IT services firm TD Synnex beats revenue estimates; raises dividend 10%

Overview

• TD Synnex fiscal Q2 revenue rises 7.2%, beating analyst expectations, per LSEG data

• Non-GAAP gross billings increase 12.1%, exceeding company expectations

• Co returns $186 mln to stockholders, raises dividend 10%

Outlook

• TD Synnex sees Q3 2025 revenue between $14.7 bln and $15.5 bln

• Company expects Q3 2025 non-GAAP EPS of $2.75 - $3.25

• TD Synnex projects Q3 2025 non-GAAP gross billings $21.0 - $22.0 bln

• Company notes IT market strength driving growth ahead of market

Result Drivers

• IT DISTRIBUTION STRENGTH - CEO Patrick Zammit attributes growth to strength in IT Distribution and Hyperscaler markets

• PRODUCT MIX IMPACT - Presentation of sales on a net basis negatively impacted revenue by approximately 5%

• PORTFOLIO GROWTH - Growth in Endpoint Solutions and Advanced Solutions portfolios drove revenue increase

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer hardware peer group is "buy"

• Wall Street's median 12-month price target for TD Synnex Corp is $135.96, about 6.1% above its last closing price of $127.60

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBwmKvFca