IT services firm TD Synnex beats Q2 profit estimates; shares up 4% (updated)

TD Synnex

24/06/2025 15:34

Adds share move in overview, rewrites headline, adds Adj. EPS in key details table

Overview

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

Adjusted EPS of $2.99 per share, above analyst estimates

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

Shares up 4.3% to $133.13, set for best day since May 12

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$14.95 bln
$14.31 bln (9 Analysts)
Q2 Adj. EPS
Beat
$2.99
$2.72 (11 Analysts)
Q2 EPS
$2.21
Q2 Net Income
$184.90 mln
Q2 Operating Income
$328.10 mln


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

(This story was created using Reuters automation and AI capabilities based on LSEG and company data. The headline and summary were reviewed by a Reuters journalist prior to publication.)