TD SYNNEX Guides Q3 EPS to $4.25-$4.75, Revenues to $18.2B-$19.0B
TD SYNNEX projects fiscal Q3 earnings per share between $4.25 and $4.75 and revenues between $18.2 billion and $19 billion, driven by AI infrastructure demand.
Key points
- TD SYNNEX expects Q3 fiscal 2026 non-GAAP EPS of $4.25-$4.75, up 29.6% year-over-year from the prior quarter's reported figure.
- Revenue is guided at $18.2 billion to $19.0 billion, reflecting approximately 20% growth driven by AI infrastructure and enterprise IT demand.
- Hyve Solutions growth from hyperscaler programs is a key driver, though it may weigh on gross margins and elevate working-capital needs.
TD SYNNEX Corporation is set to release its third-quarter fiscal 2026 financial results on September 24, ahead of market open. The company has outlined an expected non-GAAP earnings per share range of $4.25 to $4.75, with a consensus estimate of $4.64 representing a 29.6% increase over the prior-year period. This guidance follows a track record of beating consensus estimates in each of the last four quarters, with an average surprise magnitude of 21.7%.
Revenue projections for the quarter stand between $18.2 billion and $19.0 billion, centering on a consensus figure of $18.8 billion. This implies approximately 20% growth compared to the same quarter in the previous year. According to data cited by Yahoo Finance, the company’s performance is underpinned by sustained demand for artificial intelligence infrastructure, enterprise IT modernization, and advanced technology solutions across its distribution and manufacturing segments.
Hyve Drives AI Infrastructure Growth
The Hyve Solutions division is positioned as a primary growth engine, benefiting from higher manufacturing volumes and expanded supply-chain services tied to hyperscaler programs. TD SYNNEX has secured engagements with the top five U.S.-based hyperscalers, with additional initiatives expected to ramp up in late 2026. This expansion supports the company’s role in building and servicing large-scale AI and cloud infrastructure deployments.
Distribution Benefits From Vendor Expansion
The distribution business is leveraging broad-based IT spending in networking, cloud, and cybersecurity sectors. Recent strategic moves include becoming a global distribution partner for Hewlett Packard Enterprise and expanding its footprint with IBM and Fortinet. These partnerships aim to deepen regional presence and drive partner-led growth through expanded vendor portfolios and AI-related platform offerings.
Margin Pressures From Operating Scale
While Hyve’s contribution supports revenue growth, it may exert downward pressure on consolidated gross margins due to business mix changes. Working-capital requirements are expected to remain elevated as the company scales manufacturing and supply-chain operations. Management has also noted that tariffs, component availability, and pricing adjustments, particularly in memory and CPU sectors, introduce uncertainty into cost structures and demand forecasts.
