TD SYNNEX Corporation — Form 10-Q Summary
Reporting period: Quarter and nine months ended August 31, 2026; fiscal year ends November 30. Unaudited results. TD SYNNEX is a global IT distributor, solutions provider and design and contract manufacturer, with Americas, Europe and APJ distribution segments and Hyve Solutions.
Financial performance
| Metric | Three months ended Aug. 31, 2026 | Nine months ended Aug. 31, 2026 |
|---|---|---|
| Revenue | $21.56 billion; up 37.7% year over year | $58.29 billion; up 29.2% |
| Gross profit / gross margin | $1.43 billion / 6.61% (7.22% prior year) | $4.02 billion / 6.89% (7.03% prior year) |
| Operating income / margin | $642.9 million / 2.98% (2.45% prior year) | $1.65 billion / 2.83% (2.25% prior year) |
| Net income | $416.2 million (up from $226.8 million) | $1.08 billion (up from $579.3 million) |
| Diluted EPS | $5.18 (up from $2.74) | $13.37 (up from $6.92) |
| Operating cash flow | Nine-month cash used: $2.08 billion, versus $71.3 million provided in the prior-year period |
Revenue increased across all segments. Hyve Solutions revenue grew 51.7% in the quarter and 43.2% year to date; its operating income rose 54.5% and 66.8%, respectively. Europe distribution operating income increased 236.7% in the quarter and 119.2% year to date. Consolidated non-GAAP operating margin was 3.42% for the quarter and 3.33% year to date, versus 3.03% and 2.85%. Non-GAAP diluted EPS was $5.68 and $15.25, respectively; these are company-defined non-GAAP measures and exclude specified items.
Liquidity, debt and cash flow
- Cash was $749.3 million at August 31, 2026, down from $2.44 billion at November 30, 2025. Total borrowings were approximately $5.52 billion, versus $4.61 billion; current borrowings were $1.93 billion and long-term borrowings $3.60 billion.
- Operating cash outflow reflected higher working-capital investment: accounts receivable rose to $14.95 billion from $11.71 billion and inventory to $15.29 billion from $9.50 billion. Accounts payable increased to $22.44 billion from $17.62 billion, partly offsetting the cash use.
- Cash conversion cycle was 31 days, versus 16 days at November 30, 2025 and 23 days a year earlier. Days inventory outstanding increased to 70 from 58 year over year.
- Financing cash flow was positive $528.2 million, including $1.64 billion in net revolving-credit borrowings; the company also repaid $700 million of notes at maturity. Interest expense and finance charges increased 32.2% for the quarter and 13.3% year to date.
- The U.S. receivables securitization had $1.5 billion outstanding at quarter-end. A September 25, 2026 amendment, after the reporting date, raised its maximum capacity to $3.0 billion and extended maturity to September 25, 2028. The separate $3.5 billion revolving credit facility had no borrowings at quarter-end. Management said available cash, operating cash flow and credit availability should cover needs for at least the next 12 months, including the $750 million term loan due September 2027.
- Supplier finance program obligations included in accounts payable were $3.5 billion, compared with $3.7 billion at November 30, 2025. Receivables sold under separate purchase programs were $2.1 billion, versus $1.8 billion.
Material changes and management commentary
- Revenue growth reflected higher Advanced Solutions and Endpoint Solutions distribution sales and Hyve Solutions growth. Management said changes in gross-versus-net revenue presentation affected reported growth: additional net presentation reduced consolidated revenue growth by approximately 2 percentage points for the quarter and 4 points year to date.
- Gross margin declined, primarily because of product mix in Hyve Solutions and Advanced Solutions. Management cited increased operating leverage as a driver of higher operating margins; higher personnel and credit costs partly offset operating income growth.
- Other income included $33.1 million of realized investment gains and $37.4 million of investment dividends during the nine-month period. Those items contributed to earnings growth and are excluded from the company’s non-GAAP measures.
- The effective tax rate was 25.04% for the quarter and 23.47% year to date, above the respective prior-year rates of 22.66% and 22.38%; management cited earnings mix by jurisdiction and discrete items.
- In May 2026, the company issued Amazon.com NV Investment Holdings LLC a warrant for up to 3.24 million shares, with vesting partly tied to qualifying customer payments. It recorded $14.5 million of revenue reductions related to the warrant through August 31. The maximum potential share issuance is material relative to shares outstanding and warrants may dilute shareholders if exercised.
Outlook, risks and contingencies
The filing provides no specific financial guidance or quantified forecast. Management described a complex macroeconomic environment, including inflation, elevated interest rates, market volatility, tariff uncertainty and geopolitical developments. Other identified exposures include IT demand and customer buying patterns, competition and margin pressure, memory-component pricing and availability amid AI-related demand, foreign exchange, customer credit risk, and dependence on major suppliers and Hyve’s cloud-infrastructure customers. Management said there had been no material changes to the risk factors in the 2025 Form 10-K.
The company reported compliance with material financial covenants. It said the French competition authority fine of €24.9 million became final in May 2026; the fine had previously been paid. A related civil case remains on appeal after a lower court ruled for the company; management considers a material loss remote. The company also disclosed customer inventory repurchase obligations that cannot be reasonably estimated, but said historical repurchases were insignificant and a material loss was considered remote. Management said other disclosed contingencies are not expected to materially adversely affect results, financial position or cash flows.
The board declared a $0.48 quarterly dividend payable October 30, 2026. The company repurchased $292.4 million of shares during the nine months and had $895.6 million remaining under its authorization at August 31. Management stated disclosure controls were effective and reported no material change in internal control over financial reporting.
Investor verification priorities
- Assess whether revenue and earnings growth are sustainable, separating underlying unit and mix trends from gross-versus-net presentation changes and investment gains and dividends.
- Monitor inventory accumulation, receivables, the 31-day cash conversion cycle and operating cash flow; determine whether Hyve growth converts into cash.
- Track debt, borrowing costs, receivables facilities and the availability and terms of supplier finance and receivables-purchase programs.
- Review gross-margin trends, particularly product mix in Hyve and Advanced Solutions, and the impact of tariffs, competition and memory pricing.
- Evaluate the Amazon warrant’s revenue effect, vesting conditions and potential dilution, as well as the ongoing appeal in the eBizcuss litigation.