Synnex Corporation

TD SYNNEX has drawn renewed investor attention after reporting third quarter earnings, issuing fresh guidance, and outlining continued capital returns. The company's shares are now trading at US$263.03, with a 1-day share price return of 1.37% partly offsetting a 7-day decline of 5.92% that followed the earnings release and guidance. The stock has posted a 71.43% year to date share price return and a 3-year total shareholder return of 176.49%. The most followed analyst narrative puts fair value at $333.55, well above the recent close, implying the stock is 21% undervalued, with 23 investors backing that view. That bullish case rests on double-digit growth in software, especially cloud, cybersecurity, virtualization, and infrastructure software, plus high growth in the Advanced Solutions and Hyve businesses, though weaker Hyve orders from large customers or a slowdown in data center and AI infrastructure demand could quickly undercut it.

Morgan Stanley raised its price target on TD Synnex Corp to $359 from $334, reiterating an Overweight rating and naming the technology distributor its most favored enterprise hardware name. The call followed fiscal third-quarter results in which revenue and earnings per share beat consensus estimates by 13%-21%, while fourth-quarter guidance came in 12%-25% above Street expectations. Morgan Stanley lifted its fiscal 2027 and 2028 earnings estimates by 12%-15%, citing stronger growth and operating leverage. Within the company, Distribution gross billings rose 27% year-on-year, while gross billings at Hyve Solutions, TD Synnex's data-centre infrastructure unit, jumped 117%, as enterprise AI demand shifted from experimentation toward production. Operating expenses fell to 3.63% of revenue, the lowest level in more than five years, and Morgan Stanley expects free cash flow to turn positive in the fourth quarter as investments in Hyve's new customer programs ease.

TD Synnex Corp reported record quarterly results with non-GAAP gross billings of $31.8 billion, up 40% year-over-year and above the high end of guidance. Non-GAAP operating income rose 55% to $736 million and non-GAAP EPS climbed 59% to $5.68, also above the high end of guidance, while GAAP operating income rose 68% to $643 million and GAAP EPS rose 89% to $5.18. Within the total, the Distribution segment contributed $24.8 billion in gross billings, up 27% year-over-year with double-digit growth in every region, and the Hyve segment contributed $7 billion, up 117%, with Hyve manufacturing gross billings growing in excess of 130% and supply chain services up in excess of 90%. Hyve's non-GAAP operating margin narrowed to 3.61% from 5.04% a year earlier on lower-margin large AI server programs, and free cash flow was a consumption of approximately $1 billion driven by higher inventory in Hyve's supply chain business and new customer programs. For the fourth quarter, TD Synnex guided to non-GAAP gross billings of approximately $31.9 billion, plus or minus $500 million, revenue of approximately $22.2 billion, plus or minus $400 million, and non-GAAP diluted EPS of approximately $5.90, plus or minus $0.25, up about 54% at the midpoint. The company returned $100 million in share repurchases and $38 million in dividends during the quarter and declared a quarterly dividend of $0.48 per share.

TD SYNNEX is scheduled to report third-quarter fiscal 2026 results on Sept. 24, before market open. The company expects non-GAAP earnings per share between $4.25 and $4.75, against a consensus mark of $4.64 per share, which would represent an increase of 29.6% from the prior-year quarter's reported figure. Revenue for the quarter is expected between $18.2 billion and $19 billion, with the consensus estimate pegged at $18.8 billion, suggesting growth of approximately 20% from the year-ago quarter. TD SYNNEX has beaten the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 21.7%, and the Zacks model predicts another beat this time, with an Earnings ESP of +7.37% and a Zacks Rank #2. Growth is expected to be supported by demand for AI infrastructure, enterprise IT modernization, cloud and cybersecurity, with the Hyve Solutions division remaining a key driver as hyperscalers expand AI and cloud infrastructure deployments.

Hammerhead AI announced a collaboration naming TD SYNNEX as distributor for its ORCA software, giving the distributor a standardized AI power-orchestration SKU that lets data center operators convert stranded power into AI-ready capacity through TD SYNNEX's global reseller network. The agreement aligns with TD SYNNEX's Destination AI program and lands as the market watches its Hyve data center segment ahead of upcoming earnings. TD SYNNEX's narrative projects $90.7 billion revenue and $1.6 billion earnings by 2029, yielding a $333.55 fair value and 27% upside to its current price, while some of the most optimistic analysts already assumed revenue of about US$97.9 billion and earnings of US$1.7 billion by 2029. The company still faces risks around margin pressure, customer concentration, and a possible slowdown after recent pull-forward demand.

TD SYNNEX Corporation shares surged over 50% in the second quarter, driven by robust demand for AI infrastructure and cloud computing, according to Harbor Mid Cap Value Fund's Q2 2026 investor letter. The company reported strong earnings that easily beat analysts' consensus and raised its guidance for upcoming quarters. As of September 4, 2026, TD SYNNEX closed at $262.64 per share, with a market capitalization of $21 billion and a 74.64% gain over the past year. The fund highlighted TD SYNNEX as a top contributor, alongside Arrow Electronics and Hewlett Packard Enterprise, within its Information Technology holdings. Additionally, Goldman Sachs initiated coverage on TD SYNNEX, projecting 10% billings growth for fiscal year 2026.

FPA Queens Road Small Cap Value Fund highlighted TD SYNNEX (NYSE:SNX) in its second-quarter 2026 investor letter, noting that the company's data center business, Hyve, is growing billings at a nearly 100% annualized rate and is on track to contribute about $700 million in operating earnings this year. The fund, which returned 27.02% in the first half of 2026, outperforming the Russell 2000 Value Index's 22.99% gain, said TD SYNNEX is the largest IT distributor globally and has diversified into software, security, and services. The company reported blowout earnings on March 31, and its stock has performed well since, trading at roughly 13 times forward earnings. The fund has trimmed its position but keeps TD SYNNEX as a top five holding, citing its scale and scope advantages and expected profit growth at a GDP-plus rate. TD SYNNEX shares closed at about $253.97 on August 31, 2026, with a market capitalization of approximately $20.22 billion.

TD SYNNEX has expanded its PartnerFirst digital customer experience with new data-driven commerce capabilities in North America, giving partners greater visibility, automation, and insight across the customer lifecycle. The enhancements include lifecycle stage analysis for select vendors like Microsoft and Cisco, new campaign management tools, and opportunity reconciliation that provides metrics on close rates, revenue retention, renewal rates, upsell success, and churn. Early user Atlantic Data Systems, an SMB reseller, reports that Customer Lifecycle has become its most-used resource. Additionally, PartnerFirst Digital Bridge now offers connectors for Salesforce and QuickBooks Online, and AI assistants are live in Slack and Webex, with QuoteSync simplifying quote conversion. TD SYNNEX reports that customers regularly transacting across digital offerings see nearly 30 percent growth on average, and a new Services Marketplace is now available for discovering IT services.

TD SYNNEX has expanded its IBM distribution footprint into 20 additional countries across Europe, Asia Pacific and Latin America, widening access to IBM solutions for channel partners. The announcement comes after a strong run for the stock, with shares at US$250.14, a year-to-date return of 63.03%, and a three-year total shareholder return of 161.44%. Analysts value TD SYNNEX as 25% undervalued using future earnings and a target P/E of 20x, with a narrative fair value estimate of $333.55. The stock trades on a P/E of 17.8x, above the 16.4x peer average but below a 26.7x fair ratio, while investors weigh margin pressure in units like Hyve and the risk that demand pulled forward into earlier quarters could cool activity.

TD SYNNEX announced the expansion of its IBM distribution footprint into 20 new countries across Europe, Asia-Pacific, and Latin America. The move extends access to IBM solutions and the Select Blue initiative, which focuses on high-growth areas like AI, data, and automation, to a broader set of partners. Mark Martin, VP of Global Vendor Management at TD SYNNEX, said the expansion provides a clear path for partners to engage, specialize, and execute confidently. The company will anchor execution in a globally consistent framework with local support, aiming to accelerate time to revenue and scale IBM business.

Morgan Stanley analyst Erik Woodring says enterprise hardware stocks exposed to server and storage themes have further upside to earnings estimates as memory chip prices keep rising. Woodring notes enterprises are accelerating purchases of PCs, servers and storage arrays to lock in favorable prices and limit supply shortages, calling the trend a multi-year structural headwind. He highlights Hewlett Packard Enterprise, Everpure, TD Synnex and Lenovo as bullish picks. JPMorgan strategist Jay Kwon separately estimates the memory chip shortage will last at least two years, with demand broadening from GPU to CPU and remaining a key source of potential upward revisions. Sandisk CEO David Goeckeler said on his earnings call that the company has over four years of demand visibility.

TD SYNNEX was recently highlighted as one of a small group of profitable stocks backed by strong net income ratios and an expected earnings growth rate of 42.9% for the current year. The recognition reinforces the company's positioning as a global IT distributor and solutions aggregator that analysts associate with expanding higher-value technology services. The company's Q2 2026 earnings showed net income of about US$334 million on US$19.58 billion of revenue, alongside updated Q3 guidance. While the profitability backdrop supports dividends, buybacks, and AI-centric investments, investors still face risks from margin pressure, potential demand softness, and macro uncertainty.

Fortinet heads into its second quarter earnings report with attention on forecast growth in both services and products, along with recent FortiEndpoint AI features and a broader global distribution pact with TD SYNNEX. The stock last closed at $152.37, well above a narrative fair value of $125.56, framing debate over how much AI-related growth is already priced in. As of mid-July 2026, Fortinet trades at a price-to-earnings ratio of roughly 60 times and a price-to-sales ratio of 16 to 18 times, reflecting a steep premium that leaves little room for error if macroeconomic conditions or data center spending slow. The company's rich valuation means any disappointment around earnings or AI security demand could quickly pressure sentiment.

TD SYNNEX announced it had been named one of Fortinet's approved global distributors. The partnership broadens TD SYNNEX's channel role and is expected to support complex, multi-region customer deployments. Fortinet also unveiled upcoming FortiEndpoint enhancements that add AI governance, native data loss prevention, and FortiAI-assisted operations, expected to be available in the third quarter of 2026. Together, these moves highlight how Fortinet is pairing distribution scale with richer AI security capabilities.

TD SYNNEX reported second-quarter sales of US$19,574.81 million and net income of US$334.09 million, issued third-quarter guidance, and continued its dividend at US$0.48 per share. The company also completed a US$1.00 billion buyback program and was added to two Russell 1000 defensive/value indices. The completion of the buyback reinforces the narrative that share count reduction is a meaningful part of the equity story, alongside dividends and modest growth expectations. The latest results and guidance support the view that near-term sentiment hinges on how much Q2 demand was pulled forward and whether margins can hold.

StockStory identifies TD SYNNEX as a value stock with impressive fundamentals, while recommending investors avoid PROG Holdings and Archer-Daniels-Midland. TD SYNNEX, trading at 14.1 times forward earnings, has posted 25.7% annual revenue growth over five years and 20.9% annual earnings per share growth over two years, supported by share buybacks. PROG Holdings, at 9.9 times forward earnings, has seen flat sales over five years and a 62.4% annual decline in tangible book value per share. Archer-Daniels-Midland, at 14.5 times forward earnings, has experienced a 7.5% annual sales decline over three years and falling earnings per share.

Zacks Investment Research identified Micron Technology, Credo Technology Group, and TD SYNNEX as top profitable stocks with strong upside potential for July. The screening used criteria including a Zacks Rank of 1, trailing 12-month sales and net income growth above industry averages, and a net income ratio exceeding industry benchmarks, narrowing over 7,685 stocks to just 14. Micron Technology reported a 12-month net profit margin of 55.9% and an expected earnings growth rate of 791% for the current year. Credo Technology posted a net profit margin of 35.4% with expected earnings growth of 72.8%, while TD SYNNEX had a net profit margin of 1.6% and expected earnings growth of 43.1%.

Zacks Investment Research highlights three stocks with strong value characteristics and a Zacks Rank #1 as of June 29. Daktronics, an electronic display solutions provider, trades at a price-to-earnings ratio of 15.02 versus its industry's 17.30 and holds a Value Score of B. ORIX Corporation, a financial services company, has a P/E of 8.26 compared with the S&P 500's 22.41 and a Value Score of A. TD SYNNEX Corporation, an IT distribution company, carries a P/E of 15.51 against the S&P 500's 22.41 and a Value Score of B.

TD SYNNEX reported non-GAAP earnings of $4.85 per share for the second quarter of fiscal 2026, beating the Zacks Consensus Estimate of $3.92 by 19.9%. Revenues of $19.58 billion surpassed the consensus mark of $16.84 billion by 16.2% and increased 31% from the year-ago quarter. Non-GAAP gross billings climbed 33.4% year over year to a record $28.9 billion, driven by broad-based momentum across the Distribution and Hyve businesses. The Distribution business generated non-GAAP gross billings of $23.4 billion, up 22% year over year, while Hyve Solutions saw non-GAAP gross billings surge 117% to $5.5 billion. For the third quarter of fiscal 2026, TD SYNNEX expects revenues between $18.2 billion and $19 billion and non-GAAP earnings per share between $4.25 and $4.75.

StockStory recommends buying Nextpower and TD SYNNEX while advising investors to sell AMN Healthcare Services. Nextpower, a solar tracker provider, posted 19.3% annual revenue growth over two years and expanded its free cash flow margin by 25.3 percentage points over five years. TD SYNNEX, a global technology distributor, achieved 25.7% annual revenue growth over five years on a massive $69.77 billion revenue base, with earnings per share boosted by share buybacks. AMN Healthcare Services faces declining travelers on assignment, a 7.1% annual drop in earnings per share over five years, and waning returns on capital, with its stock trading at 37.7 times forward earnings.

TD Synnex posted record second-quarter results, with non-GAAP gross billings reaching $28.9 billion, a 33% increase year-over-year. Non-GAAP operating income rose 49% to $615 million, and non-GAAP earnings per share climbed 62% to $4.85. The company's Distribution segment contributed $23.4 billion in non-GAAP gross billings, up 22%, while its Hyve segment surged 117% to $5.5 billion, driven by new programs with existing customers. TD Synnex also announced it has secured programs with all five US-based hyperscalers and is expanding manufacturing facilities by more than 1 million square feet. For the third quarter, the company guided for revenue of approximately $18.6 billion and non-GAAP earnings per share of about $4.50.

Morgan Stanley has raised its server market total addressable market forecast to $809 billion for 2026, representing 82% year-over-year growth, as enterprise compute demand proves more resilient than expected despite significant price increases. The bank lifted earnings-per-share forecasts by an average of 3 to 5 percent across six enterprise compute names, including CDW, Dell Technologies, HPE, IBM, Ingram Micro and TD Synnex. Morgan Stanley upgraded CDW to Overweight from Equal-weight, raising its price target to $170 from $142, and lifted TD Synnex's target to $341 from $271, while also boosting Dell's target to $477 from $448 and IBM's to $267 from $225. TD Synnex remains the bank's preferred way to play the theme, with analysts citing its Hyve subsidiary's exposure to the five largest global hyperscalers as a key differentiator, and CDW was flagged as a laggard play with improving fundamentals. The bank cautioned that on-prem compute budget inflation is becoming unsustainable, leaving the duration of the current cycle uncertain beyond 2027.

TD SYNNEX has appointed Douglas Britt to its board of directors, effective June 17, 2026, expanding the board from ten to eleven members. Britt will serve on the board's audit committee and technology committee. He is a seasoned technology executive with more than 30 years of experience leading global technology, manufacturing, and supply chain businesses, and currently serves as executive chairman of Boyd. Britt also sits on the boards of Helios Technologies and Benchmark Electronics.

StockStory highlights Wendy's as a stock to avoid due to its 7× net-debt-to-EBITDA ratio and flat revenue outlook, while naming Crane NXT and TD SYNNEX as cash-producing stocks worth watching. Wendy's trailing 12-month free cash flow margin stands at 10.1%, but lagging same-store sales and expected flat revenue raise concerns. Crane NXT, with a 13.6% free cash flow margin, benefits from 15.3% average backlog growth and projected 16.3% revenue growth. TD SYNNEX, despite a lower 1.9% free cash flow margin, has grown revenue at 25.6% annually over five years and expanded its free cash flow margin by 3.4 percentage points, supported by $65.14 billion in revenue scale.

TD SYNNEX shares may be undervalued by about 22% according to a discounted cash flow model, even after a recent rally driven by the expansion of its HPE Unleash AI solutions portfolio and upward analyst earnings revisions. The stock has returned 23.31% over the past 30 days and 131.41% over the past year, trading around $284.56. While a popular narrative-based fair value estimate of $247.82 suggests the stock is overvalued by 14.8%, a Simply Wall St DCF model yields a fair value of $364.42, implying a 21.9% discount. The divergence highlights ongoing debate over how much future AI-driven growth is already priced in.