EarningsQ3 2026 Earnings Report
MX:SNX1 Q3 2026 EPS Results
Actual EPS$104.46
Consensus EPS$86.48
Beat/MissBeat by +$17.99
One Year Ago EPS$65.84
MX:SNX1 Q3 2026 Revenue Results
Actual Revenue$396.45B
Expected Revenue$347.80B
Beat/MissBeat by +$48.65B
YoY Revenue Growth+37.72%
Earnings Announcement Details
QuarterQ3 2026
Date09/24/2026
TimeBefore Open
Conference CallThursday, September 24, 2026
MX:SNX1 Upcoming Earnings
TD SYNNEX Corporation's next earnings date is estimated for January 12, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:SNX1 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with record consolidated results, substantial growth in both Distribution and Hyve, above-market performance, new customer and vendor wins, and continued optimism around AI and data center demand. The main challenges were approximately $1 billion of quarterly free cash flow consumption, higher working capital needs, Hyve margin dilution from large AI rack programs, and declining PC units, although management stated that margin stabilization and improved cash generation are expected as programs mature.Company Guidance
Record Quarter with Broad-Based Growth
TD SYNNEX delivered another record quarter, with Distribution and Hyve both performing above expectations and growing above market across geographies, technologies, customers, and programs.
Distribution Gross Billings Increased 27%
Distribution non-GAAP gross billings reached $24.8 billion, up 27% year-over-year, exceeding expectations and growing above market across each region.
Strong Distribution Category Performance
Endpoint Solutions gross billings increased 16%, supported by continued PC strength. Advanced Solutions gross billings increased 37%, driven by infrastructure, software, and AI-related technologies.
Distribution Profitability and Operating Leverage
Distribution gross profit increased 22% to $1.15 billion. Non-GAAP operating income increased 55% to $483 million, while non-GAAP operating margin expanded 35 basis points year-over-year to 1.95% of gross billings.
Hyve Gross Billings Increased 117%
Hyve non-GAAP gross billings reached $7 billion, up 117% year-over-year, with growth across manufacturing and supply chain services. Manufacturing grew in excess of 130% and represented approximately two-thirds of Hyve's gross billings, while supply chain services grew in excess of 90%.
Hyve Profit Growth
Hyve gross profit increased 47% to $276 million, and non-GAAP operating income increased 56% to $253 million.
New Hyve Customer Programs Progressing
Previously announced programs with new customers progressed as planned, with shipments expected to begin in fiscal fourth quarter. The programs are expected to improve visibility into future growth and support a broader customer and program mix over time.
Expansion into Advanced Liquid-Cooled Networking
Hyve is working with multiple customers on advanced liquid-cooled networking racks that are expected to enter production in the first half of fiscal year 2027.
Enterprise AI Factory Deployment
TD SYNNEX and Mach3 Systems signed an agreement to support an NVIDIA AI factory powered by Vera Rubin NVL72 systems. The deployment is expected to include design, integration, deployment, day two co-admin operations, financing, and supply chain capabilities for a large enterprise.
Digital Engagement Driving Higher Customer Spend
Customers regularly engaging across TD SYNNEX's digital offerings have grown their spend at nearly twice the pace of similar customers. PartnerFirst and Digital Bridge are enhanced with AI agents embedded throughout the customer experience.
IBM Relationship Expanded Across 20 Countries
IBM expanded its relationship with TD SYNNEX into 20 additional countries across Europe, Asia-Pacific, and Latin America.
Incremental Gross Billings from Customer and Vendor Expansion
Over the last year, TD SYNNEX added multiple billion USD of incremental gross billings into its portfolios through new customer wins and an expanded vendor line card.
Record Consolidated Financial Results
Third-quarter non-GAAP gross billings were $31.8 billion, increasing 40% year-over-year or 41% in constant currency and exceeding the high end of guidance. Non-GAAP operating income was $736 million, up 55% year-over-year or 56% in constant currency. Non-GAAP EPS was $5.68, up 59% year-over-year. GAAP operating income was $643 million, up 68%, and GAAP EPS was $5.18, up 89%.
Fourth-Quarter Guidance Indicates Continued Momentum
Fourth-quarter non-GAAP gross billings are expected to be approximately $31.9 billion, plus or minus $500 million, up approximately 31% year-over-year at the midpoint. Revenue is expected to be approximately $22.2 billion, plus or minus $400 million, with non-GAAP net income of approximately $474 million, plus or minus $20 million, and non-GAAP diluted EPS of approximately $5.90, plus or minus $0.25, up approximately 54% at the midpoint.
Shareholder Returns and Balance Sheet Position
TD SYNNEX ended the quarter with $749 million of cash and cash equivalents and net leverage of 1.9x. During the quarter, the company returned $100 million through share repurchases and $38 million through dividends. The board approved a cash dividend of $0.48 per common share.
Positive Technology and Market Trends
Management cited enterprise AI adoption moving toward broader production deployments, continued data center modernization, increasing AI-related security, governance, and compliance requirements, and demand for agentic AI capabilities as opportunities across Distribution and Hyve.
PC and AI PC Momentum
PC value growth was double digit. Although units declined, price increases and mix more than offset the unit decline. AI PCs represented close to 50% of TD SYNNEX's total PC revenue, and management said the refresh cycle is not over.
Networking and Data Center Demand
Networking grew 19% year-over-year, supported by massive refresh needs, Wi-Fi 7, and switches for AI. Management also cited continued demand for data center capacity, general compute, AI compute, and storage modernization.
Expected Improvement in Cash Generation
Management expects to generate cash in the fourth quarter as recently deployed working capital begins to normalize. It expects further improvements in Hyve's cash conversion in fiscal 2027 and stated that mature Hyve programs are generating free cash flow.
MX:SNX1 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed