TD SYNNEX (SNX) investor relations material

Executive summary

• Achieved record Q2 FY26 results with revenue of $19.6B, up 31% year-over-year, and non-GAAP gross billings of $28.9B, up 33.4%, driven by strong performance in both Distribution and Hyve Solutions, and broad-based strength across all regions and technologies.

• Non-GAAP diluted EPS rose 62% year-over-year to $4.85, and GAAP EPS was $4.15, reflecting profitable growth and disciplined capital allocation.

• Returned $151M to shareholders via $112M in share repurchases and $39M in dividends; quarterly dividend of $0.48 per share declared, a 9% increase year-over-year, payable July 31, 2026.

• Strategic wins include being named one of two global HP distribution partners and securing programs with all top five U.S. hyperscalers, with ongoing expansion of Hyve manufacturing capacity by over one million sq ft.

• Issued an equity warrant to Amazon, structured to grow in value as joint programs expand.

Financial highlights

• Revenue: $19.6B, up 31% year-over-year; non-GAAP gross billings: $28.9B, up 33%; gross profit: $1.34B, up 28%.

• Non-GAAP operating income: $615M, up 49%; GAAP operating income: $519M, up 58%; non-GAAP net income: $390M; GAAP net income: $334M, up 81%.

• Non-GAAP EPS: $4.85, up 62%; GAAP EPS: $4.15; non-GAAP operating margin: 3.14%, up 37 bps; GAAP operating margin: 2.65%, up 45 bps.

• Free cash flow for Q2 was $(332M), reflecting working capital investments to support Hyve growth; TTM free cash flow was $1.2B.

• Ended Q2 with $1.1B in cash and net leverage at 1.6x.

Outlook and guidance

• Q3 FY26 guidance: non-GAAP gross billings of ~$27.7B (±$500M), revenue of ~$18.6B (±$400M), non-GAAP net income of ~$361M (±$20M), and non-GAAP EPS of ~$4.50 (±$0.25), up ~26% YoY at midpoint.

• Guidance assumes no material contribution from newly onboarded Hyve customers, with ramp expected late FY26 or early FY27.

• Sufficient liquidity and credit facilities are in place to support operations and planned capital expenditures for at least the next twelve months.

• Cautious outlook on component availability, especially memory and CPUs, factored into guidance.