TD Synnex (SNX) reported higher gross billing which exceeded its guidance, driven by strong demand in PCs, Hyve and networking, RBC Capital Markets said in a note Wednesday.
The company's guidance for Q3 and H2 is conservative. However, demand for PCs and networking remains strong and Hyve growth is accelerating, the investment firm said.
TD Synnex expects 3% to 4% revenue growth in Q4, reflecting normal seasonality and caution about the uncertain economy, but there is potential for better results if conditions improve, RBC analysts noted.
Networking returned to growth after several weak quarters, now contributing to overall company growth and showing signs of continued demand, according to the note.
Software billings grew, led by cloud, cybersecurity, and infrastructure software, while the PC refresh cycle and Windows 11 migration supported strong PC sales, the analysts added.
The company remains cautious about demand in H2, as some PC sales were pulled forward due to economic uncertainty and tariffs, RBC said.
RBC had an outperform rating for TD Synnex with a $145 price target.
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