TD SYNNEX Earnings Report Preview: Key Insights

Loop Capital raised its price target on TD SYNNEX (NYSE:SNX) to $160 from $150 while reiterating a Buy rating, citing the company’s robust performance in IT distribution and hyperscale solutions, as well as continued momentum across key segments.

The firm highlighted TD Synnex’s better-than-expected May quarter results, which featured 7% year-over-year revenue growth and a 10% increase in EPS. Endpoint Solutions gross billings rose 13% YoY, benefiting from an ongoing PC refresh cycle that SNX believes is only halfway through, with additional demand expected as organizations adopt Windows 11.

Advanced Solutions, excluding Hyve, grew 10% YoY, supported by strong activity in data center infrastructure, cloud, security, and AI technologies. Meanwhile, Hyve posted high-teen gross billings growth, including a 45% surge in its ODM/CM business driven by its largest customer and recovering orders from a key second customer.

While Hyve’s gross margin dipped sequentially due to FX impacts and product mix, management signaled stabilizing margins and future improvement thanks to strategic investments and a broader customer base. Loop Capital’s increased target reflects confidence in SNX’s ability to sustain growth and capitalize on secular trends in IT modernization and cloud infrastructure.

TD Synnex (NYSE:SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. The company provides a wide range of technology products and services, catering to various industries. As a major player in the IT distribution sector, TD Synnex competes with other large firms like Ingram Micro and Arrow Electronics.

On June 25, 2025, David Paige from RBC Capital set a price target of $145 for SNX, which was trading at $137.79 at the time. This suggests a potential price increase of approximately 5.23%. The analysis, published by Benzinga, highlights the growth potential of TD Synnex, despite facing short-term margin pressures.

The company's recent upgrade to a "buy" rating follows its strong second-quarter 2025 results. These results demonstrated broad-based growth, strong execution, and improved demand visibility. The turnaround of Hyve and new transparency have resolved significant overhangs, with demand resuming from major customers, contributing to clear growth.

TD Synnex's aggressive capital returns through buybacks and dividends are supporting the stock. These actions are aiding in achieving the company's target of double-digit EPS growth. The stock has experienced a price change of $0.91, reflecting a percentage increase of 0.66%, with a current price of $137.79.

The stock has fluctuated between a low of $133.75 and a high of $138.08 today. Over the past year, SNX has reached a high of $145.10 and a low of $92.23. The company's market capitalization is approximately $11.56 billion, with a trading volume of 1,569,971 shares.

TD SYNNEX (NYSE:SNX) reported solid fiscal second-quarter results that exceeded expectations on both the top and bottom line. As a result, the company’s shares rose more than 5% intra-day today.

Adjusted earnings per share came in at $2.99, beating the $2.71 analyst consensus. Revenue grew 7.2% year-over-year to $14.95 billion, also topping forecasts of $14.3 billion. Non-GAAP gross billings rose 12.1% to $21.6 billion, while the company maintained a stable operating margin of 2.8%.

CEO Patrick Zammit credited the strong performance to continued momentum in IT distribution and hyperscaler markets, as well as disciplined execution that allowed TD SYNNEX to outperform industry growth.

Looking ahead, the company issued Q3 guidance for adjusted EPS in the range of $2.75 to $3.25, straddling the $2.96 consensus. Revenue is expected between $14.7 billion and $15.5 billion, slightly above Wall Street’s $15.02 billion estimate at the midpoint.

Regionally, the Americas led with $9.0 billion in revenue, up 5.3%, while Europe climbed 10.5% to $4.9 billion. Asia-Pacific and Japan posted an 8.7% increase to $1.0 billion, reflecting broad-based growth.

Despite the positive results and outlook, the stock’s modest decline suggests investors may be weighing near-term volatility or margin pressures against the company’s longer-term trajectory.

TD SYNNEX (NYSE:SNX) is a leading global distributor and solutions aggregator for the IT ecosystem. The company provides a wide range of technology products, services, and solutions to its clients. As SNX prepares to release its quarterly earnings on June 24, 2025, Wall Street analysts have set their sights on an earnings per share (EPS) estimate of $2.69 and projected revenue of approximately $14.3 billion.

Analysts expect SNX's earnings per share to decline by 1.5% year-over-year, despite a 2.7% increase in revenue to $14.3 billion. This mixed outlook reflects the company's ability to grow its top line while facing challenges in maintaining its profit margins. Over the past month, the consensus EPS estimate has been revised upward by 1%, signaling a positive shift in analysts' expectations.

The market will be closely monitoring SNX's performance to see if it can exceed these estimates. Surpassing expectations could lead to a rise in the stock price, while failing to meet them might result in a decline. The company's price-to-earnings (P/E) ratio of 15.19 suggests a moderate market valuation of its earnings, while its price-to-sales ratio of 0.18 indicates a relatively low market valuation compared to its sales.

SNX's enterprise value to sales ratio stands at 0.24, reflecting its total valuation in relation to revenue. However, the enterprise value to operating cash flow ratio is notably high at 167.32, which may indicate a premium valuation or lower cash flow generation relative to its enterprise value. The company's earnings yield of 6.58% provides insight into the return on investment for shareholders.

With a debt-to-equity ratio of 0.54, SNX maintains a moderate level of debt compared to its equity, suggesting a balanced approach to financing. Additionally, the current ratio of 1.27 indicates that the company has a reasonable level of liquidity to cover its short-term liabilities. As SNX approaches its earnings release, investors will be keen to see how these financial metrics influence the company's future performance.

TD SYNNEX (NYSE:SNX) shares plunged over 16% intra-day today, after the company reported disappointing fiscal first-quarter results and issued underwhelming guidance for Q2, sparking investor concern about near-term performance.

For Q1, the company posted adjusted earnings per share of $2.80, falling short of analyst expectations of $2.91. Revenue came in at $14.53 billion, below the $14.79 billion consensus, as growth momentum slowed.

The outlook for the current quarter further weighed on sentiment. TD SYNNEX projected Q2 adjusted EPS between $2.45 and $2.95, well below the $3.03 expected by analysts, and revenue in the range of $13.9 billion to $14.7 billion, compared to forecasts of $14.72 billion.

Management pointed to its broad IT portfolio, global scale, and targeted go-to-market strategy as drivers of long-term competitiveness. However, the immediate focus for investors remained on the earnings shortfall and cautious guidance, which signaled a more tepid environment for IT spending in the months ahead.

TD SYNNEX (NYSE:SNX) shares plunged over 16% intra-day today, after the company reported disappointing fiscal first-quarter results and issued underwhelming guidance for Q2, sparking investor concern about near-term performance.

For Q1, the company posted adjusted earnings per share of $2.80, falling short of analyst expectations of $2.91. Revenue came in at $14.53 billion, below the $14.79 billion consensus, as growth momentum slowed.

The outlook for the current quarter further weighed on sentiment. TD SYNNEX projected Q2 adjusted EPS between $2.45 and $2.95, well below the $3.03 expected by analysts, and revenue in the range of $13.9 billion to $14.7 billion, compared to forecasts of $14.72 billion.

Management pointed to its broad IT portfolio, global scale, and targeted go-to-market strategy as drivers of long-term competitiveness. However, the immediate focus for investors remained on the earnings shortfall and cautious guidance, which signaled a more tepid environment for IT spending in the months ahead.

• The consensus price target for TD SYNNEX Corporation (NYSE:SNX) has increased by approximately 10% over the past year, indicating growing confidence in the company's business model and market position.
• Despite a more conservative view from analyst Matthew Sheerin with a price target of $130, the company's recent financial performance, including a 10% year-over-year revenue increase in the fourth quarter of 2024, supports the optimistic sentiment.
• TD SYNNEX's financial health is highlighted by its impressive quarterly free cash flow and reduced restructuring costs, alongside stock repurchases signaling confidence in future financial performance.

TD SYNNEX Corporation (NYSE:SNX) is a prominent player in the IT solutions and business process services sector. The company has been expanding its offerings and capabilities, which is reflected in the positive shift in analysts' expectations. Over the past year, the consensus price target for SNX has increased by approximately 10%, from $141.78 to $156, indicating growing confidence in the company's business model and market position.

Despite the positive outlook, analyst Matthew Sheerin from Stifel Nicolaus has set a lower price target of $130 for SNX. This suggests a more conservative view compared to the consensus. The company's recent financial performance supports the optimistic sentiment, with a 10% year-over-year revenue increase in the fourth quarter of 2024, driven by advancements in solutions and endpoint solutions.

TD SYNNEX's financial health is further bolstered by its impressive quarterly free cash flow and reduced restructuring costs. The company is also engaging in stock repurchases, which often signals confidence in future financial performance. However, potential risks such as new tariffs, dependency on key suppliers like Apple and HP, and low operating margins should be considered by investors.

The company's reliance on international revenue is a crucial factor in assessing its financial stability and growth prospects. This global focus could significantly influence SNX's stock price performance. As TD SYNNEX prepares to release its first-quarter fiscal 2025 results on March 27, 2025, investors and stakeholders should monitor any developments that could impact analysts' price targets and the stock's performance.