TD SYNNEX (SNX) Soars After Stellar Q2: $21.6B Billings & Cash Flow Surprise Shock Street

Tech distributors just schooled Wall Street again.

TD SYNNEX blasted past estimates with a $21.6 billion billing tsunami—proving even middlemen get rich when the tech sector plays musical chairs with inventory. Cash flow? Strong enough to make a VC blush.

Key Takeaways:

- The 'boring' infrastructure play quietly printing money

- Supply chain alchemy turns silicon into gold

- Analysts scramble to upgrade price targets (as usual)

Funny how these 'low-margin' businesses keep funding buybacks while flashy startups burn cash on kombucha taps. The market rewards movers—not talkers.

TLDR

• SNX closed at $136.88 on June 24, rising 7.27% following a Q2 earnings beat and solid top-line growth.

• Gross billings reached $21.6 billion, a 12% YoY increase; revenue rose 7.2% to $14.9 billion.

• Non-GAAP EPS hit $2.99, exceeding the upper end of guidance; net income totaled $251 million.

• Free cash flow was $543 million, with $186 million returned to shareholders via buybacks and dividends.

• Company remains cautious due to global trade uncertainties and softer margins from FX losses.

TD SYNNEX Corporation (NYSE: SNX) reported robust second-quarter fiscal 2025 results on June 24, pushing its stock up 7.27% to $136.88. The IT distributor posted $21.6 billion in gross billings, up 12.1% year over year, and $14.9 billion in net revenue, up 7.2%. Both figures came in above the high end of guidance.

TD SYNNEX Corporation (SNX)

The company saw broad-based growth across its Endpoint and Advanced Solutions portfolios, with especially strong momentum in cloud, cybersecurity, and infrastructure software segments. Non-GAAP diluted EPS landed at $2.99, also exceeding expectations.

Strong Profitability and Cash Flow

Gross profit ROSE 7% to $1.046 billion, though gross margin dipped slightly by 21 basis points due to FX losses and a shift in sales mix. Non-GAAP operating income increased 7% to $414 million.

TD SYNNEX generated $543 million in free cash FLOW during the quarter and returned $186 million to shareholders through $149 million in stock repurchases and $37 million in dividends. It also declared a quarterly cash dividend of $0.44 per share, marking a 10% year-over-year increase.

Cash and equivalents totaled $767 million, while the company maintained a gross leverage ratio of 2.4x and net leverage of 1.9x.

Regional Growth and Software Momentum

In the Americas, revenue grew 5.3% to $9 billion, while gross billings climbed 9% to $13.3 billion. Europe delivered 10.5% revenue growth and a 16.7% gain in gross billings. Asia-Pacific and Japan saw revenue increase 8.7% and gross billings jump 22%.

The strong performance was bolstered by a 20% YoY increase in software billings, led by high demand for cloud and cybersecurity solutions. The company also received over 40 industry accolades, including recognition as HPE’s global distribution partner of the year.

Cautious Outlook Amid Global Risks

Despite the strong Q2, TD SYNNEX issued a cautious outlook for the second half of the year. Management cited potential headwinds from macroeconomic uncertainty, tariffs, and global geopolitical risks. Gross margins could remain pressured by ongoing FX volatility and program mix.

The company noted some demand pull-forward, especially in PCs, which may affect near-term performance. Interest expenses also edged higher, slightly impacting net results.