SYNNEX (SNX) Stock Forecast & Price Target

TD Synnex is viewed positively because management is seeing healthy demand with no evidence of demand destruction despite price increases, while fiscal Q3/26 guidance points to strong mid-point growth in revenue to $18.6 billion, non-GAAP EPS of $4.50, and gross billings of $27.7 billion, all ahead of prior expectations. The company’s earnings power is also improving through mix and execution, as fiscal Q2/26 non-GAAP EPS of $4.86 beat forecasts, gross margins held at 6.9%, operating margins expanded across Europe, APJ, and Hyve, and leverage remained manageable at 2.1x gross and 1.6x net. Beyond the core distribution franchise, TD Synnex’s Hyve business is emerging as a major growth and margin catalyst with programs across all five U.S.-based hyperscalers, 24% revenue growth in 1Q26, 7.4% adjusted operating margins, and an expectation that its operating income mix can rise meaningfully as AI infrastructure spending and high-growth technology demand continue to support fiscal 2026 and fiscal 2027 EPS growth.

TD Synnex is a distributor whose reported fiscal Q2/26 results were strong, but the negative outlook stems from the fact that its performance is still highly exposed to cyclical hardware demand and a portfolio mix that can be pressured when broad IT spending slows, even after gross billings rose 33% year over year to $28.9 billion and revenue increased 31% to $19.6 billion. Although non-GAAP EPS of $4.86 and adjusted EBITDA of $644.6 million both exceeded forecasts, much of the upside was driven by inventory timing, aggressive purchasing ahead of price increases, and exceptional Hyve growth, which makes the quarter look powerful but not necessarily durable if demand normalizes. The business also remains dependent on regional distribution concentration across the Americas, Europe, and APJ and on a mix still dominated by traditional compute and networking, so despite recent gains in PCs, servers/storage, software, and hyperscaler-related wins, the fundamental risk is that margin and earnings momentum can fade if AI and infrastructure demand decelerate or inventory conditions reverse.