TD SYNNEX used negative $2.1B in operating cash during the nine months ended August 31. That is the oddest number in a filing otherwise full of growth: revenue rose 37.7% to $21.6B, while net income jumped 83.5% to $416.2M.

The business expanded quickly, and profits followed. Hyve Solutions, the company’s infrastructure-focused segment, grew revenue 43.2% in the period. Operating income rose 67.6% companywide, lifting operating margin by half a percentage point to 3.0%.

The cash did not follow the income statement. Inventory rose 67.3% to $15.3B, faster than revenue, while accounts receivable climbed 36.9% to $15.0B. TD SYNNEX also spent $158.9M on capital projects, up 52.8% from the comparable nine-month period.

Management connects the cash use directly to the expansion of Hyve. The company said:

"The increase in net cash used in operating activities was primarily due to a larger increase in inventory, primarily to support growth in our Hyve Solutions business, along with a year-over-year increase in accounts receivable due to the current year revenue growth."

10-Q, October 1, 2026

In plain English, the distributor bought and financed more of the business before that growth showed up as cash. The filing does not give a second explanation for the working-capital draw.

The margin picture is more nuanced than the headline growth. Gross margin slipped from 7.2% to 6.6%, but operating margin improved because the larger revenue base created operating leverage. TD SYNNEX said a greater share of revenue being presented on a gross basis also affected the margin comparison.

That financing has a cost. The company reported that interest expense and finance charges rose 13.3% for the nine months, partly because short-term borrowings funded working-capital requirements and because it sold more receivables. The balance sheet is not merely carrying more merchandise; it is helping fund the merchandise too.

Hyve is the strongest operating receipt in the filing. TD SYNNEX said:

"Operating income and non-GAAP operating income increased primarily due to strong revenue growth in Manufacturing as well as Supply Chain Services."

10-Q, October 1, 2026

Hyve’s nine-month operating income rose 66.8%, and its operating margin increased to 6.54% from 5.62%. That gives the cash build a clear business context, even if it does not settle how quickly the investment converts back into cash.

The company’s annual record adds some scale to the change. Revenue reached $62.5B in fiscal 2025, up 6.9%, with a 2.3% operating margin. The latest nine-month figures therefore show a much faster growth phase than the recent annual baseline, alongside a working-capital requirement that has expanded even faster.

TD SYNNEX’s next quarterly report will add the next inventory balance and operating-cash-flow figure, the two factual pieces needed to track whether this growth is still absorbing cash at the same rate. The question the company has not answered is how much of the $15.3B inventory balance will become operating cash, and when.

Source: TD SYNNEX Form 10-Q filed October 1, 2026.