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what it is
TD SYNNEX moves huge volumes of hardware, cloud, and IT services between tech vendors and the companies that buy them.
how it gets paid
Last year Td Synnex made $62.5B in revenue. Endpoint Solutions was the main engine at $28.8B, or 46% of sales.
why it's growing
Revenue grew 6.9% last year. This is the quiet part. The company can grow revenue fast and still disappoint if margins wobble in a 3.0% operating-margin model.
what just happened
The latest read was messy: EPS missed estimates by 16.25%, even as another reported quarter showed revenue up 10% to $17.4B.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
11.8x trailing p/e — the market's not buying it — or you found a deal
1.4% dividend yield — cash in your pocket every quarter
11.5% return on capital — nothing to write home about
xvary composite: 70/100 — average
What they do
TD SYNNEX moves huge volumes of hardware, cloud, and IT services between tech vendors and the companies that buy them.
This business wins on scale. TD SYNNEX did $62.5 billion in annual revenue, and 52% came from the U.S., where vendors and resellers already plug into its network. Supply chain linkages → the systems connecting orders, inventory, and support → so what: once your purchasing flow runs through TD SYNNEX, switching is a headache.
How they make money
$62.5B
annual revenue · their business grew +6.9% last year
Endpoint Solutions
$28.8B
Advanced Solutions
$15.6B
Cloud
$8.1B
Security and Networking
$5.6B
Services and Lifecycle
$4.4B
The products that matter
distributes tech products and services
Technology Distribution
$62.5B revenue · entire business
It is the whole $62.5B operation, and the payoff is thin: a 1.9% net profit margin. If execution slips, there is nowhere else for the numbers to hide.
100% of revenue
Key numbers
$742M
cash returned
Buybacks and dividends sent $742 million back to shareholders last year. Plain English: real cash left the business and went to owners.
11.8x
trailing p/e
P/E → price-to-earnings ratio → so what: you are paying $11.80 for each $1 of trailing profit, which is cheap next to many tech names.
3.0%
operating margin
Operating margin → profit after running the business, before interest and taxes → so what: this is a scale game, not a fat-margin business.
11.5%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: TD SYNNEX is decent, not elite, at turning investment into earnings.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $4.0B (24% of capital)
- net profit margin 1.9% — keeps 2 cents of every dollar in revenue
- return on equity 13% — $0.13 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SNX 3 years ago → it's now worth $17,340.
The index would have given you $14,540.
source: institutional data · total return
What just happened
missed estimates
The latest read was messy: EPS missed estimates by 16.25%, even as another reported quarter showed revenue up 10% to $17.4B.
This is the quiet part. The company can grow revenue fast and still disappoint if margins wobble in a 3.0% operating-margin model. showed non-GAAP EPS of $3.83 in fiscal Q4 2025, while consensus data shows the most recent report missed.
$17.4B
revenue
$3.83
eps
5.0%
gross margin
the number that mattered
The key number was the 100-basis-point cost-to-gross-profit improvement. Basis points → one-hundredths of a percent → so what: tiny efficiency gains matter a lot when your net margin is just 1.9%.
-
in the fourth quarter of fiscal 2025 (ended november 30th), non-gaap earnings per share reached $3.83, a 24% increase compared to the previous year.
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what’s more, td synnex reported net revenue of $17.4 billion, up 10% from a year ago.
-
the company maintained a gross margin of 5% and improved its cost-to-gross profit ratio by 100 basis points.
-
furthermore, $742 million was returned to shareholders last year through buybacks and dividends.
-
regionally, we expect growth to continue across all areas.
source: company earnings report, 2026
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What could go wrong
the top risk is margin compression in a 1.9% distribution model.
med
margin compression
SNX kept a 1.9% net margin last year, and the latest quarter ran at 1.3%. When you live on spreads this thin, a small pricing or cost mistake matters fast.
This pressures the entire $62.5B revenue base because distribution is the whole business.
med
antitrust and legal overhang from past M&A
The company has ongoing antitrust claims tied to prior deal activity. That may stay as headline noise, but legal distractions are less harmless in a low-margin operator.
The risk is not abstract. It sits on top of the core business that generated all $62.5B of revenue.
med
growth slowing back toward the multiple
The stock looks inexpensive at 11.8x earnings because revenue grew 6.9% last year and full-year EPS rose to $13.19 from $11.68. If volume slows, the market has less reason to pay even that.
Cheap stocks stay cheap when growth fades. For SNX, that is the whole debate.
If revenue momentum cools while margin stays around 1.3%–1.9%, earnings leverage fades quickly and the low multiple stops looking like an opportunity.
source: institutional data · regulatory filings · risk analysis
Pay attention to
margin
1.3% quarterly margin
This is the number to watch because a distribution business this thin does not get many second chances.
growth
revenue growth on a $62.5B base
Last year revenue grew 6.9%. If that slips while margins stay thin, the cheap multiple starts to make sense.
legal
antitrust claims from prior deals
The issue is less about drama and more about distraction. Low-margin operators need clean execution.
capital return
whether $742M returned keeps rising
Buybacks and dividends matter more when the stock trades near 11.8x earnings and institutions are still net buyers.
Analyst rankings
short-term outlook
top 20%
Momentum score 2 means analysts expect above-average price performance over the next year. In human-speak, they like it.
risk profile
average
Stability score 3 means this sits near the middle of the pack on risk. Not a bunker stock. Not a circus either.
chart momentum
average
Technical score 3 means the chart is not sending a dramatic signal. The case here is fundamentals more than tape action.
earnings predictability
90 / 100
A 90/100 predictability score means management usually delivers numbers close to expectations. That matters when the margins are this tight.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 199 buyers vs. 157 sellers in 4q2025. total institutional holdings: 71.8M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$92
$191
$156
current price
$142
target midpoint · 9% from current · 3-5yr high: $245 (+55% · 13% ann'l return)
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