TD SYNNEX (NYSE:SNX) Posts Quarterly Earnings Results, Beats Estimates By $0.98 EPS

TD SYNNEX (NYSE:SNX) issued its quarterly earnings results on Thursday. The business services provider reported $5.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.70 by $0.98, FiscalAI reports. TD SYNNEX had a return on equity of 16.78% and a net margin of 1.75%.The firm had revenue of $21.56 billion for the quarter, compared to analyst estimates of $18.91 billion. During the same period in the previous year, the company posted $3.58 earnings per share. The business’s revenue was up 37.7% on a year-over-year basis. TD SYNNEX updated its Q4 2026 guidance to 5.650-6.150 EPS.

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

• Record third-quarter results exceeded guidance, with gross billings up 40% year over year to $31.8 billion, non-GAAP operating income up 55% to $736 million, and non-GAAP EPS up 59% to $5.68.
• Distribution gross billings grew 27% to $24.8 billion, while Hyve surged 117% to $7.0 billion. Growth was broad-based, with particular strength in data-center infrastructure, AI-related technologies, networking, storage, and PCs.
• Management expects continued momentum in the fourth quarter, forecasting gross billings of approximately $31.9 billion and non-GAAP EPS of $5.90 at the midpoint. New Hyve customer programs are expected to begin shipping in the fourth quarter, with additional margin improvement anticipated as programs mature.
• Free cash flow consumption was approximately $1 billion in the quarter as Hyve required substantial inventory and working-capital investments, pushing the cash-conversion cycle to 22 days. Hyve operating margin declined to 3.61% from 5.04% a year earlier because large AI-server programs remain dilutive, although management expects margins and cash generation to improve over time.

TD SYNNEX Stock Up 1.3%

Shares of NYSE:SNX opened at $262.84 on Friday. The company has a quick ratio of 0.64, a current ratio of 1.19 and a debt-to-equity ratio of 0.39. The business has a fifty day moving average of $257.35 and a two-hundred day moving average of $237.39. The stock has a market cap of $21.02 billion, a P/E ratio of 16.02, a PEG ratio of 0.72 and a beta of 1.43. TD SYNNEX has a 52-week low of $142.22 and a 52-week high of $298.77.

TD SYNNEX Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 16th will be paid a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, October 16th. This represents a $1.92 dividend on an annualized basis and a yield of 0.7%. TD SYNNEX’s payout ratio is 13.74%.

TD SYNNEX News Roundup

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

• Positive Sentiment: Fiscal Q3 EPS was $5.68, well above the roughly $4.70 consensus, while revenue rose 37.7% year over year to $21.56 billion, also exceeding expectations. Growth was led by the core Distribution business and Hyve Solutions. TD SYNNEX Q3 Earnings Beat Estimates on Distribution and Hyve Strength
• Positive Sentiment: Management issued substantially stronger-than-expected fourth-quarter guidance: adjusted EPS of $5.65-$6.15 versus the $4.80 consensus and revenue of $21.8-$22.6 billion versus estimates of $19.4 billion. TD Synnex Analysts Boost Their Forecasts After Q3 Results
• Positive Sentiment: Analysts raised their forecasts following the results, while management said AI infrastructure demand is accelerating as Hyve expands. Record billings and continued data-center demand support the growth outlook. SNX Q3 Earnings Call Highlights AI Infrastructure Momentum
• Neutral Sentiment: TD SYNNEX declared a quarterly dividend of $0.48 per share, or $1.92 annualized. The payout provides modest shareholder income but is unlikely to be the primary driver of the stock’s near-term performance.
• Negative Sentiment: The main concern is cash generation: rapid AI-related expansion consumed nearly $1 billion in free cash flow during the quarter. Higher inventory and working-capital needs, along with margin pressure in Hyve, prompted some investors to question the quality and sustainability of the growth. TD SYNNEX Burned Nearly $1 Billion in Cash
• Negative Sentiment: Reported insider-trading data showed selling rather than buying by several executives over the past six months, which may add a modest sentiment headwind, although it is less significant than the earnings and cash-flow issues. SYNNEX Releases Q3 2026 Earnings

Insiders Place Their Bets

In other news, Director Richard Hume sold 5,000 shares of TD SYNNEX stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $262.21, for a total transaction of $1,311,050.00. Following the transaction, the director owned 13,537 shares in the company, valued at $3,549,536.77. The trade was a 26.97% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ann Vezina sold 1,273 shares of the business’s stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $256.05, for a total transaction of $325,951.65. Following the transaction, the director directly owned 5,828 shares in the company, valued at approximately $1,492,259.40. The trade was a 17.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 11,273 shares of company stock valued at $2,851,852 over the last ninety days. Corporate insiders own 0.70% of the company’s stock.

Analyst Ratings Changes

SNX has been the topic of a number of research reports. Zacks Research lowered TD SYNNEX from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 25th. Morgan Stanley upped their target price on shares of TD SYNNEX from $334.00 to $359.00 and gave the stock an “overweight” rating in a report on Friday. Barrington Research raised their price target on shares of TD SYNNEX from $202.00 to $325.00 and gave the stock an “outperform” rating in a research note on Friday, June 26th. UBS Group boosted their price target on shares of TD SYNNEX from $352.00 to $379.00 and gave the stock a “buy” rating in a research report on Friday. Finally, The Goldman Sachs Group set a $330.00 price objective on shares of TD SYNNEX in a research note on Friday, June 26th. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $331.14.

TD SYNNEX Company Profile

TD SYNNEX Corporation (NYSE: SNX) is a global technology distributor and solutions aggregator that connects technology manufacturers with resellers, systems integrators, managed service providers and other business partners. The company helps its partners design, procure, configure and deliver technology solutions to organizations across a range of industries.

Its portfolio includes personal computing devices, peripherals, networking equipment, data-center infrastructure, cybersecurity products, software and cloud services.