TD SYNNEX delivered an above-consensus third quarter, with management crediting strong execution and a differentiated go-to-market strategy for the results. CEO Patrick Zammit highlighted the company’s broad-based momentum in endpoint and advanced solutions, particularly noting double-digit growth in software—driven by cybersecurity and infrastructure demand—as well as continued strength across both the Hive data center segment and traditional PC refresh cycles. Zammit pointed to exceptional performance in Latin America and Asia-Pacific as validation of TD SYNNEX’s global approach, while acknowledging stable enterprise demand and a robust small and mid-sized business customer base. Management emphasized the role of new vendor partnerships and tailored customer solutions in capturing these trends.
Is now the time to buy SNX? Find out in our full research report (it’s free).
TD SYNNEX (SNX) Q3 CY2025 Highlights:
- Revenue: $15.65 billion vs analyst estimates of $15.12 billion (6.6% year-on-year growth, 3.5% beat)
- Adjusted EPS: $3.58 vs analyst estimates of $3.05 (17.5% beat)
- Adjusted EBITDA: $504.2 million vs analyst estimates of $443.9 million (3.2% margin, 13.6% beat)
- Revenue Guidance for Q4 CY2025 is $16.9 billion at the midpoint, above analyst estimates of $15.94 billion
- Adjusted EPS guidance for Q4 CY2025 is $3.70 at the midpoint, above analyst estimates of $3.33
- Operating Margin: 2.5%, in line with the same quarter last year
- Market Capitalization: $13.39 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From TD SYNNEX’s Q3 Earnings Call
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Eric Woodring (Morgan Stanley) asked about the outlook for Hive following strong cloud capital expenditure trends, to which CEO Patrick Zammit responded that broad-based program and customer growth, including a rebound in the second-largest customer, supports continued momentum into the next quarter.
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David Paige (RBC) inquired about potential PC demand pull-forward and free cash flow expectations. Zammit stated that any pull-forward was limited, with ongoing global momentum driven by refresh cycles, while CFO Marshall Witt guided to approximately $850 million in free cash flow for the year, citing higher working capital needs.
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Keith Housum (Northcoast Research) questioned the sustainability of recent outperformance and possible demand shifts between quarters. Zammit explained that strong demand drivers in PCs, software, and cybersecurity are expected to persist, while the favorable hyperscaler environment continues to benefit Hive.
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Michael Ng (Goldman Sachs) requested updates on Hive customer diversification and the balance between traditional versus AI server projects. Zammit and Witt noted an expanding pipeline and that recent growth was primarily from networking and compute, with future contributions expected from AI projects.
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No other analyst questions on the call
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will watch closely for (1) the rollout and adoption of the Partner First digital portal across international markets, (2) sustained demand momentum in Hive’s data center infrastructure as hyperscalers continue to invest, and (3) ongoing strength in software and AI-enabled PC refresh cycles. Progress in diversifying Hive’s customer base and the impact of operational efficiency initiatives will also be key indicators of execution.
TD SYNNEX currently trades at $161.37, up from $150.34 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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