A global technology solutions distributor and service provider enabling digital transformation across healthcare, education, and enterprise sectors with a diversified revenue model spanning hardware distribution and software services.
Investors should consider this stock for its proven ability to generate substantial free cash flow exceeding $800M annually and return capital through dividends and buybacks. The company's diversified segment mix provides stability against sector-specific downturns while offering exposure to the secular growth trend in cloud computing and cybersecurity services.
Potential concerns include high accounts receivable balances of $11.71B creating liquidity pressure if collection cycles lengthen during economic stress. The heavy reliance on hardware distribution margins leaves the company vulnerable to commoditization pressures and potential inventory write-downs given the $9.50B inventory position.
TD SYNNEX Corporation is a leading technology solutions provider serving global markets across healthcare, education, government, and enterprise sectors. The company delivers end-to-end IT services, software, hardware, and cloud infrastructure through its extensive distribution network and direct sales channels. Key products include networking equipment, server systems, cybersecurity tools, and managed services designed to accelerate digital transformation for businesses of all sizes.
Recent financial performance highlights a resilient recovery with revenue reaching $62.51B and net income surging to $827.7M, driven by improved operating leverage and strong cash flow generation of $1.53B. The company successfully balanced working capital needs with aggressive share buybacks totaling $596.1M while maintaining a healthy liquidity position with $2.44B in cash equivalents.
The technology solutions industry is characterized by rapid innovation cycles and consolidation trends as distributors evolve into full-service partners offering cloud migration, cybersecurity, and managed services. Companies must continuously adapt to shifting vendor landscapes and maintain extensive logistics networks to serve diverse client requirements across global markets.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $62.34B | $57.56B | $58.45B | $62.51B |
| Cost of Revenue | $58.44B | $53.60B | $54.47B | $58.14B |
| Gross Profit | $3.90B | $3.96B | $3.98B | $4.37B |
| Operating Expenses | $2.85B | $2.88B | $2.79B | $2.95B |
| Operating Income | $1.05B | $1.08B | $1.19B | $1.41B |
| G&A | $2.63B | $2.67B | $2.72B | $2.95B |
| Stock-Based Comp | $91.2M | $85.0M | $69.2M | $66.4M |
| D&A | $463.4M | $418.3M | $407.5M | $414.2M |
| Depreciation | — | — | — | $100.3M |
| Amortization | $299.2M | $293.7M | $292.3M | $296.3M |
| Other OpEx | $222.3M | $206.2M | $71.3M | $7.2M |
| Non-Operating Income | $-223.7M | $-288.5M | $-328.2M | $-357.7M |
| Pre-Tax Income | $827.1M | $789.5M | $866.0M | $1.06B |
| Income Tax | $175.8M | $162.6M | $176.9M | $229.6M |
| Continuing Ops | $651.3M | $626.9M | $689.1M | $827.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $651.3M | $626.9M | $689.1M | $827.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $651.3M | $626.9M | $689.1M | $827.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $20.50B | $20.08B | $21.32B | $25.29B |
| Cash & Equivalents | $522.6M | $1.03B | $1.06B | $2.44B |
| Accounts Receivable | $9.42B | $10.30B | $10.34B | $11.71B |
| Inventory | $9.07B | $7.15B | $8.29B | $9.50B |
| Other Current Assets | $1.49B | $1.61B | $1.64B | $1.64B |
| Long-Term Assets | $9.23B | $9.33B | $8.95B | $8.96B |
| PP&E (Net) | $421.1M | $450.0M | $457.0M | $496.3M |
| Intangibles | $4.42B | $4.24B | $3.91B | $3.77B |
| Goodwill | $3.80B | $3.90B | $3.90B | $4.10B |
| Operating Leases | $406.2M | $451.0M | $471.9M | $441.3M |
| Other LT Assets | $179.2M | $278.9M | $213.5M | $149.6M |
| Total Assets | $29.73B | $29.41B | $30.27B | $34.25B |
| Current Liabilities | $16.43B | $16.74B | $17.22B | $20.96B |
| Accounts Payable | $13.99B | $13.35B | $15.08B | $17.62B |
| Current Leases | $89.4M | $95.1M | $103.8M | $109.3M |
| Other Current Liab | $178.7M | $888.5M | $67.3M | $909.1M |
| Long-Term Liabilities | $5.28B | $4.49B | $5.02B | $4.84B |
| LT Operating Leases | $333.5M | $372.9M | $390.7M | $362.3M |
| Other LT Liab | $4.95B | $4.12B | $4.63B | $4.48B |
| Total Liabilities | $21.71B | $21.23B | $22.24B | $25.80B |
| Shareholders' Equity | $8.03B | $8.18B | $8.04B | $8.45B |
| Paid-In Capital | $7.37B | $7.44B | $7.44B | $7.43B |
| Retained Earnings | $1.71B | $2.20B | $2.76B | $3.44B |
| AOCI | $-719.7M | $-507.2M | $-645.1M | $-379.4M |
| Treasury Stock | $337.2M | $949.7M | $1.51B | $2.04B |
| Total L&E | $29.73B | $29.41B | $30.27B | $34.25B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $651.3M | $626.9M | $689.1M | $827.7M |
| Non-Cash Adjustments | $-6.75B | $2.95B | $-3.30B | $-3.50B |
| Working Capital Changes | $6.05B | $-2.17B | $3.82B | $4.20B |
| Cash from Operations | $-49.6M | $1.41B | $1.22B | $1.53B |
| Capital Expenditures | $65.3M | — | — | — |
| Cash from Investing | $-115.5M | $-156.4M | $-193.8M | $-221.2M |
| Debt Repayments | $128.7M | $74.4M | $1.49B | $598.6M |
| Share Buybacks | $125.0M | $620.7M | $611.9M | $596.1M |
| Dividends Paid | $114.9M | $130.4M | $138.1M | $146.4M |
| Cash from Financing | $-275.6M | $-785.9M | $-953.1M | $-32.9M |
| FX Effect | $-31.4M | $45.8M | $-45.2M | $98.3M |
| Net Change in Cash | $-472.1M | $510.9M | $25.6M | $1.38B |
| Beginning Cash | $994.9M | $522.9M | $1.03B | $1.06B |
| Ending Cash | $522.9M | $1.03B | $1.06B | $2.44B |
The company operates through four primary segments: Global Distribution (hardware and software sales), Global Services (managed IT and professional services), Global Solutions (cloud computing and specialized technology implementations), and Emerging Markets (distribution in international regions including Latin America, Asia, and Europe).
1. Cyclical exposure to technology procurement budgets in key verticals like healthcare and education vulnerable to economic downturns. 2. Margin compression risks from intense competition in hardware distribution and fluctuating supply chain costs affecting gross profit margins. 3. Exposure to foreign exchange volatility impacting international operations given significant global revenue denominated in non-USD currencies.
1. Unmatched global footprint with deep penetration in critical sectors like healthcare and education creating high switching costs for clients. 2. Diversified revenue streams balancing volatile hardware distribution margins with growing recurring service revenues. 3. Strong cash generation capabilities evidenced by robust operating cash flow relative to capital expenditures supporting strategic acquisitions and shareholder returns.
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