TD Synnex Analysts Boost Their Forecasts Following Upbeat Q3 Results

TD SYNNEX (SNX) reported robust third-quarter results, surpassing analyst expectations with revenue of $15.65 billion, a 6.6% year-over-year increase, and adjusted earnings per share of $3.58, up 25.2%. The company also provided an optimistic Q4 2025 outlook, projecting both revenue and EPS above current market forecasts. This strong performance and positive guidance led to a 1% rise in SNX shares and prompted multiple analysts to raise their price targets, indicating sustained confidence in the company's operational execution and market position.

Analysis

TD SYNNEX (SNX) demonstrated significant operational strength in its third-quarter results, delivering revenue of $15.65 billion and adjusted EPS of $3.58, which surpassed consensus estimates of $15.11 billion and $3.05, respectively. This performance translates to a 6.6% year-over-year revenue increase and a substantial 25.2% growth in adjusted earnings per share, with the CEO attributing these record results to strong execution and a differentiated portfolio. The positive momentum is projected to continue, as the company's fourth-quarter guidance for revenue ($16.50B-$17.30B) and adjusted EPS ($3.45-$3.95) also came in well ahead of market expectations. The strong fundamental report was met with broad-based positive revisions from the sell-side, with analysts from B of A Securities, Morgan Stanley, and RBC Capital raising their price targets to the $180-$181 range, signaling reinforced confidence in the company's trajectory despite a modest 1% immediate stock price gain.

Key Decisions for Investors

• Given the dual beat on third-quarter results and the robust fourth-quarter guidance, investors could view this as a strong validation of the company's growth strategy and operational execution, supporting a bullish outlook.
• Investors should note the updated analyst price targets, particularly from Overweight-rated firms, which suggest a potential upside of over 10% from the current price of $161.30, indicating the market may not have fully priced in the positive outlook.
• It is prudent to monitor the company's ability to maintain its gross billings momentum and margin performance in the coming quarter to ensure the execution cited by management continues to translate into financial outperformance.