TD SYNNEX Corporation SNX has emerged as a standout performer in 2026, with shares rallying 78% year to date (YTD). The stock has comfortably outperformed the broader Zacks Computers - IT Services industry’s 16.4% decline.
SNX has also outperformed its major industry peers, including CDW Corporation CDW, Telos Corporation TLS and Genpact Limited G. The CDW stock has gained 2.7% YTD, while shares of Telos and Genpact have fallen 14.3% and 25.9%, respectively.
TD SYNNEX YTD Price Return Performance
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The sharp rally naturally raises an important question for investors: Is SNX stock still worth buying?
Strong earnings growth, rising demand for AI infrastructure and a relatively low valuation support further upside, making the stock an attractive option for investors seeking technology-related growth opportunities.
Strong Financial Results Support SNX Stock's Rally
TD SYNNEX's latest quarterly results provide solid evidence that its share price gains are backed by improving business performance. In the third quarter of fiscal 2026, revenues increased 37.7% year over year to $21.56 billion. Non-GAAP gross billings climbed 40% to $31.83 billion, reflecting strong demand across its distribution business and Hyve Solutions, which designs and manufactures advanced computing infrastructure.
Profit growth was even stronger. Non-GAAP operating income rose 55.1% year over year to $736 million, while non-GAAP earnings per share (EPS) increased 58.7% to $5.68. Both measures exceeded the company's guidance range. GAAP net income advanced 83.5% to $416 million and EPS jumped 89.1% to $5.18.
TD SYNNEX Corporation Price, Consensus and EPS Surprise
TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote
The strength was broad-based. Distribution gross billings increased 27% to $24.8 billion, while Hyve Solutions' gross billings surged 117% to $7 billion. These results show that TD SYNNEX is benefiting from both steady technology distribution demand and the rapid expansion of AI-related infrastructure spending.
Management expects fiscal fourth-quarter revenues of $21.8-$22.6 billion and non-GAAP EPS of $5.65-$6.15, indicating sequential growth. The guidance supports the view that the company's growth momentum can continue in the near term.
AI Spending Creates Growth Opportunities for TD SYNNEX
SNX is well-positioned to benefit from growing investment in AI and cloud infrastructure. As enterprises move beyond AI experiments toward large-scale deployments, they require advanced servers, storage, networking equipment and software. They also need help integrating, securing and managing these systems.
TD SYNNEX's global distribution network and technical capabilities allow it to serve these needs. Its Hyve Solutions business adds another growth opportunity by designing and manufacturing computing infrastructure for technology customers. In the third quarter of fiscal 2026, Hyve Solutions' revenues increased 52% year over year to $3.8 billion.
During the fiscal third-quarter earnings call, management stated that new customer programs are progressing as planned, with shipments expected to begin in the fourth quarter. These programs could broaden Hyve Solutions' customer base and provide additional revenue opportunities.
The distribution business is also benefiting from strong demand for higher-value technology solutions. Advanced Solutions gross billings increased 37% to $14.5 billion in the fiscal third quarter, supported by infrastructure, software and AI-related products. The expansion of TD SYNNEX's IBM relationship into 20 additional countries strengthens its international reach.
Digital transformation offers another potential growth driver. Customers that regularly use the company's digital platforms have increased their spending at nearly twice the pace of comparable customers. Continued investment in digital tools and AI-enabled customer services could improve engagement, strengthen relationships and support long-term growth.
SNX Stock's Valuation Leaves Room for Further Gains
TD SYNNEX's valuation is another reason to remain bullish. Despite its 78% YTD advance, SNX trades at a forward 12-month price-to-earnings (P/E) multiple of 11.26X, well below the industry's average of 17.98X. This suggests the stock remains reasonably priced relative to the broader industry.
TD SYNNEX Forward 12-Month P/E Ratio
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Among its peers, CDW trades at 11.54X forward earnings, slightly above SNX. Telos commands a higher multiple of 18.66X, while Genpact trades at 7.86X. Although Genpact is cheaper on this measure, TD SYNNEX's strong recent earnings growth and exposure to AI infrastructure provide reasons to favor its growth outlook.
Conclusion: Buy TD SYNNEX Stock for Now
SNX remains an attractive buying opportunity despite its impressive YTD rally. Strong third-quarter fiscal 2026 results, accelerating AI infrastructure demand, expanding customer relationships and encouraging fourth-quarter guidance support the growth outlook. Its forward P/E of 11.26X also looks reasonable compared with the industry average of 17.98X.
Therefore, investors looking for exposure to AI infrastructure and technology distribution can consider buying the SNX stock now.
Currently, TD SYNNEX sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).