TD SYNNEX (NYSE:SNX) Announces Quarterly Earnings Results, Beats Estimates By $1.49 EPS

TD SYNNEX (NYSE:SNX) posted its quarterly earnings results on Tuesday. The business services provider reported $4.73 EPS for the quarter, topping analysts’ consensus estimates of $3.24 by $1.49, FiscalAI reports. TD SYNNEX had a net margin of 1.52% and a return on equity of 14.03%. The business had revenue of $17.16 billion during the quarter, compared to analysts’ expectations of $15.59 billion. During the same period last year, the company posted $2.80 earnings per share. The business’s quarterly revenue was up 18.1% on a year-over-year basis.

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

• Record Q1 financials — non‑GAAP gross billings of $25.8B (+24% YoY) and non‑GAAP EPS of $4.73 (+69% YoY), with GAAP EPS of $4.04, all above the high end of guidance.
• Reporting and strategy update — management reorganized reporting into two businesses (Distribution and Hyve), reiterated four strategic pillars and heavier AI/digital investment, and highlighted partner recognitions including Microsoft Frontier Distributor and Palo Alto Networks Distributor of the Year.
• Distribution strength — Distribution generated $22B in gross billings (+17% YoY) with expanding gross and operating margins driven by infrastructure, security and PCs, aided by strategic inventory purchases to manage supply and pricing volatility.
• Hyve momentum but mixed margin dynamics — Hyve gross billings jumped to $3.8B (+95% YoY) with programs secured at two new hyperscalers and at least one program with each of the top five U.S. hyperscalers, yet operating margins compressed quarter‑to‑quarter due to mix and net‑structured GPU deals.
• Capital allocation and outlook — Q2 guidance targets ~$25.1B gross billings and ~$4 non‑GAAP EPS, board approved a $0.48 dividend, buybacks to increase, trailing 12‑month FCF of $1.2B and leverage at ~1.5x, supporting continued returns and investment capacity.

TD SYNNEX Price Performance

Shares of NYSE SNX opened at $186.22 on Thursday. The stock has a market cap of $15.01 billion, a price-to-earnings ratio of 15.48, a PEG ratio of 1.21 and a beta of 1.22. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.75 and a current ratio of 1.22. TD SYNNEX has a fifty-two week low of $92.23 and a fifty-two week high of $186.51. The firm’s 50-day simple moving average is $159.91 and its 200 day simple moving average is $155.50.

TD SYNNEX Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 29th. Investors of record on Wednesday, April 15th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Wednesday, April 15th. TD SYNNEX’s dividend payout ratio is currently 15.96%.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on SNX shares. Morgan Stanley raised their target price on TD SYNNEX from $172.00 to $174.00 and gave the company an “overweight” rating in a research note on Friday, March 20th. Zacks Research downgraded TD SYNNEX from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 15th. Weiss Ratings reiterated a “buy (b-)” rating on shares of TD SYNNEX in a report on Wednesday, January 21st. Barrington Research restated an “outperform” rating and set a $182.00 price objective on shares of TD SYNNEX in a report on Friday, March 27th. Finally, JPMorgan Chase & Co. upped their target price on TD SYNNEX from $175.00 to $185.00 and gave the stock a “neutral” rating in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, TD SYNNEX currently has an average rating of “Moderate Buy” and a consensus target price of $180.50.

Key Stories Impacting TD SYNNEX

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

• Positive Sentiment: Blowout Q1 beat — SNX reported record fiscal Q1 results: revenue $17.16B (+18.1% Y/Y) and non‑GAAP EPS $4.73, well above estimates, and issued Q2 guidance that implied continuing momentum. This is the primary catalyst for the intraday rally. QuiverQuant: TD SYNNEX jumps after blowout fiscal Q1 results and upbeat outlook
• Positive Sentiment: AI/cloud tailwinds highlighted — Management tied strength to hyperscaler and enterprise demand, specifically AI infrastructure and cloud solutions, supporting higher-margin services and distribution growth. Zacks: Q1 Earnings Crush Estimates
• Positive Sentiment: Dividend declared — Company announced a quarterly dividend of $0.48/share (annualized yield ≈1.0%), modestly supportive for income‑oriented holders.
• Positive Sentiment: New channel partnership — TD SYNNEX added a FatPipe SD‑WAN/cybersecurity partnership, expanding solution set for enterprise customers. PR Newswire: FatPipe partnership
• Neutral Sentiment: JPMorgan raised its price target to $185 but kept a “neutral” rating — a modest signal (target roughly in line with the current level) that tempers a full bullish re‑rating. Benzinga: JPMorgan raises PT
• Neutral Sentiment: Analysts remain mixed — recent coverage highlights conflicting views on valuation and near‑term cadence despite strong Q1 results. Globe and Mail: Analysts Conflicted
• Negative Sentiment: Barclays raised its target to $166 but kept an “equal weight” rating — the target implies a material downside versus current levels and reflects continued analyst caution on upside beyond the near term. TickerReport: Barclays raises PT
• Negative Sentiment: Significant insider and institutional selling flagged — filings and data show notable insider sales and some large fund reductions in recent quarters, which could weigh on sentiment if sustained. QuiverQuant: insider & hedge fund activity

Insiders Place Their Bets

In related news, Director Richard T. Hume sold 23,365 shares of TD SYNNEX stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $160.63, for a total transaction of $3,753,119.95. Following the transaction, the director owned 42,515 shares of the company’s stock, valued at $6,829,184.45. The trade was a 35.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Patrick Zammit sold 13,900 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $171.57, for a total value of $2,384,823.00. Following the sale, the chief executive officer owned 170,928 shares of the company’s stock, valued at $29,326,116.96. This trade represents a 7.52% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 80,915 shares of company stock valued at $13,111,786. Corporate insiders own 0.70% of the company’s stock.

Hedge Funds Weigh In On TD SYNNEX

Large investors have recently bought and sold shares of the stock. Alyeska Investment Group L.P. purchased a new position in TD SYNNEX during the 3rd quarter worth $135,631,000. AQR Capital Management LLC lifted its position in shares of TD SYNNEX by 141.8% during the fourth quarter. AQR Capital Management LLC now owns 934,772 shares of the business services provider’s stock valued at $140,431,000 after purchasing an additional 548,180 shares in the last quarter. Marshall Wace LLP boosted its holdings in TD SYNNEX by 6,626.0% during the third quarter. Marshall Wace LLP now owns 402,754 shares of the business services provider’s stock worth $65,951,000 after purchasing an additional 396,766 shares during the last quarter. Wellington Management Group LLP boosted its holdings in TD SYNNEX by 365.9% during the third quarter. Wellington Management Group LLP now owns 373,101 shares of the business services provider’s stock worth $61,095,000 after purchasing an additional 293,027 shares during the last quarter. Finally, Millennium Management LLC grew its position in TD SYNNEX by 255.6% in the 4th quarter. Millennium Management LLC now owns 283,884 shares of the business services provider’s stock worth $42,648,000 after purchasing an additional 204,051 shares in the last quarter. 84.00% of the stock is currently owned by institutional investors.

About TD SYNNEX

TD SYNNEX (NYSE: SNX) is a leading global distributor and solutions aggregator for the information technology industry. Formed in September 2021 through the merger of Tech Data and SYNNEX Corporation, the company provides a comprehensive range of products, services and solutions that span hardware, software, cloud, mobility, security and data center technologies. TD SYNNEX partners with vendors, resellers and system integrators to design, deploy and support IT infrastructures across diverse market segments, including commercial enterprises, public sector organizations and retail operations.

The company’s core business activities include the distribution of technology products from manufacturers such as servers, storage, networking equipment and peripherals, as well as the resale and provisioning of software licenses and cloud-based solutions.