11:11 AM EDT, 08/22/2025 (MT Newswires) -- TD Synnex ( SNX ) is expected to exceed fiscal Q3 estimates on stronger PC demand, low-single-digit networking growth, and improved Hyve growth driven by AI infrastructure spending, RBC Capital Markets said.

The brokerage said in a note Thursday that it estimates gross billings of about $21.5 billion, up 6% from a year earlier, with revenue projected at $15.2 billion, slightly ahead of consensus. Adjusted EPS is expected at $3.05, just above the $3.02 market estimate.

For fiscal 2025, revenue is projected to grow 4.1% to $60.8 billion, with gross profit of $4.16 billion and adjusted operating income of $1.67 billion. Adjusted EPS is modeled at $12.15, according to the note.

RBC expects the company to raise its fiscal 2025 guidance, which it views as conservative, and highlighted growth in software, cybersecurity, and Hyve within the advanced solutions segment as drivers of improved profitability and about $1.1 billion in free cash flow.

Hyve is expected to rebound in H2 as shipment delays ease and AI infrastructure spending from hyperscalers such as Meta (META) remains strong. PC demand is seen as steady, supported by Windows 10 refresh cycles ahead of the end of support in October 2025.

Networking growth will likely remain modest, with strong North American demand offset by weakness in Asia-Pacific, while tariff headwinds are expected to increase in H2.

RBC has a outperform rating on the company's stock and raised its price target to $165 from $145.

Shares of TD Synnex ( SNX ) were up 3% in recent Friday trading.

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