TD SYNNEX reported record fiscal third-quarter revenue of $21.6 billion, up 37.7% year over year, as its Distribution and Hyve Solutions businesses benefited from growing demand for technology infrastructure.
For the quarter ended August 31, 2026, the company generated $416 million in GAAP net income, compared with $227 million in the prior-year period. Diluted earnings increased to $5.18 per share from $2.74, an increase of 89.1%.
Non-GAAP diluted earnings rose 58.7% to $5.68 per share, compared with $3.58 a year earlier. Both revenue and adjusted earnings exceeded the high end of the company’s previous guidance.
TD SYNNEX reported $31.8 billion in non-GAAP gross billings, an increase of 40% from $22.7 billion a year earlier. On a constant-currency basis, gross billings increased 40.5%.
Gross billings reflect customer billings before certain accounting adjustments involving third-party service contracts, software subscriptions, and fulfillment arrangements.
The metric provides an additional indication of business activity but is not equivalent to GAAP revenue.
The company’s gross profit increased 26.2% to $1.43 billion, up from $1.13 billion in the third quarter of fiscal 2025.
However, its GAAP gross margin declined to 6.61% from 7.22%, representing a decrease of 61 basis points.
Despite the lower gross margin percentage, TD SYNNEX reported substantial growth in operating profitability.
GAAP operating income increased 67.6% to $643 million, while its operating margin improved to 2.98% from 2.45%.
Non-GAAP operating income increased 55.1% to $736 million, with its adjusted operating margin expanding to 3.42% from 3.03%.
Management attributed the quarter’s performance to stronger-than-expected results across both Distribution and Hyve Solutions.
The company’s Distribution business provides technology hardware, software, and related services through an extensive global network of vendors, resellers, and technology partners.
Hyve Solutions designs and manufactures computing infrastructure for technology companies, including systems supporting cloud computing and accelerated workloads.
TD SYNNEX highlighted growing opportunities associated with enterprise artificial intelligence adoption and data center modernization.
As organizations move beyond initial AI experimentation toward production deployments, management expects demand for supporting computing infrastructure, security products, and governance capabilities to create opportunities across its businesses.
The company also identified expanding AI-related security and compliance requirements as an additional source of demand for technology products and services.
TD SYNNEX serves more than 150,000 customers across over 100 countries, offering products and services spanning cybersecurity, analytics, AI, mobility, and cloud infrastructure.
The company returned approximately $139 million to shareholders during the quarter, including approximately $100 million in share repurchases and $38 million in dividends.
Its board also declared a quarterly cash dividend of $0.48 per common share, representing a 9% increase year over year.
The dividend is payable on October 30, 2026, to shareholders of record as of October 16.
For the fourth quarter of fiscal 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.
The company also forecasts GAAP net income between $368 million and $408 million, with diluted earnings of $4.58 to $5.08 per share.
On a non-GAAP basis, TD SYNNEX expects net income of $454 million to $494 million and diluted earnings of $5.65 to $6.15 per share.
These projections reflect management’s expectations as of September 24, 2026, and remain subject to changes in customer demand, technology spending, economic conditions, and other factors.
KEY QUOTES:
“We delivered another record quarter, with Distribution and Hyve both performing above our expectations and growing above market. Enterprise AI adoption is progressing toward broader production deployments. Data center modernization remains a priority as organizations prepare for next-generation infrastructure requirements, while AI is driving new security, governance, and compliance requirements across technology environments. We believe these trends expand our opportunities across Distribution and Hyve and support our confidence in our long-term growth potential.”
Patrick Zammit, CEO of TD SYNNEX
