TD SYNNEX posts 38% revenue growth and stronger margins

TD SYNNEX ($SNX) reported fiscal third-quarter revenue of $21.6 billion, up 37.7%, exceeding the top of its outlook. Operating income climbed to $643 million, while adjusted operating income reached $736 million. Adjusted earnings rose 58.7% to $5.68 per share, also above guidance, as both its distribution business and Hyve infrastructure operations performed better than management expected.

The adjusted operating margin widened to 3.42% from 3.03%, indicating improved profitability as well as higher sales. Management linked demand to enterprise AI adoption and data-center modernization. The company returned approximately $139 million through buybacks and dividends and declared a quarterly dividend of $0.48 per share, up 9% year over year. Its separate $31.8 billion gross-billings measure should not be confused with reported revenue.

Sources:

• TD SYNNEX — quarterly results, Business Wire reprint