SNX Stock Forecast & Price Target

TD Synnex is benefiting from broad-based demand strength, with fiscal Q2/26 gross billings of $28.9 billion, revenue of $19.6 billion, and non-GAAP EPS of $4.86 all beating expectations, while management still sees healthy demand despite higher pricing and no sign of demand destruction. Growth is especially compelling in Hyve and higher-value infrastructure categories, as Hyve billings rose 120% and revenue 49% year over year, supported by wins with all five U.S.-based hyperscalers and rising AI infrastructure spending. The company also shows improving profitability and financial resilience, with adjusted EBITDA of $644.6 million, gross leverage of 2.1x, and a discounted valuation versus peers, supporting higher earnings forecasts for fiscal 2026 and fiscal 2027.

TD Synnex is facing a negative fundamental setup because its downside case assumes about 10% EPS pressure from margin headwinds tied to growth investments and weaker cloud end-market growth, which could cap profitability even if revenues stabilize. The stock’s risk profile is further weakened by multiple operating uncertainties, including slower-than-expected growth, macro deterioration, ASC 606 accounting noise, supply chain constraints, and a deteriorating PC end-market. A slower-than-expected recovery in Networking adds another layer of pressure to an already fragile demand backdrop, making execution and earnings quality central concerns.