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TD SYNNEX Corporation (SNX)
NYSE:SNX
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TD SYNNEX Corporation (SNX) AI Stock Analysis

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SNX

TD SYNNEX Corporation

(NYSE:SNX)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
$286.00
▲(33.45% Upside)
Action:Downgraded
Date:07/03/26
The score is driven primarily by strong earnings-call momentum and constructive guidance alongside improving profitability and manageable leverage. Offsetting factors are cash-flow volatility (recent FCF step-down and working-capital pressure) and mixed near-term technicals, with valuation appearing reasonable but not a standout given the low dividend yield.
Positive Factors
Scale & diversified distribution model
Large global scale and a broad, multi-service model (product distribution, software/cloud, financing, configuration and logistics) create durable revenue diversity and strong vendor/channel leverage. Scale lowers unit costs, supports vendor exclusives and recurring services, making returns less cyclically dependent than smaller distributors.
Negative Factors
Weak free cash flow generation
Large, sustained swings in free cash flow reduce financial optionality and increase sensitivity to working-capital cycles. In a distribution model where FCF can diverge from earnings, this can constrain reinvestment, dividends, or debt reduction during growth phases (e.g., Hyve ramps) and elevate refinancing or liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & diversified distribution model
Large global scale and a broad, multi-service model (product distribution, software/cloud, financing, configuration and logistics) create durable revenue diversity and strong vendor/channel leverage. Scale lowers unit costs, supports vendor exclusives and recurring services, making returns less cyclically dependent than smaller distributors.
Read all positive factors

TD SYNNEX Corporation (SNX) vs. SPDR S&P 500 ETF (SPY)

TD SYNNEX Corporation Business Overview & Revenue Model

Company Description
TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem in the United States, Europe, and internationally. It offers endpoint solutions, including personal computing devices and periph...
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).
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Q2-2026 Updates
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
Revenue growth is solid (TTM +~7.1% YoY) and profitability/returns have improved (net margin ~1.5%, EBIT margin ~2.5%, ROE ~11.6%) with manageable leverage (debt-to-equity ~0.54). The main drag is cash-flow quality: sharp TTM free-cash-flow decline (~-70%) and historically volatile working-capital-driven cash conversion.
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
54
Neutral
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue69.77B62.51B58.45B57.56B62.34B31.61B
Gross Profit4.76B4.37B3.54B3.58B3.56B1.77B
EBITDA2.23B1.83B1.60B1.51B1.49B731.90M
Net Income1.14B827.66M689.09M626.91M651.31M395.07M
Balance Sheet
Total Assets38.51B34.25B30.27B29.41B29.73B27.67B
Cash, Cash Equivalents and Short-Term Investments1.09B2.44B1.06B1.03B522.60M993.97M
Total Debt4.72B4.61B3.91B4.08B4.10B4.14B
Total Liabilities29.56B25.80B22.24B21.23B21.71B19.76B
Stockholders Equity8.95B8.45B8.04B8.18B8.03B7.91B
Cash Flow
Free Cash Flow374.56M1.39B1.04B1.26B-166.65M754.89M
Operating Cash Flow545.04M1.53B1.22B1.41B-49.60M809.79M
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

Technical Analysis Sentiment
Neutral
Last Price214.32
Price Trends
50DMA
252.15
Negative
100DMA
211.52
Positive
200DMA
182.35
Positive
Market Momentum
MACD
2.86
Positive
RSI
35.76
Neutral
STOCH
7.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNX, the sentiment is Neutral. The current price of 214.32 is below the 20-day moving average (MA) of 274.78, below the 50-day MA of 252.15, and above the 200-day MA of 182.35, indicating a neutral trend. The MACD of 2.86 indicates Positive momentum. The RSI at 35.76 is Neutral, neither overbought nor oversold. The STOCH value of 7.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$10.10B14.0211.15%20.49%92.31%
74
Outperform
$1.83B20.939.67%1.02%0.78%3.87%
69
Neutral
$19.57B17.3811.60%1.15%16.26%63.20%
69
Neutral
$1.03B15.428.07%3.76%18.30%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
$3.42B19.7111.17%-1.83%-2.39%
59
Neutral
$6.74B31.584.33%2.77%12.68%-27.94%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNX
TD SYNNEX Corporation
244.64
106.71
77.37%
ARW
Arrow Electronics
197.48
67.27
51.66%
AVT
Avnet
82.18
28.30
52.53%
NSIT
Insight Enterprises
113.34
-29.04
-20.40%
CNXN
PC Connection
72.43
6.46
9.80%
SCSC
ScanSource
50.87
8.40
19.78%

TD SYNNEX Corporation Corporate Events

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.Date of analysis: Jul 03, 2026