SNX Reports Q2 Earnings

TD Synnex (NYSE: SNX ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit View the webcast at Summary TD Synnex reported record second-quarter fiscal 2026 results with non-GAAP gross billings of $28.9 billion, a 33% year-over-year increase.

The company experienced strong growth across both its Distribution and Hive segments, with the latter showing a 117% increase in non-GAAP gross billings year over year.

Strategic initiatives are focused on AI-driven demand, with significant investments in expanding manufacturing capacity and leveraging strategic vendor partnerships, such as the agreement with HPE.

Management highlighted ongoing investments in AI and infrastructure as key growth drivers, with plans to expand manufacturing facilities by over 1 million square feet to support hyperscalers.

The outlook for the third quarter of fiscal 2026 includes expected non-GAAP gross billings of approximately $27.7 billion, with a strong emphasis on maintaining operating profit growth ahead of billings.

Full Transcript Tracy, OPERATOR Good morning, my name is Tracy and I will be your conference operator today.

I'd like to welcome everyone to the TD Synnex second quarter fiscal 2026 earnings call.

Today's call is being recorded and all lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question and answer session.

At this time, for opening remarks, I would like to pass the call over to Nate Friedle, Head of Investor Relations at TD Synnex.

Nate, you may begin.

Nate Friedle, Head of Investor Relations Good morning everyone and welcome to TD Synnex's fiscal 2026 second quarter earnings call.

Joining me on today's call are Chief Executive Officer Patrick Zammit and Chief Financial Officer David Jordan.

Before we continue, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections, or other statements about future events, including statements about our strategy, demand plans and positioning, growth, cash flow, capital allocation, and stockholder return, as well as our financial expectations for future fiscal periods.

Actual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties discussed in today's earnings release, in the Form 8-K we filed today, in the Risk Factors section of our Form 10-K, and our other reports and filings with the SEC.

We do not intend to update any forward-looking statements.

Also, during this call, we will reference certain non-GAAP financial information.

Reconciliations of GAAP to non-GAAP results are included in our earnings press release and the related Form 8-K available on our Investor Relations website ir.tdsynnex.com.

This conference call is the property of TD Synnex and may not be recorded or rebroadcast without our permission.

I will now turn the call over to Patrick.

Patrick Zammit, Chief Executive Officer Thank you, Nate, and good morning everyone.

We delivered a record quarter with broad-based strength across distribution and Hive, building on the momentum we have carried out of recent quarters.

Our results reflect consistent execution against our strategy and deepening relationships within a macro environment that is becoming increasingly complex.

Rising component costs, supply constraints, geopolitical uncertainty, and the once-in-a-generation AI build-out are challenging businesses to move faster and with more precision.

That complexity is exactly where TD Synnex adds the most value, and you can see it in the demand across our business.

AI is becoming a growing portion of our mix and is driving demand across both businesses, from hyperscale infrastructure buildouts to enterprise data center modernization to AI-capable devices in our endpoint mix, and we are capturing that growth across technologies, regions, and customers.

With that context, I start with our distribution performance.

Distribution had an excellent quarter with non-GAAP gross billings of $23.4 billion, up 22% year over year.

Strength was broad-based across every region and the portfolio, with international growth and operating margin expansion as a real bright spot.

We believe the combination of our global reach, end-to-end portfolio, and specialized go-to-market is very difficult to replicate.

This differentiated value proposition, coupled with strong execution against our strategy, has driven new customer wins, new expanded vendor partnerships, and a large share of wallet with our most strategic relationships, all of which have proven to be incremental growth drivers.

Three pillars of our strategy are driving our growth.

First, we meet our customers however they want to engage in a true omnichannel motion: digital when they want self-serve speed, human when they want expertise and enablement, and we move seamlessly between the two in real time.