TD SYNNEX (SNX) investor relations material

Executive summary

• Achieved record Q3 2026 results with non-GAAP gross billings of $31.8 billion, up 40% year-over-year, and revenue of $21.6 billion, driven by strong demand in data center infrastructure, enterprise AI adoption, and broad-based growth across geographies and segments.

• Both Distribution and Hyve segments outperformed expectations, with notable wins in AI factory deployments and expanded vendor relationships.

• Operating margin expanded year-over-year, reflecting disciplined capital allocation and focus on profitability.

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

Financial highlights

• Non-GAAP gross billings reached $31.8 billion, up 40% year-over-year, exceeding guidance; revenue was $21.6 billion, up 38%.

• Non-GAAP operating income was $736 million, up 55% year-over-year; non-GAAP EPS was $5.68, up 59%.

• GAAP operating income was $643 million, up 68%; GAAP EPS was $5.18, up 89%.

• Free cash flow for Q3 was negative $975.6 million, mainly due to increased inventory and working capital investments in Hyve.

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

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.