TD SYNNEX Reports Strong Q3 Earnings Amid High Growth in AI and Data Center Segments
TD SYNNEX (SNX) reported record non-GAAP gross billings of $31.8 billion for the third quarter, a 40% year-over-year increase driven by strong demand in data center infrastructure and high-growth segments like AI-related technologies. Non-GAAP earnings per share reached $5.68, surpassing guidance and growing 59% compared to last year. The Hyve segment saw particularly robust performance with gross billings of $7 billion, up 117%, fueled by manufacturing growth exceeding 130%. Despite this success, the company consumed $1 billion in free cash flow due to inventory investments for new customer programs and AI infrastructure ramps. The firm also expanded its global partnerships, including extending an agreement with IBM into 20 additional countries and supporting a large-scale NVIDIA AI factory deployment. Management expects continued growth in Q4, forecasting gross billings of approximately $31.9 billion at the midpoint range. However, CFO David Jordan noted that operating margins were impacted by dilutive AI rack programs within Hyve, which affected year-over-year profitability comparisons.
Topics: AI_technology data_center_infrastructure finance technology