TD SYNNEX said Thursday it is reshaping its business around data center infrastructure, digital self-service, and targeted regional expansion as it looks to grow beyond traditional technology distribution.
Executives used the company’s fiscal fourth-quarter earnings call to outline how those priorities are driving results and setting up fiscal 2026, pointing to strong demand from hyperscale cloud customers, growing use of digital tools by partners and continued market share gains outside North America.
“Our performance is a direct outcome of executing on the strategy we outlined at Investor Day,” CEO Patrick Zammit said on the call and based on a transcript from SeekingAlpha. “As we enter 2026, we are sharpening execution around four focus areas that will define what we want to be known for.”
The strategy played out in the company’s results.
For the quarter ending Nov. 30, TD SYNNEX reported revenue of $17.38 billion, up from $15.85 billion a year earlier, an increase of 9.7%. Profits rose to $248.4 million from $194.8 million, a gain of 27.5%.
For the full fiscal year, revenue increased to $62.51 billion from $58.45 billion in fiscal 2024, up 6.9%. Full-year profit rose to $827.7 million from $689.1 million, an increase of 20.1%.
Zammit said the fourth quarter capped “another set of record results” and reflected progress across both the company’s core distribution business and newer growth engines.
A central pillar of TD SYNNEX’s strategy is Hyve, its business focused on designing, assembling, and deploying customized data center systems for large cloud and technology companies.
Hyve differs from traditional distribution by working directly with hyperscale customers to build complete rack-level systems that integrate servers, storage, and networking equipment, often tailored to specific workloads such as artificial intelligence.
“We continue to experience sizable growth benefiting from broad-based demand for cloud data center infrastructure across our hyperscaler customers,” Zammit said.
He said customers are increasingly relying on Hyve for operational capabilities rather than just procurement.
“Our customers are turning to us for our production flexibility, favorable U.S. footprint, ability to co-develop complex solutions and secure supply chain,” Zammit said. “These differentiators position us to continue to be a trusted partner in the assembly and deployment of complete rack-level systems.”
Zammit said TD SYNNEX is investing in Hyve’s engineering, leadership and production capacity and is actively bidding on additional programs.
“We are very active in bidding on new programs with our existing customers and potential new customers,” he said. “We are making very good progress on winning some new programs.”
Alongside Hyve, TD SYNNEX is investing heavily in digital tools aimed at reducing friction for reseller partners and customers.
Zammit said the company’s PartnerFirst platform is designed to combine self-service capabilities with traditional relationship-based support.
“Through disciplined investments in our PartnerFirst digital portal, we’ve built a frictionless interface that meets customers wherever they transact and simplifies the experience end-to-end,” he said.
During the quarter, the company added an AI-based assistant that allows customers to complete transactions around the clock.
“In Q4, we enhanced our PartnerFirst digital bridge functionality with a new AI assistant that enables customers to transact in a self-service mode 24/7 in their working environment,” Zammit said.
He said customers have told the company the tool “has saved employees in sales and product procurement operations multiple hours per day.”
TD SYNNEX is also emphasizing specialized expertise in areas such as security and cloud to deepen relationships and expand into new customer segments.
“Our collection of specialist approach combines deep technical expertise with a deep understanding of our customers’ go-to-market strategy and needs,” Zammit said. “This dual competency accelerates technology adoption and positions us as a growth catalyst.”
As an example, he pointed to a global security contract awarded during the quarter that will allow TD SYNNEX to expand into large enterprise customers and new geographies.
“We were chosen due to our global presence and deep security specialization,” Zammit said, adding that the deal is expected to lead to broader engagement over time.
Regionally, TD SYNNEX is directing investment toward areas where it believes it can grow faster than the overall market.
In Asia-Pacific and Japan, where quarterly sales rose 24.7% to $1.38 billion, Zammit said the company is still underpenetrated.
“Our share in the region is relatively low, so we are investing significantly in the region to gain share and grow our market,” he said, citing fast-digitizing economies such as India.
In Europe, where quarterly sales increased 18.1% to $6.49 billion, Zammit said the company is outperforming by focusing on specific technologies and customer segments despite a slower economic backdrop.
“We continue to gain significant share in the region,” he said. “We have a strategy which is very well executed.”
Executives acknowledged rising component prices, particularly memory, but said they have not yet seen a meaningful impact on demand.
“I can confirm that the memory prices have increased dramatically,” Zammit said. “What we are seeing already is an increase in average selling price on a series of product families, especially PCs, servers, storage.”
Asked whether higher prices have reduced demand, he said, “Specifically, I haven’t seen it.”
TD SYNNEX said it generated $1.5 billion in cash from operations during the fourth quarter and reported $1.4 billion in free cash flow. The company returned $209 million to shareholders during the quarter through share repurchases and dividends and approved a quarterly dividend of 48 cents per share payable Jan. 30.
Looking ahead, TD SYNNEX forecasts first-quarter fiscal 2026 revenue of $15.1 billion to $15.9 billion, reflecting expectations for continued demand across its global technology portfolio.
“We remain committed to profitable growth and free cash flow generation,” Zammit said. “Our strategy is designed to ensure that every step forward strengthens our business and supports greater long-term value creation.”
