TD SYNNEX (NYSE:SNX) Announces Earnings Results

TD SYNNEX (NYSE:SNX) posted its quarterly earnings data on Thursday. The business services provider reported $4.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.14 by $0.71, FiscalAI reports. TD SYNNEX had a net margin of 1.63% and a return on equity of 15.37%. The firm had revenue of $19.57 billion for the quarter, compared to the consensus estimate of $16.80 billion. During the same period in the previous year, the firm earned $2.99 EPS. The business’s revenue for the quarter was up 31.0% compared to the same quarter last year. TD SYNNEX updated its Q3 2026 guidance to 4.250-4.750 EPS.

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

• TD SYNNEX reported a record quarter, with non-GAAP gross billings up 33% year over year to $28.9 billion and non-GAAP EPS up 62% to $4.85, both above the high end of guidance.
• Distribution performed strongly, with gross billings up 22% year over year to $23.4 billion and operating margin expanding 19 basis points, helped by broad-based demand across endpoints and advanced solutions.
• Hyve continued to grow rapidly, with gross billings up 117% year over year to $5.5 billion as new programs with existing hyperscaler customers ramped and the company added more than 1 million square feet of manufacturing capacity.
• Management said demand remains healthy and has not yet seen demand destruction from rising component prices, though it is watching PCs most closely and built some caution into Q3 guidance for memory and CPU supply constraints.
• Free cash flow was negative $330 million in the quarter as TD SYNNEX continued to fund working capital and fixed-asset investments for Hyve, and management said near-term cash consumption should persist while new programs ramp.

TD SYNNEX Trading Down 4.1%

Shares of SNX opened at $266.17 on Friday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.71 and a current ratio of 1.20. TD SYNNEX has a fifty-two week low of $133.71 and a fifty-two week high of $296.47. The firm has a 50 day moving average price of $249.78 and a 200-day moving average price of $192.17. The firm has a market cap of $21.40 billion, a price-to-earnings ratio of 19.05, a PEG ratio of 1.14 and a beta of 1.43.

TD SYNNEX Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Friday, July 17th will be given a dividend of $0.48 per share. This represents a $1.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Friday, July 17th. TD SYNNEX’s dividend payout ratio (DPR) is presently 15.96%.

Key TD SYNNEX News

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

• Positive Sentiment: TD SYNNEX reported record fiscal Q2 results, with revenue of $19.58 billion and non-GAAP EPS of $4.85, both well above expectations. Revenue rose 31% year over year, showing broad-based demand strength. TD SYNNEX Reports Record Fiscal 2026 Second Quarter Results
• Positive Sentiment: Management issued upbeat Q3 guidance, with EPS outlook of $4.25 to $4.75 and revenue guidance above analyst estimates, signaling continued momentum after the strong quarter. TD SYNNEX stock report
• Positive Sentiment: Analysts responded favorably after the earnings release, including Barrington Research raising its price target to $325 from $202 and reiterating an outperform rating, which can support investor sentiment. Analysts Boost Forecasts on TD Synnex After Upbeat Q2 Results
• Positive Sentiment: Commentary around Hyve Solutions highlighted strong AI infrastructure demand, record billings, and continued growth in both Hyve and distribution, suggesting the business mix is improving. TD Synnex: Hyve And Distribution Are Both Pulling The Story Forward
• Neutral Sentiment: The company also declared a quarterly dividend of $0.48 per share, which is supportive for income investors but not likely the main driver of the stock today.
• Negative Sentiment: After a sharp year-to-date rally, some investors appear concerned that the stock’s valuation has run ahead of fundamentals, making the shares vulnerable to profit-taking despite the strong operating results. TD Synnex: Still A Buy, Though The Easy Money Has Been Made

Analyst Ratings Changes

SNX has been the topic of a number of recent analyst reports. UBS Group lifted their price target on TD SYNNEX from $310.00 to $352.00 and gave the stock a “buy” rating in a report on Friday. Royal Bank Of Canada set a $340.00 price target on shares of TD SYNNEX in a report on Friday. Weiss Ratings lowered shares of TD SYNNEX from a “buy (b+)” rating to a “buy (b)” rating in a research report on Wednesday, June 17th. Morgan Stanley increased their target price on shares of TD SYNNEX from $341.00 to $374.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Barrington Research lifted their price target on shares of TD SYNNEX from $202.00 to $325.00 and gave the stock an “outperform” rating in a report on Friday. Nine investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $277.10.

Insider Transactions at TD SYNNEX

In related news, CFO David Gregory Jordan sold 3,225 shares of TD SYNNEX stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $189.46, for a total transaction of $611,008.50. Following the sale, the chief financial officer directly owned 14,035 shares in the company, valued at $2,659,071.10. The trade was a 18.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Miriam Anne Murphy sold 3,025 shares of the company’s stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $200.14, for a total transaction of $605,423.50. Following the completion of the sale, the insider directly owned 10,820 shares in the company, valued at $2,165,514.80. This represents a 21.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 21,250 shares of company stock worth $4,935,282. Company insiders own 0.70% of the company’s stock.

Institutional Trading of TD SYNNEX

A number of institutional investors and hedge funds have recently bought and sold shares of SNX. Quadrant Capital Group LLC grew its holdings in shares of TD SYNNEX by 1.0% in the fourth quarter. Quadrant Capital Group LLC now owns 7,588 shares of the business services provider’s stock worth $1,140,000 after acquiring an additional 73 shares during the period. Ossiam grew its position in TD SYNNEX by 84.3% during the third quarter. Ossiam now owns 164 shares of the business services provider’s stock valued at $27,000 after buying an additional 75 shares during the period. Illinois Municipal Retirement Fund increased its holdings in TD SYNNEX by 0.9% during the fourth quarter. Illinois Municipal Retirement Fund now owns 10,833 shares of the business services provider’s stock valued at $1,627,000 after buying an additional 92 shares during the last quarter. Advisory Services Network LLC boosted its stake in shares of TD SYNNEX by 6.9% during the 4th quarter. Advisory Services Network LLC now owns 1,495 shares of the business services provider’s stock worth $225,000 after acquiring an additional 96 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in shares of TD SYNNEX by 17.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 852 shares of the business services provider’s stock worth $116,000 after purchasing an additional 126 shares in the last quarter. 84.00% of the stock is currently owned by institutional investors.

About TD SYNNEX

TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the information technology industry. Formed in September 2021 through the merger of Tech Data and SYNNEX Corporation, the company provides a comprehensive range of products, services and solutions that span hardware, software, cloud, mobility, security and data center technologies. TD SYNNEX partners with vendors, resellers and system integrators to design, deploy and support IT infrastructures across diverse market segments, including commercial enterprises, public sector organizations and retail operations.

The company’s core business activities include the distribution of technology products from manufacturers such as servers, storage, networking equipment and peripherals, as well as the resale and provisioning of software licenses and cloud-based solutions.