TD SYNNEX Corp (NYSE:SNX) shares traded lower on Thursday after the company reported its first-quarter results.

Quarterly revenue of $14.53 billion, up 4.0% year over year, missed the analyst view of $14.79 billion.

On a constant currency basis, revenue increased 6.0% Y/Y, led by growth in both the Advanced Solutions and Endpoint Solutions portfolios.

Adjusted gross billings were $20.7 billion in the quarter under review, compared to $19.3 billion in the prior-year quarter.

Gross profit declined to $998 million from $1.01 billion in the prior year quarter, while margin contracted to 6.9% from 7.2% a year ago quarter.

Adjusted operating income stood at $399 million versus $425 million a year ago quarter, with an adjusted margin of 2.7% versus 3.0% in the same period last year.

The Fremont, California-based company reported an adjusted EPS of $2.80, missing the street view of $2.91.

Cash used in operations was $748 million, compared to cash provided by operations of $385 million in the prior fiscal first quarter and negative free cash flow was $790 million, compared to positive free cash flow of $344 million in the prior fiscal first quarter.

TD SYNNEX returned $138 million to shareholders through share repurchases and dividends.

Dividend: TD SYNNEX’s Board of Directors declared a quarterly cash dividend of $0.44 per share, payable on April 25, to stockholders of record as of April 11, 2025.

Outlook: TD SYNNEX expects second-quarter adjusted EPS of $2.45 – $2.95, compared to the estimate of $3.03.

The company projects revenue of $13.9 billion – $14.7 billion vs. the estimated $14.718 billion.

Patrick Zammit, CEO of TD SYNNEX, said, “The strength of our business model allowed us to grow ahead of the market in Q1. Our end-to-end strategy, global reach and specialist go to market approach continues to empower us to capture a wide range of IT spend.”

Investors can gain exposure to the stock via Tidal Trust III Rockefeller U.S. Small-Mid Cap ETF (NYSE:RSMC) and Invesco S&P Midcap 400 Pure Value ETF (NYSE:RFV).

Price Action: SNX shares are down 19.7% at $100.74 at the last check Thursday.

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