TD SYNNEX Corporation (SNX) AI Stock Analysis
SNX AI stock analysis summary
AI ResearchTD SYNNEX Corporation (SNX) is a global IT distributor and solutions aggregator providing endpoint devices, cloud infrastructure, and value-added systems design. The company generated $75.67B in trailing twelve month revenue and delivered 37.7% quarterly revenue expansion in its latest quarter ending August 31, 2026. SNX trades at a forward P/E of 12.7x while returning capital to shareholders through $627.2M in FY2025 share repurchases and regular quarterly dividends.
- Market cap
- $19.69B
- Revenue (TTM)
- $75.67B
- P/E
- 15.0x fwd 12.7x
- 1Y return
- 61.1% S&P 500 16.8%
- Avg. target
- $339.64 37.6% vs last close
Bull case
- Quarterly revenue grew 37.7% and quarterly earnings surged 88.9% year-over-year in the period ended August 31, 2026.
- Valuation multiples remain discounted, with a forward P/E of 12.7x compared to the 18.8x median for US-listed Technology peers.
- Free cash flow reached $1.39B in FY2025, easily funding $627.2M in share buybacks and $146.4M in dividends.
Bear case
- The business model operates on thin profitability, generating a net margin of 1.3% in FY2025 and a TTM profit margin of 1.8%.
- Net debt stood at $4.77B as of August 31, 2026, with cash of $749.3M against total debt of $5.52B.
- Share count increased 38.8% over the past 5 years, diluting long-term per-share claims.
What TD SYNNEX does
TD SYNNEX Corporation distributes information technology products and aggregates IT solutions across the globe. Its portfolio features personal computing hardware, mobile phones, printers, peripherals, and endpoint software. For enterprise data centers, the company provides hybrid cloud technology, cybersecurity tools, storage equipment, servers, and networking components, alongside converged systems. TD SYNNEX also delivers value-added technical services, such as systems design, rack integration, build-to-order assembly, and thermal testing. Headquartered in Fremont, California, the company sells to value-added resellers, corporate resellers, government agencies, system integrators, direct marketers, and managed service providers.
Growth and profitability
TD SYNNEX expanded revenue from $31.61B in FY2021 to $62.51B in FY2025, delivering a 5-year revenue CAGR of 25.6%. Net income reached $827.7M in FY2025, up from $689.1M in FY2024 and $626.9M in FY2023, while EPS increased to $13.20. Gross margin stood at 7.0% in FY2025, with an operating margin of 2.3% and a net margin of 1.3%. For the trailing twelve months, revenue totaled $75.67B with a 3.0% operating margin and a 1.8% profit margin. In the latest quarter ended August 31, 2026, quarterly revenue grew 37.7% year-over-year, and quarterly earnings grew 88.9%.
Balance sheet and cash flow
As of August 31, 2026, TD SYNNEX held $749.3M in cash and short-term investments against total debt of $5.52B, resulting in net debt of $4.77B. Shareholders' equity was $9.30B, with total assets of $41.84B, a debt-to-equity ratio of 0.59, and a current ratio of 1.19. In FY2025, operating cash flow reached $1.53B and free cash flow was $1.39B. Capital expenditures totaled $142.3M, while the company allocated $627.2M to share buybacks and $146.4M to cash dividends.
Valuation and performance
SNX trades at a trailing P/E of 15.0x and a forward P/E of 12.7x, both well below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. The company carries an EV/EBITDA of 11.7x and a price-to-sales ratio of 0.3x, compared to peer group medians of 16.6x and 2.8x. Over the past year, SNX shares rose 61.1%, outperforming the S&P 500 return of 16.8%. Over five years, SNX gained 148.8% versus 83.0% for the S&P 500.
SNX dividend
TD SYNNEX pays a quarterly dividend with a forward annualized payout of $1.92 per share, representing a dividend yield of 0.78%. The dividend payout ratio is 10.2%, supported by 13 consecutive years of dividend payments. Over the past five years, the dividend grew at an annualized rate of 54.5%, with the most recent ex-dividend date on October 16, 2026.
What analysts expect
Wall Street coverage includes 6 Strong Buy, 4 Buy, and 1 Hold recommendations, with zero Sell ratings. The average analyst price target is $339.64, representing a 37.6% premium over the last closing price of $246.75. For the current fiscal year ending November 30, 2026, consensus estimates project EPS of $21.24 on revenue of $80.53B, reflecting 61.0% earnings growth. The company has beaten EPS expectations in each of the past 4 quarters.
Key risks and what to watch
- Operating margins of 2.3% in FY2025 leave minimal room to absorb supplier cost changes or discounting pressure.
- Total debt of $5.52B requires consistent cash flow generation to manage interest and principal obligations.
- The stock has a beta of 1.37, indicating higher volatility than the overall broader market.
- Revenue fell 7.7% in FY2023, showing that distribution demand is vulnerable to cyclical IT spending downturns.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SNX AI stock analysis
This page is an AI-written research summary of TD SYNNEX Corporation (SNX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SNX income statement, SNX balance sheet, SNX key metrics, SNX analyst forecast, SNX chart. See the SNX stock overview for the latest quote and news.
SNX AI stock analysis FAQ
What dividend does TD SYNNEX Corporation pay?
TD SYNNEX pays a quarterly dividend totaling $1.92 per share annually, yielding 0.78% with a payout ratio of 10.2%.
How did SNX perform compared to the market over the last year?
SNX gained 61.1% over the past year, outperforming the S&P 500 index return of 16.8%.
What are analysts forecasting for TD SYNNEX earnings?
For FY2026 ending November 30, 2026, analysts estimate EPS of $21.24 on revenue of $80.53B, followed by FY2027 projected EPS of $24.63 on revenue of $89.16B.
How leveraged is TD SYNNEX's balance sheet?
As of August 31, 2026, the company held $749.3M in cash, $5.52B in total debt, and $4.77B in net debt, with a debt-to-equity ratio of 0.59 and a current ratio of 1.19.