| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 69 | 19.2x | 17.8x | Top tier | |
Growth | 46 | 16.3% | 7.1% | Around median | |
Quality | 40 | 10.9% | 4.5% | Bottom tier | |
Safety | 56 | 1.5x | 2.6x | Around median | |
Capital Return | 44 | 0.68% | 2.12% | Around median | |
Momentum | 95 | 70.2% | 2.9% | Top tier | |
Sentiment | 43 | 8 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
TD SYNNEX operates through two main businesses serving the information technology ecosystem. The Distribution business distributes computers, infrastructure solutions, networking, storage, security, software, and cloud services, supported by the PartnerFirst platform, digital and human channels, and partner training and enablement services. Hyve designs, manufactures, and integrates data center infrastructure, from boards and components to complete racks, and also provides supply chain services throughout the data center lifecycle.
In Q2 fiscal 2026, the company reported, according to EDGAR filings, revenue of $19.6 billion, gross profit of $1.3 billion, net income of $334.1 million, and earnings per share of $4.15. These results equate to a gross margin of approximately 6.6% and a net income margin of approximately 1.7%, while GAAP earnings per share increased 88% year over year, according to the earnings call.
Total non-GAAP adjusted billings reached approximately $28.9 billion in Q2 fiscal 2026, up 33% year over year, comprising $23.4 billion from Distribution and $5.5 billion from Hyve, or approximately 81% and 19% of the total, respectively. Distribution generated adjusted operating income of $434 million and an operating margin of 1.9% of billings, while Hyve generated adjusted operating income of $181 million and a margin of 3.3%; manufacturing represented approximately two-thirds of Hyve's business and supply chain services approximately one-third.
The stock has a consensus “Buy” rating, with an average price target of $333.17 and a wide range of $278 to $374. The average target is approximately 12% above the 52-week range high of $296.47, while the highest target exceeds that high by approximately 26%, reflecting strong expectations for Hyve and artificial intelligence growth but also increasing the valuation's sensitivity to any program delays or continued pressure on margins and cash flow.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
According to EDGAR, revenue reached approximately $19.6 billion, net income was $334.1 million, and earnings per share were $4.15 in Q2 fiscal 2026. On a non-GAAP basis, billings increased 33% year over year to $28.9 billion and operating income rose 49% to $615 million. Distribution contributed $23.4 billion in billings, while Hyve contributed approximately $5.5 billion, representing 117% year-over-year growth.
Hyve provides data center infrastructure design, manufacturing, and integration services alongside supply chain services, and manufacturing represented approximately two-thirds of its business in Q2 fiscal 2026. The business has at least one program with each of the five largest U.S. hyperscale computing providers and more than one program with three of them. TD SYNNEX is adding more than one million square feet to its U.S. facilities and expects the new programs to begin affecting revenue in Q4 fiscal 2026 or Q1 fiscal 2027.
Artificial intelligence drives demand in Distribution through data center upgrades and devices capable of running its applications, and in Hyve through the design and manufacture of infrastructure for hyperscale computing providers. Advanced Solutions billings increased 31% in Q2 fiscal 2026 due to strength in infrastructure and security, while Hyve's business expanded 117%. Management also attributed strength in storage, servers, and networking to artificial intelligence upgrades, while noting that artificial intelligence servers may carry slightly lower margins than some complex network rack programs.
Automated analysis for informational purposes only — not investment advice.
Management expects adjusted billings of approximately $27.7 billion, plus or minus $500 million, and year-over-year growth of approximately 22% at the midpoint. Revenue guidance is $18.6 billion, plus or minus $400 million, while the midpoint of adjusted earnings per share guidance is $4.50, plus or minus $0.25. The guidance assumes no material contribution from new Hyve customers and also accounts for availability risks involving memory and certain central processing units.
The company consumed approximately $330 million of free cash flow in Q2 fiscal 2026 due to investment in the working capital needed for Hyve's growth and new programs. Net working capital reached $4.9 billion, and the overall cash conversion cycle reached 17 days, up one day sequentially and unchanged year over year. Management emphasizes that converting 95% of adjusted net income into free cash flow remains a long-term objective, but periods of rapid growth may consume cash.
Management is monitoring the impact of higher average prices on computer units, particularly consumer computers, despite mid-single-digit computer unit growth in Q2 fiscal 2026. Hyve's adjusted operating margin also declined 50 basis points to 3.3% due to mix and inefficiencies associated with program launches. In addition, supply constraints for memory and certain central processing units could affect growth, while the 5 to 10 basis point benefit from strategic inventory in Distribution's margin is expected to fade gradually.
