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TD SYNNEX Corporation (SNX)
NYSE:SNX
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TD SYNNEX Corporation
(NYSE:SNX)
Select Model
Select Model
Rating:69Neutral
Price Target:
$162.00
▲(3.84% Upside)
The score is driven primarily by improving fundamentals (profitability and sharply lower leverage) and a positive earnings outlook supported by record performance and Q1 growth guidance. These strengths are tempered by weak near-term technical momentum and ongoing risks typical for the model—thin margins and variable cash conversion.
Positive Factors
Market-leading distributor and solutions platform
TD SYNNEX's scale and role as an intermediary between major vendors, resellers and end customers creates durable network effects. Its broad portfolio across hardware, software, cloud and services supports recurring demand from enterprise digital transformation, giving stable revenue channels and cross-sell leverage.
Material balance sheet improvement and lower leverage
A materially stronger balance sheet with lower debt and improving ROE increases financial flexibility to invest in digital capabilities, fund strategic M&A, maintain buybacks/dividends, and weather distribution cyclicality. Lower leverage reduces refinancing and interest-rate vulnerability over the medium term.
Consistent strong free cash flow and capital returns
Sustained FCF above $1B for multiple years and aggressive capital returns demonstrate durable cash generation. High cash conversion enables reinvestment in digital platforms and AI, supports dividends and buybacks, and provides a buffer against cyclical working-capital swings common in distribution.
Negative Factors
Structurally thin distribution margins
The distribution business operates at low gross and operating margin percentages (gross margin near industry lows), which limits earnings leverage and leaves profitability sensitive to mix shifts, vendor pricing and cost inflation. Sustained low margins constrain long-term ROE upside.
Rising gross-to-net adjustments compress net revenue conversion
A growing software and netted-HIVE program mix increases gross-to-net adjustments, reducing reported net revenue relative to billings. This structural shift complicates revenue comparability, can mask true top-line traction, and may pressure reported margins and growth metrics over time.
Working-capital and cash-flow volatility
TD SYNNEX's cash flow is susceptible to timing, seasonality and large receipts, producing volatile operating and free cash flow year-to-year. This makes FCF predictability weaker, complicates capital planning, and can force short-term financing or deferment of returns during adverse working-capital cycles.
TD SYNNEX Corporation (SNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.22B
Dividend Yield1.15%
Average Volume (3M)797.74K
Price to Earnings (P/E)15.1
Beta (1Y)1.11
Revenue Growth6.95%
EPS Growth19.19%
CountryUS
Employees23,000
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)3.83
Shares Outstanding81,437,860
10 Day Avg. Volume923,935
30 Day Avg. Volume797,741
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)1.47
Price to Sales (P/S)0.20
P/FCF Ratio8.96
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda7.86
Forecast
1Y Price Target
$178.57Price Target Upside14.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)14.63
Revenue Forecast (FY)$64.97B
TD SYNNEX Corporation Business Overview & Revenue Model
Company DescriptionTD SYNNEX Corporation provides business process services in the United States and internationally. The company distributes PC systems, mobile phones and accessories, printers, peripherals, supplies, endpoint technology software, consumer electronics, information technology (IT) systems including data center server and storage solutions, system components, software, networking, communications and security equipment, consumer electronics, and complementary products. It also provides systems design and integration solutions, build-to-order, and configure-to-order assembly capabilities; logistics services that comprise outsourced fulfillment, virtual distribution, and direct ship to end-users; cloud services; online services; and financing services comprising net terms, third party leasing, floor plan financing, and letters of credit backed financing and arrangements. In addition, the company offers marketing services, such as direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves resellers, system integrators, and retailers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was incorporated in 1980 and is headquartered in Fremont, California.
How the Company Makes MoneyTD SYNNEX generates revenue through multiple channels, primarily by acting as a distributor of technology products. The company earns a significant portion of its income from the sale of hardware and software products to resellers, who subsequently sell these products to end-users. Additionally, TD SYNNEX provides value-added services such as logistics, marketing support, and cloud solutions, which further contribute to its revenue. The company also benefits from strategic partnerships with leading technology vendors, allowing it to offer a diverse product portfolio and tap into various market segments. Revenue is bolstered by the growing demand for IT solutions and services, particularly in cloud computing and digital transformation initiatives across industries.
TD SYNNEX Corporation Earnings Call Summary
Earnings Call Date:Jan 08, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 31, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution and multiple record metrics (billings, EPS, free cash flow) driven by broad-based geographic and product strength and exceptional HIVE growth. Management also highlighted strategic investments (digital portal, AI assistant, enablement programs) and continued capital returns. Key headwinds include an elevated gross-to-net mix shift (more software and netted HIVE programs), flat gross margin percentage, higher tax rate, timing-driven cash normalization into Q1, and some uncertainty around component price-induced demand elasticity. Overall, the positive operational and financial momentum and substantial cash generation outweigh these manageable near-term challenges.Q4-2025 Updates
Positive Updates
Record Quarterly Billings and EPS
Q4 non-GAAP gross billings of $24.3B (+15% YoY; +13% constant currency) and non-GAAP diluted EPS of $3.83 (+24% YoY), both company records demonstrating strong top-line and earnings leverage.
Strong HIVE Growth
HIVE gross billings grew more than 50% YoY in Q4, with ODM/centimeters gross billings up 39% YoY; HIVE operating income also grew meaningfully and is becoming a larger portion of the mix.
Distribution Business Momentum (Excluding HIVE)
TD SYNNEX (ex-HIVE) gross billings increased 10% YoY in Q4, with gross profit and operating income each growing by double digits, indicating healthy core-distribution performance.
Solid Net Revenue, Gross Profit and Operating Income
Net revenue of $17.4B (+10% YoY); gross profit $1.2B (+15% YoY); non-GAAP operating income $497M (+18% YoY) and operating margin improved 5 basis points YoY to 2.04%.
Free Cash Flow and Shareholder Returns
Annual free cash flow of $1.4B (also $1.4B in the quarter), third consecutive year >$1B; returned $209M to shareholders in Q4 ($173M buybacks, $36M dividends) and $742M for the fiscal year; cumulative 3-year returns >$2.2B (~61% of FCF).
Regional and Product Strength
Broad-based geographic growth: stronger-than-expected Europe and robust Asia Pacific & Japan expansion driven by cloud, PC refresh, and AI development. Endpoint solutions gross billings +12% YoY (PCs in double digits for four consecutive quarters).
Strategic Execution and Market Recognition
Investments in omnichannel/digital platform and AI assistant (self-service 24/7) with reported operational time savings; awards include UK iCloud Marketplace of the Year (CRN) and Cisco Distributor of the Year (global, Americas, EMEA). Won a global security RFP.
Disciplined Cost and Balance Sheet Management
Non-GAAP SG&A $698M (3% of gross billings); cost-to-gross-profit ratio improved ~100 bps YoY to 58%. Net working capital down ~$300M YoY; gross cash days improved by 2 days; cash $2.4B, debt $4.6B, gross leverage 2.4x, net leverage 1.1x.
Forward Guidance and Capital Allocation
Q1 FY26 gross billings guidance $22.7B–$23.7B (~+12% at midpoint), net revenue guidance $15.1B–$15.9B (implied ~33% gross-to-net), Q1 dividend approved $0.48/share, $1.2B remaining buyback authorization.
Negative Updates
Rising Gross-to-Net Impact
Gross-to-net conversion remains elevated: Q4 had ~29% reduction from gross billings to net revenue and Q1 guidance implies ~33% gross-to-net adjustment, driven by a larger software mix and certain HIVE programs — a headwind to reported net revenue conversion.
Gross Margin Stagnation
Gross margin as a percentage of gross billings remained flat YoY at 5%, indicating limited margin expansion in Q4 despite higher gross profit dollars.
Higher Effective Tax Rate
Non-GAAP effective tax rate increased to ~24% in Q4 from 21% in the prior year, which reduces net income relative to pre-tax performance.
Timing-Related Cash Flow Normalization
Q4 cash was elevated due to a few large receipts (estimated a few hundred million) that benefited the quarter and will normalize in FY26, contributing to an expected cash outflow in Q1 (seasonality plus timing) versus the very strong Q4.
HIVE Business Variability and Ongoing Investment
HIVE includes lumpy, opportunistic supply-chain programs; management continues to invest in leadership, engineering and capacity which could pressure near-term margins though supports long-term growth — investors flagged margin impact concerns.
Uncertainty Around Memory/Component Price Effects
DRAM/NAND and other component price increases have driven higher ASPs (a near-term tailwind) but create uncertainty around potential demand elasticity and volume impact across PCs, servers and storage; company has not yet seen material demand destruction but remains watchful.
Company Guidance
Management guided Q1 FY26 non‑GAAP gross billings of $22.7–$23.7 billion (≈+12% at the midpoint) assuming a €/$ rate of 1.16, net revenue of $15.1–$15.9 billion (implying a ~33% gross‑to‑net adjustment), non‑GAAP net income of $243–$283 million and non‑GAAP diluted EPS of $3.00–$3.50 based on ~80.1 million diluted shares; they expect a Q1 cash outflow due to seasonality and normalization of a few hundred million that benefited Q4, expect cumulative free cash flow conversion of ~95% of non‑GAAP net income across FY25–FY26, are not providing full‑year guidance, and the board approved a $0.48 per‑share cash dividend payable 01/30/2026 (record 01/16/2026).TD SYNNEX Corporation Financial Statement Overview
Summary
Financials are healthy overall: profitability has improved recently, leverage has been reduced materially, and the latest year shows strong operating and free cash flow. Offsetting factors are structurally thin distribution margins and historically volatile revenue and cash conversion driven by working-capital swings.Income Statement
SNX shows solid top-line scale and generally improving profitability versus the last few years. Revenue grew in 2025 (annual) after a decline in 2023, while gross margin and operating margin expanded in 2024–2025, supporting higher net income. Offsetting this, margins remain structurally thin (typical for distribution) and revenue growth has been volatile year-to-year, which can pressure earnings consistency in weaker demand cycles.Balance Sheet
Balance sheet strength improved materially in 2025 (annual), highlighted by a sharp reduction in total debt and a very low debt-to-equity level versus 2021–2024. Equity and assets are sizable, and return on equity has trended upward into the high-single digits, indicating improving capital efficiency. The main watch item is that returns are still moderate rather than high, consistent with a lower-margin distributor model.Cash Flow
Cash generation is strong in 2025 (annual), with operating cash flow and free cash flow both rising and free cash flow covering most of net income. However, cash flow has shown meaningful swings over time (including negative operating and free cash flow in 2022), suggesting working-capital volatility that can meaningfully impact annual cash conversion even when reported earnings are positive.| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 62.51B | 58.45B | 57.56B | 62.34B | 31.61B |
| Gross Profit | 4.37B | 3.54B | 3.58B | 3.56B | 1.77B |
| EBITDA | 1.83B | 1.60B | 1.51B | 1.49B | 731.90M |
| Net Income | 827.66M | 689.09M | 626.91M | 651.31M | 395.07M |
Balance Sheet | |||||
| Total Assets | 34.25B | 30.27B | 29.41B | 29.73B | 27.67B |
| Cash, Cash Equivalents and Short-Term Investments | 2.44B | 1.06B | 1.03B | 522.60M | 993.97M |
| Total Debt | 4.61B | 4.40B | 4.08B | 4.10B | 4.14B |
| Total Liabilities | 25.80B | 22.24B | 21.23B | 21.71B | 19.76B |
| Stockholders Equity | 8.45B | 8.04B | 8.18B | 8.03B | 7.91B |
Cash Flow | |||||
| Free Cash Flow | 1.39B | 1.04B | 1.26B | -166.65M | 754.89M |
| Operating Cash Flow | 1.53B | 1.22B | 1.41B | -49.60M | 809.79M |
| Investing Cash Flow | -221.17M | -193.84M | -156.41M | -115.51M | -952.35M |
| Financing Cash Flow | -32.87M | -953.10M | -785.88M | -275.59M | -392.62M |
TD SYNNEX Corporation Technical Analysis
Negative
156.01
Price Trends
151.77
Negative
152.66
Negative
139.59
Positive
Market Momentum
-0.32
Positive
46.50
Neutral
55.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNX, the sentiment is Negative. The current price of 156.01 is above the 20-day moving average (MA) of 151.99, above the 50-day MA of 151.77, and above the 200-day MA of 139.59, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 55.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNX.
TD SYNNEX Corporation Risk Analysis
TD SYNNEX Corporation disclosed 36 risk factors in its most recent earnings report. TD SYNNEX Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TD SYNNEX Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.47B | 17.94 | 9.30% | 1.02% | 3.19% | -4.91% | |
69 Neutral | $12.22B | 15.08 | 9.98% | 1.15% | 6.95% | 19.19% | |
67 Neutral | $4.07B | 18.64 | 4.71% | 2.77% | -2.30% | -29.75% | |
64 Neutral | $5.98B | 12.81 | 7.70% | ― | 3.16% | 1.09% | |
64 Neutral | $905.35M | 12.86 | 8.11% | ― | -4.88% | 2.57% | |
62 Neutral | $2.59B | 19.52 | 8.51% | ― | -6.69% | -51.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SNX
TD SYNNEX Corporation
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15.64
11.63%
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AVT
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CNXN
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SCSC
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.