand. On capital allocation, TD SYNNEX maintains a $1.2 billion share repurchase authorization and expects to fund working capital needs through cash flows, available credit facilities, and accounts receivable programs. The company believes its liquidity position is sufficient to meet obligations, including the $700 million Senior Note maturity in August 2026. Key initiatives include expanding the Endpoint Solutions and Advanced Solutions portfolios, leveraging the cloud commerce platform from the Apptium acquisition, and continuing cost optimization. Investors should monitor segment margin trends, especially in APJ, and the impact of net revenue presentation on reported growth.
As of November 30, 2025, TD SYNNEX held $2.44B in cash and equivalents, up from $1.06B a year ago. Total debt stood at $4.61B (current $1.02B, long-term $3.59B), compared to $3.91B in 2024, reflecting net new borrowings of $0.7B. Inventory increased to $9.50B from $8.29B, consistent with revenue growth. Shareholders' equity rose to $8.45B from $8.04B, driven by net income and other comprehensive income, partially offset by share repurchases.
The filing discloses no material aggregate purchase commitments or supply agreements. The company has lease obligations of $568.2M undiscounted, with $111.4M due within one year. Financing obligations include $68.0M in standby letters of credit. The French antitrust fine (€24.9M) is on appeal, and the company considers further loss remote.
In fiscal 2025, TD SYNNEX repurchased $596.1M in common stock (4.45M shares at avg. $134.03), leaving $1.2B authorization remaining. Dividends totaled $146.4M ($1.76 per share, up 10% from $1.60). The company issued $1.15B in new senior notes (2029 and 2035 maturities) and used proceeds to repay the remaining $581.3M term loan, reducing floating-rate exposure. Capital expenditures were $142.3M (0.23% of revenue), focused on property and equipment.
Revenue by segment: Americas $36.2B (58% of total), Europe $21.7B (35%), APJ $4.6B (7%). Operating margins: Americas 2.78%, Europe 1.38%, APJ 2.37%. The Americas segment contributed $1.01B in operating income, Europe $300M, and APJ $110M. Revenue grew 4.0% in Americas, 10.5% in Europe, and 15.2% in APJ year-over-year, with APJ showing the fastest growth. The company relies on two major vendors: Apple (12% of revenue) and HP Inc. (10%).
TD SYNNEX faces high revenue concentration with Apple (~12%) and HP (~10%), under short-term agreements terminable without cause. The company's low gross margins (typical for IT distribution) amplify the impact of revenue variability and fixed costs. Inventory obsolescence risk is partially mitigated by OEM price protection, but those protections are limited. The $4.6 billion debt load includes restrictive covenants and variable-rate exposure, creating interest rate risk in the current elevated-rate environment.
Customer concentration (one customer 11% of FY2025 revenue) and intense competition from other distributors, contract manufacturers, and direct OEM sales threaten market share. The shift to cloud and as-a-service models reduces hardware revenue. The company's systems design & integration segment has particular customer concentration and no volume guarantees.
The document details four distinct cybersecurity incidents (July 2021, July 2022, September 2023, November 2024), though none are currently deemed material. The company's growing use of AI in offerings and operations introduces new regulatory (EU AI Act), ethical, and competitive risks. Rapidly changing AI regulations across jurisdictions may impose compliance costs or limit capabilities.
Approximately 48% of revenue is from outside the U.S., exposing TD SYNNEX to foreign currency volatility, trade tensions (U.S.-China tariffs), and political instability. A significant portion of IT systems support is located in China, creating exposure to geopolitical disruptions, data transfer restrictions, and potential loss of access to personnel. The OECD Pillar Two global minimum tax (15%) is being adopted in multiple countries where the company operates, likely increasing its effective tax rate from fiscal 2025 onward.
Tax authority audits and the ongoing French Competition Authority fine (reduced to €24.9 million on appeal) highlight litigation exposure. FCPA and anti-corruption compliance risks are specifically called out for international operations. The company notes that changes in financial accounting standards could affect reported results.
Input does not contain cash flow statement figures.