The world’s largest IT distributor maintained its double-digit growth run in Q3 amid surging sales of software and at its ‘Hyve’ hyperscaler infrastructure arm.
TD Synnex trumped expectations in the three months to 31 August 2025 as its top line – namely non-GAAP gross billings – vaulted 12% year on year to $22.7bn.
That matches the 12% top-line increase it registered in the previous quarter.
“If you look at what is driving the overperformance, so if I think about distribution, it’s PCs, it’s software, it’s cybersecurity, it’s compute,” TD Synnex CEO Patrick Zammit said on an earnings call (a transcript of which can be found here).
“We believe that that dynamic will continue into Q4.”
New highs for Hyve
Without Hyve – which Zammit characterised in a recent interview with IT Channel Oxygen as TD Synnex’s “best-kept secret” – gross billings rose by 9%.
Hyve’s gross billings grew in the “mid 30s” during the quarter, fuelled by “continued strength in hyperscaler investments in cloud infrastructure”.
Software gross billings pogoed 26%, meanwhile.
Bolstered by Windows 11 refresh ahead of Windows 10’s 14 October end-of-life date, as well a higher mix of AI PCs, PC sales swelled by double digits for a third consecutive quarter.
“We believe that we are in the mid- to late innings of the refresh cycle,” Zammit said.
On a regional basis, European gross billings hiked 14.9% to $6.9bn (the increase stood at 8.4% in constant currencies), while the Americas’ tally rose 9% to $13.2bn.
TD Synnex hit “new records” during the quarter when it came to both non-GAAP gross billings and diluted earnings per share, Zammit pointed out.
Revenue for the quarter rose by 6.6% to $15.7bn, above the high end of its outlook.
That makes it a smidgeon larger than arch-foe Ingram Micro, which reported revenue of $12.8bn in its latest quarter.
Looking ahead, TD Synnex said it expects Q4 gross billings to fall between $23bn and $24bn, representing an 11% increase at the midpoint.
“Our performance is a clear result of our teams’ strong execution, a differentiated go-to-market strategy, and a global, end-to-end portfolio of products and services that is unrivalled,” Zammit stated.
