TD SYNNEX (SNX) Q2 2025 earnings summary

Executive summary

• Q2/FQ2'2025 delivered strong results with revenue up 7.2% year-over-year to $14.95 billion, non-GAAP gross billings up 12% to $21.6 billion, and non-GAAP diluted EPS at $2.99, all above guidance, driven by broad-based growth across all regions and technologies.

• Net income rose 28.8% year-over-year to $184.9 million, with GAAP diluted EPS at $2.21 (+33% y/y), and operating income increased 24.3% to $328 million.

• Strategic technologies, including cloud, data/AI/IoT, security, and hyperscale infrastructure, now represent 28% of non-GAAP gross billings.

• Over 40 industry awards and new global partnerships were secured, including HPE's global distribution partner of the year.

• Integration and restructuring activities related to the Tech Data merger were completed, with no further related expenses expected.

Financial highlights

• Gross profit for the quarter was $1.05 billion, up 7.5% year-over-year, with gross margin stable at 7.0%.

• Non-GAAP operating income was $414 million (+7% y/y), with operating margin at 2.8% (non-GAAP) and 2.2% (GAAP).

• Free cash flow for the quarter was $543 million; cash and cash equivalents at quarter-end were $767 million.

• $186 million returned to shareholders via $149 million in share repurchases and $37 million in dividends.

• Adjusted ROIC for the trailing twelve months was 9.7%; adjusted EBITDA for the quarter was $444 million.

Outlook and guidance

• Q3 2025 non-GAAP gross billings expected between $21.0–$22.0 billion; revenue guidance of $14.7–$15.5 billion.

• Q3 2025 non-GAAP net income guidance: $227–$268 million; diluted EPS $2.75–$3.25; tax rate ~23%.

• Full-year free cash flow target of $1.1 billion reaffirmed; $175 million in share repurchases planned for Q3.

• Quarterly dividend of $0.44 per share declared, up 10% year-over-year, payable July 25, 2025.

• Management expects continued growth in Endpoint Solutions and Advanced Solutions portfolios.