TD SYNNEX (SNX) investor relations material

Executive summary

• Achieved record Q3 2026 results with revenue of $21.6 billion, up 37.7% year-over-year, and non-GAAP gross billings of $31.8 billion, up 40%, exceeding guidance and driven by strong performance in both Distribution and Hyve Solutions, especially from enterprise AI and data center modernization.

• Non-GAAP diluted EPS rose 59% year-over-year to $5.68, reflecting disciplined capital allocation and profitability focus.

• Growth was broad-based across geographies, technologies, and customer segments, with notable wins in AI factory deployments and expanded vendor relationships.

• Investments in working capital, especially for Hyve, impacted near-term cash flow but are expected to support future growth and customer demand.

• Gross margin declined to 6.61% from 7.22% year-over-year, mainly due to product mix in Hyve Solutions and Advanced Solutions.

Financial highlights

• Non-GAAP gross billings reached $31.8 billion, up 40% year-over-year (41% in constant currency), exceeding guidance.

• Revenue for Q3 2026 was $21.6 billion, up 37.7% year-over-year.

• Non-GAAP operating income was $736 million, up 55% year-over-year; GAAP operating income was $643 million, up 68% year-over-year.

• Non-GAAP EPS was $5.68, up 59% year-over-year; GAAP EPS was $5.18, up 89% year-over-year.

• Returned $139 million to shareholders via $100 million in share repurchases and $38 million in dividends during the quarter.

Outlook and guidance

• Q4 2026 non-GAAP gross billings expected at $31.9 billion (±$500 million), up 31% year-over-year at midpoint; revenue expected between $21.8–$22.6 billion.

• Q4 non-GAAP net income projected at $474 million (±$20 million); non-GAAP EPS of $5.90 (±$0.25), up 54% at midpoint.

• Hyve's gross billings expected to increase sequentially as new programs ramp; cash generation anticipated as working capital normalizes.

• Quarterly dividend of $0.48 per share declared, payable October 30, 2026.

• Management expects continued growth driven by demand for Advanced Solutions, Endpoint Solutions, and Hyve Solutions, but notes ongoing macroeconomic uncertainty, inflation, and geopolitical risks.