TD SYNNEX Corporation (SUX) AI Stock Analysis

TD SYNNEX Corporation

(BX Swiss:SUX)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue and earnings growthSustained revenue growth alongside a substantial improvement in net income indicates stronger operating scale and earnings capacity. This gives TD SYNNEX more resources to invest in technology programs, customer relationships, and distribution capabilities over the next several quarters.

Negative Factors

Negative current cash generationThe reversal from strong prior-year free cash flow to significant TTM cash outflow reduces near-term financial flexibility. If working-capital pressure persists, TD SYNNEX may have less capacity for debt reduction, shareholder returns, or internally funded investment.

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 periphera...

TD SYNNEX Corporation Earnings Call Summary

Earnings Call Date:Sep 23, 2026(Q3-2026)|Next Earnings Date:Jan 11, 2027

Earnings Call SentimentPositive

The call was strongly positive, with record consolidated results, substantial growth in both Distribution and Hyve, above-market performance, new customer and vendor wins, and continued optimism around AI and data center demand. The main challenges were approximately $1 billion of quarterly free cash flow consumption, higher working capital needs, Hyve margin dilution from large AI rack programs, and declining PC units, although management stated that margin stabilization and improved cash generation are expected as programs mature.

Positive Updates

Record Quarter with Broad-Based Growth

TD SYNNEX delivered another record quarter, with Distribution and Hyve both performing above expectations and growing above market across geographies, technologies, customers, and programs.

Negative Updates

Approximately $1 Billion of Free Cash Flow Consumption

Free cash flow consumption for the quarter was approximately $1 billion, driven by increased inventory in Hyve's supply chain business and investments for new customers and new programs with existing customers.

Company Guidance

For the fourth quarter, TD SYNNEX expects non-GAAP gross billings of approximately $31.9 billion, plus or minus $500 million, up approximately 31% year-over-year at the midpoint; a gross to net adjustment of approximately 30%; revenue of approximately $22.2 billion, plus or minus $400 million; non-GAAP net income of approximately $474 million, ±$20 million; and non-GAAP diluted earnings per share of approximately $5.90, ±$0.25, up approximately 54% at the midpoint, based on approximately 79.2 million diluted shares outstanding. Hyve's non-GAAP gross billings are expected to increase sequentially quarter-over-quarter, the company expects to generate cash in the quarter, and it expects a couple of days of improvement in gross cash days, quarter-over-quarter. Looking ahead to fiscal 2027, TD SYNNEX expects further improvements in Hyve's cash conversion, all of its businesses to be sustainable cash generators, and each major program to generate attractive returns, although some will not reach their full potential until the back half of fiscal 2027.

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

CH:SUX against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLMB	78Outperform	$758.26M	31.26	19.25%	0.42%	24.23%	10.53%
ARW	74Outperform	$10.61B	13.19	12.14%	―	26.05%	76.95%
SCSC	71Outperform	$1.18B	15.64	8.66%	―	6.09%	21.23%
CNXN	69Neutral	$2.19B	21.39	10.89%	0.86%	9.53%	24.84%
AVT	63Neutral	$7.25B	21.67	6.77%	1.61%	24.47%	47.08%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

CH:SUX and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ARW	Arrow Electronics, Inc.	208.34	96.89	86.94%
AVT	Avnet	88.20	41.03	86.99%
CNXN	Pc Connection	86.83	27.81	47.13%
SCSC	ScanSource Inc	57.71	15.43	36.49%
CLMB	Climb Global Solutions, Inc.	40.64	11.44	39.19%

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.

TD SYNNEX Corporation AI Stock Analysis