TD SYNNEX Growth Accelerates to 37.7% on Record Quarter
Revenue reached $21.6 billion, above the high end of the $18.2 billion to $19.0 billion outlook, as non-GAAP gross billings hit $31.8 billion.
TD SYNNEX (SNX), the global IT distributor and Hyve contract manufacturer, reported fiscal third-quarter revenue of $21.6 billion, up 37.7% from a year earlier, a faster pace than the 31.0% increase in the second quarter and the 18.1% rise two quarters earlier.
The result was above the high end of the company’s $18.2 billion to $19.0 billion outlook. Non-GAAP gross billings were $31.8 billion, up 40.0% year over year, also above the high end of the $27.2 billion to $28.2 billion range.
Chief Executive Patrick Zammit said Distribution and Hyve both performed above expectations and grew above market. He said enterprise AI adoption is progressing toward broader production deployments, data-center modernization remains a priority, and AI is driving new security, governance, and compliance requirements.
GAAP operating income was $643 million and non-GAAP operating income was $736 million. GAAP operating margin was 2.98% and non-GAAP operating margin was 3.42%.
Gross profit rose 26.2% to $1.43 billion. Gross margin compressed 61 basis points year over year to 6.61%, a larger decline than the 16-basis-point compression in the second quarter. The gross-to-net percentage was (32.3)%.
GAAP diluted earnings were $5.18 a share and non-GAAP diluted earnings were $5.68 a share, both above the high end of the $3.40 to $3.90 GAAP and $4.25 to $4.75 non-GAAP outlook.
Cash and cash equivalents were $749 million at August 31, 2026. Inventories were $15.3 billion. Accounts receivable, net, were $15.0 billion. Current borrowings were $1.9 billion.
Free cash flow was negative $976 million in the quarter, versus positive $214 million a year earlier, as operating cash flow swung to a $917 million use of cash from $246 million provided. The company returned $139 million to stockholders through about $100 million of share repurchases and $38 million in dividends. The board declared a quarterly cash dividend of $0.48 a share, up 9% year over year.
For the three months ending November 30, 2026, TD SYNNEX expects revenue of $21.8 billion to $22.6 billion and non-GAAP gross billings of $31.4 billion to $32.4 billion. GAAP net income is expected at $368 million to $408 million and non-GAAP net income at $454 million to $494 million. Diluted earnings are expected at $4.58 to $5.08 a share on a GAAP basis and $5.65 to $6.15 a share on a non-GAAP basis, on an estimated 79.2 million diluted weighted-average shares.
The company supports more than 150,000 customers across more than 100 countries. Distribution brings together IT hardware, software, and systems. Hyve Solutions partners with technology companies to design, manufacture, and deliver traditional and accelerated compute, cloud, and connected infrastructure.
Zammit said the company believes those trends expand opportunities across Distribution and Hyve and support confidence in long-term growth potential.