TD Synnex Q4 revenue beats expectations, driven by Advanced Solutions and Endpoint Solutions

Reuters01-08
TD Synnex Q4 revenue beats expectations, driven by Advanced Solutions and Endpoint Solutions

Overview

  • IT distributor's fiscal Q4 revenue rose 9.7%, beating analyst expectations

  • Adjusted EPS for fiscal Q4 beat analyst expectations

  • Company returned $209 mln to stockholders via share repurchases and dividends

Outlook

  • TD Synnex projects Q1 2026 revenue between $15.1 bln and $15.9 bln

  • Company expects Q1 2026 non-GAAP gross billings between $22.7 bln and $23.7 bln

  • TD Synnex forecasts Q1 2026 diluted EPS between $2.05 and $2.55

Result Drivers

  • ADVANCED AND ENDPOINT SOLUTIONS - Revenue growth driven by Advanced Solutions and Endpoint Solutions portfolios

  • PRODUCT MIX IMPACT - Greater percentage of sales presented on a net basis due to product mix, impacting revenue by approximately 5%

  • DIVERSIFIED BUSINESS MODEL - CEO highlighted the value of a diversified business model and strategic execution in achieving record results

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$17.38 bln

$16.93 bln (9 Analysts)

Q4 Adjusted EPS

Beat

$3.83

$3.73 (11 Analysts)

Q4 EPS

$3.04

Q4 Adjusted Net Income

Beat

$313 mln

$301.87 mln (8 Analysts)

Q4 Net Income

$248 mln

Q4 Adjusted Operating Income

Beat

$497 mln

$480.43 mln (9 Analysts)

Q4 Operating Income

$399 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 $177.00, about 17.2% above its January 7 closing price of $151.00

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw6tCzDpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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