01—Abstract
Summary
Summary of the 10-Q filed October 1, 2026. Cited figures are marked; the original filing is the authoritative source.
TD SYNNEX Corporation's quarterly report for the period ended August 31, 2026 shows strong top-line growth.
Revenue for the three months rose to $21.56 billiona from $15.65 billion, and for the nine months to $58.29 billion from $45.13 billion. Growth was driven by Advanced Solutions and Endpoint Solutions distribution portfolios and by Hyve Solutions. Net income was $416.2 million for the quarter versus $226.8 million a year earlier, and $1.08 billion for the nine months versus $579.3 million.
Diluted EPS was $5.18b for the quarter versus $2.74, and $13.37 for the nine months versus $6.92. Gross margin declined to 6.61% from 7.22% in the quarter, primarily due to product mix in Hyve Solutions and Advanced Solutions. The balance sheet and cash flow reflect heavy working capital investment.
Inventories rose to $15.29 billionc from $9.50 billion at November 30, 2025, and accounts receivable rose to $14.95 billion from $11.71 billion. Net cash used in operating activities was $2.08 billion for the nine months, compared with $71.3 million provided a year earlier. The cash conversion cycle lengthened to 31 days from 16 days at November 30, 2025.
Cash and cash equivalents fell to $749.3 milliond from $2.44 billion. Total borrowings were approximately $5.5 billion, with $1.5 billion drawn under the U.S. AR Arrangement, and the company repaid $700.0 million of senior notes at maturity in August 2026. Subsequent to quarter end, the company amended its U.S. accounts receivable securitization arrangement on September 25, 2026, increasing maximum borrowing capacity to $3.0 billion and extending maturity to September 25, 2028.
The Board declared a quarterly dividend of $0.48 per share payable October 30, 2026. The company had $0.9 billion remaining under its $2.0 billion share repurchase program as of August 31, 2026. In May 2026 it issued a warrant to Amazon.com NV Investment Holdings LLC for up to 3,238,066 shares, which resulted in a non-cash reduction of revenue of $14.5 million in the quarter.
02—Key points
Key Highlights
- Revenue of $21.56 billion for the quarter ended August 31, 2026, up from $15.65 billion a year earlier; nine-month revenue of $58.29 billion versus $45.13 billion.
- Net income of $416.2 million for the quarter versus $226.8 million; diluted EPS of $5.18 versus $2.74. Non-GAAP diluted EPS was $5.68 versus $3.58.
- Gross margin fell to 6.61% from 7.22% in the quarter, mainly due to product mix in Hyve Solutions and Advanced Solutions.
- Operating cash flow was negative $2.08 billion for the nine months, driven by a $5.78 billion increase in inventories and a $3.28 billion increase in accounts receivable.
- Inventories rose to $15.29 billion from $9.50 billion at November 30, 2025; the cash conversion cycle lengthened to 31 days from 16 days.
- Cash and cash equivalents declined to $749.3 million from $2.44 billion, while net short-term borrowings increased by $1.3 billion to fund working capital.
- After quarter end, the U.S. AR Arrangement was amended to a $3.0 billion capacity and a maturity of September 25, 2028, and a $0.48 quarterly dividend was declared.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, TD Synnex kept $0.02.
- Revenue$21.56B100.0%
- Cost of revenue−$20.13B93.4%
- Gross profit$1.43B6.6%
- Operating costs−$782.5M3.6%
- Operating income$642.9M3.0%
- Interest, other & tax−$226.6M1.1%
- Net income$416.2M1.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 1, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $21.56B$15.65B | +37.7% |
| Cost of Revenue | $20.13B$14.52B | +38.6% |
| Gross Profit | $1.43B$1.13B | +26.2% |
| SG&A Expenses | $782.53M$746.20M | +4.9% |
| Operating Income | $642.88M$383.66M | +67.6% |
| Net Income | $416.24M$226.79M | +83.5% |
| EPS (Basic) | $5.20$2.76 | +88.4% |
| EPS (Diluted) | $5.18$2.74 | +89.1% |
| Shares Outstanding (Basic) | 79.21M81.56M | −2.9% |
| Shares Outstanding (Diluted) | 79.41M81.90M | −3.0% |
05—Questions
Frequently Asked Questions
How did revenue and profitability perform this quarter?
Revenue rose 37.7% to $21.56 billion for the three months ended August 31, 2026, and net income rose to $416.2 million from $226.8 million. Operating income increased to $642.9 million from $383.7 million. Gross margin contracted to 6.61% from 7.22%, though SG&A as a percentage of gross profit improved to 54.9% from 66.0%.
Why was operating cash flow negative, and how is the company funding working capital?
Net cash used in operating activities was $2.08 billion for the nine months, primarily from a $5.78 billion increase in inventories, largely to support Hyve Solutions, and a $3.28 billion increase in accounts receivable. This was partly offset by a $4.80 billion increase in accounts payable. The company funded the gap through $1.64 billion in net revolving credit borrowings and receivables securitization, and total borrowings reached approximately $5.5 billion.
What are the company's main debt maturities and financing changes?
The company repaid a $700.0 million senior note at maturity in August 2026. The 2024 Term Loan of $750.0 million matures September 1, 2027. The U.S. AR Arrangement was amended on September 25, 2026 to increase capacity to $3.0 billion and extend maturity to September 25, 2028. The $3.5 billion TD SYNNEX Revolving Credit Facility had no amounts outstanding at August 31, 2026.
What is the status of shareholder returns?
The company repurchased 1.5 million shares for $292.4 million in the nine months ended August 31, 2026, and had $0.9 billion available under its $2.0 billion repurchase program. Cash dividends declared were $0.48 per share for the quarter, and a $0.48 dividend was declared on September 24, 2026, payable October 30, 2026.
What was the effect of the Amazon warrant on the financial statements?
The company issued a warrant to Amazon.com NV Investment Holdings LLC in May 2026 for up to 3,238,066 shares. It vested 215,871 shares immediately at $0.01 per share, with the remaining 3,022,195 shares vesting on qualifying purchases at $191.10 per share. The company recorded $14.5 million as a reduction of revenue in the three and nine months ended August 31, 2026, with a corresponding increase to additional paid-in capital.
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