TD SYNNEX (SNX) investor relations material

Executive summary

• Achieved record Q2 FY26 results with non-GAAP gross billings of $28.9B, up 33% year-over-year, and revenue of $19.6B, up 31%, driven by strong performance in both Distribution and Hyve Solutions, and fueled by AI-related demand.

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

• Hyve delivered 117% year-over-year growth, supported by new and expanded programs with top U.S. hyperscalers and ongoing investments in manufacturing capacity.

• Strategic wins include being named one of two global HP distribution partners and expanding U.S. Hyve Solutions facilities by over one million square feet.

• Returned $151M to shareholders in Q2 via $112M in share repurchases and $39M in dividends; announced a quarterly dividend of $0.48 per share, a 9% increase year-over-year.

Financial highlights

• Non-GAAP gross billings reached $28.9B, up 33% year-over-year; revenue was $19.6B, up 31%; non-GAAP operating income was $615M, up 49%; GAAP operating income was $519M, up 58%.

• Non-GAAP EPS was $4.85, up 62% year-over-year; GAAP EPS was $4.15, up 88%.

• Distribution non-GAAP gross billings were $23.4B (+22% YoY); Hyve non-GAAP gross billings were $5.5B (+117% YoY).

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

• Ended Q2 with $1.1B in cash and a net leverage ratio of 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.

• Non-GAAP gross billings forecasted at $27.2B–$28.2B; revenue expected between $18.2B and $19.0B; non-GAAP net income guidance: $341M–$381M; non-GAAP diluted EPS: $4.25–$4.75.

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

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

• Quarterly dividend of $0.48 per share payable July 31, 2026.