Company Overview - TD SYNNEX is a leading global IT distributor and solutions aggregator, providing a comprehensive range of technology distribution, logistics, and integration services [11] - The company was rebranded from SYNNEX Corporation to TD SYNNEX in September 2021 following its merger with Tech Data Corporation, which significantly expanded its global reach and vendor partnerships [11] Investment Ratings - TD SYNNEX currently holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [12] - The company has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.3% for the current fiscal year [12] Earnings Estimates - In the last 60 days, four analysts revised their earnings estimates upwards, with the Zacks Consensus Estimate increasing by $0.06 to $14.42 per share [12] - TD SYNNEX boasts an average earnings surprise of +7.8%, suggesting a strong performance relative to expectations [12] Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TD SYNNEX is recommended as a potential top pick for growth investors [13]

Core Insights - Iterate.ai, TD SYNNEX, and HPE have launched Generate for Healthcare, an AI-powered solution aimed at helping hospital systems recover unpaid and underpaid insurance claims, potentially saving millions of dollars annually [1][2] Group 1: Solution Overview - Generate for Healthcare addresses significant revenue losses faced by hospitals due to denied or underpaid insurance claims, which can amount to tens of thousands to millions of dollars each year [2] - The solution operates on HPE Private Cloud AI and HPE ProLiant DL380a Gen12 servers, utilizing NVIDIA technology to enhance AI capabilities [3] - It employs agentic AI workflow cards to process complex claims data without requiring structured inputs, enabling seamless operation across various EMR systems [3][7] Group 2: Financial Impact - The solution is designed to deliver immediate financial benefits by identifying rebills and underpayments, facilitating smarter budgeting and forecasting, and optimizing operations through real-time tracking of claim-to-payment gaps [6] - Software costs for the solution represent approximately 0.1% of Net Patient Revenue annually, indicating a significant revenue opportunity for healthcare partners [5] Group 3: Partnership and Distribution - The collaboration between Iterate.ai, TD SYNNEX, and HPE allows for a trusted distribution network, ensuring that healthcare organizations can quickly implement the solution [4] - TD SYNNEX provides extensive presales support and specialized sales resources, enhancing the solution's accessibility and competitive pricing for healthcare organizations [5][6] Group 4: Market Context - The healthcare industry is increasingly challenged by sensitive data management and financial complexities, with AI offering a pathway to transform data into actionable insights [5] - Iterate.ai is part of the HPE Unleash AI partner program, which aims to operationalize and scale AI initiatives across various sectors [8]

Leadership Transition - Hyve Solutions announced Jerry Kagele as the new President, succeeding Steve Ichinaga, who will transition to an advisory role after 15 years leading the company [1] - Ichinaga will remain with Hyve Solutions for one more year as a Senior Advisor, focusing on customer and partner success [1] - Kagele joined Hyve Solutions in 2025 and has extensive industry experience, including senior roles at Western Digital and Sandisk [1] Company Performance and Strategy - The leadership transition is aimed at positioning Hyve Solutions for continued growth and operational continuity [1] - Kagele expressed commitment to honoring Ichinaga's legacy while guiding the company through its next growth phase, emphasizing innovation in data center infrastructure [1] Parent Company Recognition - TD SYNNEX, the parent company of Hyve Solutions, was named one of the "2026 World's Most Admired Companies" by FORTUNE for the fifth consecutive year, reflecting the dedication of its 23,000 employees [2]

Company Operations - The company operates in three reportable segments: the Americas, Europe, and Asia-Pacific and Japan (APJ) [15]. - The company serves an active reseller base of more than 150,000 customers, including VARs, ISVs, corporate resellers, and government resellers [25]. - The company operates 168 distribution and administrative facilities globally, enhancing order fulfillment efficiency and reducing shipping costs [41]. - The company occupies 168 facilities covering approximately 15.2 million square feet, with 2.7 million square feet owned and the remainder leased [172]. Financial Performance - Revenue from Apple, Inc. accounted for 12% of consolidated revenue for the twelve months ended November 30, 2025, while HP Inc. contributed 10% [23]. - Consolidated revenue for fiscal year 2025 was $62,508,086, an increase of 6.9% from $58,452,436 in 2024 [204]. - Revenue in constant currency for fiscal year 2025 was $62,008,041, reflecting a 6.1% increase from 2024 [204]. - Gross profit for fiscal year 2025 increased to $4,368,982, up 9.7% from $3,981,306 in 2024 [208]. - The company reported a net income of 1.32% of total revenue for fiscal year 2025, compared to 1.18% in fiscal year 2024 [197]. - Gross profit margin increased to 6.99% in fiscal year 2025 from 6.81% in fiscal year 2024 [197]. - Selling, general and administrative (SG&A) expenses rose to $2,946,883, an increase of 8.5% from $2,715,781 in 2024 [211]. - Adjusted SG&A expenses for fiscal year 2025 were $2,584,197, reflecting a 9.8% increase from $2,354,276 in 2024 [211]. Customer and Supplier Relationships - One customer represented 11% of total revenue in fiscal years 2025, 2024, and 2023, indicating a stable revenue stream from key accounts [27]. - The company relies on a limited number of OEM suppliers, with significant sales concentration from major suppliers like Apple and HP [86]. - The company monitors customer creditworthiness and has purchased credit insurance in most geographies to control customer credit risks [51]. - The company has significant credit exposure to customers, with a risk of credit loss due to potential financial difficulties faced by customers [101]. Market and Economic Factors - Approximately 48% of consolidated revenue for fiscal year 2025 was generated by international operations [45]. - The company anticipates fluctuations in revenue and operating results due to various factors, including economic conditions and IT spending levels [81]. - The company faces low gross margins, which magnify the impact of variations in revenue and operating costs on operating results [90]. - The company is affected by economic factors such as inflation, interest rates, and geopolitical developments impacting IT product demand [193]. - Global economic conditions remain uncertain due to inflation, elevated interest rates, and geopolitical developments, which could negatively affect the company's stock price and operational costs [154]. Technology and Innovation - The company has a comprehensive catalog of over 200,000 technology products from approximately 2,500 OEMs, enabling it to offer extensive solutions to reseller and retail customers [18]. - The company provides cloud-based solutions, including IaaS, PaaS, and SaaS, to support reseller customers in migrating to hosted technologies [36]. - The company continues to invest in IT systems to improve product and inventory management and streamline order processes [53]. - The IT systems manage the entire order cycle, enhancing operational efficiency and providing visibility into operations [53]. - The company is dependent on IT and telecommunications systems, with potential disruptions impacting order processing and customer relationships [102]. Risk Management - The Board of Directors oversees the company's enterprise risk management process, including cybersecurity risks, with regular reporting from the Chief Information Security Officer [169]. - The company has engaged in various remedial actions, including enhancing data security and governance programs, to prevent further unauthorized access to its network [149]. - The company maintains cybersecurity insurance coverage deemed appropriate for its business size and complexity to cover costs related to cybersecurity incidents [166]. - The company faces risks related to the integration of acquired operations, which could increase expenses and divert management attention [99]. - The company may face legal and regulatory challenges related to AI technology, which could result in substantial costs and reputational damage [104]. Acquisitions and Investments - The company completed the acquisition of Apptium Technologies for approximately $105.1 million on July 1, 2025, enhancing its technology solutions [195]. - Acquisition costs related to the acquisition of Apptium in fiscal year 2025 amounted to $3.7 million [214]. - The company has pursued strategic acquisitions and investments in new markets, which may involve risks and additional costs [95]. Shareholder Actions - A cash dividend of $0.48 per share was announced for stockholders of record as of January 16, 2026, payable on January 30, 2026 [185]. - The company authorized a new $2.0 billion share repurchase program in March 2024, supplementing the remaining $196.7 million from a previous program [186]. - Total shares repurchased in the quarter ended November 30, 2025, amounted to 1,131 shares at an average price of $152.87 per share [187].

Summary of the Conference Call Transcript Industry Overview - The report covers the **US IT hardware and distributors** sector, with specific focus on companies such as **DELL**, **Hewlett Packard Enterprise (HPE)**, **NetApp (NTAP)**, **TD SYNNEX (SNX)**, **Penguin Solutions (PENG)**, **Super Micro Computer Inc (SMCI)**, and **HP Inc (HPQ)** [1][4]. Core Insights Hardware Demand Environment - General consensus among investors indicates that **neocloud AI infrastructure demand** will remain strong through **2026**. However, there is skepticism regarding the demand outlook for **PCs**, **general servers**, and **storage**, with concerns that these markets may be adversely affected by **memory price hikes** and shortages. The forecast for **PC shipments** in **2026** is projected to decline by **4% year-over-year**, which is more pessimistic than the **IDC's** estimate of a **2% decline** [4][5]. Company-Specific Feedback - **DELL (Buy)**: Investors expressed concerns about potential **margin pressure** due to a deteriorating PC market, demand for core **ISG** (general server, storage), and the sustainability of the **AI server opportunity**. However, DELL is viewed as better positioned than smaller competitors due to its scale and business mix [4][5]. - **HPE (Buy)**: Discussions focused on execution risks in the **Networking** business, particularly regarding the integration of **Juniper's** offerings. While HPE is considered attractively valued, investors are uncertain about near-term catalysts for earnings revisions [4][5]. - **HPQ (Sell)**: Investors largely agree that the current PC market conditions will negatively impact HPQ's **Personal Systems** business, affecting both top-line growth and margins [5]. - **SMCI (Sell)**: There is a consensus that SMCI's margins will be pressured due to its business mix and product transitions. Investors are particularly interested in understanding SMCI's working capital needs against its revenue growth expectations [5]. Least Push Back - There was minimal opposition to the ratings on **HPQ** and **SMCI**, indicating a general agreement on the challenges these companies face [4][5]. Valuation and Key Risks DELL - **Rating**: Buy - **Target Price**: $165, based on a **12.0X** NTM+1Y EPS [6]. - **Key Risks**: Weaker than expected demand in the consumer and commercial PC markets, enterprise IT spending, and pricing pressures due to excess inventory [7]. HPE - **Rating**: Buy - **Target Price**: $31, reflecting **11X** NTM+1Y EPS [8]. - **Key Risks**: Lower corporate IT spending, competition from white box manufacturers, and integration challenges with Juniper [9]. NTAP - **Rating**: Buy - **Target Price**: $128, reflecting **14X** NTM+1 EPS [10]. - **Key Risks**: Supply shortages, demand declines for on-premise storage, and increased competition [11]. SNX - **Rating**: Buy - **Target Price**: $180, based on **11.0X** NTM+1Y EPS [12]. - **Key Risks**: Prolonged lower IT spending and shifts in sales models that bypass distributors [13]. PENG - **Rating**: Buy - **Target Price**: $25, based on a blended valuation methodology [14]. - **Key Risks**: Memory market cyclicality and competition from OEMs [14]. SMCI - **Rating**: Sell - **Target Price**: $26, reflecting **9X** NTM+1 EPS [16]. - **Key Risks**: Demand for AI servers and market share gains [16]. HPQ - **Rating**: Sell - **Target Price**: $21, based on **7.5X** NTM+1 EPS [17]. - **Key Risks**: Better-than-expected PC demand and recovery in office and consumer demand [17]. Additional Considerations - The report emphasizes the importance of understanding the broader market dynamics and individual company strategies in navigating the current challenges in the IT hardware sector [4][5].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group targets high-yield, dividend growth opportunities, offering portfolios with dividend yields up to 10% [2] - The technology sector is currently viewed as risky due to stretched valuations, highlighting the need for careful investment selection [2] Group 2 - The investment research provided by iREIT+HOYA Capital includes REITs, ETFs, closed-end funds, preferreds, and dividend champions across various asset classes [2] - The group aims to help investors achieve dependable monthly income and portfolio diversification [2]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group targets high-yield, dividend growth opportunities, offering portfolios with dividend yields up to 10% [2] - The technology sector is currently viewed as risky due to stretched valuations, highlighting the need for careful investment selection [2] Group 2 - The investment research provided by iREIT+HOYA Capital includes REITs, ETFs, closed-end funds, preferreds, and dividend champions across various asset classes [2] - The group aims to help investors achieve dependable monthly income and portfolio diversification [2]

Core Insights - Three stocks are experiencing rising dividends due to increased demand for data centers, with some raising dividends by as much as 60%, indicating earnings stability and attractiveness for income investors [3]. Group 1: CenterPoint Energy (CNP) - CenterPoint Energy, a regulated utility company based in Houston, achieved a total return of approximately 24% in 2025, driven by data center expansion [3]. - The company forecasts a peak load demand increase of 10 GW by 2031, representing a 50% increase over six years [4]. - CenterPoint raised its quarterly dividend to 23 cents per share, marking a 4.5% increase from the previous payout, resulting in an indicated dividend yield of approximately 2.1% [5]. Group 2: TD SYNNEX (SNX) - TD SYNNEX, a distributor of personal computers and hardware, delivered a total return of just under 30% in 2025, with significant growth attributed to its Hyve division, which provides custom servers and networking solutions [6]. - The Hyve division's gross billings rose by more than 50% last quarter, driven by strong demand in cloud data center infrastructure from hyperscaler customers [8].

Core Viewpoint - Goldman Sachs initiated coverage of TD SYNNEX Corporation with a Buy rating and a price target of $180, projecting a 10% year-over-year growth in billings for FY26, driven by 9% growth in core distribution and 15% growth in Hyve [1] Financial Performance - TD SYNNEX reported Q4 2025 revenue of $17.4 billion, reflecting a 9.7% increase from the previous year, exceeding management's guidance [2] - The company generated $1.5 billion in operating cash flow and $1.4 billion in free cash flow for the quarter, showcasing strong cash generation capabilities [2] Shareholder Returns - During the quarter, TD SYNNEX returned $209 million to shareholders, which included $173 million in share buybacks and $36 million in dividends [3] - The company achieved non-GAAP gross billings growth of 15% year-over-year and a 24% increase in non-GAAP diluted EPS, both marking record highs [3] Future Outlook - TD SYNNEX expressed confidence in its positioning for the upcoming year, supported by a specialized approach and a technology portfolio focused on higher-growth areas [4] - The company aims to continue delivering strong customer experiences as a global distributor and solutions aggregator within the IT ecosystem [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are highlighted, with significant implications for power grids and electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy sector, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI data centers [3][7] - This company is not a chipmaker or cloud platform but is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports [5][6] Market Position - The company is noted for its unique capabilities in executing large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy [7][8] - It is completely debt-free and has a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] Growth Potential - The company also holds a substantial equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth opportunities in the AI sector [9][10] - The stock is described as undervalued, trading at less than seven times earnings, which presents a compelling investment case given its ties to the booming AI and energy markets [10][11] Industry Trends - The article discusses the broader trends of onshoring driven by tariffs and the surge in U.S. LNG exports, indicating a favorable environment for the company's operations [14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12]