TD SYNNEX (NYSE: SNX) reported a significant increase in its fiscal third-quarter 2026 results, showcasing a 40% year-over-year rise in non-GAAP gross billings to $31.8 billion. The growth was fueled by strong performance in its Distribution and Hyve sectors, driven particularly by demand for data center infrastructure and AI-related implementations. Non-GAAP operating income surged 55% to $736 million, while diluted earnings per share climbed 59% to $5.68.
The company noted that Distribution gross billings grew 27% to $24.8 billion, while Hyve’s gross billings soared 117% to $7 billion. Despite significant investments in working capital for customer ramps affecting short-term cash flow, CEO Patrick Zammit emphasized the commitment to supporting future growth. The company anticipates non-GAAP gross billings of approximately $31.9 billion for the fiscal fourth quarter, projecting a 31% year-over-year growth at the midpoint.
Free cash flow consumption reached about $1 billion during the quarter, attributed to increased inventory in Hyve’s supply chain. Net working capital stood at $6.5 billion, and TD SYNNEX ended the quarter with $749 million in cash. The company also announced a quarterly cash dividend of $0.48 per common share, payable on October 30, 2026, to shareholders of record as of October 16, 2026.
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