Gemini 3 Pro is forecasting a divergence between top and bottom line for TD SYNNEX (SNX), projecting $3.84 EPS versus the $3.68 consensus despite revenue missing at $16.82B versus Street's $16.95B.
Key Findings
The model quantifies HPE server delivery delays as creating a $150-180M revenue drag. However, this 'miss' is described as optically misleading because the lost revenue is low-margin hardware fulfillment, while software and cloud growth provides favorable mix.
Thesis
Gemini argues the Street is underestimating the margin quality improvement from the mix shift. Software revenue is growing faster than hardware, and the reduced low-margin fulfillment volume actually improves profitability metrics even as headline revenue disappoints.
What This Means
This is a sophisticated quality-over-quantity call. Investors focused on revenue beats may be surprised by margin expansion, while those watching only EPS may miss the underlying business mix improvement.