TD SYNNEX opened fiscal 2026 with sturdy growth across its core distribution business and its fast-expanding Hyve data center unit, as enterprise demand for infrastructure, security and AI-related systems remained firm despite rising costs.
The technology distributor reported first-quarter revenue of $17.2 billion for the period ending Feb. 28, up 18.1% from a year earlier, with overall business volume rising 24.4% to $25.8 billion.
CEO Patrick Zammit said the performance reflected broad-based demand across regions and product categories.
“Within distribution, we delivered a strong start to the year with excellent results across all geographies and key technology categories,” Zammit said on the company’s March 31 earnings call. He cited “continued customer investment in infrastructure software and security” along with strength in PCs and infrastructure hardware.
TD SYNNEX, which connects technology vendors with resellers, service providers and enterprise customers, said its distribution business generated $22 billion in first-quarter volume, up 17% year over year. Sales of PCs and other endpoint devices rose 14%, while infrastructure, security and software products increased 19%.
Executives said the company is playing a larger role as customers navigate higher component costs, tighter supply and shifting price conditions.
By leveraging its global sourcing network and vendor relationships, TD SYNNEX is helping customers “manage supply chain constraints, navigate pricing, improve availability, reduce uncertainty and plan deployments with greater confidence,” Zammit said.
Despite rising prices across parts of the IT market, the company said it has not yet seen widespread pullback in demand.
“We haven’t seen it yet in Q1, the demand destruction,” Zammit said. “We continue to be confident for Q2.”
He added that customers place orders earlier and that backlog is increasing, providing better visibility into future demand. “Backlog is increasing. So, we are getting more visibility,” he said.
PCs remained a key growth driver, particularly in commercial markets. Zammit said TD SYNNEX continues to gain share in B2B PC sales and expects the category to remain strong.
“We are very focused on continuing growing faster than the market when it comes to PCs,” he said, adding, “I think PC should continue to be a good category for us in the coming quarters.”
He also pointed to improving demand across other infrastructure categories, including servers, storage, and networking. Demand for AI-enabled servers is increasing as customers move from testing to deployment, while networking has returned to growth after a prolonged slowdown.
Hyve, the company’s data center infrastructure and hyperscale services business, delivered the fastest growth in the quarter. The unit generated $3.8 billion in volume, up 95% from a year earlier, with operating income rising 66%.
Zammit said that growth was still largely driven by two major customers, but diversification is underway.
“The growth came from the two main customers,” he said, adding that TD SYNNEX has signed programs with two new hyperscale customers and now has “at least one program secured with each of the top 5 U.S.-based hyperscalers.”
Those new wins are focused primarily on full-rack manufacturing programs, which are typically more stable than supply chain services work. “The programs we won are full racks,” Zammit said. “So, it’s really for the manufacturing segment.”
The company is also repositioning Hyve to support a broader range of data center technologies, including general computers, accelerated computers, networking, and storage, as demand grows for AI and cloud infrastructure.
At the same time, TD SYNNEX is expanding its use of digital tools and artificial intelligence across its distribution operations. Zammit said the company is embedding predictive AI into customer onboarding and sales processes and deploying “Agentic AI assistants” to support quoting, solution configuration, and cross-selling.
Those tools are helping streamline complex transactions and shorten sales cycles, particularly in multi-vendor environments.
“We are making it easier for customers to engage with TD SYNNEX in the ways that best fit their workflows,” Zammit said, pointing to the company’s digital platform and services.
Looking ahead, TD SYNNEX expects second-quarter revenue of $16.1 billion to $16.9 billion and projected overall volume growth of about 16% at the midpoint. Still, executives signaled caution about the second half of the year.
CFO David Jordan said the company remains “cautiously optimistic for the second half,” citing uncertainty in the broader economic environment.
For now, TD SYNNEX is benefiting from two converging trends: steady enterprise demand for core IT products and accelerating investment in cloud and AI infrastructure. The results also suggest that, even with pricing pressure, customers are continuing to buy — and leaning more heavily on distributors to manage supply, pricing, and deployment complexity.
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