We’re now “in the middle” of the PC refresh, the CEO of the world’s largest IT distributor has ruled as it unveiled market-busting quarterly results.
TD Synnex today announced Q2 numbers showing gross billings hiking 12% year on year to $21.6bn and net income beefing up 29% to $184.9m.
The expectation-trumping figures – which covered the three months to 31 May 2025 – were partly down to strong PC growth, as well as a 20% bump in software billings.
The PC refresh cycle that has begun to enrich TD Synnex’s numbers in recent quarters is now in full swing, CEO Patrick Zammit indicated in answer to a question on the earnings call.
“We are not at the start. We saw already the refresh starting at least one if not two quarters ago. So I think we are in the middle of it,” Zammit said (see call transcript here).
TD Synnex’s surging PC sales come ahead of the October Microsoft Windows 10 end-of-life date, and amid forecasts from Canalys that 60% of PCs shipped by 2027 will be AI-capable.
“Strong financial position heading into H2”
Digging into the numbers, TD Synnex’s Endpoint Solutions and Advanced Solutions arms saw gross billings advance by a respective 13% and 12%.
Gross billings in Europe – where TD Synnex remains marketshare leader despite ALSO and Westcoast’s recent union – soared 13.3% to $6.8bn.
Reflecting an increase in transactions where it acted as an agent, TD Synnex’s gross billings growth wasn’t quite matched by net revenues – which rose 7% to $14.9bn during the quarter on a global level.
That compares to the $12.3bn in net sales arch-rival Ingram Micro hauled in during its latest quarter (an 8.3% hike).
TD Synnex said it expects gross billings growth to slow to 6% in its Q3 as it begins to lap stronger figures from year-ago quarters.
Macro-uncertainty is also making the distribution goliath “a little bit more cautious”, Zammit said.
“In closing, we believe we are in a strong financial position heading into the second half of the year and are leveraging our strategy to ensure we remain the partner of choice in IT distribution,” TD Synnex CFO Marshall Witt said, however.
NYSE-listed TD Synnex’s shares rose by almost 5% in the wake of the results.
