TD SYNNEX Corporation

What they do

TD SYNNEX distributes IT hardware, software, and systems, including personal computing devices, mobile phones, printers, datacenter infrastructure, cloud, security, and networking solutions, with a catalog of over 200,000 products from approximately 2,500 OEMs. It also designs and delivers purpose-built server, storage, and networking solutions for hyperscale computing through its Hyve business. The company groups its offerings into Endpoint Solutions (PCs, peripherals, mobile phones, printers) and Advanced Solutions (datacenter, cloud, security, networking, and hyperscale infrastructure).

Revenue drivers

• Endpoint Solutions — Includes personal computing devices, peripherals, mobile phones, printers, and supplies; represents a primary revenue stream in the distribution portfolio.
• Advanced Solutions — Includes datacenter technologies such as hybrid cloud, security, storage, networking, servers, software, and converged infrastructure; also includes hyperscale infrastructure via Hyve.
• Geographic segments — Americas, Europe, APJ — Revenue is reported across three segments; the Americas is typically the largest, with Europe and APJ contributing significant international revenue.

Recent performance

For fiscal Q2 2026 (ended May 31, 2026), revenue was $19.57 billion, up 31.0% year over year (29.1% in constant currency), and GAAP diluted EPS was $4.15. Non-GAAP diluted EPS was $4.85, up 62.2% year over year. Gross billings were $28.9 billion, up 33.4%. The company returned $151 million to stockholders in Q2 (including $112 million in buybacks and $39 million in dividends). For the first half of fiscal 2026, net income was $661.0 million on revenue of $36.7 billion, compared to $352.5 million on $29.5 billion in the prior-year period.

Strategy

Management's stated strategy focuses on unifying reach across mature and developing markets, targeting new customers through specialist go-to-market and trusted advisor approaches, and expanding the addressable market with a unique vendor value proposition. The company aims to diversify its end-to-end portfolio, including design, manufacturing, and supply chain services for hyperscale infrastructure, and to expand and attach services capabilities to drive renewals and deepen customer relationships. This is supported by a focus on hybrid cloud, security, AI, and the Everything as a Service model.

Risks

• Revenue and operating result volatility — The company's operating results have fluctuated and will fluctuate due to factors including economic conditions, IT spending, loss of significant OEM suppliers or customers, product mix, and competition.
• Supplier and customer concentration — Loss or consolidation of one or more significant OEM suppliers or customers could materially impact the business.
• Market shifts to cloud and as-a-Service — Trends toward cloud-based infrastructure and as-a-Service offerings could alter demand for traditional distribution products and services.
• Macroeconomic and trade policy uncertainty — Inflation, global trade policies, tariffs, and currency fluctuations can affect costs, margins, and international operations.

Outlook

For fiscal Q3 2026, management expects revenue of $18.2–$19.0 billion, non-GAAP gross billings of $27.2–$28.2 billion, GAAP diluted EPS of $3.40–$3.90, and non-GAAP diluted EPS of $4.25–$4.75. The company announced a quarterly dividend of $0.48 per share, up 9% year over year. Management cited record Q2 results with 'broad-based strength across Distribution and Hyve' and expects continued momentum.