TD SYNNEX delivered a record fiscal Q2 2026, with strong contributions from both its Distribution business and Hyve Solutions. A few numbers stand out:

• Revenue: $19.6 billion, up 31.0% year over year (29.1% in constant currency), and above the high end of the company’s outlook.
• Non-GAAP gross billings: $28.9 billion, an increase of 33.4% year over year (31.7% in constant currency).
• GAAP diluted EPS: $4.15, up 87.8% year over year.
• Non-GAAP diluted EPS: $4.85, up 62.2% year over year.
• Operating performance: GAAP operating income rose to $519 million (up 58.3%), with operating margin improving to 2.65% (a 45 bps increase). On a non-GAAP basis, operating income reached $615 million, with a 3.14% operating margin.

The company also continued to return capital to shareholders, with $151 million returned in the quarter: $112 million via share repurchases and $39 million via dividends. The quarterly cash dividend was set at $0.48 per common share, up 9% year over year.

Management attributes this performance to consistent execution against strategy and broad-based demand across the IT ecosystem, including traditional distribution and Hyve’s cloud and compute infrastructure offerings.

TD SYNNEX uses a set of non-GAAP metrics to give investors and partners additional insight into the underlying performance of the business beyond standard GAAP reporting.

Key non-GAAP measures and what they mean:

• Non-GAAP gross billings: Represents the amounts billed to customers before certain revenue presentation adjustments under ASC 606, particularly where TD SYNNEX is not the principal in the transaction. It includes costs that are netted against revenue for items like third-party service contracts, SaaS arrangements, and some fulfillment contracts. The company views this as a useful indicator of overall business volume.
• Gross to net: The percentage adjustment from non-GAAP gross billings down to reported revenue, reflecting those costs that are netted against revenue.
• Constant currency metrics: Revenue and non-GAAP gross billings “in constant currency” adjust for foreign exchange impacts by applying prior-year exchange rates. This helps with period-to-period comparisons without FX noise.
• Non-GAAP operating income and margin: Exclude items such as acquisition, integration and restructuring costs, amortization of intangible assets, and share-based compensation. The goal is to isolate operating performance from one-time or non-cash items.
• Non-GAAP net income and diluted EPS: Further exclude realized gains on certain equity investments and related tax effects, in addition to the items above.
• Free cash flow: Defined as cash flow from operating activities minus purchases of property and equipment. TD SYNNEX uses this to assess liquidity and cash generation after necessary capital investments.

Management uses these non-GAAP measures internally for planning, performance evaluation, and compensation decisions. For external stakeholders, they are intended to:

• Provide more transparency into operational trends.
• Support clearer comparisons across periods, especially when acquisition activity or FX movements are significant.
• Offer a complementary view to GAAP results, not a replacement. The company emphasizes that these measures should be read alongside the GAAP financial statements and may not be comparable to similarly named metrics at other companies.

TD SYNNEX positions itself as a global distributor, solutions aggregator, and original design and contract manufacturer that connects the broader IT ecosystem.

Current role in the market

• Scale and reach: Supports more than 150,000 customers across over 100 countries and is a Fortune 100 company.
• Portfolio: Offers an edge-to-cloud portfolio spanning cybersecurity, analytics, artificial intelligence, mobility, and Everything as a Service (XaaS).
• Distribution business: Aggregates a broad range of IT hardware, software, and systems, giving partners access to products across the global IT ecosystem.
• Hyve Solutions: Partners with technology companies to design, manufacture, and deliver traditional and accelerated compute, cloud, and connected infrastructure—helping customers reimagine how they deploy and scale infrastructure.

Q3 2026 financial outlook

For the fiscal third quarter of 2026, TD SYNNEX is guiding to:

• Revenue: $18.2–$19.0 billion
• Non-GAAP gross billings: $27.2–$28.2 billion
• GAAP net income: $273–$313 million
• Non-GAAP net income: $341–$381 million
• GAAP diluted EPS: $3.40–$3.90
• Non-GAAP diluted EPS: $4.25–$4.75
• Estimated diluted weighted average shares: 79.4 million

These forward-looking figures reflect management’s current expectations around demand, execution of strategy, and capital allocation. The company also notes that actual results may differ due to a range of factors, including macroeconomic conditions, IT spending trends, supplier and customer dynamics, and foreign exchange movements.

For partners and investors, this outlook, combined with the Q2 results, signals a continued focus on scaling global distribution, deepening capabilities in high-growth areas like AI and cloud, and using its size and expertise to help customers rethink how they source, deploy, and manage technology.