TD Synnex (SNX)
NYSEInformation TechnologyTechnology DistributorsSnapshot 2026-09-09
$258.23-0.14%
Close 2026-09-09 · 1-day change
NYSEInformation TechnologyTechnology DistributorsSnapshot 2026-09-09
Warn: Primary pillar under pressure — Revenue grows to about $18.6B next quarter: guidance mid $18.6B vs target $18.6B.
TD Synnex grows revenue about 10% yearly, reaching $18.6B next quarter. Profit margins stay stable with EPS around $3.65 next quarter. The company steadily raises dividends, now $0.48 per share. Partnerships with HPE and Ramp support growth and profit gains.
Pricing pressures could hurt gross profit growth. Recent litigation and equity sales add risks. The stock is down 18.7% from its high, showing fragile company quality.
The price is about 24% below our fair value near $313. Analysts expect about 10% revenue growth. The market prices in moderate growth but also some risk, matching our cautious view.
Breaks if: Dividend per share falls below $0.44
Sustain and grow quarterly cash dividends to shareholders.
Stated as a priority in 2 of last 2 quarters. Dividend per share increased from $0.44 in 2025-Q3 to $0.48 in both 2026-Q1 and 2026-Q2, reflecting a 9% year-over-year increase. Management has consistently maintained and increased dividends, delivering on this capital allocation priority.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and dividend maintenance. The current thesis state is intact, supported by strong recent financial results, but management volatility introduces uncertainty.
The market currently prices SNX as cheap compared to its peers, with a low expectations gap. This suggests that investors are not fully accounting for the recent improvements in financial performance and management priorities.
Management is on track with its priorities of increasing revenue and maintaining dividends, as shown by recent financial results. However, the earnings quality remains fragile, which could impact future performance.
The thesis hinges on several factors, including management's ability to maintain guidance, potential changes in Federal Reserve interest rates, and the performance of sector peers. Any negative guidance could significantly affect investor sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The company had a strong earnings beat. Revenue is expected to increase due to expanding its IBM distribution. This expansion covers 20 new countries. It suggests a higher addressable market and recurring revenue streams. Investors view this positively. There are no new threats to the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Announced a quarterly cash dividend of $0.48 per common share, up 9% year over year.”
“Announced a quarterly cash dividend of $0.48 per common share, up 9% year over year.”
Breaks if: EPS falls below $3.15 next quarter
Continue to grow revenue and improve profitability across distribution and Hyve businesses.
Stated as a priority in 2 of last 2 quarters. Revenue increased from $17.2B in 2026-Q1 to $19.6B in 2026-Q2 (+14.1%), operating income rose from $489M to $519M, and net income grew from $327M to $334M. Management's statements and financial results show delivering growth and profitability consistent with their stated priority.
“CEO: 'We delivered a record quarter with broad-based strength across Distribution and Hyve... consistent execution against our strategy.'”
“CEO: 'We delivered record non-GAAP gross billings and non-GAAP diluted earnings per share, while continuing to expand profitability...'”
Breaks if: Revenue falls below $16.5B next quarter
Continue to grow revenue and improve profitability across distribution and Hyve businesses.
Stated as a priority in 2 of last 2 quarters. Revenue increased from $17.2B in 2026-Q1 to $19.6B in 2026-Q2 (+14.1%), operating income rose from $489M to $519M, and net income grew from $327M to $334M. Management's statements and financial results show delivering growth and profitability consistent with their stated priority.
“CEO: 'We delivered a record quarter with broad-based strength across Distribution and Hyve... consistent execution against our strategy.'”
“CEO: 'We delivered record non-GAAP gross billings and non-GAAP diluted earnings per share, while continuing to expand profitability...'”
Overall, SNX's recent performance is encouraging, but the volatility in management and potential risks require careful monitoring. Not investment advice.