SNX

TD SYNNEX (SNX) has jumped back onto investor watchlists after reporting third quarter earnings, issuing fresh guidance, and outlining continued capital returns that together gave the stock a clear new catalyst. TD SYNNEX is now trading at US$263.03, with the 1-day share price return of 1.37% partly offsetting a 7-day decline of 5.92% that followed the earnings release and guidance. The 71.43% year to date share price return and 3-year total shareholder return of 176.49% point to momentum that has been strong over a longer stretch. Scan beyond TD SYNNEX and compare its recent earnings momentum with other hand picked 85 AI infrastructure stocks benefiting from rising demand for data center and AI capacity. The move after earnings has widened the gap between TD SYNNEX at US$263.03 and both analyst targets and intrinsic estimates. The next question is where fair value actually clusters within that spread. On the most followed view of TD SYNNEX, a fair value of $333.55 sits well above the recent $263.03 close, which puts the focus squarely on whether the business can deliver the cash flows and margins implied by that gap. The continued enterprise-wide digital transformation and AI adoption, highlighted by double-digit growth in software (especially in cloud, cybersecurity, virtualization, and infrastructure software), is extending TD SYNNEX's addressable market and generating higher recurring revenue streams, which is likely to drive consistent revenue and margin expansion. Ongoing data center build-outs and the proliferation of hybrid/cloud IT infrastructure, as evidenced by high growth in the Advanced Solutions and Hyve businesses, are increasing demand for complex integration and lifecycle services, which in turn support improved net margins via higher-value offerings. See why 23 investors see TD SYNNEX as 21% undervalued. Result: Fair Value of $333.55 (UNDERVALUED) Still, if Hyve sees weaker orders from large customers or if data center and AI infrastructure demand slows, the bullish TD SYNNEX narrative could quickly lose traction. Find out about the key risks to this TD SYNNEX narrative. Plenty in the TD SYNNEX story points to upside potential, yet the risk list is not short either. Move quickly, review the data, stress test both sides for yourself, and then weigh the 5 key rewards and 1 important warning sign. If TD SYNNEX has sharpened your focus, do not stop here. Use the Simply Wall Street Screener to spot other opportunities before they slip away. - Target potential upside by scanning a curated 32 high quality undervalued stocks that combine strong fundamentals with prices that may not fully reflect their financial profile. - Strengthen the defensive side of your portfolio by reviewing a list of solid balance sheet and fundamentals (24 results) that can help you assess resilience when conditions get tougher. - Get ahead of the crowd by hunting through 16 high quality undiscovered gems that match quality filters before they draw wider attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SNX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

TD SYNNEX Corporation SNX reported non-GAAP earnings of $5.68 per share for the third quarter of fiscal 2026, beating the Zacks Consensus Estimate by 22.4%. The bottom line increased 58.7% year over year. Revenues of $21.56 billion surpassed the consensus mark by 14.8% and rose 37.7% year over year. The strong performance reflected broad-based momentum across Distribution and Hyve Solutions. Non-GAAP gross billings climbed 40% year over year to $31.83 billion, with both businesses growing above management's expectations. Distribution revenues totaled $17.76 billion, up 35% year over year. Non-GAAP gross billings increased 27% to $24.82 billion, reflecting double-digit growth across all regions and most major technologies. Data center infrastructure was a notable area of strength. Distribution non-GAAP operating income jumped 55% to $483.5 million. Non-GAAP operating margin, measured against gross billings, expanded 35 basis points to 1.95%. Management attributed the improvement to strong gross billings growth and disciplined expense management despite some pressure from customer and product mix. Within the Distribution business, Advanced Solutions revenues increased 57% year over year to $8.5 billion, supported by infrastructure, software and AI-related technologies. Non-GAAP gross billings rose 37% to $14.5 billion. Endpoint Solutions revenues advanced 20% to $9.3 billion, while gross billings increased 16% to $10.3 billion. PC demand benefited from higher average selling prices despite a modest decline in units. Within Distribution, servers and storage posted 67% year-over-year growth in gross billings, the strongest growth among the disclosed product categories. TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote Hyve Solutions generated revenues of $3.80 billion, up 51.7% year over year. Non-GAAP gross billings surged 117.5% to $7.01 billion, driven by higher manufacturing volumes and continued strength in supply-chain services. Manufacturing grew more than 130%, while supply-chain services advanced more than 90%. Hyve's non-GAAP operating income increased 55.8% to $253 million. However, non-GAAP operating margin based on gross billings contracted 143 basis points to 3.61%. The decline reflected a greater contribution from large AI rack programs, which are profitable but carry lower margins than the Hyve average. Americas Distribution revenues climbed 39.9% year over year to $10.32 billion, while gross billings increased 28% to $14.98 billion. The growth was driven primarily by servers and storage, software and PCs. Europe Distribution revenues rose 30.2% to $6.37 billion, with gross billings up 26% to $8.16 billion. Asia-Pacific and Japan Distribution revenues jumped 21.7% to $1.07 billion, while gross billings advanced 26.1% to $1.67 billion. Europe recorded particularly strong operating leverage, with non-GAAP operating income rising 116.4%. Gross profit increased 26.2% year over year to $1.43 billion, while gross margin contracted 61 basis points to 6.61%, reflecting business mix, including higher Hyve contributions and lower-margin AI infrastructure programs. Non-GAAP operating income climbed 55.1% to $736 million. Non-GAAP operating margin expanded 39 basis points year over year to 3.42%, supported by higher business volumes and improved Distribution operating margins. Disciplined cost management also helped operating profit grow faster than gross profit. TD SYNNEX ended the third quarter with $749.3 million in cash and cash equivalents and $3.60 billion in long-term borrowings. Operating cash outflow was $916.7 million, while free cash flow usage totaled $975.6 million. The cash use mainly reflected higher inventory and working capital investments to support Hyve's new customers and programs. For the first nine months of fiscal 2026, operating cash outflow was $2.08 billion, while free cash flow usage totaled $2.24 billion. TD SYNNEX returned about $138.7 million to shareholders in the third quarter through roughly $100.3 million in share repurchases and $38.4 million in dividends. During the first nine months, SNX repurchased $292.4 million of common stock and paid $115.6 million in dividends. For the fourth quarter of fiscal 2026, TD SYNNEX expects revenues between $21.8 billion and $22.6 billion. Non-GAAP gross billings are projected between $31.4 billion and $32.4 billion. Non-GAAP earnings are expected between $5.65 and $6.15 per share. Management expects Hyve gross billings to increase sequentially as new customer programs ramp and anticipates positive cash generation as recently deployed working capital begins to normalize. TD SYNNEX currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Telos TLS, Vertiv VRT and Taboola.com TBLA. Telos sports a Zacks Rank #1 (Strong Buy) at present, while Vertiv and Taboola.com each carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Telos' 2026 earnings is pegged at 16 cents per share, up a penny over the past 30 days, indicating a year-over-year rise of 77.8%. Telos shares have plunged 20.2% year to date (YTD). The Zacks Consensus Estimate for Vertiv's 2026 earnings has moved northward by 5 cents to $6.69 per share over the past 30 days and calls for a year-over-year increase of 59.3%. Vertiv shares have jumped 51.4% YTD. The Zacks Consensus Estimate for Taboola.com's 2026 earnings has been revised upward by 81.8% to 60 cents per share over the past 30 days, implying a year-over-year increase of 15.4%. Taboola.com shares have fallen 25.2% YTD. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TD SYNNEX Corporation (SNX) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report Telos Corporation (TLS) : Free Stock Analysis Report Taboola.com Ltd. (TBLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TD SYNNEX Corporation SNX used its third-quarter fiscal 2026 earnings call to emphasize accelerating AI infrastructure demand, broad-based Distribution growth and a widening pipeline at Hyve. Management also focused heavily on converting recent working-capital investments into stronger cash generation. The quarter delivered non-GAAP EPS of $5.68 and revenues of $21.56 billion, both beating the Zacks Consensus Estimate of $4.64 and $18.78 billion, respectively. TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote CEO Patrick Zammit said that enterprise AI adoption is moving from experimentation toward centralized production deployments, creating opportunities across compute, storage, security and governance. Management highlighted an agreement with Mark III Systems supporting an NVIDIA AI factory using Vera Rubin NVL72 systems. Zammit said that deployments increasingly require integration, financing, and supply-chain and ongoing operational capabilities beyond access to computing infrastructure. During Q&A, Zammit said that large enterprises are investing in AI compute while mid-sized companies are beginning to participate. He also pointed to data-center modernization and storage investment as important parts of the AI infrastructure cycle. Distribution generated non-GAAP gross billings of $24.8 billion, up 27% year over year, with double-digit growth across each region and most major technologies. CFO David Jordan said that Endpoint Solutions gross billings increased 16%, while Advanced Solutions rose 37% on infrastructure, software and AI-related strength. Distribution non-GAAP operating income increased 55% to $483 million. Zammit also emphasized vendor expansion. IBM extended its TD SYNNEX relationship into 20 additional countries, while new customers and an expanded vendor lineup have added multiple billions of dollars of incremental gross billings over the past year. Hyve remained a major growth engine, with gross billings climbing 117% to $7 billion. Manufacturing grew more than 130%, while Supply Chain Services increased more than 90%. That growth came with margin pressure. Hyve's non-GAAP operating margin on gross billings fell to 3.61% from 5.04%, reflecting a greater contribution from large AI server programs. Jordan said that newer programs are being awarded at margins neutral to accretive to Hyve's current performance. Management expects margins to improve modestly as existing programs mature and newer programs ramp. Margin durability drew repeated analyst attention. A BofA Securities analyst asked about mix pressure, while Morgan Stanley sought clarification on whether Advanced Solutions faced underlying pricing weakness. Jordan said that larger infrastructure transactions carry somewhat lower margins, but like-for-like margins remained relatively stable. Zammit added that management reviews margins by geography, technology, vendor and customer segment each month. Management also pointed to expense discipline. Distribution's gross-margin mix pressure was more than offset by cost management, helping its non-GAAP operating margin on gross billings expand 35 basis points to 1.95%. Cash conversion was the clearest counterweight to the strong growth narrative. The fiscal third-quarter free cash flow was negative $975.6 million as Hyve required inventory and working-capital investment for customer and program ramps. Jordan said that a significant portion of the working capital needed for expected growth is now in place. Management expects the company to generate cash in the fiscal fourth quarter as recently deployed capital begins to normalize. In response to UBS, Jordan said that mature Hyve programs should be sustainable cash generators. Management expects further improvement in Hyve cash conversion in fiscal 2027 as programs mature. For the fiscal fourth quarter, management guided revenues of $21.8-$22.6 billion and non-GAAP EPS of $5.65-$6.15. Non-GAAP gross billings are expected between $31.4 billion and $32.4 billion. Management's focus heading into fiscal 2027 centers on executing Hyve customer ramps, improving cash conversion and preserving margin discipline while pursuing AI and data-center opportunities. SNX currently has a Zacks Rank #2 (Buy), alongside a Value Score of A, a Growth Score of F, a Momentum Score of A and a VGM Score of B. Zacks' framework identifies A and B Style Scores as more favorable and emphasizes combining those scores with top Zacks Ranks. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The mix points to favorable value and momentum characteristics but a weaker Growth Score. The VGM Score of B provides a favorable combined reading across value, growth and momentum. The Zacks Rank can change as analysts revise earnings estimates following the newly reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TD SYNNEX Corporation (SNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Sept. 24, 2026 - Head of Investor Relations - Nate Friedel - Chief Executive Officer - Patrick Zammit - Chief Financial Officer - David Jordan Operator: Good morning. My name is Rebecca, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX third quarter fiscal 2026 earnings call. Today's call is being recorded, and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. At this time, for opening remarks, I would like to pass the call over to Nate Friedel, Head of Investor Relations at TD SYNNEX. Nate, you may begin. Nate Friedel: Good morning, everyone, and welcome to TD SYNNEX's fiscal 2026 third quarter earnings call. Joining me on today's call are Chief Executive Officer, Patrick Zammit, and Chief Financial Officer, David Jordan. Before we continue, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections, or other statements about future events, including statements about our strategy, demand, plans and positioning, growth, cash flow, capital allocation, and stockholder return, as well as our financial expectations for future fiscal periods. Actual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties discussed in today's earnings release, in the Form 8-K we filed today, in the Risk Factors section of our Form 10-K, and our other reports and filings with the SEC. We do not intend to update any forward-looking statements. Also, during this call, we will reference certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP results are included in our earnings press release and the related Form 8-K available on our investor relations website, ir.tdsynnex.com. This conference call is the property of TD SYNNEX and may not be recorded or rebroadcast without our permission. I will now turn the call over to Patrick. Patrick Zammit: Thank you, Nate, and good morning, everyone. We delivered another record quarter with Distribution and Hyve both performing above our expectations and growing above market within the quarter. Results were broad-based across geographies, technologies, customers, and programs, with notable strength in data center infrastructure. Our success securing opportunities with new and existing customers, particularly within Hyve, required working capital investment to support these ramps. As David will discuss in more detail, those investments affected near-term cash flow during the quarter but position us to support committed customer demand and future growth. Looking beyond the quarter, we continue to see encouraging developments across the technology landscape. 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 both Distribution and Hyve and reinforce our confidence in the long-term growth opportunity ahead. I will now begin with Distribution. Distribution delivered strong growth during the quarter, with non-GAAP gross billings reaching $24.8 billion, up 27% year-over-year, exceeding our expectations and growing above market across each of our regions. Our performance reflects a broader trend across the technology ecosystem. As technology environments become more complex, customers increasingly need help integrating, deploying, securing, and managing solutions across multiple vendors and technologies. Vendors are looking for partners that can not only efficiently reach customers but enable customer capabilities, activate demand, and execute consistently around the world. This is increasing the strategic importance of Distribution. One area we are particularly encouraged by is the growing number of enterprises moving from AI experimentation towards production-scale centralized AI factory deployments. This quarter, TD SYNNEX and Mach3 Systems signed an agreement to support an NVIDIA AI factory powered by Vera Rubin NVL72 systems. This is one of the largest enterprise AI factory infrastructure deployments expected to be delivered through the channel, bringing together the design, integration, deployment, day two co-admin operations, financing, and supply chain capabilities needed to operationalize a sophisticated NVIDIA-based AI factory platform for a large enterprise. As enterprises evaluate next-generation platforms, we are seeing growing demand for partners that can simplify complexity and accelerate implementation through their enablement capabilities. AI factories have the potential to power transformative new products and services, but realizing that potential requires far more than access to compute. Organizations that ensure AI investments are secure, governed, cost-effective, and aligned with measurable business outcomes. Similar to the evolution of cloud computing, we believe disciplines such as financial operations and security operations will become increasingly important as AI becomes embedded in business-critical processes. Organizations will need support selecting the right models for the right workloads, deploying them on the right infrastructure, and balancing performance, security, and governance across edge, private, hybrid, and public cloud environments. While still early in the adoption curve, deployments of this scale signal a market that is moving toward broader deployment. As AI becomes embedded across more users, workloads, and business processes, we believe the requirements to secure, govern, optimize, and support these environments will continue to expand. Customers are also seeking greater flexibility in how they engage with us and have seen benefits from our digital strategy. Customers regularly engaging across our digital offerings have grown their spend with TD SYNNEX at nearly twice the pace of similar customers with us. Through solutions such as PartnerFirst and Digital Bridge, enhanced with AI agents embedded throughout the customer experience, we help customers identify opportunities, simplify purchasing decisions, and engage efficiently across a broad range of technologies and vendors. We view digital engagement as an extension of our broader enablement strategy. Whether customers engage through digital platforms, technical specialists, enablement programs, or a combination of all three, our objective remains the same: helping our customers build capabilities, grow their business, and better serve their end users. The same capabilities creating value for customers are also important for vendors. As technology portfolios expand and customer requirements become more specialized, vendors are seeking partners that can combine global execution with expertise across technologies, customer segments, and geographies. This is expanding the addressable market served through Distribution. Earlier this quarter, IBM expanded its relationship with TD SYNNEX into 20 additional countries across Europe, Asia-Pacific, and Latin America. We believe this expansion reflects the strength of our go-to-market model and the confidence our vendors place in our ability to activate demand, execute consistently across end markets around the world, and accelerate growth. Collectively, over the last year, we have added multiple billion USD of incremental gross billings into the portfolios through new customer wins and an expanded vendor line card. More importantly, we believe these relationships deepen our role in the technology ecosystem and create additional opportunities for long-term profitable growth and potential earnings expansion. Turning to Hyve. Hyve delivered a strong quarter with non-GAAP gross billings of $7 billion, up 117% year-over-year, exceeding our expectations as we saw continued increased demand from existing customers and programs. Our previously announced programs with new customers have progressed as planned, with shipments expected to begin in our fiscal fourth quarter. These programs improve visibility into future growth, including maintaining a healthy pipeline of opportunities, and support a broader customer and program mix over time. We believe increasingly sophisticated infrastructure requirements are elevating the importance of expertise in engineering, validation, manufacturing, and supply chain execution. As a result, customers are engaging Hyve earlier in the development process, creating additional opportunities to expand our relationship with our current customer base and potential new customers. One example is our work with multiple customers on the design of advanced liquid-cooled networking racks that are expected to enter into production in the first half of fiscal year 2027. At the same time, we remain focused on ensuring growth translates into attractive long-term returns. While customer demand and revenue growth remain robust during the quarter, profitability remains an important area of focus. The business is working through a period of significant customer ramps, manufacturing expansion, and elevated investment activity, including engineering talent, technical expertise, and operating capabilities as we support multiple large growth initiatives at the same time. Several opportunities in our pipeline are being awarded at margin profiles that are neutral to accretive relative to our current operating performance. As previously awarded programs mature and newer programs ramp, we expect modest margin improvement over time, even as we continue investing to support future growth. Our manufacturing investments remain aligned with awarded customer programs, and our focus remains on deploying capital in ways that strengthen our competitive position and are expected to generate attractive returns over time. In closing, we believe both Distribution and Hyve continue to benefit from durable technology trends and expanding customer relationships. Within Distribution, enterprise AI adoption, digitally enabled experiences paired with human expertise, and growing technology complexity are increasing the value we provide to customers and vendors. Within Hyve, sophisticated infrastructure architectures are driving deeper customer engagement and expanding opportunities across a broader set of customer and programs. While we have deployed significant capital to support customer growth initiatives, particularly within Hyve, we believe those investments strengthen our competitive position, support future growth, and increase the long-term earnings power of the company. As these programs mature, we expect free cash flow generation and conversion to improve, and we remain focused on demonstrating progress as we close fiscal year 2026 and enter fiscal 2027. With that, I will turn it over to David to discuss our financial performance and outlook in greater detail. David? David Jordan: Thank you, Patrick, and good morning, everyone. This was another strong quarter for TD SYNNEX. Both Distribution and Hyve grew above market and contributed meaningfully to earnings, while our operating income and EPS continued to grow faster than gross billings. Starting with the top line, our non-GAAP gross billings for the third quarter was $31.8 billion, increasing 40% year-over-year or 41% year-over-year in constant currency and exceeding the high end of our guidance range. Non-GAAP operating income was $736 million, an increase of 55% year-over-year or 56% year-over-year in constant currency. Non-GAAP EPS was $5.68, an increase of 59% year-over-year and above the high end of our guidance range. GAAP operating income was $643 million, an increase of 68% year-over-year. GAAP EPS was $5.18, an increase of 89% year-over-year and above the high end of our guidance range. Turning to our quarterly performance for each business. Distribution non-GAAP gross billings increased 27% to $24.8 billion with double-digit growth across each region in most major technologies. Our end-to-end portfolio continues to position us well across technology cycles with healthy demand throughout the business, in particular strength in data center infrastructure. Endpoint Solutions gross billings increased 16%, supported by continued strength in PCs, including higher ASPs and a modest decline in units. Advanced Solutions gross billings increased 37%, driven by strength in infrastructure, software, and AI-related technologies. Distribution gross profit increased 22% to $1.15 billion. Distribution gross margins were slightly impacted by customer and product mix, which was more than offset by disciplined expense management. Non-GAAP operating income increased 55% to $483 million, and non-GAAP operating margin as a percentage of gross billings expanded 35 basis points year-over-year to 1.95%. Turning to Hyve. Hyve's gross billings increased 117% to $7 billion, with growth across both manufacturing and supply chain services. Manufacturing grew in excess of 130% and represented approximately two-thirds of Hyve's gross billings, reflecting higher volumes and expanded programs with existing customers. Supply chain services grew in excess of 90%, supported by component demand associated with customer infrastructure deployments. Hyve's gross profit increased 47% to $276 million, and non-GAAP operating income increased 56% to $253 million. Non-GAAP operating margin as a percentage of gross billings was 3.61%, compared with 5.04% in the prior year period. As a reminder, our operating margins reflect the growing contribution from large AI rack programs that has been strategically important but dilutive to Hyve's operating margins, creating a mixed headwind, which we believe has stabilized. Our objective is to build a broader, more diversified Hyve business that combines sustainable growth with improving profitability, stronger cash generation, and attractive returns on invested capital. Shifting to cash flow and capital allocation, free cash flow consumption for the quarter was approximately $1 billion, driven by increased inventory in Hyve's supply chain business, in addition to new customers and new programs with existing customers. Networking capital closed at $6.5 billion with a gross cash conversion cycle of 22 days, an increase of five days sequentially and six days year-over-year, reflecting incremental mix of Hyve. Year to date, we have made substantial investments in Hyve's working capital and believe we now have a significant portion of the investments to support our expected growth now in place. Our focus is now on execution, cash conversion, and realizing the expected returns on our investments. We ended the quarter with $749 million of cash and cash equivalents and net leverage of 1.9x. During the quarter, we returned $100 million through share repurchases and $38 million through dividends. Our board also approved a cash dividend of $0.48 per common share, payable on October 30th, 2026, to shareholders of record as of the close of business on October 16th, 2026. Turning to our fourth quarter outlook, we expect continued momentum across both businesses, translating to non-GAAP gross billings of approximately $31.9 billion, plus or minus $500 million, up approximately 31% year-over-year at the midpoint. A gross to net adjustment of approximately 30%, revenue of approximately $22.2 billion, plus or minus $400 million. Non-GAAP net income of approximately $474 million, ±$20 million. Non-GAAP diluted earnings per share of approximately $5.90, ±$0.25, up approximately 54% at the midpoint, based on approximately 79.2 million diluted shares outstanding. We expect Hyve's non-GAAP gross billings will increase sequentially quarter-over-quarter as we continue to see further benefit from ramping programs across multiple new customers. We expect we will generate cash in the quarter as recently deployed working capital begins to normalize. Looking ahead to fiscal 2027, we expect further improvements in Hyve's cash conversion as programs mature. In summary, we are extremely proud of our teams for the results they continue to deliver. Distribution for multiple quarters has delivered above-market growth and broad-based growth, operating leverage, and cash flow. Hyve continues to add new customers and new programs with existing customers. We expect each of our major programs to generate attractive returns, although some will not reach their full potential until the back half of fiscal 2027. With that, we will open the call for questions. Operator? Operator: We will now begin the question and answer session. We request that you limit yourself to one question to allow time for the other participants to ask their questions. If there is remaining time, you are welcome to re-queue with additional questions. To ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Please pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Joseph Cardoso with JPMorgan. Please go ahead. Speaker 4: This is NK on for Joseph Cardoso from JPMorgan. Thank you for taking my question. Great results. My question is, you stated several pipeline opportunities are being awarded at margins neutral to accretive relative to current performance. What is driving this improved margin discipline, and how sustainable is it as competition for AI infrastructure intensifies? David Jordan: Thanks for your question. Just to provide, this is David, a little more clarity on Hyve's operating margins and how the new customer programs are coming. What we put in the prepared remarks, and if you reflect on the commentary we provided on the call last quarter, Hyve is ramping three new hyperscalers and multiple programs within each of those customers. As we look forward, one of the comments that we made is the new programs that we have won, which are predominantly manufacturing, are neutral to accretive to Hyve. Additionally, some of the programs that we are ramping this year, as those programs mature, we continue to find ways to improve the margins within there. As we look forward, that is what gives us confidence that Hyve's margins have stabilized and should improve as we move forward. Operator: Your next question comes from Keith Housum with Northcoast Research. Please go ahead. Keith Housum: Good morning, guys. I appreciate the question, and great quarter for you guys. Guys, as we are kind of looking at the growth, obviously, servers and storage were phenomenal for you guys this quarter, but the strength was really broad-based. I think there might be concern with some investors that you are getting more rumors about data centers perhaps peaking here, and I think there are rumors of Oracle even perhaps pulling back on data centers here. How are you guys thinking about the data center market for the next year or two? Any concerns that you might have a pullback here on spending or any constraints out there? How are you thinking about the broader market? Patrick Zammit: Yes, Keith, good morning. Thanks a lot for the question. So, one, as you said, we are very pleased because the growth in the quarter has been broad-based by geo, Distribution high, by technology. By the way, our Q4 guidance reflects that. If you look at next year, so we are in the process of building our budget for next year and collecting all the data. We continue to be overall positive about the market prospects, and we expect to continue to grow a little bit faster than the market. Specifically to data center, when you look at what is driving the demand, you have, of course with the hyperscalers, they have continued to support the frontier models with capacity for training. What we see, and that's confirmed by our OEMs is that companies are now investing more and more, enterprise are investing more and more in agentic capabilities. We know that agentic AI is going to be a fantastic driver for productivity gains and improving customer experience. We've mentioned one of a big win this quarter from an enterprise, and we see that as clearly a trend accelerating. So we continue to be positive about the prospects for next year, and specifically to Hyve, as David just mentioned, we've won some new customers, and we're going to benefit for the ramp-up. So overall, we are cautiously optimistic. Keith Housum: Great. Just as a follow-up to that, the business you win with Hyve, is that cancelable if the market did go south by those customers? Or are these non-cancelable agreements that you guys enter into? Patrick Zammit: So go ahead. David Jordan: The way the programs work are similar to Distribution. You could cancel contracts, but these are longer-term agreements. Both sides have potential cancellation rights if people don't perform. But when you go into one of these programs, it can take you a year to get up to speed, and what we're working on is we've won a category within a hyperscaler where we support a multiyear piece of technology. In many cases, these programs can last a few years, but there is always the potential that volumes can move around. But we feel really good about where Hyve sits within the customers that it supports, the value that it adds, and how we stack it up relative to the competition. All of those items will provide a firm level of insulation if we need it. Patrick Zammit: I just want to add two things. One, when you look at the forecast we've received or the backlog we have, we don't see any sign of concern today. That's point number one. Point number two is, it was interesting to watch the results of Q3, and clearly everybody referring to the fact that there is not enough capacity today in the data center to meet the demands. Again, the combination of the two makes me feel cautiously optimistic for next year. Keith Housum: Great. Thank you, guys. Operator: Your next question comes from Ruplu Bhattacharya with Bank of America. Please go ahead. Ruplu Bhattacharya: Hi. Good morning, Patrick and David. Thanks for taking my question. You have reported good results and guidance. Looks like gross margin overall declined 60 basis points year-on-year. Can you elaborate more on what was that mix that impacted margins? Was there anything unique about the Advanced Solutions side of the Americas Distribution business? Because looks like that region had gross margins down the most of about 120 basis points. Any further color on what impacted margins? Thank you. David Jordan: Sure. Thanks, Ruplu. When you look at the overall margins, if we just focus on Distribution for a second, the mix that we are referring to is largely product related. So within North America, there was a few larger transactions, specifically around infrastructure build-outs, and some of those categories have slightly lower gross margins relative to the average. Within Hyve, it is the same impact that we had commented on last quarter, which was we have ramped a large AI server program that is profitable, but at margins that are slightly below the average Hyve margin, and that is what has caused the year-over-year decline for Hyve. Net, when you take a huge step back, our teams both in Distribution and Hyve have done a really nice job managing margin, managing pricing, and making sure that within Distribution, when volume shifts between categories, that they prudently manage their cost to continue to drive operating leverage. So we feel very good about the performance that the teams put out for the quarter. Ruplu Bhattacharya: Okay. Thanks for the details. Operator: Your next question comes from Erik Woodring with Morgan Stanley. Please go ahead. Erik Woodring: Super, guys. Thank you so much for taking my question. I am going to ask something kind of similar to Ruplu there, and maybe try to be a little more specific, which is on that Advanced Solutions side, you are talking about mix. I just want to make sure, and clarify for everyone here, I think there is probably some concern there could be pricing issues with the cost-plus model just because of where pricing is going. Can you just clarify for us that the Advanced Solutions gross margin pressure that you saw was really just a function of mixing those deals and that any like for like margins, we are not seeing pressure year over year this quarter? Thanks so much, guys. David Jordan: Sure. No, Erik, thanks for the question, and you have read it correctly. When you look at the overall margins, if you really start to double-click them, they are relatively stable. As we have shared previously, our business, we make a percentage of the average selling price. What impacted the quarter is we had a couple of large transactions, and larger orders tend to be slightly lower margin. The mix of that is what caused some of the margin impact, in addition to us selling a decent amount of AI infrastructure. It is all profitable business. It is all good ROIC business, but that is what impacted the margin, specifically in Advanced Solutions year over year. Structurally, the margins remain highly resilient when you look at it from a category perspective. So we feel pretty good about that. Patrick Zammit: Erik, good morning. I just want to add one thing, so talking a little bit about our management system. Every month, we are reviewing our margins, of course, by geography, but most important, by technology and by vendor and customer segment. We are monitoring that indeed, like for like, margins are stable or evolving, and then we look for the why and take corrective measures. So it is a very disciplined approach. That is the reason when we talk about mix, it is either customer segment who grew faster and has a lower margin or higher margin, or geo who grew faster and has a higher margin or lower margin. So it is really mix. Otherwise, very strong discipline on margin reviews to anticipate any issues and take corrective actions very rapidly. But again, as David mentioned today, we have no issues. Erik Woodring: Awesome. Thank you so much, guys. Good luck. Patrick Zammit: The other thing I would add is, and that is very important, we talked about taking to the bottom line at least 50% of the GP growth, and you can see that today that ratio is significantly better than that. Again, the teams are doing a fabulous job managing cost. We are also obviously starting to leverage AI, which basically is improving the productivity of the overall team. So, operating margins have been consistently improving over the past quarters, and it was true again in Q3. Erik Woodring: Thank you, Patrick. Operator: Next comes from David Vogt with UBS. Please go ahead. David Vogt: Great. Thanks, guys. I'll just squeeze in one and just a little bit multipart question for David. David, you touched on seeing free cash flow getting better in Q4, and seasonally Q4 is your better period of conversion, better conversion of working capital. Can you help us think through where you think the company's cash flow needs look like as we stretch out into 2027? Because the business is structurally 50% bigger than it was effectively a year ago. Just trying to get a sense for where your cash needs are today, what you feel comfortable with cash on your balance sheet, and how you're thinking about all the different vectors and permutations, particularly as Hyve should continue to grow pretty nicely next year. Thanks. David Jordan: No, it's a good question. Thanks, David. When you think about what we put in our prepared remarks is we expect to generate cash in Q4. You're right that seasonally, we tend to generate more cash in the back half of the year. Here's the way we think about it. We would expect a couple of days of improvement in gross cash days, quarter-over-quarter. That is largely driven by two things, continued momentum across both Distribution and Hyve, and knowing that a lot of the cash consumption year to date has come from Hyve, and we have to make investments in programs ahead of the ramp. As those programs ramp, we expect them to be cash generative. As you think about 2027 or more beyond, we expect all of our businesses to be sustainable cash generators. We recognize that FY 2026 was a period of hypergrowth. But we also front-loaded a lot of working capital investments to enable that. As we move forward, we would expect all of our businesses, Tom, to become cash generative. We feel pretty good about where we are. Patrick Zammit: I'll just add one remark. When we look at- David Vogt: Okay. Patrick Zammit: Our more mature programs at Hyve, indeed we see that when they reach maturity, they are generating free cash flow. Okay, so no concerns from that standpoint. But the reality is that the team has done a very good job winning some new programs, expanding the customer base, and yes, so we are in an investment phase to ramp up all those programs. But again, when the program matures, it generates free cash flow. David Vogt: Great. Thanks, Patrick. Operator: Your next question comes from Katherine Murphy with Goldman Sachs. Please go ahead. Katherine Murphy: Thank you for the question. Maybe to stick on the Hyve manufacturing piece, can you talk more about the mix of programs in the quarter? You mentioned that the AI server business that you highlighted last quarter remains largely stable, and as these new programs layer in, mix should improve. But maybe talk more to the outlook for the traditional server networking storage programs in the new engagements, as well as the timing of when some of these legacy engagements may start to roll off or be less significant. Thank you very much. Patrick Zammit: Yeah, good morning. If you look at the quarter, Q3, we had this large GPU program, and networking continued to be very strong. If you look at the new programs we have won, they are primarily networking programs. Again, at a good margin. We started seeing some of the ramp this quarter, and we are going to see an acceleration in Q4 and Q1. Katherine Murphy: Thank you. Operator: Your next question comes from Guy Hardwick with Barclays. Please go ahead. Guy Hardwick: Hi, good morning. I want to see if you guys could update us on the agreement with Amazon, whether that has had an impact on revenues in the quarter, and also whether some of the revenues, the unvested portion or vested portion is being netted off the revenues. Then a follow-up question on Hyve. Given there was more manufacturing growth and supply chain growth, although I know you have already answered the question, you would expect a positive mix from that, but you are saying within manufacturing there is a negative mix. Am I understanding that correctly? David Jordan: Thanks for the question. We will try to cover both of them. As you know, we announced a warrant agreement with Amazon, and what we shared at that time is we expect this to be mutually beneficial to both of us. This is an agreement that is seven years long, and so we would expect over the course of the agreement that both sides to benefit. I think it is too soon to get into exact specifics on how things played out in the quarter. But what I can tell you is our relationships across all of our customers within Hyve are very good, and we continue to invest in capabilities that add value to all of our partners. When you think about the mix within margins as it relates to Hyve, you are correct that the AI server program that we have referenced, which has caused some of the margin decline year-over-year, is a manufacturing program. A lot of the new programs that we have won are also manufacturing. This has been a year where we have had somewhat of a headwind to gross margins. But as we look forward, and as these new programs ramp, we feel very good about the trajectory of the margins, as a lot of these new programs are neutral to accretive to Hyve in total. Guy Hardwick: Thank you. Operator: Your next question comes from David Paige with RBC Capital Markets. Please go ahead. David Paige: Hi, good morning, Patrick, David. Thanks for taking my question. I want to ask on Distribution at Endpoint. One of your closest competitors had noted that there's still 300 or 400 million PCs un-refreshed to Windows 11. It looks like you had good growth in PC in the quarter. I just wanted to get your thoughts on, I guess, the demand environment, the refresh cycle, and what you see going forward. Thanks. Patrick Zammit: Yeah, thanks a lot. Good morning. PC did overall well and grew double digit. If you peel the onion, units were down. We had forecasted the PC units to go down mid to high single digit, which is what happened this quarter, and more than offset by price increases and mix. Let me just provide some color here. Indeed, component price increase has driven an increase of ASP average selling prices. But another phenomenon which is very interesting is the fact that the market is buying more the mid-range and higher range type PCs, rather than the low range. Why? Because also when our manufacturers get the allocations, they allocate them to the mid-range and the higher range of their portfolio. Some of the ASP increase is really due to components, but some of it is due to a change in mix. The refresh is not over, and we should still see some tailwinds because of that. The price increase, as expected, is having some impact on the volume. It has less impact on B2B, where we play. It has more impact on B2C, where we don't place. We have a very small play in the market. PC continues to be overall in value, a very good category. Just add that AI PCs continue to grow and represent now close to 50% of the total revenue for us. AI PCs is potentially becoming an important part of the infrastructure to run AI workloads. David Paige: Thank you. Operator: Your next question comes from Vincent Colicchio with Barrington Research. Please go ahead. Vincent Colicchio: Yes. Are you seeing customers consolidate their Distribution relationships as technology becomes more complex? Is the company gaining wallet share as a result? Patrick Zammit: Good morning. Thanks a lot for the question. As you have noticed, we grew faster than market, and we've done that now consistently for many quarters. I think it's due to two things. One, from a customer side, indeed, we have this collection of specialist approach, which means that we have a very appealing value-added, value proposition by technology, and that puts our teams in a very good position to support customers who have to deliver business outcomes which are more and more complex to deliver. Yes, I believe that our approach makes us, I would say, probably very well differentiated to help our customers win the deals and grow. We see, at the same time, in the vendor community, a trend accelerating in terms of rationalizing the go-to market, reducing the number of direct customers, direct resellers, and number of distributors. Because of our value prop, because of the relationships we've built over the years, I think we are going to continue to benefit from that trend. Operator: Thank you. Operator: Your next question comes from Alek Valero with Loop Capital. Please go ahead. Alek Valero: Hey, guys. Good morning. Thank you for taking my question. My first question's on enterprise. You've mentioned that you're seeing more growth in enterprise. It sounds like this is something that's going to continue. Can you talk to the kinds of things that enterprise customers are prioritizing, and where are you best positioned to capture that spend? Patrick Zammit: Okay. Good morning. I'm going to distinguish between compute and storage. On compute, two things. You still have the refresh of the general compute server base. As you know, the new generation has more cores and can replace several servers from the old generation. What you see is a decline in unit, but an average value which is significantly higher. We see very nice growth in general compute, and we also see, obviously, an increased demand when it comes to AI compute, driven by the fact that companies are absolutely building their factories to take advantage of agentic AI. What we see is some very large deals coming from large enterprises, but we are starting to see also mid-size companies investing in that space. On storage, what we see is a modernization, an acceleration of the modernization of the data center. I think AI will continue to play a key role. Important aspect if you want to get the full benefit of your language models, you need to have the data in a good shape, and that means investing in storage. That is something we are seeing too. Here for storage, we see an increase in units and of course in value. Alek Valero: Got it. That is super helpful. Thank you for that. Just a quick follow-up on networking, actually. I see networking grew 19% year-over-year. Although it was the slowest growing hardware category, what are the puts and takes there? Any color you can provide on networking? Patrick Zammit: Yeah. Networking, again, just want to put some context. If you just go back last year, was a little bit a challenge category. Things have completely changed now. You have a need for massive refresh, Wi-Fi 7, switches to support AI. You have a series of tailwinds in networking which are driving a nice increase in units. On top of it, the magnitude is not comparable to what we see in compute or PCs, but we start seeing some price increases also. The combination of the two makes the category very strong and I think it is going to continue for some time. It is another category where we are very optimistic for the coming quarters. Yeah. Alek Valero: Awesome. Thank you. Operator: We have reached the end of the Q&A session. I will now turn the call back to Patrick for closing remarks. Patrick Zammit: Thank you all for joining us this morning. As we conclude, I would like to express my gratitude to our coworkers around the world whose hard work, dedication, and commitment make our success possible, as well as to our partners for their continued trust and support. To everyone on today's call, thank you for your ongoing interest in TD SYNNEX, and I am wishing you a great day. Operator: This concludes today's conference call. You may now disconnect. Have a great day. Before you buy stock in SYNNEX, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SYNNEX wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $384,839!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,385,657!* Now, it's worth noting Stock Advisor's total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 24, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. TD SYNNEX (SNX) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Performance was driven by broad-based growth across all regions and technologies, with Distribution and Hyve both growing above market rates due to increased technology complexity. - The strategic importance of Distribution is rising as vendors rationalize go-to-market models and enterprises seek partners to integrate complex, multi-vendor AI and security solutions. - Management highlighted a shift from AI experimentation to production-scale 'AI factories,' exemplified by a major NVIDIA-based infrastructure deployment for a large enterprise. - Hyve's massive 117% growth was fueled by existing customer program expansions and the ramp-up of three new hyperscalers, particularly in manufacturing and supply chain services. - Operating leverage improved as the company successfully converted gross profit growth to the bottom line at a ratio exceeding its 50% target, aided by internal AI productivity tools. - Working capital investments of approximately $1 billion were intentionally deployed to support committed customer demand and the front-loading of new Hyve programs. - The IBM relationship expansion into 20 additional countries reflects management's ability to activate global demand and execute consistently across specialized technology portfolios. - Q4 guidance assumes continued momentum in both segments, with Hyve expected to see sequential growth as new customer programs begin shipping. - Management expects free cash flow to turn positive in Q4 and continue improving into fiscal 2027 as recently deployed working capital begins to normalize. - Hyve's operating margins are expected to stabilize and modestly improve as current large-scale AI rack programs mature and newer, higher-margin programs ramp up. - The company is cautiously optimistic for fiscal 2027, citing a lack of capacity in data centers to meet demand and a healthy backlog of enterprise AI projects. - Advanced liquid-cooled networking racks are currently in the design phase with multiple customers, with production expected to commence in the first half of fiscal 2027. - Hyve's operating margin decline (from 5.04% to 3.61%) was attributed to a strategic mix shift toward large AI server programs that are profitable but dilutive to the segment average. - Distribution gross margins were impacted by a few large-scale infrastructure transactions in North America, which typically carry lower margins than the corporate average. - PC unit volumes declined mid-to-high single digits as expected, but were offset by higher average selling prices (ASPs) driven by component costs and a mix shift toward mid-to-high range units. - The warrant agreement with Amazon is viewed as a seven-year mutually beneficial partnership, though management noted it is too early to quantify specific quarterly impacts. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management clarified that new manufacturing programs are being awarded at margins neutral to accretive compared to current performance. - Confidence in margin stabilization stems from the maturation of existing programs and the ability to optimize costs as volume scales. - Management stated they see no signs of concern in their backlog and noted that current data center capacity remains insufficient to meet market demand. - While contracts have cancellation rights, the long-term nature of hyperscaler programs (often lasting several years) provides a level of insulation against short-term volatility. - The decline was primarily a function of product mix, specifically a few large-scale infrastructure build-outs that carry lower gross margins. - Management emphasized that structurally, margins remain resilient across categories and are monitored monthly to ensure like-for-like stability. - AI PCs now represent nearly 50% of the company's total revenue, signaling a shift in how enterprises view endpoint infrastructure for AI workloads. - Despite unit declines, the B2B market remains strong as customers prioritize higher-spec machines to prepare for Windows 11 and AI applications.

IT distribution giant TD SYNNEX (NYSE:SNX) reported Q3 CY2026 results topping the market's revenue expectations , with sales up 37.7% year on year to $21.56 billion. On top of that, next quarter's revenue guidance ($22.2 billion at the midpoint) was surprisingly good and 13.5% above what analysts were expecting. Its non-GAAP profit of $5.68 per share was 20.8% above analysts' consensus estimates. Is now the time to buy TD SYNNEX? Find out in our full research report. - Revenue: $21.56 billion vs analyst estimates of $19 billion (37.7% year-on-year growth, 13.5% beat) - Adjusted EPS: $5.68 vs analyst estimates of $4.70 (20.8% beat) - Revenue Guidance for Q4 CY2026 is $22.2 billion at the midpoint, above analyst estimates of $19.57 billion - Adjusted EPS guidance for Q4 CY2026 is $5.90 at the midpoint, above analyst estimates of $4.87 - Operating Margin: 3%, in line with the same quarter last year - Free Cash Flow was -$975.6 million, down from $213.9 million in the same quarter last year - Market Capitalization: $23.02 billion "We delivered another record quarter, with Distribution and Hyve both performing above our expectations and growing above market," said Patrick Zammit, CEO of TD SYNNEX. "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." Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. With $75.67 billion in revenue over the past 12 months, TD SYNNEX is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. As you can see below, TD SYNNEX's sales grew at an incredible 27.9% compounded annual growth rate over the last five years. This is a great starting point for our analysis because it shows TD SYNNEX's demand was higher than many business services companies. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. TD SYNNEX's annualized revenue growth of 15.2% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. This quarter, TD SYNNEX reported wonderful year-on-year revenue growth of 37.7%, and its $21.56 billion of revenue exceeded Wall Street's estimates by 13.5%. Company management is currently guiding for a 27.7% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.1% over the next 12 months, a deceleration versus the last two years. We still think its growth trajectory is satisfactory given its scale and implies the market is baking in success for its products and services. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who's building AI, one company is already using it to print money. And nobody's paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won't last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits. TD SYNNEX's adjusted operating margin has more or less stayed the same over the last 12 months , averaging 2.9% over the last five years. This profitability was lousy for a business services business and caused by its suboptimal cost structure. Analyzing the trend in its profitability, TD SYNNEX's adjusted operating margin might have fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. In Q3, TD SYNNEX generated an adjusted operating margin profit margin of 3.1%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions. TD SYNNEX's EPS grew at a remarkable 11% compounded annual growth rate over the last five years. However, this performance was lower than its 27.9% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For TD SYNNEX, its two-year annual EPS growth of 27.7% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base. In Q3, TD SYNNEX reported adjusted EPS of $5.68, up from $3.58 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects TD SYNNEX's full-year EPS to grow 10.3% from $19.09 to $21.06. It was good to see TD SYNNEX beat analysts' EPS expectations this quarter. We were also excited its EPS guidance for next quarter outperformed Wall Street's estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 3.2% to $278.54 immediately following the results. Big picture, is TD SYNNEX a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.

- Interested in TD SYNNEX Corporation? Here are five stocks we like better. - Record Q3 performance: TD SYNNEX's non-GAAP gross billings rose 40% year over year to $31.8 billion, while non-GAAP operating income increased 55% and diluted EPS climbed 59% to $5.68. Growth was broad-based, led by data-center infrastructure and AI demand. - Hyve expansion: Hyve gross billings surged 117% to $7 billion as manufacturing and supply-chain programs ramped, though its operating margin fell to 3.61% because a large AI server program carries below-average margins. Management expects modest margin improvement as new hyperscale programs mature. - Cash investment and outlook: The company consumed roughly $1 billion in free cash flow to fund inventory and customer ramps, but expects cash generation to improve in Q4. It forecasts fourth-quarter gross billings of about $31.9 billion and non-GAAP EPS of approximately $5.90. - Build On a Strong Earnings Season With These 3 ETFs TD SYNNEX (NYSE:SNX) reported record fiscal third-quarter 2026 results, with growth in both its Distribution and Hyve businesses exceeding management's expectations. The company cited broad-based demand across geographies, technologies, customers and programs, led by data center infrastructure and expanding AI-related deployments. Chief Executive Officer Patrick Zammit said enterprise AI adoption is moving beyond experimentation toward broader production deployments, while data center modernization, security, governance and compliance requirements are creating additional opportunities for the company. He said TD SYNNEX is investing working capital to support customer ramps, particularly at Hyve, which weighed on near-term cash flow but is intended to support committed demand and future growth. → Sandisk Joins the S&P 100—Is the Index Flow, or the AI Story, Driving the Stock? - 3 Data Center Beneficiaries Raising Dividends Up to 60% Non-GAAP gross billings increased 40% year over year, or 41% in constant currency, to $31.8 billion, above the high end of the company's guidance range. Non-GAAP operating income rose 55% to $736 million, while non-GAAP diluted earnings per share increased 59% to $5.68. On a GAAP basis, operating income rose 68% year over year to $643 million, and diluted earnings per share increased 89% to $5.18. - Distribution non-GAAP gross billings rose 27% to $24.8 billion. - Hyve gross billings climbed 117% to $7 billion. - Distribution non-GAAP operating income rose 55% to $483 million. - Hyve non-GAAP operating income increased 56% to $253 million. → Viking's Obesity Edge May Be Staying Power, Not Weight Loss - Extreme Networks Snags an Upgrade on Inventory Normalization Chief Financial Officer David Jordan said operating income and earnings per share grew faster than gross billings during the period. Distribution recorded double-digit growth across every region and most major technology categories. Advanced Solutions gross billings increased 37%, driven by infrastructure, software and AI-related technologies. Endpoint Solutions gross billings grew 16%, supported by PC demand, higher average selling prices and a modest decline in unit volumes. → Full Throttle: Kratos and GE Fire Up a Next-Gen Defense Engine Distribution gross profit increased 22% to $1.15 billion. Gross margins were slightly affected by customer and product mix, although expense discipline more than offset that effect. The segment's non-GAAP operating margin expanded 35 basis points year over year to 1.95% of gross billings. Jordan said several larger North American infrastructure transactions carried somewhat lower gross margins than the company average, but described the impact as a mix issue rather than broad pricing pressure. He said the company's margins remain resilient by category and that the business continues to generate profitable returns on invested capital. Zammit highlighted an agreement with Mach3 Systems to support an NVIDIA AI factory using Vera Rubin NVL72 systems. He described the deployment as one of the largest enterprise AI factory infrastructure deployments expected to move through the channel. TD SYNNEX will provide capabilities including design, integration, deployment, co-administration operations, financing and supply-chain support. The company also said IBM expanded its TD SYNNEX relationship to 20 additional countries across Europe, Asia-Pacific and Latin America. Zammit said the company has added multiple billions of dollars in incremental gross billings to its portfolios over the past year through customer wins and additions to its vendor line card. Hyve's manufacturing revenue grew more than 130% and represented about two-thirds of the segment's gross billings, reflecting higher volumes and expanded programs with existing customers. Supply-chain services grew more than 90%, supported by component demand related to customer infrastructure deployments. Hyve gross profit rose 47% to $276 million. Its non-GAAP operating margin declined to 3.61% of gross billings from 5.04% in the prior-year period. Jordan said the decline reflected the growing contribution of a large AI server program that is profitable but carries margins below Hyve's historical average. Management said the margin headwind has stabilized. Jordan said Hyve is ramping three new hyperscale customers and multiple programs within those customers, with newer manufacturing programs awarded at margins that are neutral to accretive relative to Hyve's current performance. Management expects margins to improve modestly as programs mature, though some major programs will not reach their full potential until the second half of fiscal 2027. Zammit said networking remained strong and that newly won Hyve programs are primarily networking programs. He said the company began seeing some contribution from those ramps during the third quarter and expects acceleration in the fourth quarter and first quarter. Free cash flow consumption was approximately $1 billion in the third quarter, primarily reflecting increased inventory in Hyve's supply-chain business as well as investments for new customers and expanded programs. Net working capital ended the quarter at $6.5 billion, while the gross cash conversion cycle increased to 22 days, up five days sequentially and six days from a year earlier. Jordan said the company believes a significant portion of the working-capital investment needed to support its expected growth is now in place. TD SYNNEX ended the quarter with $749 million in cash and cash equivalents and net leverage of 1.9 times. The company repurchased $100 million of shares and paid $38 million in dividends during the quarter. The board approved a quarterly cash dividend of $0.48 per common share, payable Oct. 30, 2026, to shareholders of record as of Oct. 16, 2026. For the fiscal fourth quarter, TD SYNNEX expects non-GAAP gross billings of approximately $31.9 billion, plus or minus $500 million, representing about 31% year-over-year growth at the midpoint. It forecast revenue of approximately $22.2 billion, plus or minus $400 million, and non-GAAP diluted earnings per share of approximately $5.90, plus or minus $0.25. The company expects Hyve gross billings to rise sequentially as programs for multiple new customers ramp. Management also expects to generate cash in the fourth quarter as recently deployed working capital begins to normalize, with further improvement in Hyve cash conversion expected in fiscal 2027. TD SYNNEX Corporation (NYSE: SNX) is a global technology distributor and solutions aggregator that connects technology manufacturers with resellers, systems integrators, managed service providers and other business partners. The company helps its partners design, procure, configure and deliver technology solutions to organizations across a range of industries. Its portfolio includes personal computing devices, peripherals, networking equipment, data-center infrastructure, cybersecurity products, software and cloud services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TD SYNNEX Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

- Revenue of $21.6 billion, an increase of 37.7% year over year, 38.4% in constant currency(1), and above the high end of our outlook. - Non-GAAP gross billings(1) of $31.8 billion, an increase of 40.0% year over year, 40.5% in constant currency(1), and above the high end of our outlook. - Operating income of $643 million and non-GAAP operating income(1) of $736 million, an increase of 67.6% and 55.1% year-over-year, respectively. Operating margin of 2.98% and non-GAAP operating margin(1) of 3.42%, an increase of 53 and 39 basis points year-over-year, respectively. - Diluted earnings per share ("EPS") of $5.18, and non-GAAP diluted EPS(1) of $5.68, an increase of 58.7% year over year and above the high end of our outlook. - Returned $139 million to stockholders in the form of approximately $100 million of share repurchases and $38 million in dividends. - Announced a quarterly cash dividend of $0.48 per common share, up 9% year over year. "We delivered another record quarter, with Distribution and Hyve both performing above our expectations and growing above market," said Patrick Zammit, CEO of TD SYNNEX. "Enterprise AI adoption is progressing toward broader production deployments. Data center modernization remains a priority as organizations prepare for next-generation infrastructure requirements, while AI is driving new security, governance, and compliance requirements across technology environments. We believe these trends expand our opportunities across Distribution and Hyve and support our confidence in our long-term growth potential." CLEARWATER, Fla. & FREMONT, Calif., September 24, 2026--(BUSINESS WIRE)--TD SYNNEX (NYSE: SNX) today announced financial results for the fiscal third quarter ended August 31, 2026. Consolidated Financial Highlights for the Fiscal 2026 Third Quarter GAAP ($ in millions, except earnings per share) | | | | | | | | Q3 FY26 | | Q3 FY25 | | Net Change from Q3 FY25 Revenue | | $ | 21,558 | | | $ | 15,651 | | | 37.7 | % Gross profit | | $ | 1,425 | | | $ | 1,130 | | | 26.2 | % Gross margin | | | 6.61 | % | | | 7.22 | % | | (61) bps Operating income | | $ | 643 | | | $ | 384 | | | 67.6 | % Operating margin | | | 2.98 | % | | | 2.45 | % | | 53 bps Net income | | $ | 416 | | | $ | 227 | | | 83.5 | % Diluted EPS | | $ | 5.18 | | | $ | 2.74 | | | 89.1 | % Non-GAAP ($ in millions, except earnings per share) | | | | | | | | Q3 FY26 | | Q3 FY25 | | Net Change from Q3 FY25 Gross billings(1) | | $ | 31,828 | | | $ | 22,731 | | | 40.0 | % Gross to net %(1) | | | (32.3 | )% | | | (31.1 | )% | | (120) bps Revenue | | $ | 21,558 | | | $ | 15,651 | | | 37.7 | % Gross profit | | $ | 1,425 | | | $ | 1,130 | | | 26.2 | % Gross margin | | | 6.61 | % | | | 7.22 | % | | (61) bps Operating income(1) | | $ | 736 | | | $ | 475 | | | 55.1 | % Operating margin(1) | | | 3.42 | % | | | 3.03 | % | | 39 bps Net income(1) | | $ | 456 | | | $ | 296 | | | 53.9 | % Diluted EPS(1) | | $ | 5.68 | | | $ | 3.58 | | | 58.7 | % Fiscal 2026 Fourth Quarter Outlook The following statements are based on TD SYNNEX's current expectations for the fiscal 2026 fourth quarter. These statements are forward-looking and actual results may differ materially. Non-GAAP gross billings(1) include the impact of costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts, and the remaining non-GAAP financial measures exclude the impact of amortization of intangible assets, share-based compensation and the related tax effects thereon. | | Q4 2026 Outlook Revenue | | $21.8 - $22.6 billion Non-GAAP gross billings(1) | | $31.4 - $32.4 billion Net income | | $368 - $408 million Non-GAAP net income(1) | | $454 - $494 million Diluted earnings per share | | $4.58 - $5.08 Non-GAAP diluted earnings per share(1) | | $5.65 - $6.15 Estimated outstanding diluted weighted average shares | | 79.2 million Dividend TD SYNNEX announced today that its Board of Directors declared a quarterly cash dividend of $0.48 per common share. The dividend is payable on October 30, 2026 to stockholders of record as of the close of business on October 16, 2026. Conference Call and Webcast TD SYNNEX will host a conference call today to discuss the 2026 fiscal third quarter results at 6:00 AM (PT)/9:00 AM (ET). A live audio webcast of the earnings call will be accessible at ir.tdsynnex.com and a replay of the webcast will be available following the call. About TD SYNNEX TD SYNNEX (NYSE: SNX) is a leading global distributor, solutions aggregator, and original design and contract manufacturer that plays a central role in connecting the information technology ("IT") ecosystem. We support more than 150,000 customers across over 100 countries with a comprehensive edge‑to‑cloud portfolio spanning cybersecurity, analytics, artificial intelligence, mobility, and Everything‑as‑a‑Service. We are a Fortune 100 company that helps partners maximize the value of technology investments and achieve measurable business outcomes through our global reach, expertise, and enablement capabilities. Headquartered in Clearwater, Florida and Fremont, California, the Company's distribution business brings together a broad portfolio of IT hardware, software, and systems, providing access to products across the global IT ecosystem. The Company's Hyve Solutions business partners with technology companies to design, manufacture, and deliver traditional and accelerated compute, cloud, and connected infrastructure. For more information, visit TDSYNNEX.com, follow our newsroom or find us on LinkedIn, Facebook and Instagram. (1)Use of Non-GAAP Financial Information In addition to the financial results presented in accordance with GAAP, TD SYNNEX uses and refers to: - Non-GAAP gross billings, which are the amounts billed to the customer prior to any presentation adjustment under ASC Topic 606 for those arrangements where the Company does not act as the principal. Non-GAAP gross billings are a useful non-GAAP metric in understanding the volume of our business activity and serve as an important performance metric in internally managing our operations. - Revenue and non-GAAP gross billings in constant currency, which adjusts for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our performance. Financial results adjusted for constant currency are calculated by translating current period activity using the comparable prior year periods' currency conversion rate. - "Gross to net %" refers to the percentage of adjustments made to non-GAAP gross billings for costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts. - Non-GAAP operating income and non-GAAP operating margin, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. - Non-GAAP net income and non-GAAP diluted earnings per share, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense, dividends and realized gains upon sale related to certain equity securities ("dividends and gains on investments") and the related tax effects thereon. - Free cash flow, which is cash flow from operating activities reduced by purchases of property and equipment. TD SYNNEX uses free cash flow to conduct and evaluate its business because although it is similar to cash flows from operating activities, TD SYNNEX believes free cash flow is an additional useful measure of cash flows since purchases of property and equipment are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing TD SYNNEX's liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations as it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, TD SYNNEX believes it is important to view free cash flow as a complement to its entire Consolidated Statements of Cash Flows. In prior periods, TD SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures. Acquisition, integration and restructuring costs, which are expensed as incurred, primarily represent professional services costs for legal, banking, consulting and advisory services, severance and other personnel-related costs, share-based compensation expense and debt extinguishment fees that are incurred in connection with acquisition, integration, restructuring, and divestiture activities. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses, costs related to long-lived assets including impairment charges and accelerated depreciation and amortization expense due to changes in asset useful lives, as well as various other costs associated with the acquisition or divestiture. TD SYNNEX's acquisition activities have resulted in the recognition of finite-lived intangible assets which consist primarily of customer relationships and vendor lists. Finite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company's Consolidated Statements of Operations. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company's products. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees and non-employee members of the Company's Board of Directors based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that are necessary when calculating share-based compensation expense, TD SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period. Dividends and gains on investments includes benefits recorded in other income (expense), net during the first three fiscal quarters of fiscal 2026 resulting from dividends and realized gains upon sale related to certain equity securities. TD SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of TD SYNNEX's operational results and trends that more readily enable investors to analyze TD SYNNEX's base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with TD SYNNEX's Consolidated Financial Statements prepared in accordance with GAAP. A reconciliation of TD SYNNEX's GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this press release. Safe Harbor Statement Statements in this news release regarding TD SYNNEX that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from TD SYNNEX expectations as a result of a variety of factors. These forward-looking statements may be identified by terms such as believe, foresee, expect, may, will, provide, could and should and the negative of these terms or other similar expressions. These forward-looking statements include, but are not limited to, statements about our strategy, demand, plans and positioning, market trends, capital allocation, as well as guidance, including related to the fourth quarter of 2026. Such forward-looking statements are based upon management's current expectations and include known and unknown risks, uncertainties and other factors, many of which TD SYNNEX is unable to predict or control, that may cause TD SYNNEX actual results, performance, or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: the unfavorable outcome of any legal proceedings that have been or may be instituted against us; the ability to retain key personnel; general economic and political conditions, including geopolitical instability and armed conflicts in the Middle East and other regions; weakness in information technology spending; seasonality; risks related to the buying patterns of our customers, concentration of sales to large customers; the loss or consolidation of one or more of our significant original equipment manufacturer, or OEM, suppliers or customers; market acceptance and product life of the products we assemble and distribute; competitive conditions in our industry and their impact on our margins; pricing, margin and other terms with our OEM suppliers; our ability to gain market share; variations in supplier-sponsored programs; changes in our costs and operating expenses; the timing and amount of returns to our stockholders via repurchases of our common stock and dividends; changes in foreign currency exchange rates and interest rates; increased inflation; uncertainty over global trade policies and the impacts of related tariffs; dependence upon and trends in capital spending budgets in the IT industry; investments in IT systems and adoption of new technologies, including artificial intelligence or other products and services; changes in tax laws; risks associated with our international operations; uncertainties and variability in demand by our reseller and integration customers; supply shortages or delays; any termination or reduction in our supplier finance programs; credit exposure to our reseller customers and negative trends in their businesses; any incidents of theft; the declaration, timing and payment of dividends, and the Board's reassessment thereof; and other risks and uncertainties detailed in our Form 10-K for the fiscal year ended November 30, 2025 and subsequent SEC filings. Statements included in this press release are based upon information known to TD SYNNEX as of the date of this release, and TD SYNNEX assumes no obligation to update information contained in this press release unless otherwise required by law. Copyright 2026 TD SYNNEX CORPORATION. All rights reserved. TD SYNNEX, the TD SYNNEX Logo, and all other TD SYNNEX company, product and services names and slogans are trademarks or registered trademarks of TD SYNNEX Corporation. Other names and marks are the property of their respective owners. TD SYNNEX CorporationConsolidated Balance Sheets(Currency and share amounts in thousands, except par value)(Amounts may not add or compute due to rounding)(Unaudited) | | | | | | August 31, 2026 | | November 30, 2025 ASSETS | | | | Current assets: | | | | Cash and cash equivalents | | $ | 749,302 | | | $ | 2,435,389 | Accounts receivable, net | | | 14,953,804 | | | | 11,707,581 | Receivables from vendors, net | | | 915,407 | | | | 972,658 | Inventories | | | 15,291,597 | | | | 9,504,340 | Other current assets | | | 983,781 | | | | 669,470 | Total current assets | | | 32,893,891 | | | | 25,289,438 | Property and equipment, net | | | 565,111 | | | | 496,291 | Goodwill | | | 4,108,529 | | | | 4,099,297 | Intangible assets, net | | | 3,559,885 | | | | 3,774,952 | Other assets, net | | | 717,067 | | | | 590,920 | Total assets | | $ | 41,844,483 | | | $ | 34,250,898 | | | | | LIABILITIES AND EQUITY | | | | Current liabilities: | | | | Borrowings, current | | $ | 1,926,400 | | | $ | 1,018,321 | Accounts payable | | | 22,442,942 | | | | 17,624,254 | Other accrued liabilities | | | 3,237,907 | | | | 2,318,265 | Total current liabilities | | | 27,607,249 | | | | 20,960,840 | Long-term borrowings | | | 3,595,337 | | | | 3,592,130 | Other long-term liabilities | | | 524,345 | | | | 447,981 | Deferred tax liabilities | | | 815,749 | | | | 799,518 | Total liabilities | | | 32,542,680 | | | | 25,800,469 | Stockholders' equity: | | | | Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued or outstanding | | | — | | | | — | Common stock, $0.001 par value, 200,000 shares authorized, 99,012 shares issued as of both August 31, 2026 and November 30, 2025 | | | 99 | | | | 99 | Additional paid-in capital | | | 7,535,960 | | | | 7,431,231 | Treasury stock, 19,953 and 18,912 shares as of August 31, 2026 and November 30, 2025, respectively | | | (2,287,489 | ) | | | (2,038,528 | ) Accumulated other comprehensive loss | | | (345,422 | ) | | | (379,433 | ) Retained earnings | | | 4,398,655 | | | | 3,437,060 | Total stockholders' equity | | | 9,301,803 | | | | 8,450,429 | Total liabilities and equity | | $ | 41,844,483 | | | $ | 34,250,898 | TD SYNNEX CorporationConsolidated Statements of Operations(Currency and share amounts in thousands, except per share amounts)(Amounts may not add or compute due to rounding)(Unaudited) | | | | | | Three Months Ended | | Nine Months Ended | | August 31, 2026 | | August 31, 2025 | | August 31, 2026 | | August 31, 2025 Revenue | | $ | 21,558,406 | | | $ | 15,650,924 | | | $ | 58,294,417 | | | $ | 45,128,946 | Cost of revenue | | | (20,132,992 | ) | | | (14,521,071 | ) | | | (54,277,396 | ) | | | (41,954,714 | ) Gross profit | | | 1,425,414 | | | | 1,129,853 | | | | 4,017,021 | | | | 3,174,232 | Selling, general and administrative expenses | | | (782,535 | ) | | | (746,196 | ) | | | (2,365,420 | ) | | | (2,157,977 | ) Operating income | | | 642,879 | | | | 383,657 | | | | 1,651,601 | | | | 1,016,255 | Interest expense and finance charges, net | | | (120,518 | ) | | | (91,188 | ) | | | (304,893 | ) | | | (269,050 | ) Other income (expense), net | | | 32,889 | | | | 792 | | | | 60,883 | | | | (983 | ) Income before income taxes | | | 555,250 | | | | 293,261 | | | | 1,407,591 | | | | 746,222 | Provision for income taxes | | | (139,010 | ) | | | (66,466 | ) | | | (330,348 | ) | | | (166,969 | ) Net income | | $ | 416,240 | | | $ | 226,795 | | | $ | 1,077,243 | | | $ | 579,253 | Earnings per common share: | | | | | | | | Basic | | $ | 5.20 | | | $ | 2.76 | | | $ | 13.41 | | | $ | 6.95 | Diluted | | $ | 5.18 | | | $ | 2.74 | | | $ | 13.37 | | | $ | 6.92 | Weighted-average common shares outstanding: | | | | | | | | Basic | | | 79,213 | | | | 81,561 | | | | 79,570 | | | | 82,593 | Diluted | | | 79,413 | | | | 81,901 | | | | 79,777 | | | | 82,928 | TD SYNNEX CorporationConsolidated Statements of Cash Flows(Currency amounts in thousands)(Amounts may not add or compute due to rounding)(Unaudited) | | | | | | Three Months Ended | | Nine Months Ended | | August 31, 2026 | | August 31, 2025 | | August 31, 2026 | | August 31, 2025 Cash flows from operating activities: | | | | | | | | Net income | | $ | 416,240 | | | $ | 226,795 | | | $ | 1,077,243 | | | $ | 579,253 | Adjustments to reconcile net income to net cash (used in) provided by operating activities: | | | | | | | | Depreciation and amortization | | | 106,242 | | | | 105,836 | | | | 316,196 | | | | 309,141 | Share-based compensation | | | 16,251 | | | | 12,427 | | | | 57,771 | | | | 46,238 | Provision for common stock warrants | | | 14,502 | | | | — | | | | 14,502 | | | | — | Provision for doubtful accounts | | | 9,363 | | | | 10,765 | | | | 32,556 | | | | 21,707 | Gains on investments | | | — | | | | — | | | | (33,107 | ) | | | — | Other | | | 156 | | | | (2,237 | ) | | | 354 | | | | 3,715 | Changes in operating assets and liabilities, net of acquisition of businesses: | | | | | | | | Accounts receivable, net | | | (1,992,906 | ) | | | (726,435 | ) | | | (3,276,790 | ) | | | (266,185 | ) Receivables from vendors, net | | | (80,913 | ) | | | 150,350 | | | | 58,330 | | | | 143,309 | Inventories | | | (1,419,742 | ) | | | (439,862 | ) | | | (5,783,606 | ) | | | (654,499 | ) Accounts payable | | | 1,309,585 | | | | 1,005,984 | | | | 4,797,793 | | | | 135,837 | Other operating assets and liabilities | | | 704,505 | | | | (97,482 | ) | | | 660,564 | | | | (247,190 | ) Net cash (used in) provided by operating activities | | | (916,717 | ) | | | 246,141 | | | | (2,078,194 | ) | | | 71,326 | Cash flows from investing activities: | | | | | | | | Purchases of property and equipment | | | (58,884 | ) | | | ...