TD Synnex reported record revenue in its fiscal Q1 2026, propelled by continued demand and successful artificial intelligence (AI) integration.

The IT distributor said revenue reached $17.2 billion in the quarter ended Feb. 28, an 18% increase over the same period in the previous year. That result significantly outpaced projects, the company said.

Net income increased 95% to $327 million from $168 million over the same period. 

“Our results reflect strong performance across both our distribution and Hyve businesses, as well as the continued alignment between our strategy and the needs of our partners,” CEO Patrick Zammit said in a statement. “Together, this reinforces the strength of our operating model and our ability to create long-term value for shareholders.”

TD SYNNEX Q1 results by category

The distribution section of the business grew by 17% to $22 billion, TD Synnex told investors in a call on March 31. 

The distribution category consists of IT hardware, software, and systems. 

The Endpoint Solutions category grew 14% year over year, due largely to continued demand for premium devices, and Advanced Solutions grew 19%, the company said.

Hyve, the data center division, had the most pronounced growth of the period. Billings increased 95% year over year to $3.8 billion, primarily driven by growth in both manufacturing and supply chain services. Within Hyve, manufacturing and assembly revenue increased by 70%, and supply chain services grew more than 100% due to increased demand for AI infrastructure support, TD Synnex reported.

TD Synnex uses AI to continue growing

The distributor noted the importance of AI in its continued growth during the quarter. 

“By embedding predictive AI directly into our onboarding and go-to-market motions, we are meaningfully increasing the number of customers onboarding new vendor portfolios each quarter,” Zammit told investors.

He also mentioned benefits from agentic AI assistants that can now support customers and have enabled a greater ability to scale. This is part of a plan Zammit detailed in 2025 to continue investing in AI.

TD Synnex outlook for Q2

The company anticipates continued growth in Q2, chief financial officer David Jordan said. Revenue is expected at $16.1 billion to $16.9 billion, approximately a 16% year-over-year increase. 

TD Synnex did not provide specific guidance beyond Q2.

“Given the broader macro environment, we are cautiously optimistic for the second half, but we do believe both businesses will grow,” Jordan said of the distribution and Hyve areas of the company. 

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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