SNX Beats on Q3 Earnings: Will Strong Guidance Lift the Stock?

TD SYNNEX SNX reported non-GAAP earnings of $3.58 per share for the third quarter of fiscal 2025, which beat the Zacks Consensus Estimate by 18.5%. The bottom line increased 25.2% year over year.

SNX’s revenues increased 6.6% year over year to $15.7 billion and beat the consensus mark by 3.4%. On a constant-currency (cc) basis, revenues represent 4.4% year-over-year growth, driven by advancements in the Endpoint Solutions and Advanced Solutions portfolios.

SNX’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 7.1%.

SNX’s overwhelming third-quarter results, along with upbeat guidance for the fourth quarter, are likely to boost its share price. Year to date, the stock has soared 36.1%, outperforming the Zacks Computer and Technology sector’s growth of 21.7%.

TD SYNNEX Corporation Price, Consensus and EPS Surprise

TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote

TD SYNNEX’s Q3 Details

Categorically, revenues from Endpoint Solutions reached $7.7 billion, reflecting 11% year-over-year growth. Revenues from Advanced Solutions reached $7.9 billion, mirroring 2% year-over-year growth.

The non-GAAP gross profit increased 17.6% year over year to $1.13 billion, whereas the gross margin expanded 68 basis points (bps) to 7.22%.

Adjusted SG&A expenses increased to $654.9 million from the year-ago quarter’s $568.2 million. As a percentage of revenues, SG&A expenses expanded 27 bps on a year-over-year basis to 4.75%.

The fiscal second-quarter non-GAAP operating income was up 20.9% to $474.93 million. The non-GAAP operating margin expanded 35 bps on a year-over-year basis to 3.03%.

Non-GAAP gross billings were $22.7 billion in the fiscal third quarter, up 12.1% on a year-over-year basis. On a cc basis, non-GAAP gross billings increased 10.1% from the prior-year quarter.

TD SYNNEX’s Balance Sheet & Cash Flow Details

As of Aug. 31, 2025, TD SYNNEX’s cash and cash equivalents were $874.35 million compared with $767.1 million as of May 31, 2025.

The long-term debt was $3.04 billion for the reported quarter, down from the prior quarter’s debt of $3.72 billion.

The company reported $246 million of cash provided by operational activities in the fiscal third quarter compared with $573.2 million in the previous quarter. SNX reported free cash flow of $214 million in the fiscal third quarter compared with $543 million in the previous quarter.

In the third quarter of fiscal 2025, SNX returned $210 million to its stockholders with $174 million of share repurchases and $36 million of dividend payments.

For the third quarter of fiscal 2025, TD SYNNEX announced a 10% increase in its quarterly cash dividend, raising it to 44 cents per share. This move indicates the company's commitment to returning value to shareholders amid current financial challenges.

SNX Q4 Guidance

For the fourth quarter of fiscal 2025, SNX expects revenues of $16.5-$17.3 billion. Non-GAAP earnings are expected to be $3.45-$3.95 per share. The Zacks Consensus Estimate for revenues is pegged at $16.09 billion, and the consensus mark for earnings is pinned at $3.32 per share, unchanged over the past 30 days.

Non-GAAP net income is expected to be in the range of $204-$245 million.

SNX’s Zacks Rank & Other Stocks to Consider

Currently, SNX carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks that investors can consider are Amphenol APH, F5 FFIV and CrowdStrike CRWD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol’s shares have surged 76.1% year to date. The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings is pegged at $3.03 per share, up by a cent over the past 30 days, indicating an increase of 60.3% from the year-ago quarter’s reported figure.

F5’s shares have gained 28.9% year to date. The Zacks Consensus Estimate for F5’s full-year fiscal 2025 earnings is pegged at $15.38 per share, up 5.4% over the past 30 days, indicating a gain of 15% from the year-ago quarter’s reported figure.

CrowdStrike’s shares have rallied 38.3% year to date. The Zacks Consensus Estimate for CrowdStrike’s full-year 2026 earnings is pegged at $3.67 per share, down by a cent over the past seven days, indicating a decline of 6.6% from the year-ago quarter’s reported figure.
 

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This article originally published on Zacks Investment Research (zacks.com).

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