TD Synnex Corp

Q1 performance beat expectations (Distribution + Hive; strong growth + operating leverage) - Non-GAAP gross billings: $25.8B, +24% YoY (+20% in constant currency), above the high end of guidance. - Non-GAAP operating income: $590M, +48% YoY. - Non-GAAP EPS: $4.73, +69% YoY, also above high end of guidance. - GAAP EPS: $4.04, +104% YoY (also above high end), reflecting strong conversion of revenue growth into earnings.

Segment results: Distribution momentum broad-based; Hive booming but margins pressured by mix - Distribution gross billings: $22.0B, +17% YoY, driven by Endpoint Solutions (+14%) and Advanced Solutions (+19%) (esp. infrastructure, security, software). - Distribution operating income: $431M, +42% YoY; non-GAAP operating margin ~2.0% of gross billings, +34 bps YoY. - Hive gross billings: $3.8B, +95% YoY, driven by demand for cloud/AI data center infrastructure and strength across manufacturing and supply chain services. - Hive non-GAAP operating income: $159M, +66% YoY but operating margin declined ~72 bps YoY to 4.2%, mainly mix-driven (notably large GPU fulfillment deals and gross-vs-net program structure).

Outlook / forecasts for FY2026 (initial guidance) - Management expects non-GAAP gross billings ~ $25.1B ± $0.5B (~+16% YoY at midpoint). - Revenue: ~$16.5B ± $0.4B. - Non-GAAP net income: ~$322M ± $20M. - Non-GAAP diluted EPS: ~$4.00 ± $0.25 (based on ~79.8M shares; ~+34% YoY at midpoint). - Share repurchases: expected to increase from Q1 levels. - Call guidance emphasis: Q2 guidance provided, second half only cautiously optimistic (macro uncertainty), but both Distribution and Hive expected to grow.