TD SYNNEX Reports 18.1% Revenue Growth to $17.16 Billion in Latest Quarter

TD SYNNEX Corporation reported significant financial growth in its latest quarterly results, with revenue reaching $17.16 billion for the three months ended February 28, 2026, an increase of 18.1% compared to $14.53 billion in the same period last year. The company's gross profit also rose to $1.25 billion, up 25.5% from $998 million, resulting in a gross margin of 7.3%, compared to 6.87% in the prior year. Operating income surged by 60.7% to $489.36 million, while net income more than doubled to $326.92 million, translating to diluted earnings per share of $4.04, up from $1.98.

The company experienced notable changes in its operational metrics, with total current assets increasing to $26.11 billion from $25.29 billion, driven by a rise in accounts receivable and inventory levels. Current liabilities also grew, reaching $21.44 billion, up from $20.96 billion, primarily due to increased accounts payable. The company’s cash and cash equivalents decreased to $1.56 billion from $2.44 billion, reflecting higher operational cash outflows, particularly in inventory and accounts receivable, which were necessary to support the growth in sales.

Strategically, TD SYNNEX has been focusing on expanding its market presence through acquisitions and enhancing its service offerings. The company revised its reportable segments to better align with its operational structure, now comprising three geographic distribution segments (Americas, Europe, and Asia-Pacific and Japan) and a fourth segment for Hyve Solutions. This restructuring aims to improve resource allocation and performance assessment. The company also reported a 24.2% increase in revenue from its Hyve Solutions segment, which focuses on manufacturing and assembly services.

Operationally, TD SYNNEX reported a cash conversion cycle of 23 days, an increase from 16 days at the end of the previous quarter, primarily due to higher inventory levels. The company’s days sales outstanding (DSO) increased to 63 days, while days payable outstanding (DPO) rose to 102 days, indicating a strategic effort to manage working capital effectively. The company’s employee headcount remained stable, supporting its operational needs as it navigates the complexities of the IT distribution landscape.

Looking ahead, TD SYNNEX anticipates continued growth driven by demand for IT products and services, particularly in cloud computing and digital transformation. The company remains committed to leveraging its extensive distribution network and enhancing its service capabilities to meet evolving customer needs. Management expressed confidence in the company’s ability to sustain its growth trajectory, supported by strong cash flows and available credit facilities, while also maintaining a focus on strategic acquisitions to further bolster its market position.