TD SYNNEX (NYSE:SNX) Q4 CY2025: Revenue Surpasses Expectations

TD SYNNEX Surpasses Q4 2025 Revenue Projections

TD SYNNEX (NYSE:SNX), a major player in IT distribution, posted its fourth quarter results for calendar year 2025, exceeding analysts’ revenue forecasts. The company reported a 9.7% year-over-year increase in sales, reaching $17.38 billion. Looking ahead, TD SYNNEX anticipates revenue of approximately $15.5 billion for the next quarter, which aligns closely with market expectations. Adjusted earnings per share came in at $3.83, topping consensus estimates by 2.7%.

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Highlights from TD SYNNEX’s Q4 2025 Performance

• Total Revenue: $17.38 billion, surpassing the $16.95 billion analyst forecast (9.7% annual growth, 2.6% above expectations)
• Adjusted Earnings Per Share: $3.83, ahead of the $3.73 consensus (2.7% beat)
• Adjusted EBITDA: $527.1 million, exceeding the $515.2 million estimate (3% margin, 2.3% beat)
• Q1 2026 Revenue Outlook: $15.5 billion at the midpoint, in line with analyst projections
• Q1 2026 Adjusted EPS Guidance: $3.25 at the midpoint, slightly above the $3.21 analyst estimate
• Operating Margin: 2.3%, matching the margin from the same period last year
• Free Cash Flow Margin: 8.2%, a significant increase from 3.2% a year ago
• Market Value: $12.3 billion

About TD SYNNEX

TD SYNNEX acts as a vital link in the global technology supply chain, bridging the gap between thousands of IT manufacturers and resellers. The company enables businesses to access a wide range of hardware, software, and technology solutions worldwide.

Examining Revenue Trends

Assessing a company’s revenue over time offers valuable perspective on its overall strength. While any business can deliver a strong quarter, sustained growth over several years is a sign of resilience.

With $62.51 billion in revenue over the last year, TD SYNNEX stands as a dominant force in business services, leveraging its scale for competitive advantages in distribution. This scale allows the company to better manage fixed costs and offer more competitive pricing than smaller rivals.

Over the past five years, TD SYNNEX achieved an impressive annualized revenue growth rate of 25.6%, reflecting robust demand and a solid foundation for further analysis.

Although long-term growth is important, recent performance can reveal shifts in demand or industry changes. In the last two years, TD SYNNEX’s annualized revenue growth slowed to 4.2%, falling short of its five-year average.

For the latest quarter, revenue grew 9.7% year-over-year, reaching $17.38 billion—2.6% above Wall Street’s expectations. Management projects a 6.7% year-over-year sales increase for the upcoming quarter.

Looking Ahead: Revenue Forecasts

Analysts predict that TD SYNNEX’s revenue will rise by 3.6% over the next year, mirroring its recent two-year growth rate. This outlook suggests that new offerings may not yet drive significant top-line acceleration.

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Profitability: Operating Margin

Operating margin measures how much profit a company retains from its revenue after covering core expenses, excluding interest and taxes. This metric is useful for comparing profitability across companies with varying debt and tax profiles.

TD SYNNEX’s operating margin has hovered around 2% on average over the past five years, with only minor fluctuations in the last year. This level of profitability is considered modest for a business services provider and points to a less-than-optimal cost structure.

Despite revenue growth, the company’s operating margin has remained steady, raising questions about its ability to capitalize on economies of scale for improved profitability.

In the fourth quarter, TD SYNNEX posted an operating margin of 2.3%, consistent with the same period last year, indicating stable cost management.

Earnings Per Share Analysis

While revenue growth highlights a company’s expansion, changes in earnings per share (EPS) reveal how profitable that growth is. Sometimes, companies boost sales through heavy spending, which can impact bottom-line results.

TD SYNNEX’s EPS has remained flat over the past five years, lagging behind its strong 25.6% annualized revenue growth. This suggests that factors like interest and taxes have weighed on net earnings, as the operating margin stayed unchanged.

Examining EPS over shorter periods can uncover emerging trends. For TD SYNNEX, EPS grew at an annualized rate of 8.2% over the last two years, outpacing its five-year average—a positive sign of accelerating profitability.

In Q4, adjusted EPS reached $3.83, up from $3.09 a year earlier and 2.7% above analyst expectations. Wall Street forecasts a 10.4% increase in full-year EPS to $13.20 over the next 12 months.

Summary: Q4 Takeaways for TD SYNNEX

TD SYNNEX delivered a strong quarter, outperforming revenue and EPS forecasts. The company’s guidance for the next quarter also slightly exceeded expectations. Following the results, shares rose 1.7% to $153.50.

While the recent performance is encouraging, investors should consider broader factors such as valuation, business fundamentals, and the latest earnings before making a decision.