TD SYNNEX's fourth quarter saw revenue growth outpace Wall Street expectations, but the market responded negatively, reflecting caution around the sustainability of recent gains. Management attributed the performance to strong demand for cloud and data center infrastructure, especially in Asia Pacific and Europe, driven by hyperscaler clients and ongoing PC refresh cycles. CEO Patrick Zammit emphasized the company's ability to gain market share across multiple regions, noting, “We gained significant share in Asia Pacific, especially in India, and Europe outperformed macro trends due to targeted technology and customer segment focus.”
Is now the time to buy SNX? Find out in our full research report (it’s free for active Edge members).
TD SYNNEX (SNX) Q4 CY2025 Highlights:
- Revenue: $17.38 billion vs analyst estimates of $16.95 billion (9.7% year-on-year growth, 2.6% beat)
- Adjusted EPS: $3.83 vs analyst estimates of $3.73 (2.7% beat)
- Adjusted EBITDA: $527.1 million vs analyst estimates of $515.2 million (3% margin, 2.3% beat)
- Revenue Guidance for Q1 CY2026 is $15.5 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for Q1 CY2026 is $3.25 at the midpoint, above analyst estimates of $3.17
- Operating Margin: 2.3%, in line with the same quarter last year
- Market Capitalization: $12.02 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 Q4 Earnings Call
- Keith Housum (Northcoast Research) asked about the sustainability of growth in Asia Pacific and Europe. CEO Patrick Zammit responded that market share gains and targeted investments make continued outperformance likely, especially in India and commercial technology segments.
- Ruplu Bhattacharya (Bank of America) questioned the impact of rising component costs on demand. Zammit said higher average selling prices are a current tailwind but demand destruction has not yet been observed, and guidance reflects bottom-up forecasts by region and product.
- Eric Woodring (Morgan Stanley) sought clarity on whether customers pulled forward purchases due to anticipated price increases. Zammit replied that there was no material pull-forward in the quarter and that guidance incorporates local market feedback and expected seasonality.
- Adam Tindle (Raymond James) probed the effect of HIVE investments on margins and future growth. CFO David Jordan explained that investments in leadership, engineering, and capacity are ongoing, with HIVE expected to remain a growth driver without pressuring overall margins.
- Vincent Colicchio (Barrington Research) asked about the stage of the PC refresh cycle and AI PC performance. Zammit highlighted ongoing commercial PC upgrades and incremental gains from AI-enabled PCs, emphasizing continued optimism for the next year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the pace of HIVE’s expansion and its success in securing new hyperscaler customers, (2) the impact of rising component prices on both revenue growth and potential volume headwinds, and (3) the continued shift toward high-margin software and cloud solutions. Execution on digital platform enhancements and further penetration in commercial PC and AI infrastructure markets will also be key areas of focus.
TD SYNNEX currently trades at $150.09, in line with $151 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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