TD Synnex Corp

Record quarter + strong profitability growth (Distribution + Hyve) - Total non-GAAP gross billings: $28.9B, +33% YoY (or +32% constant currency), above the top end of guidance. - Non-GAAP operating income: $615M, +49% YoY. - Non-GAAP EPS: $4.85, +62% YoY, also above high end of guidance; GAAP EPS: $4.15, +88% YoY. - Distribution: non-GAAP gross billings $23.4B (+22% YoY); non-GAAP operating margin 1.9% (+19 bps YoY). Company estimates 5–10 bps of distribution gross margin benefited from strategic inventory purchases. - Hyve: non-GAAP gross billings $5.5B (+117% YoY); non-GAAP operating income $181M (+89% YoY) but margin 3.3% (-50 bps YoY) due to mix (not demand weakness).

Forward guidance: Q3 growth with Hyve ramp timing explicitly constrained - Q3 FY26 non-GAAP gross billings: ~$27.7B ± $0.5B → ~+22% YoY at midpoint. - Gross-to-net adjustment: ~33%. - Revenue (non-GAAP basis referenced): ~$18.6B ± $0.4B. - Non-GAAP net income: ~$361M ± $20M; non-GAAP diluted EPS: ~$4.50 ± $0.25 (≈ +26% at midpoint). - Key assumption / risk to watch: Q3 guidance assumes no material contribution from newly onboarded Hyve customers still expected to ramp in late FY2026 or early FY2027—so later-year execution matters.

Demand outlook: “no demand destruction,” but pricing effects are still working through - Management says they have not seen demand destruction from component cost increases; underlying demand signals remain solid across the portfolio. - PC units: company saw unit growth in Q2; expects some impact from ASP increases, with PC units most at risk vs other categories. - Pricing environment: pricing is up; inventory in channel is being shipped, so price impact becomes more visible in subsequent quarters. - Categories most affected by cost/price: storage and servers (memory-driven) and also PCs; further price increases are expected in July. - Supply constraints: not felt materially in Q2; for Q3 they factored some risk (notably memory and potentially CPUs) into guidance.