Why This Matters to Distributors: TD SYNNEX’s third-quarter results show how rapidly spending on artificial intelligence and data center infrastructure is moving through the technology distribution channel. Sales increased 38%, while the company said customers are moving AI projects toward broader deployment and continuing to modernize data centers.
TD SYNNEX reported a sharp increase in third-quarter sales and earnings Thursday, as demand for artificial intelligence, data center infrastructure and other technology helped drive growth across its distribution and manufacturing operations.
The global technology distributor reported sales of $21.56 billion for its fiscal third quarter ended Aug. 31, up 37.7% from $15.65 billion a year earlier. Net income rose 83.5% to $416.2 million from $226.8 million. The results represent a significant acceleration from a year ago. In its fiscal 2025 third quarter, TD SYNNEX reported sales growth of 6.6%.
Through the first nine months of fiscal 2026, sales reached $58.29 billion, up 29.2% from $45.13 billion during the same period last year. Net income totaled $1.08 billion, an increase of 86% from $579.3 million. TD SYNNEX, based in Clearwater, Florida, and Fremont, California, distributes information technology hardware, software, and systems. Its Hyve Solutions business designs and manufactures computing and infrastructure systems for technology companies. TD SYNNEX says it serves more than 150,000 customers in more than 100 countries.
CEO Patrick Zammit said both the Distribution and Hyve businesses exceeded the company’s expectations during the quarter. He pointed specifically to increasing corporate adoption of AI and continued investment in data centers.
“Enterprise AI adoption is progressing toward broader production deployments,” Zammit said. He said data center modernization also remains a priority as companies prepare for new infrastructure requirements and respond to additional security, governance and compliance needs created by AI.
The company’s results suggest that those investments are producing substantial business for technology distributors. TD SYNNEX’s third-quarter gross profit increased 26.2% to $1.43 billion from $1.13 billion a year earlier. Operating income increased 67.6% to $642.9 million from $383.7 million.
TD SYNNEX expects growth to continue into its fiscal fourth quarter. The company forecast sales of $21.8 billion to $22.6 billion, compared with $16.58 billion in the fourth quarter of fiscal 2025. At the midpoint of the company’s forecast, fourth-quarter sales would be about $22.2 billion.
TD SYNNEX expects fourth-quarter net income of $368 million to $408 million.
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