TD SYNNEX Achieves Strong Momentum in Q1 2025, Executing with Discipline in Evolving Macroeconomic Environment
TD SYNNEX has reported a strong start to fiscal year 2025, demonstrating momentum across the business with all regions and major technologies contributing. According to Patrick Zammit, CEO of TD SYNNEX, the company's Q1 results highlight two key themes: strong momentum across the business, and execution with discipline in an evolving macroeconomic environment.
TD SYNNEX reported a 7.5% year-over-year growth in gross billings and 9.5% growth in constant currency. Advanced Solutions grew by 7% year-over-year, reflecting continued demand for integrated IT solutions, while Endpoint Solutions grew by 8% year-over-year with growth across PCs and mobile.
In a statement on the company's Q1 2025 earnings call, Patrick Zammit noted that TD SYNNEX is executing with discipline in an evolving macroeconomic environment. While gross profit was below expectations due to a component shipment delayed from Q1 to Q2 and demand shortfalls, which may last a few quarters, the CEO expressed confidence that the situation would normalize as market conditions continue to be favorable.
TD SYNNEX's end-to-end strategy, global reach, and specialist go-to-market approach continue to allow the company to capture a wide range of IT spend. The company expanded its reach to 30,000 active partners and 500,000 end users transacting through its cloud marketplace in Q1.
The expansion of TD SYNNEX's line card also drives expansion of its partner base as the company continues to enrich its value proposition and product offering in those markets. The company reported double-digit growth in Latin America and APG in constant currency, with continued margin accretive partnerships with leading innovative vendors helping grow their business.
TD SYNNEX's position as the vital link in the global IT ecosystem is further solidified by its collection of specialist go-to-market capabilities. As IT solutions become more complex, driven by trends such as the convergence of hardware and software and the proliferation of technologies like cloud, cybersecurity, and AI.
The company's specialized units and local knowledge enable it to solve some of their most challenging business problems, accelerate growth, and reduce costs. For example, TD SYNNEX recently won a major cybersecurity vendor's U.S. business with a large customer, leveraging its best-in-class cybersecurity practice to deliver platform-wide solutions that integrate hardware, software, and AI.
TD SYNNEX is also providing enablement and support services offerings that expand the company's value proposition to partners. This demonstrates the company's ability to execute on its strategy and provide value-added services to both vendors and customers in a rapidly evolving IT landscape.
