TD Synnex Corp

Another record quarter; Distribution + Hyve both beat expectations (growth above market) - Non-GAAP gross billings: $31.8B, +40% YoY (constant currency +41%), above the high end of guidance. - Non-GAAP operating income: $736M, +55% YoY. - Non-GAAP EPS: $5.68, +59% YoY, also above the high end. - GAAP EPS: $5.18, +89% YoY. - Mix of performance: Strength was broad-based by geography, technology, and customer/program, with notable strength in data center infrastructure.

Segmentation: Distribution and Hyve growth rates were exceptional (and very different dynamics) - Distribution gross billings: $24.8B, +27% YoY, “double-digit growth” across regions; strength in data center infrastructure. - Endpoint Solutions: +16% (PCs up with higher ASPs; modest unit decline). - Advanced Solutions: +37% (infrastructure, software, AI-related technologies). - Hyve gross billings: $7.0B, +117% YoY. - Manufacturing: >130%, ~2/3 of Hyve billings. - Supply chain: >90%, linked to component demand for customer infrastructure deployments.

Margin/cash flow headwinds were real (and partly explained) - Hyve margins pressured: Hyve non-GAAP operating margin fell to 3.61% vs 5.04% prior year (management said this is due to AI rack/server programs that are strategic but dilutive; they believe this headwind has stabilized). - Overall gross margin decline (investor concern): Management attributed margin softness largely to product/customer/geo mix and some larger, slightly lower-margin transactions, not a broad-based pricing breakdown. - Cash: Free cash flow consumption ~ $1B for the quarter, primarily due to increased inventory/working capital in Hyve to support ramps and new programs. - Networking capital: $6.5B; gross cash conversion cycle 22 days (up 5 days sequentially, 6 days YoY) reflecting increased Hyve mix.