Synnex Stock Earnings Reports

TD SYNNEX reported a record fiscal Q2 with broad-based strength across Distribution and Hyve. Consolidated non-GAAP gross billings were $28.9B (up 33% YoY) and non-GAAP operating income was $615M (up 49% YoY); non-GAAP EPS was $4.85 (up 62% YoY). Distribution grew 22% YoY with margin expansion, led by Endpoint and Advanced Solutions. Hyve showed exceptional growth (non-GAAP gross billings $5.5B, +117% YoY), driven by manufacturing and supply-chain programs with hyperscalers; Hyve is ramping programs with all five major U.S. hyperscalers and is expanding manufacturing capacity by ~1M+ sq ft. Management emphasized AI as a growing demand driver across products and services. Working capital and inventory increased (driven mainly by Hyve ramp and some strategic inventory purchases), producing ~$(330)M free cash flow consumption in the quarter; net leverage ended near 1.6x. The board approved a $0.48/share quarterly dividend and the company repurchased shares. Q3 guidance: non-GAAP gross billings ~$27.7B +/- $0.5B, non-GAAP EPS ~$4.50 +/- $0.25, assuming limited contribution from newly onboarded Hyve customers. Management prioritized expanding operating profit faster than billings, prudent Hyve capital deployment (~$100M expected FY capex), and preserving flexibility given component/supply risks. Key investor takeaways: strong near-term growth and margin expansion, significant Hyve-led revenue and capacity ramp (with near-term cash consumption), AI-driven secular tailwinds, modest inventory-driven margin upside called out as largely one-time, and continued focus on improving operating profit conversion to cash over the medium term.