TD SYNNEX Q3 2026: Record Revenue Meets a Cash Flow Warning

TD SYNNEX posted adjusted EPS of $5.68 for fiscal Q3 2026, beating expectations for the fifth straight quarter, with revenue of $21.56 billion clearing estimates on strength in both its Distribution and Hyve Solutions segments.

Working capital investment swung operating cash flow to a $916.7 million outflow in the quarter, a reversal that is giving investors pause even as top line and bottom line results beat estimates. GAAP net income nearly doubled to $416.24 million from $226.79 million a year earlier, so the underlying profitability is real, but funding rapid growth has a cost.

CEO Patrick Zammit attributed the quarter's strength to accelerating enterprise AI adoption moving toward broader production deployments and intensifying data center modernization spending. Non-GAAP gross billings reached $31.83 billion, up 40% year over year, suggesting demand across the company's vendor and customer ecosystem is broadening beyond a handful of hyperscaler relationships.

For fiscal Q4 2026, TD SYNNEX guided revenue of $21.8 billion to $22.6 billion and non-GAAP diluted EPS of $5.65 to $6.15, an outlook that signals management expects the AI-driven demand environment to hold. The company also declared a quarterly dividend of $0.48 per share, up 9% year over year, and repurchased approximately $100 million of stock during the quarter.

The key variable to watch going forward is whether the working capital drag proves temporary, a byproduct of rapid inventory build to meet surging AI infrastructure orders, or a structural feature of the business at this scale and growth rate. A return to positive operating cash flow in Q4 would go a long way toward reassuring investors that the record revenue is translating into durable financial strength.