Td Synnex (SNX) stock price is $248.52, up 0.72% on the day, as of Oct 19, 2026. It has a market cap of $19.66Bn and a P/E ratio of 14.83, and is classified in the Technology Distribution industry (Technology sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap19.66 Bn
P/E14.83
P/S0.26
Div. Yield0.00
Total Debt (Qtr)5.52 Bn
Revenue Growth (1y) (Qtr)37.75
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About
TD SYNNEX Corporation is a Fortune 100 company that operates as a leading global distributor and solutions aggregator for the information technology ecosystem. The firm sources products from more than two thousand five hundred original equipment manufacturers and distributes a wide array of hardware software and systems including personal computers peripherals mobile phones printers server and data center infrastructure hybrid cloud security networking storage and related…
TD SYNNEX Corporation is a Fortune 100 company that operates as a leading global distributor and solutions aggregator for the information technology ecosystem. The firm sources products from more than two thousand five hundred original equipment manufacturers and distributes a wide array of hardware software and systems including personal computers peripherals mobile phones printers server and data center infrastructure hybrid cloud security networking storage and related components. In addition TD SYNNEX designs and builds purpose built server storage and networking solutions for hyperscale computing infrastructure through its Hyve business. The company also provides a broad suite of value added services such as design integration logistics field support customer management cloud offerings and financing options to help resellers and end users maximize the value of their technology investments.
TD SYNNEX generates revenue primarily by purchasing technology products from original equipment manufacturers and reselling them to a network of more than one hundred fifty thousand reseller customers worldwide. The company's product portfolio is organized into two main groups: Endpoint Solutions which covers personal computers peripherals mobile phones printers and supplies and Advanced Solutions which includes data center technologies such as hybrid cloud security storage networking servers software converged and hyper converged infrastructure and hyperscale computing infrastructure. Beyond product sales TD SYNNEX earns income from a range of services including design and integration of systems logistics support depot repair field services customer management cloud services financing and marketing assistance. These services are offered on a fee basis and help deepen relationships with resellers while providing additional value to original equipment manufacturers seeking broader market reach. Revenue is also derived from financing arrangements such as net terms third party leasing floor plan financing and device as a service offerings that are extended to resellers and end users.
TD SYNNEX holds a leading position among global information technology distributors and is regularly ranked as a Fortune 100 firm. The company competes with other major distributors such as Ingram Micro Holding Corporation Arrow Electronics Inc Westcon Comstor and various regional players including ScanSource Inc ALSO Holding Esprinet VSTECS Holdings Ltd and Synnex Technology International Corp which is a separate entity. In the hyperscale computing infrastructure arena TD SYNNEX faces competition from specialists like Jabil Inc Celestica Flex Ltd Quanta Computer Inc and Wiwynn Corporation. Its competitive advantages stem from the breadth of its product catalog which exceeds two hundred thousand active SKUs from approximately two thousand five hundred vendors the depth of its service offerings that span design integration logistics field support cloud and financing and its extensive global footprint of distribution facilities that enables rapid delivery to resellers. The firm's ability to act as a variable cost effective route to market for vendors by providing access to fragmented small and medium sized business channels further strengthens its standing in the IT ecosystem.
The company serves a diverse customer base that includes more than one hundred fifty thousand active reseller customers ranging from value added resellers independent software vendors corporate resellers government resellers system integrators direct marketers retailers and managed service providers. These resellers in turn sell to end users that consist of large corporations enterprises federal state and local governments small and medium sized businesses and individual consumers. While the firm does not disclose the name of its largest customer it reports that a single customer accounted for approximately eleven percent of total revenue in fiscal year 2025 twelve percent in fiscal year 2024 and eleven percent in fiscal year 2023. No other customer represented more than ten percent of consolidated accounts receivable as of the end of fiscal year 2025 and 2024. The broad reseller network allows TD SYNNEX to reach a wide variety of industries and geographic markets while benefiting from the fragmentation of the technology distribution channel.
Sectors:Technology·Financial ServicesSector rationaleThe company's dominant business is the distribution of IT hardware and software, which falls under 'Technology Distribution' within the Technology sector. It also operates a substantial financing business, providing net terms, third-party leasing, and floor plan financing to resellers, which constitutes a distinct financial services revenue stream.Industries:Technology DistributionTechnology DistributionPrimaryTD SYNNEX operates as a global distributor that sources hardware and software from over 2,500 OEMs and resells them to a network of more than 150,000 reseller customers. Its primary revenue model is purchasing technology products and reselling them to value-added resellers, system integrators, and retailers.Server and Storage HardwareServer and Storage HardwareSecondaryThrough its Hyve business, the company designs and builds purpose-built server, storage, and networking solutions specifically for hyperscale computing infrastructure.Specialty FinanceSpecialty FinanceSecondaryThe company generates revenue from financing arrangements extended to resellers and end users, including third-party leasing, floor plan financing, and device-as-a-service offerings.Classified using BQ-MICSCIK: 0001177394
Bull & bear
Investment Thesis
▲ Bull case
The company's AI and cloud infrastructure initiatives, particularly the dedicated NVIDIA HGX B300 clusters deployed via the TD SYNNEX x Nebius AI Cloud, represent a strategic first-mover advantage in securing predictable, high-performance GPU capacity for enterprise AI workloads, addressing a critical bottleneck in AI adoption by enabling faster time-to-value for partners and customers, which positions SNX to capture disproportionate growth in the AI infrastructure market as enterprise demand scales beyond experimentation into production deployment, supported by the company's deepening specialization in AI through partnerships with NVIDIA, Google Cloud, IBM, and Microsoft, as evidenced by multiple industry awards recognizing its ecosystem orchestration capabilities.
SNX's expansion into adjacent high-margin, recurring revenue streams through partnerships with Opensense (email signature governance for M365/GCC High), Aura Business (identity-centric BYOD security), and Ramp (financial operations platform) demonstrates a deliberate shift beyond traditional distribution toward value-added, sticky services that enhance partner retention, create new revenue models with low operational overhead, and leverage the company's global reach and StreamOne® platform to monetize emerging IT management needs, thereby improving overall margin profile and reducing reliance on volatile hardware cycles.
The consistent outperformance in Hive (Hyve Solutions), with Q4 FY25 gross billings growing over 50% year-over-year and ODM Centimeters increasing 39%, coupled with leadership appointments like Jerry Kagele bringing senior experience from Western Digital and Sandisk, signals sustained execution in hyperscale infrastructure design and deployment, where SNX's US footprint, production flexibility, secure supply chain, and co-development capabilities create a defensible moat against pure-play ODMs, allowing it to win increasingly complex rack-level systems programs from hyperscalers and expand wallet share with existing large customers.
Strong free cash flow generation, with annual FCF exceeding $1 billion for three consecutive years and Q1 FY26 showing robust conversion despite seasonal headwinds, combined with disciplined capital allocation — including $742 million returned to shareholders in FY25 (61% of FCF over three years) and $1.2 billion remaining on repurchase authorization — reflects management's confidence in sustainable cash generation and commitment to shareholder returns, while the elevated cash position at year-end (partially due to timing) provides flexibility for strategic investments or downturn resilience without compromising the long-term framework of 95% FCF-to-net-income conversion.
Geographic diversification beyond traditional strengths, particularly the accelerating momentum in Asia Pacific and Japan driven by rapid cloud expansion, PC upgrades, AI development, and fast-digitizing economies, alongside Latin America's double-digit top-line growth and Europe's outperformance despite macro headwinds, indicates SNX's ability to gain share in underpenetrated regions through localized go-to-market strategies, specialized vendor enablement (e.g., IBM Distribution Growth Leader awards across NA, LATAM, APAC), and omnichannel engagement, reducing dependence on any single market and supporting durable long-term expansion.
The company's AI and cloud infrastructure initiatives, particularly the dedicated NVIDIA HGX B300 clusters deployed via the TD SYNNEX x Nebius AI Cloud, represent a strategic first-mover advantage in securing predictable, high-performance GPU capacity for enterprise AI workloads, addressing a critical bottleneck in AI adoption by enabling faster time-to-value for partners and customers, which positions SNX to capture disproportionate growth in the AI infrastructure market as enterprise demand scales beyond experimentation into production deployment, supported by the company's deepening specialization in AI through partnerships with NVIDIA, Google Cloud, IBM, and Microsoft, as evidenced by multiple industry awards recognizing its ecosystem orchestration capabilities.
SNX's expansion into adjacent high-margin, recurring revenue streams through partnerships with Opensense (email signature governance for M365/GCC High), Aura Business (identity-centric BYOD security), and Ramp (financial operations platform) demonstrates a deliberate shift beyond traditional distribution toward value-added, sticky services that enhance partner retention, create new revenue models with low operational overhead, and leverage the company's global reach and StreamOne® platform to monetize emerging IT management needs, thereby improving overall margin profile and reducing reliance on volatile hardware cycles.
The consistent outperformance in Hive (Hyve Solutions), with Q4 FY25 gross billings growing over 50% year-over-year and ODM Centimeters increasing 39%, coupled with leadership appointments like Jerry Kagele bringing senior experience from Western Digital and Sandisk, signals sustained execution in hyperscale infrastructure design and deployment, where SNX's US footprint, production flexibility, secure supply chain, and co-development capabilities create a defensible moat against pure-play ODMs, allowing it to win increasingly complex rack-level systems programs from hyperscalers and expand wallet share with existing large customers.
Strong free cash flow generation, with annual FCF exceeding $1 billion for three consecutive years and Q1 FY26 showing robust conversion despite seasonal headwinds, combined with disciplined capital allocation — including $742 million returned to shareholders in FY25 (61% of FCF over three years) and $1.2 billion remaining on repurchase authorization — reflects management's confidence in sustainable cash generation and commitment to shareholder returns, while the elevated cash position at year-end (partially due to timing) provides flexibility for strategic investments or downturn resilience without compromising the long-term framework of 95% FCF-to-net-income conversion.
Geographic diversification beyond traditional strengths, particularly the accelerating momentum in Asia Pacific and Japan driven by rapid cloud expansion, PC upgrades, AI development, and fast-digitizing economies, alongside Latin America's double-digit top-line growth and Europe's outperformance despite macro headwinds, indicates SNX's ability to gain share in underpenetrated regions through localized go-to-market strategies, specialized vendor enablement (e.g., IBM Distribution Growth Leader awards across NA, LATAM, APAC), and omnichannel engagement, reducing dependence on any single market and supporting durable long-term expansion.
The company's guidance for Q1 FY26 non-GAAP gross billings of $22.7–$23.7 billion (12% midpoint growth) represents a significant deceleration from Q4 FY25's 15% YoY growth and Q1 FY26's actual 24.4% surge, suggesting management may be underestimating near-term demand headwinds from persistent macroeconomic uncertainty, inventory correction cycles in enterprise IT, or delayed hyperscaler capex, particularly as the outlook excludes the benefit of Hive's recent strength and relies on a assumed euro/dollar rate of 1.16 that may not hold if currency volatility resurges, making the growth trajectory appear overly optimistic given the sequential quarterly decline implied by the guidance.
The rising gross-to-net adjustment — increasing from 29.9% in Q1 FY25 to 33.4% in Q1 FY26 (350 bps widening) and expected to persist at ~33% for Q2 FY26 — reflects a structural shift toward higher-mix software, SaaS, and Hive programs that are netted against revenue, which dilutes the top-line visibility of growth and creates a misleading impression of revenue expansion when gross billings outpace net revenue; this trend, driven by strategic technologies and Hive's growing proportion of business, risks masking underlying pressure on core distribution margins if software and services fail to scale profitability at the same rate as billings.
Despite strong operating income growth, the GAAP gross margin remained flat at 5.0% in Q4 FY25 and only improved to 7.30% in Q1 FY26 due to the shift to net revenue reporting, while non-GAAP gross margin (as a percentage of gross billings) stayed flat year-over-year, indicating that the company's ability to expand profitability on its core billings base is limited, and any margin improvement is largely attributable to accounting treatment shifts rather than operational leverage, raising concerns about whether scale alone will drive meaningful margin expansion in the distribution business without a fundamental change in product mix or pricing power.
The balance sheet shows elevated leverage, with a gross leverage ratio of 2.4x and net leverage of 1.1x, coupled with $4.6 billion in debt and a significant increase in current borrowings ($1.13B vs $1.02B YoY), which, while partially offset by $2.4B in cash, creates refinancing risk given the $700M debt maturity in August 2026 that was recently refinanced; any deterioration in free cash flow generation or increase in working capital needs (e.g., from inventory buildup or receivables delays) could pressure the company's ability to deleverage or maintain investment-grade credit metrics, especially if interest rates remain elevated or access to tightens.
Management's repeated dismissal of demand destruction from rising component costs (DRAM, NAND) — citing no observed impact and reliance on bottom-up guidance — may reflect a blind spot to delayed elasticity effects, particularly in price-sensitive segments like consumer PCs and storage, where historical patterns show volume contraction following ASP increases; while SNX emphasizes its commercial PC focus, the broadening AIPC trend and potential for enterprise buyers to defer refreshes amid macro uncertainty could undermine the assumed tailwind from Windows 11 and memory-driven ASP gains, leaving growth more dependent on volatile hyperscaler and AI infrastructure spending than acknowledged in commentary.
The company's guidance for Q1 FY26 non-GAAP gross billings of $22.7–$23.7 billion (12% midpoint growth) represents a significant deceleration from Q4 FY25's 15% YoY growth and Q1 FY26's actual 24.4% surge, suggesting management may be underestimating near-term demand headwinds from persistent macroeconomic uncertainty, inventory correction cycles in enterprise IT, or delayed hyperscaler capex, particularly as the outlook excludes the benefit of Hive's recent strength and relies on a assumed euro/dollar rate of 1.16 that may not hold if currency volatility resurges, making the growth trajectory appear overly optimistic given the sequential quarterly decline implied by the guidance.
The rising gross-to-net adjustment — increasing from 29.9% in Q1 FY25 to 33.4% in Q1 FY26 (350 bps widening) and expected to persist at ~33% for Q2 FY26 — reflects a structural shift toward higher-mix software, SaaS, and Hive programs that are netted against revenue, which dilutes the top-line visibility of growth and creates a misleading impression of revenue expansion when gross billings outpace net revenue; this trend, driven by strategic technologies and Hive's growing proportion of business, risks masking underlying pressure on core distribution margins if software and services fail to scale profitability at the same rate as billings.
Despite strong operating income growth, the GAAP gross margin remained flat at 5.0% in Q4 FY25 and only improved to 7.30% in Q1 FY26 due to the shift to net revenue reporting, while non-GAAP gross margin (as a percentage of gross billings) stayed flat year-over-year, indicating that the company's ability to expand profitability on its core billings base is limited, and any margin improvement is largely attributable to accounting treatment shifts rather than operational leverage, raising concerns about whether scale alone will drive meaningful margin expansion in the distribution business without a fundamental change in product mix or pricing power.
The balance sheet shows elevated leverage, with a gross leverage ratio of 2.4x and net leverage of 1.1x, coupled with $4.6 billion in debt and a significant increase in current borrowings ($1.13B vs $1.02B YoY), which, while partially offset by $2.4B in cash, creates refinancing risk given the $700M debt maturity in August 2026 that was recently refinanced; any deterioration in free cash flow generation or increase in working capital needs (e.g., from inventory buildup or receivables delays) could pressure the company's ability to deleverage or maintain investment-grade credit metrics, especially if interest rates remain elevated or access to tightens.
Management's repeated dismissal of demand destruction from rising component costs (DRAM, NAND) — citing no observed impact and reliance on bottom-up guidance — may reflect a blind spot to delayed elasticity effects, particularly in price-sensitive segments like consumer PCs and storage, where historical patterns show volume contraction following ASP increases; while SNX emphasizes its commercial PC focus, the broadening AIPC trend and potential for enterprise buyers to defer refreshes amid macro uncertainty could undermine the assumed tailwind from Windows 11 and memory-driven ASP gains, leaving growth more dependent on volatile hyperscaler and AI infrastructure spending than acknowledged in commentary.