TD SYNNEX (NYSE:SNX) Announces Quarterly Earnings Results

TD SYNNEX (NYSE:SNX) announced its quarterly earnings data on Thursday. The business services provider reported $5.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.70 by $0.98, FiscalAI reports. TD SYNNEX had a return on equity of 15.37% and a net margin of 1.63%.The firm had revenue of $21.56 billion during the quarter, compared to the consensus estimate of $18.91 billion. During the same quarter in the prior year, the company earned $3.58 EPS. The business’s revenue for the quarter was up 37.7% on a year-over-year basis. TD SYNNEX updated its Q4 2026 guidance to 5.650-6.150 EPS.

Here are the key takeaways from TD SYNNEX’s conference call:

• Record third-quarter results exceeded guidance, with gross billings up 40% year over year to $31.8 billion, non-GAAP operating income up 55% to $736 million, and non-GAAP EPS up 59% to $5.68.
• Distribution gross billings grew 27% to $24.8 billion, while Hyve surged 117% to $7.0 billion. Growth was broad-based, with particular strength in data-center infrastructure, AI-related technologies, networking, storage, and PCs.
• Management expects continued momentum in the fourth quarter, forecasting gross billings of approximately $31.9 billion and non-GAAP EPS of $5.90 at the midpoint. New Hyve customer programs are expected to begin shipping in the fourth quarter, with additional margin improvement anticipated as programs mature.
• Free cash flow consumption was approximately $1 billion in the quarter as Hyve required substantial inventory and working-capital investments, pushing the cash-conversion cycle to 22 days. Hyve operating margin declined to 3.61% from 5.04% a year earlier because large AI-server programs remain dilutive, although management expects margins and cash generation to improve over time.

TD SYNNEX Stock Performance

NYSE:SNX opened at $259.58 on Friday. The business’s fifty day moving average is $256.95 and its 200 day moving average is $237.22. The firm has a market cap of $20.76 billion, a price-to-earnings ratio of 18.58, a PEG ratio of 0.79 and a beta of 1.43. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.64 and a current ratio of 1.20. TD SYNNEX has a 52-week low of $142.22 and a 52-week high of $298.77.

TD SYNNEX Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be given a $0.48 dividend. The ex-dividend date is Friday, October 16th. This represents a $1.92 annualized dividend and a dividend yield of 0.7%. TD SYNNEX’s payout ratio is 13.74%.

Analyst Upgrades and Downgrades

SNX has been the topic of several research reports. UBS Group lifted their price objective on shares of TD SYNNEX from $310.00 to $352.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Barrington Research raised their price target on shares of TD SYNNEX from $202.00 to $325.00 and gave the stock an “outperform” rating in a research note on Friday, June 26th. The Goldman Sachs Group set a $330.00 price target on shares of TD SYNNEX in a report on Friday, June 26th. Zacks Research lowered TD SYNNEX from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 25th. Finally, Royal Bank Of Canada set a $340.00 target price on TD SYNNEX in a research note on Friday, June 26th. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $305.75.

More TD SYNNEX News

Here are the key news stories impacting TD SYNNEX this week:

• Positive Sentiment: TD SYNNEX reported third-quarter EPS of $5.68, well above the roughly $4.70 consensus, while revenue rose 37.7% year over year to $21.56 billion, exceeding expectations. TD SYNNEX Q3 earnings report
• Positive Sentiment: Management issued fourth-quarter guidance above Wall Street forecasts, calling for EPS of $5.65 to $6.15 versus an estimated $4.80, and revenue of $21.8 billion to $22.6 billion versus an estimated $19.4 billion. TD SYNNEX results and guidance
• Positive Sentiment: Data-center and AI-related demand remains strong, particularly through Hyve Solutions, and the company said demand is not showing signs of weakening. TD SYNNEX data-center demand article
• Positive Sentiment: The board declared a quarterly dividend of $0.48 per share, or $1.92 annualized, with a yield of approximately 0.7%.
• Neutral Sentiment: TD SYNNEX’s distribution business remains the main earnings contributor, while AI-driven Hyve growth is expanding rapidly but carries lower margins and greater inventory requirements.
• Negative Sentiment: The primary concern was nearly $1 billion of free-cash-flow usage during the quarter. Rapid growth is consuming working capital through higher inventory and receivables, raising questions about cash conversion and execution. TD SYNNEX AI growth and cash flow analysis
• Negative Sentiment: Several reports characterized the reaction as a sell-off despite the earnings and guidance beats, with at least one analyst downgrading the stock because of cash-flow strain. Continued insider selling—70 reported sales and no purchases over the past six months—may also weigh on sentiment.

Insider Transactions at TD SYNNEX

In related news, Director Richard T. Hume sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $242.97, for a total transaction of $1,214,850.00. Following the completion of the transaction, the director owned 18,537 shares of the company’s stock, valued at approximately $4,503,934.89. The trade was a 21.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ann F. Vezina sold 1,273 shares of the stock in a transaction that occurred on Friday, July 31st. The stock was sold at an average price of $256.05, for a total transaction of $325,951.65. Following the completion of the sale, the director owned 5,828 shares in the company, valued at $1,492,259.40. This represents a 17.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 11,273 shares of company stock valued at $2,851,852 in the last ninety days. Insiders own 0.70% of the company’s stock.

TD SYNNEX Company Profile

TD SYNNEX Corporation (NYSE: SNX) is a global technology distributor and solutions aggregator that connects technology manufacturers with resellers, systems integrators, managed service providers and other business partners. The company helps its partners design, procure, configure and deliver technology solutions to organizations across a range of industries.

Its portfolio includes personal computing devices, peripherals, networking equipment, data-center infrastructure, cybersecurity products, software and cloud services.