$SNX · TD SYNNEX CORP

TD SYNNEX filed its 10-Q for Q3 FY2026 (ended August 31, 2026), reporting revenue of $21.56B, up 37.7% YoY, with net income nearly doubling to $416.2M ($5.18 diluted EPS) from $226.8M ($2.74) a year ago. The Hyve Solutions segment — an original design manufacturer for hyperscale and AI infrastructure — generated $3.80B in revenue and $249.4M in operating income. Gross margin compressed to 6.6% from 7.2% as the lower-margin Hyve business grew as a share of the mix.

Stock rose 5.84% in the regular session to $271.84, adding ~$15. The after-hours session is underway but no extended-hours trade is captured here. The rally suggests the market focused on the near-doubling of net income and Hyve Solutions' $249M operating income contribution rather than the margin compression.

The 89% EPS surge and Hyve Solutions' emergence as a $249M operating-income engine position TD SYNNEX as a direct beneficiary of hyperscale AI infrastructure spending, but the 6.6% gross margin and $2

TD SYNNEX's Hyve Solutions segment — an ODM for hyperscale compute and AI infrastructure — is the standout growth engine, mirroring the AI-driven capex boom seen across the IT supply chain. The 37.7% revenue surge far outpaces traditional IT distribution peers, but the 6.6% gross margin underscores

Gross margin fell to 6.6% from 7.2% as Hyve Solutions' lower-margin hyperscale manufacturing mix grows. Operating cash flow swung to a $2.08B deficit for the nine months due to a $5.78B inventory build and $3.28B increase in accounts receivable, raising working-capital risk if demand slows.