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TD SYNNEX Corporation
(NYSE:SNX)
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Rating:62Neutral
Price Target:
$258.00
▲(6.21% Upside)
Action:Reiterated
Date:07/17/26
The score is driven primarily by solid underlying financial performance (growth, improving margins/returns, and manageable leverage) and a constructive earnings outlook with strong recent execution and guidance. Offsetting this, cash-flow volatility and near-term free cash flow consumption are meaningful risks, and technical indicators signal weak near-term momentum. Valuation is fair (P/E ~17.3) but the dividend yield is modest.
Positive Factors
Scale & Strategic Vendor Relationships
TD SYNNEX's global distribution scale and recent strategic wins with HP and the top five hyperscalers create durable competitive advantages. Deep vendor and hyperscaler relationships enable preferential access to supply, early participation in large AI/infrastructure programs, and higher-volume deal flow across regions, supporting sustained revenue opportunities and partner lock‑in over multiple years.
Negative Factors
Free Cash Flow Volatility
Cash generation is uneven: a large TTM free cash flow decline and historical swings reflect the working‑capital sensitivity of high‑volume, low‑margin distribution. Persistent FCF volatility can strain the ability to fund capex, support Hyve ramps, maintain buybacks/dividends, and raises refinancing or liquidity risk during demand downturns or component supply dislocations.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Strategic Vendor Relationships
TD SYNNEX's global distribution scale and recent strategic wins with HP and the top five hyperscalers create durable competitive advantages. Deep vendor and hyperscaler relationships enable preferential access to supply, early participation in large AI/infrastructure programs, and higher-volume deal flow across regions, supporting sustained revenue opportunities and partner lock‑in over multiple years.
Read all positive factors
TD SYNNEX Corporation (SNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.45B
Dividend Yield0.74%
Average Volume (3M)897.17K
Price to Earnings (P/E)18.2
Beta (1Y)1.31
Revenue Growth16.26%
EPS Growth63.20%
CountryUS
Employees24,000
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)14.08
Shares Outstanding79,958,755
10 Day Avg. Volume650,346
30 Day Avg. Volume897,166
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)1.47
Price to Sales (P/S)0.20
P/FCF Ratio8.96
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$338.00Price Target Upside39.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)18.97
Revenue Forecast (FY)$74.79B
TD SYNNEX Corporation Business Overview & Revenue Model
Company Description
TD SYNNEX Corporation (SNX) is a global information technology (IT) distributor and solutions aggregator that connects technology vendors with resellers, systems integrators, managed service providers, and other channel partners. The company provi...
How the Company Makes Money
TD SYNNEX primarily makes money by distributing third-party technology products and solutions and earning a margin between the price it pays to vendors and the price it charges to customers in the IT channel (e.g., resellers, VARs, MSPs, systems i...
TD SYNNEX Corporation Earnings Call Summary
Earnings Call Date:Jun 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 29, 2026
Earnings Call Sentiment Positive
The call communicated a strongly positive operating quarter with record billings, substantial year-over-year revenue and profit growth, major vendor and hyperscaler wins, and aggressive investments to capture AI-driven demand. Offsetting risks include near-term free cash flow consumption driven by Hyve working capital and capex, inventory accumulation (partly strategic), a Hyve margin mix impact, and supply-side risks (memory/CPUs). Management provided cautious but constructive guidance and emphasized that some inventory-related margin benefits are temporary and that Hyve ramps will materialize in late FY2026/early FY2027.Positive Updates
Record Quarter — Strong Top-Line Growth
Non-GAAP gross billings of $28.9B, up 33% year-over-year (32% in constant currency), exceeding the high end of guidance. Revenue guidance for Q3 of ~$18.6B and gross billings guidance of ~$27.7B (midpoint up ~22%).
Negative Updates
Negative Free Cash Flow and Working Capital Build
Free cash flow consumption of approximately $330M for the quarter driven by accelerated Hyve growth and working capital investments to support new programs; net working capital closed at $4.9B and gross cash conversion cycle of 17 days (up 1 day sequentially, flat YoY).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter — Strong Top-Line Growth
Non-GAAP gross billings of $28.9B, up 33% year-over-year (32% in constant currency), exceeding the high end of guidance. Revenue guidance for Q3 of ~$18.6B and gross billings guidance of ~$27.7B (midpoint up ~22%).
Read all positive updates
Company Guidance
For Q3 fiscal 2026 management guided non‑GAAP gross billings of approximately $27.7 billion ± $0.5 billion (about +22% at the midpoint), a gross‑to‑net adjustment of roughly 33%, revenue of ~$18.6 billion ± $0.4 billion, non‑GAAP net income of about $361 million ± $20 million, and non‑GAAP diluted EPS of ~$4.50 ± $0.25 (up ~26% at the midpoint) based on ~79.4 million diluted shares outstanding; the outlook assumes no material contribution yet from Hyve’s newly onboarded customers, which are expected to ramp in late fiscal 2026 or early fiscal 2027.TD SYNNEX Corporation Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.77B | 62.51B | 58.45B | 57.56B | 62.34B | 31.61B |
| Gross Profit | 4.76B | 4.37B | 3.54B | 3.58B | 3.56B | 1.77B |
| EBITDA | 2.24B | 1.83B | 1.60B | 1.51B | 1.49B | 731.90M |
| Net Income | 1.14B | 827.66M | 689.09M | 626.91M | 651.31M | 395.07M |
Balance Sheet | ||||||
| Total Assets | 38.51B | 34.25B | 30.27B | 29.41B | 29.73B | 27.67B |
| Cash, Cash Equivalents and Short-Term Investments | 1.09B | 2.44B | 1.06B | 1.03B | 522.60M | 993.97M |
| Total Debt | 4.72B | 4.61B | 3.91B | 4.08B | 4.10B | 4.14B |
| Total Liabilities | 29.56B | 25.80B | 22.24B | 21.23B | 21.71B | 19.76B |
| Stockholders Equity | 8.95B | 8.45B | 8.04B | 8.18B | 8.03B | 7.91B |
Cash Flow | ||||||
| Free Cash Flow | 374.56M | 1.39B | 1.04B | 1.26B | -166.65M | 754.89M |
| Operating Cash Flow | 545.04M | 1.53B | 1.22B | 1.41B | -49.60M | 809.79M |
| Investing Cash Flow | -215.55M | -221.17M | -193.84M | -156.41M | -115.51M | -952.35M |
| Financing Cash Flow | -38.17M | -32.87M | -953.10M | -785.88M | -275.59M | -392.62M |
TD SYNNEX Corporation Technical Analysis
Positive
242.92
Price Trends
258.79
Negative
228.53
Positive
191.18
Positive
Market Momentum
-4.04
Positive
42.44
Neutral
53.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNX, the sentiment is Positive. The current price of 242.92 is below the 20-day moving average (MA) of 246.89, below the 50-day MA of 258.79, and above the 200-day MA of 191.18, indicating a neutral trend. The MACD of -4.04 indicates Positive momentum. The RSI at 42.44 is Neutral, neither overbought nor oversold. The STOCH value of 53.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNX.
TD SYNNEX Corporation Risk Analysis
TD SYNNEX Corporation disclosed 37 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $11.07B | 15.37 | 11.15% | ― | 20.49% | 92.31% | |
75 Outperform | $2.11B | 22.09 | 10.40% | 0.86% | 3.23% | 14.66% | |
69 Neutral | $1.15B | 17.16 | 8.07% | ― | 3.76% | 18.30% | |
62 Neutral | $20.45B | 18.16 | 13.12% | 0.77% | 16.26% | 63.20% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $3.89B | 22.42 | 11.17% | ― | -1.83% | -2.39% | |
59 Neutral | $7.29B | 34.14 | 4.33% | 1.57% | 12.68% | -27.94% |
* Technology Sector Average
SNX
TD SYNNEX Corporation
255.70
115.00
81.73%
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TD SYNNEX Corporation Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
TD SYNNEX Updates Chief Legal Officer Compensation Terms
Positive
Jul 17, 2026
On July 10, 2026, TD SYNNEX Corporation updated the employment terms for Chief Legal Officer David Vetter, confirming his reporting line to the CEO and setting his annual base salary at $670,000 with an incentive bonus targeted at 100% of base sal...
Business Operations and StrategyPrivate Placements and Financing
TD SYNNEX Launches New European Securitization Facility
Positive
Jul 2, 2026
On June 26, 2026, TD SYNNEX Corporation and several European subsidiaries entered into documentation for a new European receivables securitization program with BNP Paribas, Banco Santander and Crédit Agricole as senior notes subscribers. The ...
Private Placements and FinancingRegulatory Filings and Compliance
TD SYNNEX Files Shelf Prospectus for Future Securities
Neutral
Jun 29, 2026
On June 29, 2026, TD SYNNEX Corporation filed a prospectus supplement under its automatic shelf registration statement with the U.S. Securities and Exchange Commission, signaling potential future issuance and sale of securities. The company simult...
Business Operations and StrategyExecutive/Board Changes
TD SYNNEX Adds Douglas Britt to Board of Directors
Positive
Jun 22, 2026
On June 17, 2026, TD SYNNEX appointed veteran technology executive Douglas Britt to its Board of Directors, expanding the board from ten to eleven members and assigning him to the Audit and Technology committees. The company announced the move on ...
Business Operations and StrategyExecutive/Board Changes
TD SYNNEX Enhances Compensation for Hyve Solutions Chair
Positive
May 11, 2026
On May 5, 2026, TD SYNNEX updated the employment terms for Dennis Polk, confirming his role as Chair of Hyve Solutions Holdings effective December 1, 2025, with continued service on the company’s board and direct reporting to the CEO. Under ...
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.