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TD Synnex prepares to report third-quarter 2025 earnings, with analysts toutting the company’s impressive recent performance, upgrades, and positive outlook despite insider stock sales.
TD SYNNEX (NYSE: SNX), the prominent IT distribution and solutions aggregation company, is set to release its third-quarter 2025 earnings before the market opens on Thursday, September 25. Analysts have forecasted earnings of approximately $3.00 per share, with revenue estimated around $15.11 billion. The company itself has guided Q3 earnings per share (EPS) within the range of $2.75 to $3.25. A conference call to discuss the earnings is scheduled for 9:00 AM ET on the day of the release.
The anticipation for this report stems from TD SYNNEX’s solid performance in the previous quarter. As per the financial results announced in late June, the company exceeded expectations by posting an EPS of $2.99 against a consensus of $2.71 and revenue of $14.95 billion, surpassing the anticipated $14.30 billion figure. This marked a 7.2% year-over-year revenue growth, with net margin and return on equity standing at 1.21% and 11.58%, respectively. Annual EPS expectations remain optimistic, with analysts projecting around $12 for the current fiscal year and $14 for the following year.
More recent updates highlight that TD SYNNEX has continued to impress. Official reports indicate the company’s Q3 net income rose to $226.8 million from $178.6 million year-over-year, with EPS increasing to $2.74 from $2.08. Adjusted EPS showed even stronger growth, reaching $3.58 from $2.86. Revenue for the quarter was $15.7 billion, reflecting a 6.6% increase compared to the prior year, with a 4.4% rise on a constant currency basis. Notably, non-GAAP gross billings climbed 12.1%, reaching $22.7 billion. The company’s recent earnings comfortably surpassed consensus estimates by a substantial margin, with reported EPS of $3.58 beating the expected $3.02 and revenue of $15.65 billion exceeding forecasted numbers. This pattern of outperforming analyst predictions has been evident in three of the last four quarters.
TD SYNNEX’s forward guidance for the fourth quarter is similarly optimistic. The company projects EPS between $2.50 and $3.00, with adjusted EPS anticipated to range from $3.45 to $3.95, and revenue expected between $16.5 billion and $17.3 billion. The Board of Directors has also declared a quarterly dividend of $0.44 per share, continuing the company’s commitment to returning value to shareholders. Most recently, a dividend payment was made on July 25 to shareholders of record as of July 11.
Analyst sentiment reflects confidence in TD SYNNEX’s prospects. Several firms have recently upgraded their ratings and price targets. Bank of America raised its price objective from $156 to $170 while reaffirming a “buy” rating, and Royal Bank of Canada increased its target to $165 with an “outperform” stance. Alongside these, Barrington Research, Morgan Stanley, and Wall Street Zen have issued positive ratings. According to MarketBeat data, the company holds a consensus rating of “Moderate Buy” with an average target price around $151.30.
Insider activity shows some stock selling by key executives. Director Richard T. Hume sold over 63,000 shares in late June at an average price of $136.23, substantially reducing his holdings by nearly half. Similarly, Alim Dhanji sold roughly 1,257 shares in July. Overall, insider sales over the last three months amount to about 65,379 shares valued near $8.9 million. Despite this, institutional investors hold a commanding 84% stake in the company, with several increasing their positions during the second quarter.
TD SYNNEX operates within a diverse IT ecosystem, distributing personal computing devices, mobile products, printing supplies, data centre technology, and converged infrastructure solutions. CEO Patrick Zammit attributes the company’s recent results to effective execution, a differentiated go-to-market strategy, and a comprehensive global portfolio, which collectively drive growth and shareholder value.
Shares of TD SYNNEX have shown resilience, trading between a 52-week low of $92.23 and a recent high of $154.44, with a current market capitalisation around $12.25 billion. The company maintains a price-to-earnings ratio of 17.36 and a dividend yield near 1.2%, supported by a modest payout ratio of approximately 20.56%.
Investors and market watchers will keenly await the upcoming earnings release on September 25 to gauge the company’s trajectory amid a competitive and evolving technology distribution landscape.
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Source: Fuse Wire Services
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