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TD SYNNEX Corporation
(NYSE:SNX)
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Rating:64Neutral
Price Target:
$276.00
▲(9.79% Upside)
Action:Downgraded
Date:10/01/26
The score is held back primarily by the sharp TTM cash flow deterioration (negative operating and free cash flow), despite solid profitability trends and improving leverage. Earnings call guidance and sentiment are constructive and point to continued growth with expected cash normalization, while technicals are mixed and valuation is reasonable but not deeply discounted.
Positive Factors
AI and Hyve Growth
Rapid growth in Hyve, infrastructure, software, and AI-related technologies expands TD SYNNEX’s exposure to durable enterprise modernization trends. New customer programs and planned liquid-cooled networking production could broaden future growth and strengthen its role in complex deployments.
Negative Factors
Sharp Cash Flow Deterioration
The reversal from strong prior-year free cash flow to substantial TTM cash outflow reduces near-term financial flexibility and limits internally funded debt reduction or shareholder returns. If working-capital pressure persists, reported earnings may translate less effectively into available cash.
Read all positive and negative factors
Positive Factors
Negative Factors
AI and Hyve Growth
Rapid growth in Hyve, infrastructure, software, and AI-related technologies expands TD SYNNEX’s exposure to durable enterprise modernization trends. New customer programs and planned liquid-cooled networking production could broaden future growth and strengthen its role in complex deployments.
Read all positive factors
TD SYNNEX Corporation (SNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.81B
Dividend Yield0.69%
Average Volume (3M)934.25K
Price to Earnings (P/E)16.5
Beta (1Y)1.23
Revenue Growth24.10%
EPS Growth77.90%
CountryUS
Employees24,000
SectorTechnology
Sector Strength88
IndustryTechnology Distributors
Share Statistics
EPS (TTM)16.53
Shares Outstanding79,777,510
10 Day Avg. Volume934,831
30 Day Avg. Volume934,247
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 Cap1.14
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit4.84
Enterprise Value/Ebitda9.83
Forecast
1Y Price Target
$342.14Price Target Upside36.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)21.24
Revenue Forecast (FY)$80.02B
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 acting as a technology distributor: it purchases products and solutions from IT vendors and sells them to channel partners (e.g., resellers, systems integrators, and managed service providers), generating revenue...
TD SYNNEX Corporation Earnings Call Summary
Earnings Call Date:Sep 24, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 12, 2027
Earnings Call Sentiment Positive
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.67B | 62.51B | 58.45B | 57.56B | 62.34B | 31.61B |
| Gross Profit | 5.14B | 4.37B | 3.54B | 3.58B | 3.56B | 1.77B |
| EBITDA | 2.53B | 1.83B | 1.60B | 1.51B | 1.49B | 734.00M |
| Net Income | 1.33B | 827.66M | 689.09M | 626.91M | 651.31M | 395.07M |
Balance Sheet | ||||||
| Total Assets | 41.84B | 34.25B | 30.27B | 29.41B | 29.73B | 27.67B |
| Cash, Cash Equivalents and Short-Term Investments | 749.30M | 2.44B | 1.06B | 1.03B | 522.60M | 993.97M |
| Total Debt | 5.52B | 4.61B | 3.91B | 4.08B | 4.10B | 4.14B |
| Total Liabilities | 32.54B | 25.80B | 22.24B | 21.23B | 21.71B | 19.76B |
| Stockholders Equity | 9.30B | 8.45B | 8.04B | 8.18B | 8.03B | 7.91B |
Cash Flow | ||||||
| Free Cash Flow | -814.96M | 1.39B | 1.04B | 1.26B | -166.65M | 754.89M |
| Operating Cash Flow | -617.82M | 1.53B | 1.22B | 1.41B | -49.60M | 809.79M |
| Investing Cash Flow | -190.78M | -221.17M | -193.84M | -156.41M | -115.51M | -952.35M |
| Financing Cash Flow | 681.27M | -32.87M | -953.10M | -785.88M | -275.59M | -392.62M |
TD SYNNEX Corporation Technical Analysis
Positive
251.39
Price Trends
261.34
Positive
259.77
Positive
218.15
Positive
Market Momentum
3.38
Negative
54.63
Neutral
54.38
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 251.39 is below the 20-day moving average (MA) of 268.89, below the 50-day MA of 261.34, and above the 200-day MA of 218.15, indicating a bullish trend. The MACD of 3.38 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 54.38 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $620.65M | 29.56 | 17.50% | 0.51% | 23.05% | -7.49% | |
75 Outperform | $2.34B | 24.49 | 10.40% | 0.81% | 3.23% | 14.66% | |
71 Outperform | $1.23B | 16.51 | 8.66% | ― | 6.09% | 21.23% | |
69 Neutral | $11.60B | 14.43 | 12.14% | ― | 26.05% | 76.95% | |
64 Neutral | $21.81B | 16.54 | 14.94% | 0.71% | 24.10% | 77.90% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $8.17B | 24.41 | 6.77% | 1.43% | 24.47% | 47.08% |
* Technology Sector Average
SNX
TD SYNNEX Corporation
273.37
120.85
79.23%
ARW
Arrow Electronics
227.90
114.25
100.53%
AVT
Avnet
99.36
49.70
100.09%
CNXN
PC Connection
92.81
34.00
57.82%
SCSC
ScanSource
60.93
19.72
47.85%
CLMB
Climb Global Solutions
33.26
0.05
0.15%
TD SYNNEX Corporation Corporate Events
Business Operations and StrategyPrivate Placements and Financing
TD SYNNEX Expands Receivables Facility, Extends Maturity Timeline
Positive
Sep 30, 2026
On September 25, 2026, TD SYNNEX amended its accounts receivable securitization program, which is funded through its subsidiary SIT Funding LLC, by extending the program’s maturity to September 25, 2028 and lifting the aggregate lender commi...
Business Operations and StrategyExecutive/Board Changes
TD SYNNEX Updates Hyve Performance-Based Stock Incentive Plans
Positive
Aug 3, 2026
On July 28, 2026, TD SYNNEX’s board compensation committee approved new forms of performance-based restricted stock unit award agreements for participants in its Hyve Solutions business, covering both U.S. and non-U.S. employees under the co...
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 ...
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.