TD SYNNEX Cash Burn Hits Nearly Billion, Stock Tumbles Despite Record Quarter

TD SYNNEX has quietly outpaced Nvidia's returns in 2026, despite its stock taking a hit after a record-breaking quarter. The company posted its best quarter ever before the open on Sept. 24, 2026, with a 20.8% earnings beat.

The key segments, distribution and Hyve Solutions, blew past expectations. Distribution grew double digits across every region, while Hyve gross billings jumped 117% year over year to $7 billion, with manufacturing growing more than 130%. Networking rose 19% year over year, and AI PCs represented close to 50% of total PC revenue.

However, the company's free cash flow came in at negative $975.6 million, driven by working capital tied up financing AI hardware for Hyve customers. This billion-dollar cash burn in a single quarter is why the stock got hit, especially with AI capex under a microscope.