It has been about a month since the last earnings report for TD SYNNEX (SNX Quick QuoteSNX - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is TD SYNNEX due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

TD SYNNEX Q2 Earnings and Revenues Beat Estimates

TD SYNNEX reported non-GAAP earnings of $2.99 per share for the second-quarter fiscal 2025, which beat the Zacks Consensus Estimate by 11.15%. The bottom line increased 9.5% year over year.

SNX’s revenues increased 7.2% year over year to $14.9 billion and beat the consensus mark by 4.38%. On a constant-currency (cc) basis, revenues represent 6.3% year-over-year growth, driven by advancements in the Endpoint Solutions and Advanced Solutions portfolios.

TD SYNNEX’s Q2 Details

Categorically, revenues from Endpoint Solutions reached $7.5 billion, reflecting 12% year-over-year growth. Revenues from Advanced Solutions reached $7.4 billion, mirroring 2% year-over-year growth.

The non-GAAP gross profit increased 7.5% year over year to $1046.4 million, whereas the gross margin expanded 2 basis points (bps) to 7% due to higher margins in the prior year in strategic technologies and product mix.

Adjusted SG&A expenses increased to $632.3 million from the year-ago quarter’s $585.5 million. As a percentage of revenues, SG&A expenses contracted 2 bps on a year-over-year basis to 4.8%.

The fiscal second-quarter non-GAAP operating income was up 6.7% to $414 million. The non-GAAP operating margin contracted 1 bps on a year-over-year basis to 2.77%.

Non-GAAP gross billings were $21.6 billion in the fiscal second quarter, up 12.1% on a year-over-year basis. On a cc basis, non-GAAP gross billings increased 11.3% from the prior-year quarter.

TD SYNNEX’s Balance Sheet & Cash Flow Details

As of May 31, 2025, TD SYNNEX’s cash and cash equivalents were $767.1 million compared with $541.9 million as of Feb. 28, 2025.

The long-term debt was $3.72 billion for the reported quarter, down from the prior quarter’s debt of $3.74 billion.

The company reported $573.2 million of cash provided by operational activities in the fiscal second quarter compared with a $748 million cash used in the previous quarter. SNX reported free cash flow of $543 million in the fiscal second quarter compared with a negative free cash flow of $790 million in the previous quarter.

In the second quarter of fiscal 2025, SNX returned $186 million to its stockholders with $149 million of share repurchases and $37 million of dividend payments.

For the second 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 Q3 Guidance

For the third quarter of fiscal 2025, SNX expects revenues of $14.7-$15.5 billion. Non-GAAP earnings are expected to be $2.75-$3.25 per share. Non-GAAP net income is expected to be $227-$268 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, TD SYNNEX has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, TD SYNNEX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.