SYNNEX Corporation Aktienkurs
Vergleich mit Peer Group
📊 Peer Group
📈 Was ist das?
Die Peer Group sind die Unternehmen mit dem ähnlichsten Geschäftsmodell. Sie dienen als Vergleichsmaßstab, um eine Aktie einzuordnen.
🧮 Wie wird sie ausgewählt?
Nach Ähnlichkeit des Geschäftsmodells, also Unternehmen aus derselben Branche, mit vergleichbaren Produkten und einer ähnlichen Kundengruppe. Nur so vergleichst du Äpfel mit Äpfeln.
🏛️ Wofür ist sie wichtig?
Ob eine Aktie günstig oder teuer ist, lässt sich am ehesten im Vergleich beurteilen. Ein KGV von 18 oder ein EV/FCF von 20 wirkt je nach Maßstab günstig oder teuer. Die Peer Group liefert dabei den treffsichersten Maßstab: Unternehmen mit ähnlichem Geschäftsmodell, die denselben Bedingungen unterliegen.
🎯 Was bedeutet das für Anleger?
Liegt eine Kennzahl unter dem Peer-Durchschnitt, ist die Aktie relativ günstiger bewertet, über dem Durchschnitt entsprechend teurer. Ein Abschlag zur Peer Group kann eine Chance sein, aber auch einen Grund haben (zum Beispiel geringeres Wachstum). Der Vergleich ist ein Startpunkt, kein Urteil.
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📘 Marktkapitalisierung
📈 Was ist das?
Die Marktkapitalisierung zeigt, wie viel ein Unternehmen laut Börse aktuell wert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft Unternehmen in Größenklassen (Large, Mid, Small Cap) einzuordnen und gibt Hinweise auf Marktmacht und Stabilität.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Große Unternehmen gelten als stabiler, zahlen oft Dividenden, wachsen aber langsamer.
- Kleine Firmen können stärker wachsen, sind aber schwankungsanfälliger.
- Die Marktkapitalisierung ist ein guter Indikator für Unternehmensgröße, aber kein Maß für Unter- oder Überbewertung.
📘 Enterprise Value (Unternehmenswert)
📈 Was ist das?
Der Enterprise Value (EV) zeigt, was ein Unternehmen tatsächlich kostet, wenn man es komplett übernehmen würde – inklusive Schulden und abzüglich Cash.
🧮 Wie wird es berechnet?
(= Marktkapitalisierung + Nettoverschuldung)
🏛️ Wofür ist es wichtig?
Der EV ist eine realistischere Bewertungsbasis als die Marktkapitalisierung, da er die Kapitalstruktur berücksichtigt. Er ist Grundlage für Kennzahlen wie EV/FCF oder EV/Sales.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Der Enterprise Value zeigt, was ein Unternehmen tatsächlich wert ist – unabhängig davon, wie es finanziert ist.
- Er ist besonders wichtig für professionelle Investoren, da er eine objektivere Grundlage für Bewertungsvergleiche bietet als die Marktkapitalisierung allein.
- Ein Unternehmen mit hoher Verschuldung erscheint im EV teurer, eines mit viel Cash günstiger – auch wenn sie an der Börse gleich viel wert sind.
📘 Nettoverschuldung
📈 Was ist das?
Die Nettoverschuldung zeigt, wie viele Schulden nach Abzug des verfügbaren Cashs tatsächlich verbleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie zeigt, wie stark ein Unternehmen von Fremdkapital abhängig ist – und wie gut es in der Lage ist, seine Schulden kurzfristig zu bedienen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine niedrige oder negative Nettoverschuldung bedeutet hohe finanzielle Stabilität.
- Unternehmen mit viel Cash und geringer Verschuldung sind besser gerüstet für Krisen.
- Eine hohe Nettoverschuldung erhöht das Risiko – besonders bei steigenden Zinsen oder konjunkturellen Schwächen.
📘 Cash
📈 Was ist das?
Der Cashbestand zeigt, wie viele liquide Mittel einem Unternehmen sofort zur Verfügung stehen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Er gibt Auskunft über die finanzielle Flexibilität: Ein hoher Cashbestand ermöglicht Investitionen, Rückkäufe oder Krisenresistenz.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Cashbestand zeigt finanzielle Stärke und Handlungsspielraum.
- Cash kann für Investitionen, Schuldentilgung oder Aktienrückkäufe genutzt werden.
- Allerdings: Zu viel ungenutztes Kapital kann auch auf mangelnde Investitionsideen hinweisen.
📘 Anzahl ausstehender Aktien
📈 Was ist das?
Die Anzahl ausstehender Aktien gibt an, wie viele Aktien eines Unternehmens aktuell im Umlauf sind und von Investoren gehalten werden.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie ist die Grundlage für viele Kennzahlen wie Gewinn je Aktie (EPS), Marktkapitalisierung oder KGV.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Je weniger Aktien im Umlauf sind, desto höher fällt z. B. der Gewinn je Aktie aus – wichtig für Bewertung und Dividendenrendite.
- Aktienrückkäufe verringern die Anzahl ausstehender Aktien – und steigern den Wert je Aktie.
- Kapitalerhöhungen haben den gegenteiligen Effekt: mehr Aktien → Verwässerung der bestehenden Anteile.
📘 Kurs-Gewinn-Verhältnis (KGV)
📈 Was ist das?
Das KGV zeigt, wie oft der Gewinn pro Aktie im aktuellen Aktienkurs enthalten ist – also wie „teuer“ eine Aktie im Verhältnis zum Gewinn ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KGV gehört zu den bekanntesten Bewertungskennzahlen. Es hilft Anlegern einzuschätzen, ob eine Aktie im Vergleich zu ihrem Gewinn eher günstig oder teuer erscheint.
🧮 Berechnung
📊 KGV (TTM) = bezogen auf den Gewinn der letzten 12 Monate (Trailing Twelve Months):🎯 Was bedeutet das für Anleger?
- Ein niedriges KGV kann auf eine günstige Bewertung hindeuten – oder auf Probleme im Geschäftsmodell.
- Ein hohes KGV kann Wachstumserwartungen widerspiegeln – oder eine überbewertete Aktie.
📘 Kurs-Umsatz-Verhältnis (KUV)
📈 Was ist das?
Das KUV zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen – unabhängig vom Gewinn.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KUV ist besonders bei wachstumsstarken oder noch nicht profitablen Unternehmen hilfreich. Es zeigt, wie hoch der Umsatz an der Börse bewertet wird.
🧮 Berechnung
Marktkapitalisierung = 21,03 Mrd. $ | Umsatz (TTM) = 69,77 Mrd. $
Marktkapitalisierung = 21,03 Mrd. $ | Umsatz erwartet = 75,69 Mrd. $
🎯 Was bedeutet das für Anleger?
- Ein niedriges KUV kann auf Unterbewertung hindeuten – oder auf schwache Margen.
- Ein hohes KUV kann hohe Erwartungen widerspiegeln – oder übermäßigen Optimismus.
- Besonders sinnvoll bei Wachstumsunternehmen, bei denen der Gewinn oder Free Cashflow (noch) keine Aussagekraft hat.
📘 Unternehmenswert zu Umsatz (EV/Sales)
📈 Was ist das?
EV/Sales zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen, wenn man auch Schulden und Cash berücksichtigt – es ist eine kapitalstrukturbereinigte Version des KUV.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl eignet sich besonders für den Vergleich von Unternehmen mit unterschiedlicher Verschuldung – sie zeigt, wie teuer ein Unternehmen tatsächlich im Verhältnis zum Umsatz ist.
🧮 Berechnung
Enterprise Value = 24,66 Mrd. $ | Umsatz (TTM) = 69,77 Mrd. $
Enterprise Value = 24,66 Mrd. $ | Umsatz erwartet = 75,69 Mrd. $
🎯 Was bedeutet das für Anleger?
- EV/Sales ist neutral gegenüber der Kapitalstruktur und eignet sich gut für Unternehmensvergleiche.
- Ein niedriges Verhältnis kann auf eine günstig bewertete Aktie hindeuten – ein hohes Verhältnis auf hohe Erwartungen oder Überbewertung.
- Besonders nützlich bei wachstumsstarken, noch nicht profitablen Firmen.
📘 Unternehmenswert zu Free Cashflow (EV/FCF)
📈 Was ist das?
EV/FCF zeigt, wie viele Jahre es dauern würde, bis ein Unternehmen seinen Unternehmenswert durch freien Cashflow „zurückverdient”.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Unternehmen auf Basis ihrer tatsächlichen Cash-Erträge zu bewerten – unabhängig von Bilanzierungsregeln oder buchhalterischem Gewinn.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriges EV/FCF deutet auf eine günstige Bewertung bei starker Cashgenerierung hin.
- Ein hohes EV/FCF kann entweder auf Optimismus oder auf temporär schwachen Cashflow hindeuten.
- Besonders hilfreich bei reifen, profitablen Unternehmen mit stabilen Cashflows.
📘 Kurs-Buchwert-Verhältnis (KBV)
📈 Was ist das?
Das KBV zeigt, wie hoch der Marktwert eines Unternehmens im Verhältnis zu seinem bilanziellen Eigenkapital ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KBV ist besonders bei Substanzwerten (z. B. Banken, Industrie) relevant. Es hilft Anlegern zu erkennen, ob ein Unternehmen unter oder über seinem buchhalterischen Vermögen bewertet ist.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein KBV unter 1 kann auf Unterbewertung oder schwache Rentabilität hindeuten.
- Ein KBV über 1 zeigt, dass der Markt dem Unternehmen Mehrwert über den Buchwert hinaus zuschreibt (z. B. Marken, Patente, Wachstum).
- Das KBV eignet sich besonders gut für Unternehmen mit stabilen, materiellen Vermögenswerten.
📘 Dividende je Aktie
📈 Was ist das?
Die Dividende je Aktie zeigt, wie viel Geld ein Unternehmen pro Aktie an seine Aktionäre ausschüttet – typischerweise jährlich oder quartalsweise.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie ist die absolute Größe der Auszahlung je Aktie – wichtig für alle, die regelmäßige Erträge suchen oder Dividendenstrategien verfolgen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine stabile oder wachsende Dividende je Aktie ist oft ein Zeichen für ein solides Geschäftsmodell.
- Die Dividende je Aktie allein sagt aber nichts über die Rendite – dafür ist auch der Aktienkurs relevant (→ Dividendenrendite).
- Langfristig steigende Dividenden sind oft ein sehr gutes Merkmal (z. B. Dividenden-Aristokraten).
📘 Dividendenrendite
📈 Was ist das?
Die Dividendenrendite zeigt, wie hoch die Dividende eines Unternehmens im Verhältnis zum Aktienkurs ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft dabei, Dividendenaktien vergleichbar zu machen – unabhängig vom absoluten Auszahlungsbetrag.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine stabile Dividendenrendite kann auf verlässliche Ausschüttungen hinweisen.
- Ein Vergleich der 1J- und 5J-Rendite hilft zu erkennen, ob das Dividendenwachstum mit dem Kurswachstum Schritt hält.
- Eine niedrige Rendite ist nicht zwingend negativ – sie kann auf starkes Kurswachstum hindeuten.
📘 Dividendenwachstum
📈 Was ist das?
Das Dividendenwachstum zeigt, wie stark ein Unternehmen seine Dividende je Aktie über die Zeit gesteigert hat.
🧮 Wie wird es berechnet?
5J: durchschnittliche jährliche Wachstumsrate (CAGR)
🏛️ Wofür ist es wichtig?
Stetig steigende Dividenden gelten als Zeichen für finanzielle Stärke und Aktionärsorientierung – besonders interessant für langfristige Investoren.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein stabiles Dividendenwachstum ist ein Zeichen nachhaltiger Ertragskraft.
- Ein hohes Dividendenwachstum kann ein erheblicher Hebel deiner Rendite sein:
- Wenn ein Unternehmen z. B. 1 € Dividende zahlt und diese über 5 Jahre jährlich um 15 % erhöht, bekommst du im 5. Jahr bereits 2 € je Aktie – doppelt so viel wie zu Beginn!
📘 Ausschüttungsquote (Payout)
📈 Was ist das?
Die Ausschüttungsquote zeigt, wie viel Prozent des Unternehmensgewinns (pro Aktie) als Dividende an die Aktionäre ausgeschüttet wird.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Quote hilft einzuschätzen, ob eine Dividende auf Dauer tragfähig ist – besonders im Verhältnis zum erzielten Gewinn.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine niedrige Ausschüttungsquote bedeutet: Das Unternehmen behält einen größeren Teil des Gewinns für Investitionen – typisch für Wachstumsunternehmen.
- Eine moderate Quote (z. B. 25–50 %) steht oft für ein gesundes Gleichgewicht zwischen Ausschüttung und Zukunftsinvestitionen.
- Hohe Ausschüttungsquoten können attraktiv wirken, sind aber riskanter, wenn die Gewinne schwanken oder sinken.
📘 Dividendensteigerungen in Folge (Erhöhungen)
📈 Was ist das?
Diese Kennzahl zeigt, wie viele Jahre in Folge ein Unternehmen seine Dividende pro Aktie erhöht hat – ohne Kürzung oder Aussetzung.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Ein langer Track Record kontinuierlicher Erhöhungen spricht für Verlässlichkeit, solide Finanzen und aktionärsfreundliche Unternehmenspolitik.
🎯 Was bedeutet das für Anleger?
- Ein langer Zeitraum mit Dividendensteigerungen stärkt das Vertrauen – besonders in Krisenzeiten.
- Solche Unternehmen gelten als verlässlich und planbar für Einkommensinvestoren.
- Je länger die Serie, desto stärker das Commitment gegenüber den Aktionären.
📘 Umsatz
📈 Was ist das?
Der Umsatz zeigt, wie viel ein Unternehmen insgesamt mit seinen Produkten und Dienstleistungen verdient – also den Bruttoerlös vor Abzug von Kosten.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Umsatz ist eine der zentralen Kennzahlen zur Einschätzung der Unternehmensgröße, Marktstellung und Wachstumskraft.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein wachsender Umsatz zeigt eine steigende Nachfrage und kann ein guter Frühindikator für Gewinnsteigerungen sein.
- Vergleiche von aktuellem und erwartetem Umsatz geben Hinweise auf das Marktumfeld und Analystenerwartungen.
- Wichtig: Starker Umsatz allein genügt nicht – auch Margen und Profitabilität zählen.
📘 EBITDA
📈 Was ist das?
EBITDA steht für „Earnings Before Interest, Taxes, Depreciation and Amortization“ – also Gewinn vor Zinsen, Steuern und Abschreibungen. Es zeigt das operative Ergebnis eines Unternehmens, bereinigt um bilanztechnische und finanzierungsbedingte Effekte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBITDA ist eine verbreitete Kennzahl zur Beurteilung der operativen Leistungsfähigkeit – insbesondere bei kapitalintensiven Unternehmen oder im internationalen Vergleich.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hohes oder wachsendes EBITDA spricht für starke operative Erträge – unabhängig von Bilanzierung oder Steuerlast.
- EBITDA ist besonders nützlich, um Unternehmen branchenübergreifend zu vergleichen.
- Wichtig: EBITDA ist keine offizielle Gewinnkennzahl – Abschreibungen und Finanzierungskosten werden ausgeklammert.
📘 EBIT
📈 Was ist das?
EBIT steht für „Earnings Before Interest and Taxes“ – also Gewinn vor Zinsen und Steuern. Es zeigt das operative Ergebnis eines Unternehmens nach Abschreibungen, aber vor Finanzierungs- und Steueraufwand.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBIT ist eine zentrale Kennzahl zur Beurteilung der Profitabilität aus dem Kerngeschäft – unabhängig von Kapitalstruktur oder Steuersystem.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hohes EBIT deutet auf ein profitables Kerngeschäft hin – vor Zinslasten oder steuerlichen Effekten.
- Es erlaubt objektivere Vergleiche zwischen Unternehmen mit unterschiedlicher Finanzierung.
- Im Vergleich mit EBITDA zeigt EBIT bereits den Einfluss von Abschreibungen auf das operative Ergebnis.
📘 Nettogewinn
📈 Was ist das?
Der Nettogewinn ist der verbleibende Jahresüberschuss (oder -fehlbetrag) eines Unternehmens – nach Abzug aller Kosten, Steuern, Zinsen und Abschreibungen
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Nettogewinn ist die zentrale Erfolgskennzahl – er zeigt, wie profitabel ein Unternehmen nach allen Kosten tatsächlich arbeitet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein steigender Nettogewinn zeigt, dass das Unternehmen effizient wirtschaftet – trotz aller Kosten.
- Die Entwicklung des Gewinns beeinflusst z. B. direkt das KGV und weitere Kennzahlen.
- Im Zeitverlauf lässt sich ablesen, wie stabil und profitabel ein Geschäftsmodell wirklich ist.
📘 Free Cashflow (FCF)
📈 Was ist das?
Der Free Cashflow gibt Aufschluss über die echte finanzielle Stärke eines Unternehmens – unabhängig von Bilanzierungsregeln. Er zeigt, wie viel Spielraum für Dividenden, Aktienrückkäufe oder Schuldenabbau besteht.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow bedeutet, dass ein Unternehmen echte Finanzkraft besitzt – unabhängig vom bilanzierten Gewinn.
- Er ist oft die solideste Grundlage für nachhaltige Dividenden und Aktienrückkäufe.
- Sinkender FCF kann ein Warnsignal sein – auch wenn der Gewinn stabil aussieht.
📘 Umsatzwachstum
📈 Was ist das?
Das Umsatzwachstum zeigt, wie stark sich die Erlöse eines Unternehmens im Vergleich zum Vorjahr verändert haben – tatsächlich (TTM) und auf Prognosebasis (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (Umsatz erwartet ÷ Umsatz Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein wachsender Umsatz ist ein zentrales Signal für steigende Nachfrage, Geschäftsausweitung und Marktanteilsgewinne – besonders bei Wachstumsunternehmen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachstum ist der Motor langfristiger Wertsteigerung – besonders bei Technologie- und Wachstumsaktien.
- Wichtig ist nicht nur das aktuelle Wachstum, sondern auch dessen Nachhaltigkeit.
- Prognosen zeigen, ob Analysten weiteres Potenzial erwarten – oder eine Verlangsamung.
📘 EBITDA-Wachstum
📈 Was ist das?
Das EBITDA-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens vor Zinsen, Steuern und Abschreibungen im Vergleich zum Vorjahr gestiegen oder gesunken ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBITDA ÷ EBITDA Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein steigendes EBITDA ist ein Zeichen für verbesserte operative Ertragskraft – unabhängig von Finanzierungsstruktur oder Abschreibungen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Starkes EBITDA-Wachstum signalisiert operative Effizienz und Skalierung – besonders relevant in Wachstumsphasen.
- EBITDA-Wachstum ist ein Frühindikator für Margen- und Gewinnentwicklung – sollte aber stets im Zusammenhang mit Umsatz und EBIT betrachtet werden.
📘 EBIT Wachstum
📈 Was ist das?
Das EBIT-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens (nach Abschreibungen, aber vor Zinsen und Steuern) im Vergleich zum Vorjahr gewachsen ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBIT ÷ EBIT Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Das EBIT-Wachstum ist ein direkter Indikator für die wirtschaftliche Entwicklung des operativen Geschäfts – unter Berücksichtigung der Kapitalintensität (Abschreibungen).
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Steigendes EBIT signalisiert wachsende operative Rentabilität – auch unter Berücksichtigung von Abschreibungen.
- Das EBIT-Wachstum ist ein wichtiges Maß zur Beurteilung von Geschäftsmodellen mit hohen Investitionskosten.
- Im Zusammenspiel mit Umsatz- und EBITDA-Wachstum ergibt sich ein umfassendes Bild zur operativen Entwicklung.
📘 Nettogewinn-Wachstum
📈 Was ist das?
Das Nettogewinn-Wachstum zeigt, wie stark der Jahresüberschuss eines Unternehmens gegenüber dem Vorjahr gestiegen oder gesunken ist – sowohl tatsächlich (TTM) als auch auf Basis von Prognosen (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (erwarteter Nettogewinn ÷ Nettogewinn Vorjahr − 1) × 100
Der erwartete Wert basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Der Gewinn ist die entscheidende Ergebnisgröße für ein Unternehmen. Ein wachsender Nettogewinn deutet auf steigende Effizienz, stabile Kostenkontrolle und nachhaltige Ertragskraft hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachsender Nettogewinn stärkt die Bewertung, Dividendenfähigkeit und Kursfantasie.
- Stagnierender oder rückläufiger Gewinn trotz Umsatzwachstum kann auf Margendruck hinweisen.
📘 Free Cashflow-Wachstum
📈 Was ist das?
Das Free-Cashflow-Wachstum zeigt, wie sich der freie Mittelzufluss eines Unternehmens im Vergleich zum Vorjahr verändert hat – also der Betrag, der nach allen operativen Ausgaben und Investitionen übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Free Cashflow ist der echte, verfügbare Geldzufluss. Wachstum in diesem Bereich ist ein Zeichen für finanzielle Stärke und steigende Flexibilität bei Dividenden, Rückkäufen oder Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Sinkender Free Cashflow kann auf steigende Investitionen, höhere Kosten oder stagnierende operative Erträge hindeuten.
- Besonders bei Dividendenwerten ist das FCF-Wachstum wichtig – denn Dividenden werden letztlich aus dem verfügbaren Cash gezahlt.
- Ein negativer Trend sollte genauer analysiert werden – er ist nicht zwangsläufig schlecht, aber potenziell ein Warnsignal.
📘 Bruttomarge
📈 Was ist das?
Die Bruttomarge zeigt, wie viel vom Umsatz nach Abzug der direkten Herstellungskosten (Material, Produktion) als Bruttogewinn übrig bleibt – also der „Rohgewinn“ eines Unternehmens.
🧮 Wie wird es berechnet?
Auch: Bruttomarge = Bruttogewinn ÷ Umsatz × 100
🏛️ Wofür ist es wichtig?
Die Bruttomarge gibt Aufschluss über die Profitabilität eines Produkts oder Geschäftsmodells vor Fixkosten, Steuern und Zinsen. Sie zeigt, wie effizient ein Unternehmen produzieren oder einkaufen kann.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Bruttomarge deutet auf starke Preissetzungsmacht und effiziente Herstellung hin.
- Sinkende Bruttomargen können auf Kostensteigerungen oder Preisdruck hindeuten.
- Besonders im Vergleich zu Wettbewerbern liefert die Bruttomarge wertvolle Einblicke in die Geschäftsqualität.
📘 EBITDA-Marge
📈 Was ist das?
Die EBITDA-Marge zeigt, wie viel vom Umsatz als operativer Gewinn vor Zinsen, Steuern und Abschreibungen (EBITDA) übrig bleibt. Sie misst die operative Effizienz – ohne Verzerrungen durch Finanzierung oder Buchwerte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBITDA-Marge hilft zu verstehen, wie viel operativer Gewinn ein Unternehmen aus jedem Euro Umsatz erzielt – unabhängig von Kapitalstruktur oder steuerlichem Umfeld.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe EBITDA-Marge zeigt starke operative Ertragskraft – unabhängig von Bilanzierungseffekten.
- Die Marge ermöglicht gute Vergleiche zwischen Unternehmen und Branchen.
- Ein stabiler oder wachsender Wert kann auf effiziente Kostenkontrolle und Skalierbarkeit hindeuten.
📘 EBIT-Marge
📈 Was ist das?
Die EBIT-Marge zeigt, wie viel Prozent des Umsatzes als operativer Gewinn nach Abschreibungen, aber vor Zinsen und Steuern übrig bleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBIT-Marge misst die operative Ertragskraft eines Unternehmens unter Berücksichtigung der Kapitalintensität (z. B. Maschinen, Anlagen). Sie eignet sich gut zum Vergleich von Geschäftsmodellen mit unterschiedlich hohen Abschreibungen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe EBIT-Marge zeigt, dass ein Unternehmen auch nach Abschreibungen effizient arbeitet.
- Sie ist besonders relevant in kapitalintensiven Branchen.
- Langfristig stabile oder steigende Margen sind ein Zeichen wirtschaftlicher Stärke und Preissetzungsmacht.
📘 Nettomarge
📈 Was ist das?
Die Nettomarge zeigt, wie viel vom Umsatz am Ende als „Reingewinn“ übrig bleibt – also nach Abzug aller Kosten, Zinsen, Steuern und Abschreibungen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Nettomarge gibt an, wie effizient ein Unternehmen über alle Stufen hinweg wirtschaftet. Sie zeigt, wie viel Gewinn tatsächlich je Euro Umsatz übrig bleibt.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Nettomarge zeigt, dass ein Unternehmen nicht nur operativ stark ist, sondern auch seine Finanzierung und Steuerbelastung im Griff hat.
- Vergleiche mit Wettbewerbern geben Einblicke in die wirtschaftliche Qualität.
- Sinkende Nettomargen trotz Umsatzwachstum können ein Warnsignal sein – etwa für steigende Kosten oder sinkende Effizienz.
📘 Free Cashflow Marge
📈 Was ist das?
Die Free-Cashflow-Marge zeigt, wie viel vom Umsatz nach Abzug aller operativen Ausgaben und Investitionen tatsächlich als freier Mittelzufluss übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Marge misst die echte Liquidität, die ein Unternehmen erwirtschaftet – unabhängig von Bilanzierungsregeln oder Abschreibungen. Sie ist besonders relevant für Dividenden, Rückkäufe und Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Free-Cashflow-Marge zeigt, dass ein Unternehmen nachhaltig liquide Mittel erwirtschaftet.
- Sie ist ein starkes Signal für finanzielle Stabilität und Ausschüttungspotenzial.
- Wichtig ist der langfristige Trend – sinkende Werte können auf steigende Investitionen oder rückläufige operative Effizienz hindeuten.
📘 Eigenkapitalquote
📈 Was ist das?
Die Eigenkapitalquote zeigt, wie hoch der Anteil des Eigenkapitals an der Bilanzsumme eines Unternehmens ist – also wie stark es sich aus eigenen Mitteln finanziert.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Eine hohe Eigenkapitalquote steht für finanzielle Stabilität, Krisenfestigkeit und gute Bonität. Sie ist besonders relevant bei der Beurteilung der Verschuldung.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalquote signalisiert finanzielle Stabilität – besonders in Krisenzeiten.
- Ein niedriger Wert kann auf ein höheres Risiko oder eine aggressive Verschuldung hinweisen.
- Wichtig: Die Eigenkapitalquote sollte immer gemeinsam mit der Eigenkapitalrendite betrachtet werden. Nur so lässt sich beurteilen, ob ein Unternehmen nicht nur solide, sondern auch effizient wirtschaftet.
📘 Eigenkapitalrendite (ROE)
📈 Was ist das?
Die Eigenkapitalrendite zeigt, wie effizient ein Unternehmen mit dem Kapital seiner Aktionäre arbeitet – also wie viel Gewinn es pro Euro Eigenkapital erwirtschaftet.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Eigenkapitalrendite ist eine zentrale Rentabilitätskennzahl. Sie hilft Anlegern zu erkennen, ob das Unternehmen eine attraktive Verzinsung auf das eingesetzte Eigenkapital erwirtschaftet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalrendite spricht für ein starkes, effizientes Geschäftsmodell.
- Besonders interessant ist sie bei kapitalintensiven Firmen oder solchen mit hoher Eigenkapitalquote.
- Wichtig: Ein sehr hoher ROE kann auch auf hohe Schulden hinweisen – daher sollte sie immer im Kontext mit der Eigenkapitalquote betrachtet werden.
📘 Return on Capital Employed (ROCE)
📈 Was ist das?
ROCE misst die Gesamtrentabilität eines Unternehmens – also wie effizient es das eingesetzte Kapital (Eigen- und Fremdkapital) zur Gewinnerzielung nutzt.
🧮 Wie wird es berechnet?
Das eingesetzte Kapital ist das gesamte betriebsnotwendige Kapital, unabhängig von der Finanzierungsquelle.
🏛️ Wofür ist es wichtig?
ROCE eignet sich besonders gut für den Vergleich unterschiedlich finanzierter Unternehmen. Es zeigt, wie effektiv ein Unternehmen Kapital investiert – unabhängig von der Kapitalstruktur.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher ROCE zeigt, dass ein Unternehmen sein Kapital effizient einsetzt – unabhängig davon, ob es durch Eigen- oder Fremdkapital finanziert ist.
- Je höher der ROCE im Vergleich zu ähnlichen Unternehmen, desto mehr Wert schafft das Unternehmen mit seinem investierten Kapital.
- Besonders wichtig ist der ROCE bei Firmen mit hohen Investitionen – z. B. in Industrie, Energie oder Infrastruktur.
📘 Return on Invested Capital (ROIC)
📈 Was ist das?
ROIC zeigt, wie effizient ein Unternehmen das Kapital investiert, das langfristig im operativen Geschäft gebunden ist – unabhängig davon, ob es aus Eigen- oder Fremdkapital stammt.
🧮 Wie wird es berechnet?
- NOPAT = „Net Operating Profit After Taxes“
- Investiertes Kapital = operatives Vermögen abzüglich nicht-verzinster Schulden
🏛️ Wofür ist es wichtig?
ROIC ist eine der präzisesten Kennzahlen zur Bewertung der Kapitalrendite – besonders im Vergleich zur Eigenkapitalrendite, weil es Verzerrungen durch Schulden vermeidet. Er zeigt, ob ein Unternehmen Mehrwert für alle Kapitalgeber schafft.
🎯 Was bedeutet das für Anleger?
- Ein hoher ROIC zeigt, wie gut ein Unternehmen mit dem tatsächlich investierten (betriebsnotwendigen) Kapital wirtschaftet.
- Im Unterschied zu ROCE wird nur Kapital betrachtet, das wirklich zur Finanzierung operativer Aktivitäten dient – und verzinst werden muss.
- Besonders hilfreich, um die Kapitalrendite von Unternehmen mit viel „überschüssigem“ Kapital oder zinsfreien Verbindlichkeiten realistisch zu vergleichen.
📘 Verschuldungsgrad (Leverage Ratio)
📈 Was ist das?
Der Verschuldungsgrad zeigt, wie stark ein Unternehmen durch verzinsliche Schulden (z. B. Kredite und Anleihen) im Verhältnis zum Eigenkapital finanziert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Kennzahl hilft, das finanzielle Risiko und die Abhängigkeit von Fremdkapital zu beurteilen. Ein hoher Verschuldungsgrad kann die Eigenkapitalrendite steigern – birgt aber auch erhöhte Risiken bei Zinsanstiegen oder Liquiditätsengpässen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriger Verschuldungsgrad steht für finanzielle Stabilität und Unabhängigkeit.
- Ein hoher Wert kann auf erhöhte Risiken hinweisen – insbesondere bei schwankenden Zinsen oder konjunkturellen Schwächen.
- Wichtig: Immer im Kontext zur Branche und Kapitalintensität bewerten.
📘 Ergebnis je Aktie (EPS)
📈 Was ist das?
Das Ergebnis je Aktie (EPS) zeigt, wie viel Gewinn auf eine einzelne Aktie entfällt – und ist eine der wichtigsten Kennzahlen zur Bewertung von Unternehmen.
🧮 Wie wird es berechnet?
Die verwässerte Aktienanzahl berücksichtigt auch potenzielle neue Aktien, etwa durch Optionen, Wandelanleihen oder andere Umtauschrechte.
🏛️ Wofür ist es wichtig?
EPS bildet die Basis für viele Bewertungskennzahlen wie KGV, PEG oder Payout Ratio. Es macht den Gewinn für Aktionäre vergleichbar – unabhängig von der Unternehmensgröße.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- EPS hilft, die Profitabilität pro Aktie zu erfassen – und ist besonders wichtig im Zeitvergleich oder im Vergleich mit Analystenschätzungen.
- Steigendes EPS kann ein Zeichen für stabiles Wachstum oder Aktienrückkäufe sein.
- Wichtig: Verwende verwässertes EPS für realistische Bewertungen – besonders bei stark aktienbasierten Vergütungssystemen.
📘 Free Cashflow je Aktie (FCF je Aktie)
📈 Was ist das?
Der Free Cashflow je Aktie zeigt, wie viel freier Mittelzufluss einem Unternehmen pro Aktie zur Verfügung steht – nach Investitionen, aber vor Dividenden oder Schuldentilgung.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der FCF je Aktie zeigt, wie viel liquide Mittel pro Aktie tatsächlich im Unternehmen verbleiben – wichtig für Dividenden, Aktienrückkäufe oder Schuldentilgung. Im Gegensatz zum Gewinn ist er schwerer manipulierbar und daher besonders aussagekräftig.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow je Aktie ist ein Zeichen für hohe finanzielle Flexibilität.
- Er zeigt, wie viel Kapital ein Unternehmen effektiv einsetzen oder ausschütten kann.
- Besonders relevant für dividendenstarke Unternehmen oder solche mit starker Kapitalrendite.
📘 Short Interest
📈 Was ist das?
Short Interest zeigt, wie viele Aktien eines Unternehmens aktuell leerverkauft wurden – also von Investoren geliehen und verkauft, in der Erwartung fallender Kurse.
🧮 Wie wird es berechnet?
Der Wert zeigt den Anteil der Aktien, der aktuell auf fallende Kurse spekuliert wird.
🏛️ Wofür ist es wichtig?
Short Interest dient als Stimmungsindikator: Ein hoher Wert deutet auf Skepsis oder negative Erwartungen gegenüber dem Unternehmen hin – kann aber auch zu einem „Short Squeeze“ führen, wenn der Kurs plötzlich steigt.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriger Short Interest deutet auf Vertrauen in das Unternehmen hin.
- Ein hoher Wert kann ein Warnsignal sein – oder eine Chance, wenn sich die Stimmung dreht.
- Besonders spannend in volatilen Märkten oder vor wichtigen Quartalszahlen.
📘 Employees
📈 Was ist das?
Die Mitarbeiteranzahl zeigt, wie viele Personen ein Unternehmen weltweit beschäftigt – ein Indikator für Größe, Struktur und Geschäftsmodell.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft bei der Einschätzung von Skaleneffekten, Effizienz und Personalkosten. Zusammen mit Umsatz und Gewinn lassen sich Kennzahlen wie Produktivität je Mitarbeiter ableiten.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Viele Mitarbeiter bedeuten große operative Komplexität – aber auch hohes Umsatzpotenzial.
- Produktivität je Mitarbeiter ist ein wichtiger Indikator für Effizienz.
- Besonders spannend bei stark wachsenden Tech- oder Industrieunternehmen.
📘 Umsatz je Mitarbeiter
📈 Was ist das?
Der Umsatz je Mitarbeiter zeigt, wie viel Erlös ein Unternehmen durchschnittlich pro Beschäftigtem erwirtschaftet – eine Kennzahl für Effizienz und Produktivität.
🧮 Wie wird es berechnet?
Die Mitarbeiterzahl stammt in der Regel aus dem letzten verfügbaren Jahresbericht.
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Geschäftsmodelle zu vergleichen – insbesondere zwischen arbeitsintensiven und technologiegetriebenen Unternehmen. Ein hoher Wert deutet auf Automatisierung, Effizienz oder hohen Wertschöpfungsanteil hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Umsatz je Mitarbeiter spricht für ein skalierbares und margenstarkes Geschäftsmodell.
- Ein niedriger Wert kann auf arbeitsintensive Prozesse oder geringere Wertschöpfung hinweisen.
- Besonders hilfreich beim Vergleich von Tech- vs. Industrieunternehmen.
SYNNEX Corporation Aktie Analyse
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SYNNEX Corporation — Q3 2026 Earnings Call
1. Management Discussion
Good morning. My name is Rebecca, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX Third Quarter Fiscal 2026 Earnings Call. Today's call is being recorded. [Operator Instructions]
At this time, for opening remarks, I would like to pass the call over to Nate Friedel, Head of Investor Relations at TD SYNNEX. Nate, you may begin.
Good morning, everyone, and welcome to TD SYNNEX Fiscal 2026 Third 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.
Thank you, Nate, and good morning, everyone. We delivered another record quarter with distribution in Hyve, both performing above our expectations and growing above market within the quarter.
Results were broad-based across geographies, technologies, customers and programs with notable strength in data center infrastructure. Our success securing opportunities with new and existing customers, particularly within Hyve required working capital investment to support these rounds. As David will discuss in more detail, those investments affected near-term cash flow during the quarter, but position us to support committed customer demand and future growth.
Looking beyond the quarter, we continue to see encouraging developments across the technology landscape. Enterprise AI adoption is progressing toward broader production deployments. Data center modernization remains a priority as organizations prepare for next-generation infrastructure requirements. While AI is driving new security, governance and compliance requirements across technology environments. We believe these trends expand our opportunities across both distribution and Hyve and reinforce our confidence in the long-term growth opportunity ahead.
I will now begin with distribution. Distribution delivered strong growth during the quarter with non-GAAP gross billings reaching $24.8 billion, up 27% year-over-year, exceeding our expectations and growing above market across each of all regions. Our performance reflects a broader trend across the technology ecosystem. As technology environments become more complex, Customers increasingly need help integrating, deploying, securing and managing solutions across multiple vendors and technologies. Vendors are looking for partners but cannot only efficiently reach customers but enable customer capabilities, activate demand and execute consistently around the world. This is increasing the strategic importance of distribution. One area we are particularly encouraged by is the growing number of enterprises moving from AI experimentation towards production scale centralized AI factory deployments.
This quarter, TD SYNNEX and [indiscernible] signed an agreement to support an NVIDIA AI factory powered by [indiscernible]. This is one of the largest enterprise AI factory infrastructure deployments expected to be delivered through the channel, bringing together the design, integration, deployment, day to co-admin operations, financing and supply chain capabilities needed to operationalize a sophisticated NVIDIA-based AI factory platform for a large enterprise. As enterprises evaluate next-generation platforms, we are seeing growing demand for partners but can simplify complexity and accelerate implementation through their enablement capabilities. AI factories have the potential to power transformative new products and services but realizing that potential requires far more than access to compute. Organizations that ensure AI investments are secure, govern, cost-effective and aligned with measurable business outcomes.
Similar to the evolution of cloud computing, we believe disciplines such as financial operations and security operations will become increasingly important as AI becomes embedded in business-critical processes. Organizations will need support, selecting the right models for the right workloads, deploying them on the right infrastructure and balancing performance, security and governance across edge, private, hybrid and public cloud environments. While still early in the adoption curve, deployments of this scale signal a market that is moving toward broader deployment. As AI becomes embedded across more users, workloads and business processes, we believe the requirements to secure government optimize and support these environments will continue to expand.
Customers are also seeking greater flexibility in how they engage with us, and have seen benefits from our digital strategy. Customers regularly engaging across our digital offerings have grown their spend with TD SYNNEX at nearly twice the pace of similar customers with us. Through solutions such as PartnerFirst and digital bridge, enhanced with AI agents embedded throughout the customer experience. We help customers identify opportunities, simplify purchasing decisions and engage efficiently across a broad range of technologies and vendors. We view digital engagement as an extension of our broader enablement strategy. Whether customers engage through digital platforms, technical specialists, enablement programs or a combination of all 3, our objective remains the same: helping our customers build capabilities, grow their business and better serve end users.
The same capabilities creating value for customers are also important for vendors. As technology portfolios expand and customer requirements become more specialized, vendors are seeking partners that can combine global execution with expertise across technologies, customer segments and geographies. This is expanding the addressable market served through distribution. Earlier this quarter, IBM expanded its relationship with TD SYNNEX into 20 additional countries across Europe, Asia Pacific and Latin America. We believe this expansion reflects the strength of our go-to-market model and the confidence of vendors place in our ability to activate demand, execute consistently across end markets around the world and accelerate growth.
Collectively, over the last year, we've added multiple billion dollars of incremental gross billings into the portfolio through new customer wins and an expanded vendor line card. More importantly, we believe these relationships deepen our role in the technology ecosystem and create additional opportunities for long-term profitable growth and potential earnings expansion.
Turning to Hyve. Hyve delivered a strong quarter with non-GAAP gross billings of $7 billion, up 117% year-over-year exceeding our expectations as we saw continued increased demand from existing customers and programs. Our previously announced programs with new customers have progressed as planned. with shipments expected to begin in our fiscal fourth quarter. These programs improved visibility into future growth, including maintaining a healthy pipeline of opportunities and support a broader customer and program mix over time. We believe increasingly sophisticated infrastructure requirements are elevating the importance of expertise in engineering validation, manufacturing and supply chain execution. As a result, customers are engaging Hyve earlier in the development process, creating additional opportunities to expand our relationship with our current customer base and potential new customers.
One example is our work with multiple customers on the design of advanced liquid crude networking racks, but are expected to enter into production in the first half of fiscal year '27. At the same time, we remain focused on ensuring growth translates into attractive long-term returns. While customer demand and revenue growth remained robust during the quarter, profitability remains an important area of focus. The business is working through a period of significant customer ramps, manufacturing expansion and elevated investment activity, including engineering talent, technical expertise and operating capabilities as we support multiple large growth initiatives at the [ second ].
Several opportunities in our pipeline are being awarded at margin profiles that are neutral to accretive relative to our current operating performance. As previously awarded programs mature and new programs ramp, we expect modest margin improvement over time. even as we continue investing to support future growth. Our manufacturing investments remained aligned with awarded customer programs and our focus remains on deploying capital in ways that strengthen our competitive position and are expected to generate attractive returns over time.
In closing, we believe both distribution in Hyve continued to benefit from durable technology trends and expanding customer relationships. Within distribution, enterprise AI adoption digitally enabled experiences faired with human expertise and growing technology complexity are increasing the value we provide to customers and vendors. Within Hyve, sophisticated infrastructure architectures are driving deeper customer engagement and expanding opportunities across a broader set of customer programs. While we have deployed significant capital to support customer growth initiatives, particularly within Hyve, we believe those investments strengthen our competitive position, support future growth and increase the long-term earnings power of the company. As these programs mature, we expect free cash flow generation and conversion to improve, and we remain focused on demonstrating progress as we close fiscal year '26 and enter fiscal '27.
With that, I'll turn it over to David to discuss our financial performance and outlook in greater detail. David?
Thank you, Patrick, and good morning, everyone. This was another strong quarter for TD SYNNEX. Both distribution in Hyve grew above market and contributed meaningfully to earnings, while our operating income and earnings per share continue to grow faster than gross billings.
Starting with the top line. Our non-GAAP gross billings for the third quarter was $31.8 billion increasing 40% year-over-year or 41% year-over-year in constant currency and exceeding the high end of our guidance range. Non-GAAP operating income was $736 million an increase of 55% year-over-year or 56% year-over-year in constant currency. Non-GAAP earnings per share was $5.68, an increase of 59% year-over-year and above the high end of our guidance range. GAAP operating income was $643 million an increase of 68% year-over-year. GAAP earnings per share was $5.18, an increase of 89% year-over-year and above the high end of our guidance range.
Turning to our quarterly performance for each business. Distribution non-GAAP gross billings increased 27% to $24.8 million with double-digit growth across each region and most major technologies. Our end-to-end portfolio continues to position us well across technology cycles with healthy demand throughout the business in particular strength in data center infrastructure. Endpoint Solutions gross billings increased 16%, supported by continued strength in PCs, including higher average selling prices and a modest decline in units. Advanced Solutions gross billings increased 37%, driven by strength in infrastructure, software and AI-related technologies. Distribution gross profit increased 22% to $1.15 billion. Distribution gross margins were slightly impacted by customer and product mix, which was more than offset by disciplined expense management. Non-GAAP operating income increased 55% to $483 million, and non-GAAP operating margin as a percentage of gross billings expanded 35 basis points year-over-year to 1.95%.
Turning to Hyve. Hyve's gross billings increased 117% to $7 billion with growth across both manufacturing and supply chain services. Manufacturing grew in excess of 130% and represented approximately 2/3 of Hyve's gross billings, reflecting higher volumes and expanded programs with existing customers. Supply Chain Services grew in excess of 90%, supported by component demand associated with customer infrastructure deployments. Hyve's gross profit increased 47% to $276 million, and non-GAAP operating income increased 56% to $253 million. Non-GAAP operating margin as a percentage of gross billings was 3.61% compared with 5.04% in the prior year period. As a reminder, our operating margins reflect the growing contribution from large AI RAC programs that has been strategically important but dilutive to Hyve's operating margins. creating a mix headwind, which we believe has stabilized. Our objective is to build a broader, more diversified had business that combines sustainable growth with improving profitability stronger cash generation and attractive returns on invested capital.
Shifting to cash flow and capital allocation. Free cash flow consumption for the quarter was approximately $1 billion, driven by increased inventory in Hyve's supply chain business in addition to new customers and new programs with existing customers. Net working capital closed at $6.5 billion, with a gross cash conversion cycle of 22 days, an increase of 5 days sequentially and 6 days year-over-year, reflecting increment mix of Hyve. Year-to-date, we have made substantial investments in Hyve's working capital and believe we now have a significant portion of the investments to support our expected growth now in place. Our focus is now on execution, cash conversion and realizing the expected returns on our investments. We ended the quarter with $749 million of cash and cash equivalents and net leverage of 1.9x.
During the quarter, we returned $100 million through share repurchases and $38 million through dividends. Our Board also approved a cash dividend of $0.48 per common share payable on October 30, 2026, to shareholders of record as of the close of business on October 16, 2026.
Turning to our fourth quarter outlook. We expect continued momentum across both businesses, translate to non-GAAP gross billings of approximately $31.9 billion, plus or minus $500 million, up approximately 31% year-over-year at the midpoint, a gross to net adjustment of approximately 30%, revenue of approximately $22.2 billion, plus or minus $400 million, non-GAAP net income of approximately $474 million, plus or minus $20 million, non-GAAP diluted earnings per share of approximately $5.90, plus or minus $0.25, up approximately 54% at the midpoint based on approximately 79.2 million diluted shares outstanding. We expect Hyve's non-GAAP gross billings will increase sequentially quarter-over-quarter as we continue to see further benefit from ramping programs across multiple new customers. We expect we will generate cash in the quarter as recently deployed working capital begins to normalize.
Looking ahead to fiscal 2027, we expect further improvements in Hyve's cash conversion as programs mature. In summary, we're extremely proud of our teams for the results they continue to deliver. Distribution for multiple quarters has delivered above-market growth and broad-based growth, operating leverage and cash flow. Odd continues to add new customers and new programs with existing customers. We expect each of our major programs to generate attractive returns, although some will not reach their full potential until the back half of fiscal 2027. With that, we'll open the call for questions. Operator?
[Operator Instructions] Your first question comes from Joseph Cardoso with JPMorgan.
2. Question Answer
This is MP on for Joseph Cardoso from JPMorgan. Great results. I think my question is you stated several pipeline opportunities are being awarded at margins neutral to accretive relative to current performance. what is driving this improved margin discipline? And how sustainable is it as competition for AI infrastructure [indiscernible]?
So thanks for your question. So just to provide -- this is David, a little more clarity on Hyve's operating margins and how the new customer programs are coming. What we've put in the prepared remarks and if you reflect on the commentary we provided on the call last quarter, Hyve is ramping 3 new hyperscalers and multiple programs within each of those customers.
And so as we look forward, one of the comments that we made is the new programs that we've won, which are predominantly manufacturing are neutral to accretive to have Additionally, some of the programs that we're ramping this year, as those programs mature, we continue to find ways to improve the margins within there. And so as we look forward, that's what gives us confidence that Hyve's margins have stabilized and should improve as we move forward.
Your next question comes from Keith Housum with Northcoast Research.
And I'll lock great quarter for you guys. We're kind of looking at the growth. Obviously, servers and storage were phenomenal for you guys this quarter, but strictly really broad-based. But I think there might be concerned with some investors that you're getting more rumors about data centers perhaps peaking here and I think there's rumors of Oracle even perhaps pulling back on data centers here. How are you guys thinking about the data center market for the next year or 2? Any concerns that you might have a pullback to your spending or any constraints out there, but how are you just thinking about the broader market?
Yes, Keith, thanks a lot for the question. So I mean, one, as you said, we are very pleased because the growth in the quarter has been broad-based by GEO, distribution, Hyve by technology. And by the way, our Q4 guidance reflects that. If you look at next year, so we're in the process of building our budget for next year and collecting all the data. We continue to be overall positive about the market prospects and we expect to continue to grow a little bit faster than the market.
Specifically to data center, and when you look at what is driving the demand, you have, of course, I mean, with the hyperscalers, they have continued to support the frontier models with capacity for training. But I mean, what we see and that's confirmed by all the -- by our OEM is that companies are now investing more and more. Enterprises are investing more and more in agentic capabilities. And we know that agentic AI is going to be a fantastic driver for productivity gains and improving customer experience. I mean we've mentioned one of a big win this quarter from an enterprise and we see that as clearly a trend accelerating. So we continue to be positive about the prospects for next year and specifically to Hyve as David just mentioned, we've won some new customers, and we are going to benefit for the ramp up. So overall, we are cautiously optimistic.
Great. And just as a follow-up to that, like the business you win with Hyve, is that cancelable if the market did go south by those customers? Or are these not call agreements that you guys enter into?
The way the programs work are similar to distribution, you could cancel contracts. But these are longer-term agreements. Both sides have financial cancellation rights that people would all perform. But when you go into one of these programs, it can take you a year to get up to be and what we're working on is we won a category within a hyperscale where we support in a multiyear [indiscernible]. So in many cases, these programs can last a few years, but there is always the potential that on volumes [indiscernible], but we feel really good about where [indiscernible] the customers that supports the value that it has and how we start to relative to the competition. And so all of those items will provide a level of installation.
I just want to add 2 things. So one, when you look at the forecast we've received or the backlog we have, I don't see any sign of concern today, point number one. Point number two is it was interesting to watch the results of Q3. And clearly, everybody referring to the fact that there is not enough capacity today in the data center to meet the demand. And so again, the completion of the 2 makes me feel I mean, cautiously optimistic for next year.
Your next question comes from Ruplu Bhattacharya with Bank of America.
You've reported good results and guidance. It looks like gross margin overall declined 60 bps year-on-year. Can you elaborate more on what was that mix that impacted margins? And was there anything unique about the advanced solution side of the Americas distribution business because it looks like that region had gross margins down the most, about 120 bps. So any further color on what impacted margins?
Sure. Thanks, Ruplu. When you look at the overall margins, if we just focus on distribution for a second, the mix that we're referring to is largely product related. So within North America, there was a few larger transactions, specifically around infrastructure build-outs and some of those categories have slightly lower gross margin is relative to the average.
Within Hyve, it's the same impact that we had commented on last quarter, which was we have ramped a large AI server program that's profitable, but at margins that are slightly below the average Hyve margin, and that's what's caused the year-over-year decline for Hyve. But net-net, when you take a huge step back, our teams, both in distribution and Hyve have done a really nice job managing margin, managing pricing and making sure that within distribution, when volume shifts between categories that they prudently manage their cost to continue to drive operating levers. So we feel very good about the performance that the team has put out for the quarter.
Your next question comes from Erik Woodring with Morgan Stanley.
I'm going to ask something kind of similar to Ruplu there, maybe try to be a little more specific, which is on that advanced solutions side, you're talking about mix. I just want to make sure and clarify for everyone here. I think there's probably some concern there could be issues with the cost-plus model just because of where pricing is going. Can you just clarify for us the Advanced Solutions margin -- gross margin pressure that you saw was really just a function of mix in those deals and that any like-for-like margins, we're not seeing pressure year-over-year this quarter?
Sure. No, Erik. Thanks for the question. And you've read it correctly. When you look at the overall margins, if you really start to double click them, they're relatively stable. And so as we've shared previously, our business, we make a percentage of the average selling price. And so what impacted the quarter is we had a couple of large transactions and larger orders continue to be slightly lower margin. And so the mix of that is what caused some of the margin impact in addition to us selling a decent amount of AI infrastructure. It's all profitable business. It's all good ROIC business, but that is what impacted the margins, specifically in Advanced Solutions year-over-year. Structurally, there's -- the margins remain highly resilient when you look at it from a category perspective. So we feel pretty good about that.
And I just want to add one thing. So talking a little bit about our management system. So every month, we are reviewing our margins, of course, by geography, but most important, by technology and by vendor and customer segment. And so we are monitoring that, indeed, I mean, like-for-like margins are stable or evolving and then we look for the why and take corrective measures. So it's a very disciplined approach. And that's the reason when we talk about mix, it's either customer segment who grew faster and has a lower margin or higher margin or a geo who grew faster and has a higher margin or lower margins.
So it's really mixed. Otherwise, very, very strong discipline on margin reviews. I mean, to, I mean, anticipate any issues and take corrective actions very, very rapidly. But again, as David mentioned today, we have no issues. And the other thing I would add just is -- and that's very important. I mean we talked about, I mean, taking to the bottom line, at least 50% of the GP growth. And you can see that today, that ratio is significantly better than that. Again, the teams are doing a fabulous job managing cost. We are also obviously starting to leverage AI which, I mean, basically is improving the productivity of the overall team. So I mean, operating margins have been consistently improving over the past quarters, and it was true again in Q3.
Your next question comes from David Vogt with UBS.
Great. I'll just squeeze in one and just a little bit multipart question for David. So David, you touched on seeing free cash flow getting better in Q4 and seasonally, Q4 is your better period of conversion, better conversion of working capital. Can you kind of help us think through kind of where you think the company's cash flow needs look like as we stretch out into '27 because the business is structurally 50% bigger than it was effectively a year ago. Just trying to get a sense for where your cash needs are today, what you feel comfortable with, with cash on your balance sheet and how you're thinking about all the different vectors and for mutations, particularly as Hyve should continue to grow pretty nicely next year.
It's a good question. So thanks, David. When you think about what we put in our prepared remarks is we expect to generate cash in Q4, you're right, that seasonally, we tend to generate more cash in the back half of the year. Here's the way we think about it. So we would expect a couple of days of improvement in gross cash days quarter-over-quarter. That is largely driven by 2 things: continued momentum across both distribution and Hyve. And knowing that a lot of the cash consumption year-to-date has come from Hyve and we have to make investments in programs ahead of the ramp. And so as those programs ramp, we expect them to be cash generative.
As you think about 2027 or more on the long -- or more beyond, we expect all of our businesses to be sustainable cash generators. And so we recognize that FY '26 was a period of hyper growth. But we also front-loaded a lot of working capital investments to enable that. And so as we move forward, we would expect those -- all of our businesses to become cash generative, and we feel pretty good about where we are.
I just add one remark. When we look at our more mature programs at Hyve, I mean, indeed, we see that when they reach maturity, they are generating free cash flow, okay? So no concerns from that standpoint. But the reality is that the team has done a very good job winning some new programs expanding the customer base. And yes, we are in an investment phase to ramp up all those programs. But again, when the program matures, it is -- it generates free cash flow.
Your next question comes from Katherine Murphy with Goldman Sachs.
Maybe to stick on the Hyve manufacturing piece. Can you talk more about the mix of programs in the quarter? You mentioned that the AI server business that you highlighted last quarter remains largely stable. And as these new programs layer in, mix should improve. But maybe talk more to the outlook for the traditional server networking storage programs. And the new engagements as well as the timing of when some of these legacy engagements may start to roll off or be less significant.
Yes. So if you look at the quarter, Q3, so we had this large GPU program. and networking continued to be very strong. If you look at the new programs we've won, there are primarily networking programs, okay? So again, at a good margin. We started seeing some of the ramp this quarter and we are going to see an acceleration in Q4 and Q1.
Your next question comes from Guy Hardwick with Barclays.
I wonder if you could guys could update us on the agreement with Amazon, whether that's had an impact on revenues in the quarter and also whether it's also some of the revenues, the unvested portion [indiscernible] has been netted off the revenues? And then a follow-up question on Hyve. Given there's more manufacturing growth and supply chain growth, I know you've kind of already answered the question, you would expect a positive mix on that, but you're saying within manufacturing, there's a negative mix. Is that -- am I understanding that correctly?
Thanks for the question. So we'll try to cover both of them. When you -- as you know, we announced a warrant agreement with Amazon. And what we shared at that time is we expect this to be mutually beneficial to both of us. And so this is an agreement that's 7 years long. So we would expect over the course of the agreement that both sides to benefit. I think it's too soon to get into exact specifics on how things played out in the quarter. But what I can tell you is our relationships across all of our customers within Hyve are very good, and we continue to invest in capabilities that add value to all of our partners.
When you think about the mix within margins as it relates to Hyve, you are correct that the AI server program that we've referenced, which has caused some of the margin decline year-over-year is a manufacturing program. And then a lot of the new programs that we are also manufacturing. And so this has been a year where we've had somewhat of a headwind to gross margins. But as we look forward, and as these new programs ramp, we feel very good about the trajectory of the margins as a lot of these new programs are neutral to accretive to Hyve in total.
Your next question comes from David Paige with RBC Capital Markets.
I want to add on distribution and endpoint. One of your closest competitors have noted that there's still $300 million to $400 million on refresh to Windows 11. So it looks like you had good growth in PC in the quarter. So I just wanted to get your thoughts on, I guess, the demand environment the refresh cycle and what you see going forward?
Yes. Thanks a lot. So PC did overall well and grew double digit. Now if you peel the onion, units were down. I mean we had forecasted the PC units to go down mid- to high single digit, which is what happened this quarter and more than offset by price increases and mix. So let me just provide some color here.
So indeed, the component price increase has driven an increase of average selling prices. But another phenomenon, which is very interesting is the fact that the market is buying more the mid-range and higher range type PCs rather than the low range. Why? Because also when our manufacturers get their allocations they allocate them to the midrange and the higher range of their portfolio. So some of the ASP increase is really due to components, but some of it is due to a change in mix. The refresh is not over. So -- and so we should still see some tailwinds because of that.
Now the price increase, as expected, is having some impact on the volume. It has less impact on B2B where we play. It will have -- it has more impact on B2C, where we don't place -- we have a very small play in the market. So PC continues to be overall in value, a very good category. And I just add that AI PCs continue to grow and represent now close to 50% of the total revenue for us and AI PC is potentially becoming an important part of the infrastructure to run AI workloads.
Your next question comes from Vincent Colicchio with Barrington Research.
Yes. Are you seeing customers consolidate their distribution relationships as technology becomes more complex? And is the company gaining wallet share as a result?
So thanks a lot for the question. I mean as you have noticed, we grew faster than market, and we've done that consistently for many quarters. I think it's due to 2 things. So one, from a customer side, indeed, I mean, we have this collection of specialist approach, which means that we have a very appealing value-added value proposition by technology. And that puts our teams in a very good position to support customers who have to deliver business outcomes, which are more and more complex to deliver. So yes, I believe that our approach has makes us, I would say, probably very well differentiated to help our customers win the deals and grow.
But we see, at the same time, in the vendor community, a trend accelerating in terms of rationalizing the go-to-market. So reducing the number of direct customers, direct resellers and number of distributors. And because of our value prop because of the relationships we've built over the years, I think we are going to continue to benefit from that trend.
Your next question comes from Alex Valero with Loop Capital.
My first question is on enterprise. So you've mentioned that you're seeing more growth in enterprise. It sounds like -- is this something that's going to continue. Can you talk to the kinds of things that enterprise customers are prioritizing? And where are you best positioned to capture that spend?
Okay. So I'm going to distinguish between compute and storage. On compute, 2 things. So you still have the refresh of the general compute server base. And as you know, the new generation has more cores and can replace several subs from the old generation. So what you see is a decline in unit but an average value which is significantly higher. So we see very nice growth in general compute. And we also see, obviously, I mean, an increased demand when it comes to AI compute driven by the fact that companies are absolutely building their factories to take advantage of agentic AI. And what we see is some very large deals coming from large enterprises, but we are starting to see also midsized companies investing in that space.
On storage, what we see is a modernization and acceleration of the modernization of the data center, I think AI will continue to play a key role. The important aspect, if you want to get the full benefit of your language models, you need to have the data in a good shape, and that means investing in storage. So I mean, that's something we are seeing, too. And here for storage, we see an increase in units and of course, in value.
Got it. That's super helpful. And just a quick follow-up on networking actually. So I see networking grew 19% year-over-year, although it was the slowest growing hardware cloud, what are the puts and takes there? Any color you can provide on networking.
Yes. So networking, again, I just want to put some context. If you just go back last year was a little bit challenged category. Things have completely changed now. I mean you have a need for massive refresh I mean, WiFi 7 switches to support AI. So you have a series of tailwinds in networking, which are driving a nice increase in units. And on top of it, so the magnitude is not comparable to what we see in compute or PCs, but we start seeing some price increases also. And so the combination of the 2 makes the category very strong and I think it's going to continue for some time. So it's another category where we are very optimistic for the coming quarters.
We have reached the end of the Q&A session. I will now turn the call back to Patrick for closing remarks.
Thank you all for joining us this morning. As we conclude, I'd like to express my gratitude to our coworkers around the world whose hard work, dedication and commitment to make our success possible as well as to our partners for their continued trust and support. To everyone on today's call, thank you for your ongoing interest in TD SYNNEX, and I'm wishing you a great day.
This concludes today's conference call. You may now disconnect. Have a great day.
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SYNNEX Corporation — Q3 2026 Earnings Call
SYNNEX Corporation — Q3 2026 Earnings Call
Solide Schlagzeilen: kräftiges Umsatz- und Ergebniswachstum, Hyve treibt Expansion aber belastet kurzfristig den Cashflow.
📊 Quartal auf einen Blick
- Gross Billings: $31,8 Mrd (+40% YoY; +41% in konstanter Währung)
- Distribution: $24,8 Mrd (+27% YoY)
- Hyve: $7,0 Mrd (+117% YoY)
- Ergebnis: Non‑GAAP Betriebsgewinn $736M (+55% YoY); Non‑GAAP EPS $5,68 (+59% YoY); GAAP EPS $5,18 (+89% YoY)
- Cash & Bilanz: Free Cash Flow Verbrauch ~$1,0 Mrd, Net Working Capital $6,5 Mrd, Cash $749M, Net Leverage 1,9x
🎯 Was das Management sagt
- Hyve‑Investitionen: Bewusste Working‑Capital‑Aufstockung zur Unterstützung großer Produktions‑/Ramping‑Programme; Ziel ist mittelfristig bessere Cash‑Conversion und höhere Renditen.
- AI‑Chance: Enterprise AI und "AI‑Factories" liefern Großaufträge (z.B. NVIDIA‑basiertes Projekt); Nachfrage verlagert sich von Experiment zu Produktions‑Deployments.
- Digital & Partner: Stärkere digitale Kundenbindung (PartnerFirst, digitale Plattformen mit AI‑Agenten) und Ausweitung von Vendor‑Beziehungen (z.B. IBM in 20 weiteren Ländern) treiben Cross‑Sell.
🔭 Ausblick & Guidance
- Q4‑Guidance: Non‑GAAP Gross Billings ~$31,9 Mrd ±$0,5 Mrd (~+31% YoY), Umsatz ~$22,2 Mrd ±$0,4 Mrd, Non‑GAAP Net Income ~$474M ±$20M, Non‑GAAP EPS ~$5,90 ±$0,25.
- Ausblick FY27: Management erwartet verbesserte Cash‑Conversion, Hyve‑Programme sollen im Zeitverlauf cash‑generierend werden; Risiken bleiben in Work‑in‑Process und Ramp‑Timing.
❓ Fragen der Analysten
- Margendruck / Mix: Analysten fragten nach Mix‑Effekten in Advanced Solutions; Management sagt: Rückgang war mix‑bedingt (große Infrastrukturaufträge, AI‑Server) und strukturell stabil.
- Data‑Center‑Risiko: Nachfrage‑Sustainability wurde hinterfragt; Management ist „vorsichtig optimistisch“, sieht keine aktuelle Entspannung der Nachfrage und langfristige Enterprise‑Trends.
- Hyve‑Verträge & Cash: Fragen zur Kündbarkeit und Cash‑Bedarf; Antwort: Mehrjährige Programme mit Kündigungsrechten, aber Ramp‑Profile erwarten mittelfristige Cash‑Generierung.
⚡ Bottom Line
Starkes Quartal mit klarer Umsatz‑ und Ergebnisbeschleunigung; Hyve ist Wachstumsmotor, drückt aktuell aber den Free Cash Flow wegen vorgezogener Investitionen. Führt zu attraktivem mittelfristigem Ertragspotenzial, während kurzfristig Working‑Capital‑Risiken und Programmrampen die Hauptunsicherheiten bleiben. Dividendenerhöhung und Rückkäufe stützen Aktionärsrendite.
SYNNEX Corporation — Q2 2026 Earnings Call
1. Management Discussion
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. [Operator Instructions]
At this time, for opening remarks, I would like to pass the call over to Nate Friedel, Head of Investor Relations at TD SYNNEX. Nate, you may begin.
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.
Thank you, Nate, and good morning, everyone. We delivered a record quarter with broad-based strength across Distribution and Hyve, building on the momentum we have carried out of recent quarters. Our results reflect consistent execution against our strategy and deepening relationships within the 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 build outs 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. 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 more 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 2 in real time. Our digital capabilities are enabled by partner first, which we've built for depth and speed at scale to deliver a connected experience for our partners. As one of the world's largest distributors, we have the data and intelligence to support our partners in identifying demand opportunities. We're applying machine learning, generative and agentic AI to the data we gather across our ecosystem to personalize each partner's experience, their navigation, their dashboards and customized recommendations and opportunities we surface. This reduces friction and drives higher conversion, stronger attachment and faster cycle times.
Second, we segment our commercial teams in groups of specialists. We break our customer base into strategic tiers and in some cases, we reallocate resources monthly based on what each tier needs. We use the same discipline on the technology and vendor side. The impact shows up in the data. SMB customers are growing well above market and some of our most strategic accounts have surfaced billions of dollars of untapped opportunities.
Third, we invest in enablement. We accelerate our customers' time to market by equipping them with advanced training, certifications and technical expertise tailored to each customer's technologies and segments. We provide labs to test the solutions. We believe that our partnership sharpens their capabilities and drives faster adoption of solutions. When we can help customers become more successful, they stay with us and grow with us.
Europe is a clear proof point. Our EMEA team competes head-to-head against pure-play specialists who runs digital and high-touch motions in parallel and is weighted towards high-growth technologies and segments. The share gains there are structural and it's the same model we've extended across our entire distribution business globally. These are the reasons why earlier this quarter, HPE selected TD SYNNEX as 1 of just 2 global distribution partners across its full networking, cloud and AI portfolio, including the assets from the Juniper acquisition. It unifies our reach and meaningfully expand our relationship with one of the most strategic vendors in the industry. These are the kinds of outcomes our model produces.
Hyve also had an excellent quarter. Non-GAAP gross billings of $5.5 billion, up 117% year-over-year, driven by new programs with existing customers. We have built a suite of services to support hyperscalers digital infrastructure deployments, which is key to our success. Coupled with strong execution against core pillars of our strategy, we've earned expanded program opportunities with some of our most strategic relationships, which has driven the triple-digit growth we have experienced year-to-date.
Hyve's North Star is simple: to be the partner of choice that hyperscalers trust to design, build and deploy their data center infrastructure globally. That starts with design and codesign from board manufacturing to full rack integration and other key components, helping customers accelerate time to deployment.
Beyond the build, we offer supply chain services that are designed to support our customers across the full data center life cycle. Ahead of demand, we aim to secure key components to give our customers supply assurance in a complex environment. And throughout the life cycle, we manage the spare parts and final components to help ensure customers have what they need when they need it.
As we mentioned last quarter, we have secured at least 1 program, which each of the top 5 U.S.-based hyperscalers. We have begun the early stages of the ramp with our third and the programs with the additional 2 hyperscalers are on track with ramp expected in late fiscal year '26 or early fiscal year '27.
We also issued an equity warrant to Amazon, a long-standing customer of ours, structured to growing value as our programs together expand. Across these partnerships, we are being selected as a manufacturing and supply chain partner for multiple aspects of our customers' digital infrastructure build outs.
To support the future growth and needs of our customers, we are in the process of expanding our manufacturing facilities by more than 1 million square feet in several locations throughout the U.S. with current plans to add more. Hyve is quickly becoming the go-to partner for U.S. hyperscalers seeking a consolidated approach to the design and build of their digital infrastructure that is paired with full life cycle supply chain services. This full set of capabilities is key to winning new programs and onboarding new customers, ultimately enabling Hyve to grow at a premium to market.
In closing, there are 3 key things I'm focused on as we move through the year. First, partnering with vendors and our customers through the current demand environment. The macro backdrop creates complexity and challenges that we aim to solve, but the underlying demand signals currently remain solid. We believe the shift to AI-capable devices is just beginning. Enterprises are prioritizing the modernization of their data centers, and AI is driving incremental investment across the stack. We are watching unit elasticity carefully, but the net revenue impact from higher ASPs has been positive.
Second, our execution at Hyve. We are bringing new capacity online, investing in engineering capabilities ahead of the ramp and standing up new programs alongside expansion at existing customers. The bar I'm holding the team to is best-in-class service. That's what's gotten us here, and it's what wins the next program.
Third, growing operating profit faster than billings. David will cover the details, but this is the metric that matters most to me. We aim to convert top line growth into margin expansion and shareholder value.
I now pass it to David to go over the financial performance and outlook.
Thanks, Patrick, and good morning, everyone. This was a record quarter for TD SYNNEX. What's encouraging is that both of our businesses continue to perform extremely well, extending the growth trajectory that we've been on.
Starting with the top line. Our non-GAAP gross billings for the second quarter was $28.9 billion, increasing 33% year-over-year or 32% year-over-year in constant currency and exceeding the high end of our guidance range. Non-GAAP operating income was $615 million, an increase of 49% year-over-year or 48% year-over-year in constant currency. Non-GAAP earnings per share was $4.85, an increase of 62% year-over-year and above the high end of our guidance range. GAAP operating income was $519 million, an increase of 58% year-over-year. GAAP earnings per share was $4.15, an increase of 88% year-over-year and above the high end of our guidance range.
As we grow, we're focused on creating operating leverage so that earnings consistently grows faster than the top line. Driving that conversion is central to our strategy, how we allocate resources and manage cost.
Turning to quarterly performance for each business. Distribution delivered non-GAAP gross billings of $23.4 billion, increasing 22% year-over-year and well ahead of plan. Our end-to-end portfolio is indexed towards faster-growing technologies, which is positioning us to grow at a premium to market. Endpoint Solutions gross billings increased 13% year-over-year, supported by strong growth in PCs driven by higher ASPs, coupled with mid-single-digit growth in units. Advanced Solutions gross billings increased 31% year-over-year, driven by continued strength in infrastructure and security.
Distribution non-GAAP operating income was $434 million, increasing 36% year-over-year and non-GAAP operating margin as a percentage of gross billings was 1.9%, an improvement of 19 basis points year-over-year. We estimate the distribution gross margins benefited by approximately 5 to 10 basis points during the quarter driven by incremental profit from strategic inventory purchasing.
Turning to Hyve. Hyve generated non-GAAP gross billings of $5.5 billion, increasing 117% year-over-year and ahead of expectations with both manufacturing and supply chain services contributing. Manufacturing represented approximately 2/3 of Hyve in the quarter, and gross billings growth increased more than the total business, primarily driven by increased volumes with our existing customer base.
Supply chain services represented approximately 1/3 of Hyve in the quarter, and growth was driven by component demand, supporting our customers' infrastructure deployments. Margins and overall mix of supply chain services can vary quarter-to-quarter. Hyve non-GAAP operating income was $181 million, increasing 89% year-over-year and non-GAAP operating margin as a percentage of gross billings was 3.3%, decreasing 50 basis points year-over-year, primarily driven by mix. We're laser-focused on continuing to make investments in both businesses that will position them to continue to grow at a premium to market over time.
Shifting to cash flow and capital allocation. Free cash flow consumption for the quarter was approximately $330 million. Given the accelerated growth in Hyve, we're continuing to invest in working capital to support the growth of both new customers and new programs with existing customers. We're prioritizing making incremental investments where we can generate the healthiest returns, and this is showing up directly in our improving return on equity.
Net working capital closed at $4.9 billion with a gross cash conversion cycle of 17 days, an increase of 1 day sequentially and flat year-over-year, reflecting an increased mix of Hyve. Both businesses improved their cash days year-over-year, but we do expect additional efficiencies from Hyve as new programs mature. We ended with $1.1 billion of cash and cash equivalents and net leverage of 1.6x, modestly below our medium-term framework, which gives us ample capacity to continue to invest in the business while returning capital to shareholders.
During the second quarter, we returned $112 million to shareholders through repurchases and an additional $39 million through dividends. Our Board of Directors approved a cash dividend of $0.48 per common share payable on July 31, 2026, to shareholders of record as of the close of business on July 17, 2026.
Turning to our outlook. For the third quarter of fiscal 2026, we expect non-GAAP gross billings of approximately $27.7 billion, plus or minus $500 million, up approximately 22% at the midpoint. A gross to net adjustment of approximately 33%. Revenue of approximately $18.6 billion, plus or minus $400 million. Non-GAAP net income of approximately $361 million, plus or minus $20 million. Non-GAAP diluted earnings per share of approximately $4.50 plus or minus $0.25, up approximately 26% at the midpoint based on approximately 79.4 million diluted shares outstanding. Our Q3 guidance assumes no material contribution from Hyve's newly onboarded customers, which we are still expecting to ramp in late fiscal 2026 or early fiscal 2027.
To close, we're extremely proud of our teams for the results they continue to deliver. We're entering the second half with forward momentum in both Distribution and Hyve. With our global reach, differentiated capabilities and broadening portfolio, we believe we're positioning ourselves to grow at a premium to market through time.
With that, we'll open the call for questions. Operator?
[Operator Instructions] Your first question comes from Ruplu Bhattacharya with Bank of America.
2. Question Answer
Patrick, you've seen strong revenue growth and billings growth across all of your segments this quarter. The question I have is, have you seen any evidence of demand destruction or any weakening of demand given component cost increases? Are customers showing any hesitancy to purchase either Endpoint Solutions and/or Advanced Solutions? And likewise, if units are going to be down year-on-year, have you seen any change in channel incentives from the vendors? And I have a follow-up for David.
Okay. So Ruplu, thanks a lot for the question. Yes. So I mean focusing on Q2, I mean, very strong quarter both on Distribution and Hyve. And very transparently, we haven't seen, for the moment, any distraction of demand because of the price increases. The price increases are really starting to kick in and it's probably going to accelerate in Q3.
On the other hand, I mean, we see underlying demand, which continues to be healthy across the portfolio. I'm anticipating a question on maybe what happened on I mean, even on PCs, we saw a unique growth. So for the moment, we don't see that phenomenon. I'll just add, and that has been one of our assumptions for the guidance that on most of the categories, companies need to continue to invest, especially in infrastructure. And combined with the ASP increase, I think the demand will continue to remain healthy at least for what we can see for Q3.
And any change in channel incentives from the vendors?
No, not yet.
Okay. A quick follow-up for David.
Sorry, Ruplu. Just to add. So no, we don't see changes or material changes from our vendors. I add that our margin quality for Distribution stayed very healthy in the quarter, as you can see. So, yes.
Okay. Great. David, just quickly, inventory was up 30% almost sequentially. Can you talk about working capital and free cash flow and what is driving that inventory? And are you using the strength of your balance sheet to buy any components?
Thanks, Ruplu. So we've got a couple of pieces to cover here. So when you think about cash flow and cash days. So cash days were flat year-over-year. I think the important point to make, though, is both of our businesses improved their cash days year-over-year, and you've got the mix of Hyve that caused the totality to be flat. Hyve continues to experience a period of accelerated growth in that business given the cash conversion cycle takes capital to run. And so we continue to make those investments.
When you start looking at inventory, I think ballpark, the days are up, call it, 8 days or so year-over-year, and it's largely driven by some additional inventory that we've taken in Hyve to help fund new programs, existing programs and help make sure that our customers have adequate supply given the broader macro.
And sorry, I just want to add one thing, which is I mean, we've been, for the last quarter, a little bit more aggressive on inventory levels because we've anticipated on the price increases. I mean, that gave us several advantages. One, it helped smooth the impact of the price increase for our customers, and that's very important. It also helped our vendors by having inventory. And again, it positions us well in the market. Demand is strong. We are probably one of the best inventory profile in the industry. And again, that has helped us grow faster than the market overall.
Your next question comes from the line of David Vogt with UBS.
So Patrick, one for you and one for David. So Patrick, can you help us unpack how the incremental manufacturing facility square footage plays out this year and next? And is it basically designed to support the incremental programs that you laid out with your current and future programs with your hyperscalers? And is there kind of a rule of thumb to think about what that incremental capacity could mean for whether it's billings or revenue? And then I have one for David as well.
Thanks a lot for the question. So I mean, as we mentioned, so we have now won programs with all 5 U.S. based hyperscalers. We have now 3 hyperscalers where we have won more than one program. So what we see is a very nice pipeline of opportunities, which are going to ramp up probably end of Q4, beginning of Q1 fiscal year '27. And basically, we have to invest. We have to invest in footprint. We are going to invest in additional equipment in liquid cooling to be able to support the various programs we have won.
We haven't yet established a correlation between investment and revenue. What I can tell you is that we are very comfortable with that expansion of capabilities and capacity that we are going to meet the demand we are seeing and be in a position to deliver the products with the right quality, which is the most important for us at the moment.
Okay. Great. That's helpful. And David, I know this might be a tough question to answer, and I know there's some confidential kind of data here. But can you help us understand sort of the gross margin differentials within Hyve, whether it's by -- is it better to think about it relative to like ODM, CM margins versus supply chain margins? Or is there a lot of variability between programs with existing hyperscalers or between actual hyperscalers themselves? Can you help us understand how to think about the margin profile of these programs, particularly as you start to ramp, obviously, new programs later this fiscal year into fiscal '27?
It's a good question. So when you take a huge step back, Hyve has 2 businesses, manufacturing and assembly and supply chain. On average, historically, the margin profiles have been relatively similar. I will tell you as you start looking at things by program, there can be differences. So I'll give you a couple of examples. If you're building AI servers, that tends to have a slightly lower margin profile. If you are building complex networking racks, we -- that tends to have a slightly higher margin profile, so on and so forth. Same thing on the supply chain side, depending on what we're buying, how long we're holding it and how complex it is, it does dictate the margin profile.
But all in all, here's what I would anchor you to. We feel very good about the performance that Hyve's been able to generate. We continue to make investments in new capabilities, new programs, new products that will allow Hyve to continue to maintain, if not improve its margin profile through time, and we're super excited with what the team has been able to produce thus far.
Just to -- I would like to add. So 2 more things. The first one is, I mean, similar to Distribution, gross margin quality is very important. And I can tell you that the team is very focused on that. So that's number one. Point number two is, obviously, as you ramp up a program, you have some inefficiencies, which will disappear over time as, I mean, based on the learnings and the optimization.
So again, hyper growth, as we speak, lots of programs being launched, some impact on the GM quality because of that. But again, looking forward, it's a priority for us to optimize also the GM quality.
Your next question comes from the line of Keith Housum with Northcoast Research.
Congratulations on a great quarter. As we think about the evolving business out there with memory, and we're hearing more and more about supply constraints coming into place here. Are you guys seeing the supply constraints come into place right now? Or is there concerns that you'll see some perhaps limiting the amount of growth you can have for the rest of the year or maybe into FY '27? But how are you thinking about the supply availability right now?
So Keith, thanks for the question. So for Q2, we haven't felt it, really. But you're right in our Q3 guidance, we took into account some risk with component availability. It's memory, obviously is one of the -- one of the category, some CPUs could come also, some challenges on delivery or CPUs could come also. So we factored it into our guidance and we will see.
But again, so far, it has been good. I would just add that when you look at Hyve, it's our customers primarily who secured the supply. And I mean they have, I would say, some good arguments with the vendors. On the Distribution side, so far, we -- again, our key vendors have done a very good job on -- with their supply chain. But yes, for Q3, we've been a little bit more cautious because of that in our guidance.
Okay. And if I could follow up on that. In terms of the HPE win in terms of being 1 of 2 global distributors. Have you seen that benefit completely in the quarter? Or is this still going to ramp up over time?
No, no. So we are going to see the ramp-up over time. So what's happening, just to put things in context. So HPE has decided to rationalize its go-to-market, they are going to focus on global distributors -- on 2 global distributors, in certain areas. And the benefit takes some time, okay? So it's -- we are going to probably see the benefit, I would say, first half of next year. We won some new countries. We're going to see the rationalization of the distribution network in some other countries. So it takes a little bit of time.
But just to comment from a more strategic standpoint on the HPE win. It's very interesting that the fact that we are global has been one of the reason for the win. What we see more and more from the vendors is that being global is becoming the differentiator when they rationalize their go-to-market.
And so we think that -- so probably there's more to come, other vendors are now looking at their global distribution landscape. And our strategy to expand in APJ in Latin America, potentially 1 day in the Middle East is clearly positioning us well to benefit from that market trend.
Your next question is from the line of Katherine Murphy with Goldman Sachs.
Maybe switching gears here a little bit. The margin profile of the Endpoint Solutions segment was -- seems like a record high from what I can see at 5%. Can you talk about what drove the strength in the quarter? And if there were any onetime benefits like the strategic inventory purchases you mentioned that benefited results in the quarter? And then to just quickly ask my follow-up now. Are there any expectations for continued benefits from the strategic inventory build as we look into the back half of the year and into '27, so long as we continue to see increasing ASP environment.
A couple of comments. One, we put in the prepared remarks that on the Distribution side, we had 5 to 10 basis points of additional margin from strategically purchasing inventory. A lot of that manifest itself in the Endpoint business. Here's the way I would think about it. Our goal is to secure the right amount of supply. And as Patrick said, to help our vendors smooth supply constraints, make sure there's proper availability. It is true when -- in a rising price world, we can benefit from that. And so -- but what I would tell you is, yes, if prices continues to rise, there will be a benefit. But we're also not greedy as it relates to this, right? We want to be paid for the additional capital that we've got deployed, but we also share some of these benefits with our customers as well so we can build better long-term partnerships. And so I would anticipate, as we move forward, these types of benefits will be more onetime in nature and slowly dissipate. And that's why we tried to call them out in the scripts.
Your next question comes from the line of Erik Woodring with Morgan Stanley.
Congrats on the results. Patrick, I guess I'll combine my 2 questions because it's a 3-part question. So sorry, but they're all related. And I'd love if you could just take a big step back and help us understand 3 things. So first, just again, help us understand the sustainability of hardware spending as we look through the second half and into next year, just given what you know today and the pipeline that you see. Second, just what products are showing to have greater inelasticity than others as you face these record price hikes? And then third, are there any products or segments as you look forward, where you don't believe you can fully pass through the higher device costs and potentially see some margin pressure just if there's any customer pushback? I'll combine those and make those my 2 questions even though it's a 3-parter.
Thank you, Erik. Let me start with the last one on the margin. So again, it's true for both businesses, Distribution and Hyve. We are a cost-plus business. So if cost increase, we pass it to the customers. We have no other choice. We have a very good track record as an industry and as TD SYNNEX. You look at what happened last year with the tariffs. And you look at what has been happening in the last 2 quarters. I mean we had already some categories where we saw the price increases. And again, we are able to pass it. We had inventory to smooth the impact for our customers. But overall, I mean, no concerns there.
In terms of product elasticity, the category I'm watching is PCs with some caveats. So consumer PCs, I think the elasticity will be relatively high, but we focus on B2B. So I'm expecting some impact of the ASP increase on the PC consumption. If you look at our Q2 results, we are able to mitigate the impact by gaining share and also because we are positioned on B2B and the refresh is not over, and you still have many enterprises or companies who have to upgrade their PCs.
But that's probably the category where I am the most cautious. We are the most cautious in our outlook. If you look at infrastructure, if you look at networking, yes, for the moment, we see very solid demand networking very rapidly, the 2 last years were tough. So networking is back on a lower base. You have the refresh driven by WiFi 7. And then you have the investments related to AI in that space. So I think that's sustainable. If you look at data centers, so server and storage, I mean this quarter, I mentioned last quarter that storage was starting to come back, and I wanted a confirmation. We had a very strong storage quarter. And I think it's going to last the AI, I mean, it drew first a compute upgrade. And I think now storage is -- and then switches and I think storage is next. And then on compute, we see very, very solid demand. And it's driven by several things. So obviously, ASP increase is driving the value up.
But even in volume, what's happening is that you have still the refresh of the general compute service happening. It's not over. So that's an opportunity. You have an acceleration of the purchase of general compute service because they have become critical when you speak about agentic AI. And then the cost of tokens is going to become a big topic. And if you want to mitigate the cost of tokens, I mean, running your workloads on-premise is going to be a good solution. So I think that's going to drive demand and remain a tailwind.
And then an accelerated compute, I mean companies are starting enterprises, in particular, but also you have the sovereign cloud, especially in Europe and APJ and the neocloud in North America, they are investing heavily. We are the source of supply for them, and I see the demand remaining healthy here.
So in summary, except on PCs where units could be impacted by the ASP increase. I think on the other categories, I think it's sustainable. Software was also a very strong quarter for us. So ASP increase is less of a topic. I think it's going to be sustainable. Security, especially now that you have to manage your risk related to agents is going to drive additional demand. So I continue to be cautiously optimistic across most of the technologies.
Your next question comes from the line of Adam Tindle with Raymond James.
Patrick, I just wanted to start here taking a step back. If I look at the quarter, incredible growth and negative cash flow. I wonder if you might just talk about how to strike the right balance between pursuing growth versus generating cash? And more specifically, if I look at kind of where that cash is going, it's heavy investments into Hyve in particular. And I think what we're learning on a forward basis is some of that's going to be incrementally fixed investment with this capacity build out.
How do you protect against downside there where customers are right now kind of rationalizing AI spend, token spend, like you said, the fear that you might be building fixed investment into a peak AI market?
So thanks, Adam, for the question. So let me distinguish between Distribution and Hyve very rapidly. Distribution continues to -- I mean, cash base are down on both businesses, that cash base are really low on Distribution. So the growth of Distribution is generating free cash flow, significant free cash flow, which is true today, we are investing in Hyve to fuel the Hyve growth, both working capital and of course, fixed assets.
So one, Hyve continues to have a very nice return, okay? So if you look at our key ratios, it's not that we are financing a growth business at the expense of our key financial metrics, it's the other way around. It's accretive for our margin, it's accretive for our return on equity. So from that standpoint, we feel very comfortable.
In terms of building fixed costs in case the market is going to correct. So it's true that the working capital will adjust immediately if the market goes down. So we have no concern. It's like Distribution. It's -- if I can speak like that, the elasticity is high. So I mean, as soon as the market goes down, the working -- we are going to see the working capital going down very rapidly. And so it will generate free cash flow.
But from a fixed asset standpoint, yes, it's a business which requires significantly more investments than distribution relatively speaking. But again, it's not either fixed cost, which we could not absorb. If you look at this year, we're going to invest for Hyve roughly $100 million amortized over 5, 6 years. The cost is absolutely variable in case that the market turns. And the other costs for Hyve are mostly variable.
So again, in case of downturn, I think it's going to be something similar to what we see in Distribution. And you have a lot of cash flow generated because working capital goes down. And then we are very good at reacting and adjusting our cost base to the new market reality. So I am not very concerned here. I can just finish with this continues to be top of mind for us. So we think about it all the time as we do the investments. But again, for the moment, I think we should be in a safe position.
The only other thing I'd add, Adam, if it helps is, one, we ladder leases. That obviously helps if there's a change in demand, too. We don't speculate on demand. So we largely build and outfit facilities based on long-term programs once they're committed. And so I will tell you, the team is incredibly prudent at how they manage Hyve from a capacity perspective, and they've done a nice job. As Patrick said, on the cash flow, there's -- as you're ramping a new program, there is more working capital inefficiencies that ultimately unlock as things mature. And so we are aware of the cash consumption. We are pleased with the reduction in cash days year-over-year. But we do believe, long term, there are additional efficiencies that we'll look to achieve as well.
Great. And just a quick follow-up. And by the way, I know that question...
Your next question comes from the line of Joe Cardoso with JPMorgan.
This is MP on behalf of Joe Cardoso from JPMorgan. Can you please double-click on the mix of Hyve business between supply chain versus contract manufacturing during the quarter? And particularly like how did it track relative to your expectations heading into the quarter? And also, how do you expect it to track into the second half? And any potential gross margin impact from that? And I have a follow-up.
So good morning, and thanks for joining. So when you think about Hyve, we put in the prepared remarks, 2/3 of the business was manufacturing this quarter and about 1/3 of it was supply chain. When you think about performance versus expectations, both businesses exceeded expectations. We don't -- it's a little tricky to try and figure out what's long-term guidance split at kind of a subsegment level. But here's what I would tell you. Our teams have done an excellent job winning new programs. We're very focused on expanding our manufacturing business and expanding our manufacturing programs. But we also recognize that as we -- because we have an end-to-end offering, being able to tie it all together is hugely advantageous for both our customers and for TD SYNNEX. And so they should grow together through time. But our hope is that long term, we continue to increase the manufacturing as a percentage of the total.
Yes. I just want to add that -- so our supply chain services is a service. So in today's environment, where you have this big ASP increase and shortages, I mean our customers have more needs than in environments, which will normalize. So again, the team is first focused on winning programs to grow the manufacturing business. That's really the core of the activity. And the service part is a little bit more volatile because of the context I just explained.
And for my follow-up, I just wanted to talk -- ask about pricing. Can you please comment how is the pricing environment right now? How do you -- how should we -- how you think the pricing environment is right now versus 90 days ago? And any particular product categories which you want to call out where the pricing pressures are more pronounced relative to others?
Yes. So pricing is up, and you had this inventory in the channel and that inventory has been shipped. So we're going to see the impact more and more. The category where the price increase are the most significant are obviously storage and servers because they are the most impacted by the memory price increases, but we see it also in PCs. By the way, we're expecting some new price increases in both categories in July. So the price increase are not over.
Your next question is from the line of Adam Tindle of Raymond James.
Okay. I was just going to continue on that thread, Patrick. I know the question that I asked earlier about cash flow versus growth sounded challenging. I actually think you're doing the right strategy because your balance sheet is clean. You don't necessarily need to be generating cash right now. But on that thread, I wanted to ask the follow-up to David. The timing and magnitude to cash flow reversing. I think previously, you had talked about 95% of non-GAAP net income for the combination of fiscal '25 and '26. But I think you need like $2-plus billion of free cash flow over the next 2 quarters to do that. And I wonder if we should sort of recalibrate our thinking. I know this is a tough question in a dynamic environment. Just any help for our models.
No, it's a good question, Adam. And I think you're thinking about it the right way, which is Hyve is in a period of accelerated growth. And so what we've reflected in the Q3 outlook is continued momentum in both businesses. And so the 95% net income to free cash flow conversion ratio is absolutely our North Star metric on a long-term basis, but in periods of accelerated growth, we will consume cash, but we believe it's a good use of capital and the incremental ROIC is good. So hopefully, that helps give you a little bit of color around our optimism in Hyve and some of the short-term cash impacts of making investments in that business. But we think it's a great investment to make.
And your next question is from the line of Guy Hardwick with Barclays.
A question on the -- a follow-up question on the strategic inventory. Just wondering how much of the 13 days year-on-year increase related to strategic inventory purchases? And I assume in the Q3 guidance, you're also assuming further margin benefits from these purchases maybe similar to what you had in the 5 to 10 basis points you had in the -- just the recent quarter?
So it's a -- this is a tough question to answer because it's very difficult to quantify. But what I would tell you is our teams are able to increase their days of supply around specific categories if they believe that we need to hold additional stock to kind of smooth out supply chains. They don't go after this as a business. They're not trying to capitalize on price changes and speculate. But in situations where I'm just going to make it up, let's say lead times are going to extend by 3 or 4 weeks, they might hold an extra couple of weeks of stock in for certain categories and we'll get benefits from that if prices go up.
So what we do as a matter, of course, is we don't forecast a lot of these benefits. We call them out when they come. It tends to be fairly opportunistic in nature, not necessarily opportunistic. But the -- I would tell you, we don't forecast and plan for a lot of these things. But when we do realize them, we tend to call them out in the quarter. But it is part of the reason that inventory is up on a year-over-year basis, but I would tell you the predominance of that increase was largely driven by the investments we've made in Hyve due to new programs and expanded programs with existing customers.
So just to be clear, so the guidance for Q3 does not include any margin benefit from strategic inventory?
It's hard to say. We don't have the teams break it down to that level of detail. What I would tell you is we do kind of a bottoms-up role based on our guidance and the teams will factor a variety of risk and opportunities in there to quantify exactly whether it's in or out or what degree is a little difficult. To be candid with you, I would say there's probably a little, but as you've seen, based on the Q2 results, it's relatively small 5 to 10 basis points. And so -- and it does tend to dwindle down through time.
Your next question is from the line of David Paige with RBC Capital Markets.
I want to start on the Amazon warrant. I was curious what was the strategic rationale for that and how that warrant came to be? And is it something that we should expect maybe with some of the other hyperscalers that you're ramping up?
David, so firstly, the warrant concerns Hyve, okay? And Hyve has had a long-term relationship, historical strong relationship with AWS. So the relationship has been very successful historically. The value proposition we delivered to Amazon has been very much valued. And so when they came to us to discuss the opportunity, we saw it as a big opportunity. And I mean, with the warrant in place now, we think we have an agreement, which is going to be mutually beneficial. And yes, let's see how it materializes in the future, but we are very pleased with that agreement.
Great. That's helpful. And just a quick follow-up. I think in the past, you have spoken about traditional compute versus accelerated compute. So if you could, could you provide some color on the mix traditional versus accelerated that you had in the quarter or that you're expecting in late 4Q and early 2027?
I guess your question is for Hyve specifically?
Yes.
Yes. So this quarter, we had the ramp-up of an accelerated compute program at Hyve. Generally speaking, we think that -- when you look at our mix of programs, we believe that we are going to see more of networking, general compute and storage going forward. But we want to continue to maintain and develop our expertise in accelerated compute. But in terms of mix, so we have this nice ramp up. But when I look at the profile of the wins we are having, we will continue to see more of the other programs than the accelerated compute products, I think, going forward.
Your next question comes from the line of Vincent Colicchio with Barrington Research.
Yes. Patrick, if hardware demand moderates, would you expect software, cloud and recurring revenue streams to offset some of that pressure?
So thanks for the question. So software, cloud, security continued to grow at double digits. And for sure that when you look at the underlying reason for that success, I think they're going to -- I'm quite positive and optimistic on those underlying trends to continue in the future. I would tell you that when I look at hardware, when I look at the impact of AI on -- or the potential impact of AI on the on-premise and even, I should say, on the edge computing, I think hardware is becoming a very interesting category again, could be poised for very interesting growth. And AI could be really a game changer. It's a little bit too early to call it out, but there are some indicators that, I mean could speak well, as I said, I mentioned it before, the cost of the tokens is going to have an impact, I think, on some of the behaviors beyond the issue of latency, the issue of security and privacy. I think the cost of the tokens could have a very positive impact on on-premise hardware in both in the data center, but also at the edge.
Your next question comes from the line of Alek Valero with Loop Capital.
My question to you is, I don't know if you mentioned this earlier, but on the 1 million square feet that you're adding, any color on when we can see this capacity start to contribute to revenue?
Yes. So thank you for the question. So again, we, I mean, we have a strong pipeline, strong backlog. And what we -- so the -- we see the ramp-up of the programs we have won to start impacting our revenue in Q4 fiscal year '26 and most probably in Q1 fiscal year '27. So the capacity we are adding will convert into additional revenue potentially in Q4 and most probably in Q1 next year.
Got it. Just a quick follow-up. On Hyve, obviously, you said manufacturing is now 2/3 of that. What can we expect that mix to look like throughout the year?
So we don't -- it's hard to give you an exact answer on that. Here's the way I would tell you to think about it. Over a long period of time, we expect manufacturing to increase as a mix of the total. But as Patrick said, in certain types of environments, our supply chain business becomes a very critical to helping support our customers. And so it will ebb and flow. It's hard to tell you exactly quarter-to-quarter, year-to-year, what that might look like. But over a longer period of time, we expect to increase the percentage of Hyve associated with manufacturing.
And we've reached the end of the Q&A session. I would now like to turn the call back over to Patrick for closing remarks.
So thank you all for joining us this morning. I want to close by thanking our coworkers across the globe whose commitment and dedication drive everything we accomplish and our partners for the continued confidence they place in us. To everyone on today's call, we appreciate your ongoing interest in TD SYNNEX. Thank you, and wishing you a great day.
That concludes today's conference call. You may now disconnect. Have a nice day.
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SYNNEX Corporation — Q2 2026 Earnings Call
SYNNEX Corporation — Q2 2026 Earnings Call
TD SYNNEX berichtet ein Rekord‑Quartal: starke Billings und EPS, Hyve liefert Triple‑Digit‑Wachstum, kurzfristig höhere Working Capital‑Bedarfe.
📊 Quartal auf einen Blick
- Billings: $28,9 Mrd. (+33% YoY; +32% CC)
- Non‑GAAP EBIT: $615 Mio. (+49% YoY)
- Non‑GAAP EPS: $4,85 (+62% YoY)
- Hyve: $5,5 Mrd. (+117% YoY; ~2/3 Fertigung, 1/3 Supply Chain)
- Cash/Leverage: $1,1 Mrd. Cash, Net‑Leverage 1,6x; FCF‑Verbrauch ~ $330 Mio.
🎯 Was das Management sagt
- Kernthese: AI‑Buildout treibt Nachfrage über Regionen und Produktkategorien; TD SYNNEX sieht sich als "Komplexitäts‑Lösung"
- GTM‑Strategie: Omnichannel, spezialisierte Vertriebssegmente und gezielte Enablement‑Investitionen sollen Marktanteile und Conversion steigern
- Hyve‑Ausbau: >1 Mio. sqft Fertigungsfläche geplant; HPE‑Global‑Deal und Amazon‑Warrant stärken Hyperscaler‑Position
🔭 Ausblick & Guidance
- Q3‑Guidance: Non‑GAAP Billings ~$27,7 Mrd. ±$0,5 Mrd. (+~22% Midpoint); Revenue ~$18,6 Mrd. ±$0,4 Mrd.
- Ergebnis: Non‑GAAP Net Income ~$361 Mio. ±$20 Mio.; EPS ~$4,50 ±$0,25 (≈+26%)
- Annahmen & Risiken: Guidance nimmt an, dass neu onboardete Hyve‑Kunden keine wesentliche Q3‑Beitrag liefern; Risiko durch Komponenten‑Engpässe (Memory/CPUs) und Preisvolatilität
❓ Fragen der Analysten
- Nachfrage: Management sieht bislang keine Demand‑Destruktion trotz Preiserhöhungen; PCs bleiben die risikoreichste Kategorie
- Inventar: Erhöhte Bestände (strategische Käufe) lieferten geschätzte 5–10 bps Vorteil; Nutzen erfolgt opportunistisch und wird nicht dauerhaft geplant
- Hyve‑Marge & Cash: Margen variieren programmabhängig (AI‑Server tendenziell tiefer), Ramp‑Ineffizienzen und Working‑Capital‑Bedarf drücken kurzfristig FCF
⚡ Bottom Line
- Implikationen: Starkes operatives Momentum und klarer Hebel durch Hyve und AI‑Nachfrage begründen Wachstumserwartungen; kurzfristig erhöhtes Working Capital und Investitionen drücken Free Cash Flow. Anleger sollten Wachstumspotenzial gegen Supply‑Risiken und vorübergehende Cash‑Absorption abwägen.
SYNNEX Corporation — Q1 2026 Earnings Call
1. Management Discussion
Good morning. My name is Warren and I will be your conference operator today. I would like to welcome everyone to the TD SNX First 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 speakers' 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 Friedel, Head of Investor Relations at TD Sync. Nate, you may begin.
Thank you. Goodu morning, everyone, and thank you for joining us for today's call. Joining me on today's call are Patrick Zammit, our CEO; and David Jordan, our CFO. 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.tdsynx.com.
This conference call is the property of TDX and may not be recorded or rebroadcast without our permission. I will now turn the call over to Patrick. Patrick?
Thank you, Nate, and good morning, everyone. Thank you for joining us today. We are very pleased with how we started fiscal year 2016 -- in the first quarter, we delivered record non-GAAP gross billings and non-GAAP earnings per share while continuing to expand profitability and built on the execution and momentum established over the past year.
Our results reflect strong performance across both our distribution and [indiscernible] businesses as well as the continued alignment between our strategy and the needs of our partners.
Together, this reinforces the strength of our operating model and our ability to create long-term value for our shareholders. Before turning to our operating results in more detail, I want to start by discussing my rationale for updating our reportable segments.
These changes better reflect how I manage the business, and allocate capital and resources. Going forward, we will primarily discuss our performance and strategies through 2 businesses. Distribution, comprised of our 3 regional distribution segments, and [indiscernible]. Each business has a distinct value proposition and operating model with clear drivers of growth, profitability and returns.
We believe this structure provides clearer insight into how our businesses perform and how we create long-term shareholder value. With that context, I'll start with our distribution business. Within distribution, we delivered a strong start to the year with excellent results across all geographies and key technology categories.
Performance was supported by continued customer investment in infrastructure software and security as well as notable strength in infrastructure and PCs as we help partners navigate an inflationary cost environment and a dynamic supply chain.
By leveraging our global reach, diversified sourcing and closed vendor partnerships, we are helping our customers manage supply chain constraints, navigate pricing, improve availability, reduce uncertainty and planned deployments with greater confidence while helping vendors efficiently extend their reach and activate demand across markets.
Our accelerated growth was accompanied by expanding growth and operating margins driven by favorable geography and product mix and disciplined cost management. These results underscore the strength and value proposition of our global distribution business, delivering attractive returns today while positioning us to capture opportunity tomorrow.
Last quarter, we outlined 4 strategic pillars that define how we compete, create value across our portfolio and differentiate ourselves in the channel. And this continue to shape where we invest and how we execute moving forward.
These pillars are omnichannel engagement, specialized go-to-market, best-in-class enablement and expanding our brand visibility. I'll highlight a couple of examples of how we are bringing this to life.
Starting with omnichannel engagement where we are making it easier for customers to engage with TD SYNNEX in the ways that best fit their workflow. This approach is powered by our partner first platform and suite of digital services, but integrate billions of customer vendor and end user data points to drive demand at scale supporting continued growth within our SMB customer market globally.
Our capabilities are translating into tangible results. By embedding predictive AI directly into our onboarding and go-to-market motions, we are meaningfully increasing the number of customers onboarding new vendor portfolios each quarter, helping vendors expand their reach within our ecosystem and accelerating profit generating activity across the ecosystem.
Our agentic AI systems are now supporting customers and internal teams across complex workflows from multi-vendor solutions aggregation to intelligent quoting and cross-sell recommendations, helping shorten deal cycles and improve attach rates.
Paired with our relationship-driven model, this allows us to scale expertise and engagement globally without compromising the high-touch experience that differentiates TD SYNNEX.
This quarter, our progress was reinforced by achieving Microsoft Frontier distributor designation across all of our regions globally, a recognition of excellence and support, security, channel enablement, platform innovation and technical delivery. This designation highlights our ability to bring technologies to market in a consistent scalable way across regions and digital platforms, marketplaces, high-touch engagement models and to do so consistently as customers move from AI experimentation to deployment.
Building on that foundation, our specialized go-to-market strategy continues to deliver tangible results, particularly in security. Earlier this month, TD SYNNEX was named Palo Alto Networks Fiscal year '25 Distributor of the Year in North America, recognizing our ability to drive above-market growth while expanding customer participation and accelerating new customer acquisition.
Importantly, this recognition reflects the value of our specialized distribution model. By combining deep market expertise, by technology and customer segment with our global reach, we enable vendors to reach new customers, activate customers more effectively and drive growth beyond what they can achieve on their own.
Capabilities such as inventory management, seamless customer transitions, pre and post-sale support and higher levels of automation enable our vendors and customers to scale with speed and consistency reinforcing the long-term benefits of leveraging the distribution channel.
Now turning to Hyve. We delivered an impressive quarter, driven by continued demand for cloud and AI-enabled data center infrastructure across our hyperscale customers. Growth was broad-based across our programs and customer base. Our integrated engineering, manufacturing and supply chain capabilities enabled efficient deployment of sophisticated rack-level solutions at scale which translated into meaningful year-over-year operating income growth.
These results reinforce high strategic opportunities within this fast-growing market. Building on this momentum, Hyve is focused on evolving its strategy over time toward more complete system-level solutions across traditional compute, accelerated compute networking and storage offerings.
Through targeted investments in engineering and manufacturing capabilities, we are helping customers simplify design, accelerate deployment and reduce total cost of ownership. These ongoing investments have attracted a growing pipeline of opportunities, including signing programs with 2 new hyperscale customers in 2026, which we expect to contribute to results in future quarters.
We have already started to ramp our third U.S.-based hyperscaler and with these 2 wins, we now have at least 1 program secured with each of the top 5 U.S.-based hyperscalers. To close, we remain very confident in the long-term value creation opportunities across both distribution and Hyve. The addressable markets we serve are continuing to expand, and we believe our differentiated value proposition and strategy positions us to capture a growing share of that opportunity while delivering attractive returns for shareholders.
Now I will pass it to David to go over the financial performance and outlook in more detail. David?
Thanks, Patrick, and good morning, everyone. We're pleased to report a strong start to our fiscal year with first quarter results that exceeded our expectations across all key metrics. Walking through the numbers, our non-GAAP gross billings for the first quarter was $25.8 billion, increasing 24% year-over-year or 20% year-over-year in constant currency and exceeded the high end of our guidance range, driven by accelerated growth in both distribution and Hyve.
Non-GAAP operating income was $590 million, an increase of 48% year-over-year or 44% year-over-year in constant currency. Non-GAAP earnings per share was $4.73, an increase of 69% year-over-year and above the high end of our guidance range. GAAP operating income was $489 million, an increase of 61% year-over-year or 57% year-over-year in constant currency.
GAAP earnings per share was $4.04, an increase of 104% year-over-year and also above the high end of our guidance range. Together, these results demonstrate our ability to convert strong top line growth into operating leverage and meaningful shareholder value.
Turning to quarterly performance for each of our businesses. Distribution generated non-GAAP gross billings of $22 billion, increasing 17% year-over-year and exceeding our expectations, driven by broad-based strength across both product categories and geographies.
Endpoint Solutions increased 14% year-over-year, supported by ongoing PC refresh activity and strong demand for premium devices. Advanced Solutions increased 19% year-over-year, driven by continued strength in infrastructure, security and software. Distribution non-GAAP operating income was $431 million, increasing 42% year-over-year and non-GAAP operating margin as a percentage of gross billings was 2%, an improvement of 34 basis points year-over-year.
Overall, we estimate the distribution gross margins benefited by approximately 10 to 15 basis points during the quarter, driven by incremental profit from strategic inventory purchasing. In addition, we estimate that approximately 2 percentage points of year-over-year gross billings growth were attributed to higher average selling prices and modest pull-forward activity. as we partnered with OEMs to pass through higher memory and component costs.
Moving to Hyve. Hyve generated non-GAAP gross billings of $3.8 billion increasing 95% year-over-year and exceeded expectations, driven by broad-based strength across both manufacturing and supply chain services. Manufacturing and assembly increased in the mid-70% year-over-year on a gross billings basis, driven by demand increases from all major customers in each of the major programs we support.
Supply Chain Services grew in excess of 100% year-over-year on a gross billings basis, driven by increased demand for components supporting our customers' AI infrastructure deployments. Margins in this business can vary quarter-to-quarter depending on mix.
Hyve non-GAAP operating income was $159 million, increasing 66% year-over-year and non-GAAP operating income margin as a percentage of gross billings was 4.2%, decreasing 72 basis points year-over-year, primarily driven by mix as discussed earlier.
We are in a period of accelerated growth. However, we continue to remain disciplined in our cost management approach. Our teams are focused on driving operating leverage while ensuring we make investments that position both distribution and high for sustained long-term growth.
Shifting to cash flow and capital allocation. Free cash flow usage for the quarter was approximately $929 million, consistent with our first quarter in the prior fiscal year. Over the trailing 12 months, we have generated $1.2 billion of free cash flow and returned $723 million to shareholders, demonstrating the strength of our model and our disciplined approach to capital allocation.
As the business grows, we're focused on ensuring we maximize our net income to free cash flow conversion ratio on an annualized basis. Return on equity is also a key financial priority for us and beginning this quarter, we're highlighting return on equity is a key metric that we are focused on improving over time.
During the first quarter, we returned $118 million to shareholders through share repurchases and dividends. Net working capital ended the quarter at $4.2 billion, with a gross cash conversion cycle of 16 days, an improvement of 4 days year-over-year reflecting our continued focus on strong cash conversion and efficient working capital management.
We ended the quarter with $1.6 billion of cash and cash equivalents, and our leverage ratio finished at 1.5x, modestly below our medium-term framework, providing ample flexibility to invest in the business while continuing to return meaningful cash to shareholders.
In addition, our Board of Directors approved a cash dividend of $0.48 per common share payable on April 29, 2026, to shareholders of record as of the close of business on April 15, 2026.
Turning to our outlook for the second quarter of fiscal 2026. We expect non-GAAP gross billings of approximately $25.1 billion, plus or minus $500 million, representing a year-over-year increase of approximately 16% at the midpoint, a gross to net adjustment of approximately 34% revenue of approximately $16.5 billion, plus or minus $400 million, non-GAAP net income of approximately $322 million, plus or minus $20 million.
Non-GAAP diluted earnings per share of approximately $4 plus or minus $0.25. And based on approximately 79.8 million diluted shares outstanding, representing a year-over-year increase of approximately 34% at the midpoint. Share repurchases to increase from the amount purchased in our first quarter.
To close, we're encouraged by our start to the year and believe we are well positioned to execute on the opportunities in front of us. Our global reach, differentiated capabilities and expanding portfolio position us to perform well across IT market cycles and deliver long-term value to shareholders.
With that, I'll turn it over to the operator. Operator?
We will now begin the question-and-answer session. [Operator Instructions] Your first question comes from the line of David Page with RBC Capital Markets. Please go ahead.
2. Question Answer
Congrats on the really great results I was wondering if we could just double tap into the high solutions growth. Billings were up 95%. So I was curious if that was deconcentrated in your 2 main customers? Or was it more broad-based across the 5 hyperscalers that you have programs with?
And then just as a quick follow-up, I think you mentioned 2 new customers coming on board, one maybe in 2026. But I guess if you could just size that opportunity relative to your other 2 large customers.
David, thanks for the question. So I mean, very pleased with the performance this quarter. Distribution and of course, Hyve, so yes, the growth came from the 2 main customers.
As I mentioned, the diversification has started, but the ramp-up of the programs we won is going to take a little bit of time. So we believe that we are going to see really the impact of the ramp up more towards the end of fiscal year '26 and in '27.
That's great. Maybe if I could stick 1 more in. I know the first quarter seems seasonally a weaker free cash flow quarter, but cash conversion did get better. So I was just wondering what holding or inventory build you were seeing in PCs.
I know you benefited quite higher ASPs, but just, I guess, puts and takes on how you're seeing the PC demand market evolve throughout the year.
So David, so when you think about working capital and cash flow for Q1, there's a couple of dynamics. You rightfully pointed out that -- on a gross cash days basis, year-over-year, we made significant improvements. With that being said, we also made sure in our first quarter that we had the right amount of inventory.
We recognize that some products are on allocation. and could potentially be short in supply. And so we went long on inventory to try and make sure we had adequate supply to support all of our customers on the distribution side.
On the Hyve side, we're continuing to make investments in working capital to -- as that business continues to grow. But overall, when you put the 2 to 2 together, we're quite pleased with the cash days that we were able to land given the growth rates in the business.
Yes. And so on the PC, so we had a strong quarter on PCs. So for Q2, we continue to be reasonably optimistic about the PC dynamic. I mean just a few thoughts. So one, we continue across the world in all the regions, except in Latin America, but across the other regions.
We are very focused on continuing -- growing faster than the market when it comes to PCs and it's -- I mean, we are seeing a clear success there. I want also to mention that we are focused primarily on B2B when it comes to PC, and that's important because -- in the coming quarters, we are going to see a strong tailwind coming from the ASP increases, okay?
And obviously, it comes to a question about the impact on elasticity on volumes. So we foresee some reduction in units, but I think the reduction in units should be significantly less than in the consumer space.
So all in all, I think PC should continue to be a good category for us in the coming quarters.
Your next question come from the line of Adam Tindle with Raymond James.
David, I just wanted to start, obviously, congrats on such a strong start to the year. As we think about the typical financial model for TD SYNNEX from an EPS progression standpoint, normally kind of see sequential growth in earnings from here.
But if we roll that out, we're going to be in the neighborhood of $18 or so EPS for the year. And I just don't want to get ahead of ourselves given the trajectory that you've been on. So I guess the question would be maybe just helping to level set, I understand not seeking to give annual guidance, but maybe some color for us to think about our models, what might be similar or different this year from that normal EPS progression that we're used to, just so we can understand the models. And I have a follow-up after that.
Great question, and thanks for asking. So Q1 and Q2, so we provided guidance for Q2, we're not providing guidance beyond that. But what I would share with you, which I think will help is, for the moment, demand remains strong in our business. However, we are cautiously optimistic for the second half and I would just remind people that the second half of last year for us was very strong.
As you think about the second half and more on a long-term basis, using the investment yesterday framework that we laid out is a good place to start. But it is true for the moment, I mean, Hyve and our distribution businesses are performing quite well. But given the broader macro environment, we are cautiously optimistic for the second half, but we do believe both businesses will grow.
Okay. That's helpful. Patrick, just a follow-up, I'm getting this question a lot, and it's related to core distribution and the impact of inflation and memory costs and all those things to margins for the channel. .
There's a general fear from investors that the vendors will take margin away in one of the big networking vendors on their earnings call, talked about changing contractual provisions with channel partners, and it kind of fired the gun on the fear, so I thought this might be a good forum.
I'm looking at the Americas region results for distribution, and there's clearly no evidence when I see gross and operating margin up meaningfully currently. But maybe just level set us on those comments that we're hearing from the vendors and what you're actually experiencing boots on the ground in the distribution business.
Yes. So thanks for the question. So -- so indeed, in Q1, no impact on margin. I would add that we built inventory at the end of last fiscal year to be able to cope with, or I should say, smooth in the introduction of price increases for our customers.
What we've done is to work very closely with both the vendors and our customers. in order for them to be in a position to anticipate some of the price increases and reflected in their words.
So today, I mean, across the board, we believe that the price increases will not impact our margin because of this close collaboration between with vendors, but also the customers.
Your next question comes from the line of Erik Woodring with Morgan Stanley.
Awesome. Thank you and congrats on a really strong quarter and more disclosures here.
So Patrick, I'm unfortunately going kind of ask maybe a similar question that Adam just asked. And my first blush reaction to these results and guidance where it was almost too good to be true, right? Gross billings and revenue, nearly 10% above the high end of your guide, growth accelerating across every technology category.
Can you just help us understand maybe just how you ring-fence the risk around because typically pull forward and the ability to size that really isn't clear until after the fact.
And so when you talk about 2 points of benefit from ASPs and pull forward, we just how do you come to that conclusion? And what are you hearing from customers about their desire to accelerate purchases and whether that's a pricing dynamic, a supply dynamic. If you could maybe just marry those 2 together, that would be super helpful. And then just a quick follow-up, please.
Yes. Thanks a lot for the question. So the approach we've taken, we looked at seasonality in units. So we compare, for example, sequentially between Q4 and Q1, how the units evolve for all our hardware categories, and we compare with what we've seen in the past.
And that was the first indicator where we concluded that -- I mean, the seasonality was not skewed. It was quite consistent with what we've seen in the prior years. Second, we did a quick survey. We asked the teams to provide to us some color. And again, we took it into account. And so based on that, we believe that it was put forward have been limited for Q1.
The other thing I would add is -- when you look at how fast the vendors have had the increase of their component cost to the market how fast -- I mean -- and today, also, we have to deal with "validity dates" which are very short. I think the market had to react and adjust very rapidly it was quite -- I mean, yes, I think that has also had an impact on some of the behaviors at the end users.
So again, at the moment, based on what we can see of our data, the way we -- the feedback we receive from customers and the teams, I think that the best we can share on the pull forward.
Okay. All right. Very fair. And then as my follow-up, Patrick, there is clear intent in breaking out Hyve as a separate stand-alone business. And I'm just curious, today, Hyve is 15% of gross billings, it's nearly 30% of operating income, at least in the last quarter. .
Is there a target that you have for either of those metrics, if we think 3 years out, just the opportunity for growth and margin expansion at Hyve?
I'm just curious, like, again, putting a longer-term hat on -- how big do you think high can be for some of these -- for some of these key fundamental metrics?
Yes. So first thing, I mean, we disclosed Hyve separately this year. So my management system is to empower my business unit owners. They have a lot of autonomy. And so it was justified to disclose Hyve separately, and also, we think it improves significantly the quality of the financial standing of how results are being formed.
When it comes to Hyve, you should assume that Hyve is going to continue to grow faster than distribution. The margins, I mean, at the moment, obviously, we continue to invest in both engineering and manufacturing capabilities to cope with the rapid increase in demand.
And so the margins for the moment are relatively stable in that context. As we get more mature, probably investments will start reducing a little bit. But I would say for the foreseeable future, the margins you are seeing are reasonable.
And so the combination of both -- and sorry, I should add that the operating expense for Hyve are significantly lower than for distribution, but structural, and the combination of that, I think that the weight of Hyve in the total business will continue to increase both from a gross billing, revenue and operating income.
Your next question comes from the line of Joseph Cardoso with JPMorgan.
Congrats on the results. Maybe just for my first one, I wanted to follow up on the customer behavior question relative to the distribution business, but maybe less on pull forward and maybe more so on what you're seeing from customers placing orders much earlier relative to what they expect from deliveries as they navigate cost and whether that is driving better visibility than you would typically see? And then I have a follow-up. .
Yes. So backlog is increasing. So we are getting more visibility. Vendors have been very clear, very explicit. The price increases are going to continue over the year because, I mean, driven in particular by both the memory price increases and now also the CPU prices increases.
So yes, we are getting more visibility. At the same time, yes, end users have got their budgets and the timing of their budget has also some influence on when they are going to place the orders. I would say for the moment, indeed, I mean, we -- I mean, we see a very high activity in terms of quoting.
We are trying to secure the prices as well as we can. We have some inventory to help again our resellers, serve their end use in the best possible way. But again, there's no indication of a major pull forward at the moment when we look at our figures, there's some, but it's not dramatic.
No. Got it. I appreciate that color there. And then maybe just in light of the new Hyve disclosures, which I think everyone is happy to see for sure. Just wanted to touch on the strong variance between gross billings and revenue this quarter. It seems like a big change quarter-over-quarter, year-over-year. .
And just wanted to better understand whether that's being driven by the change in mix that you alluded to? And maybe as a second part of that question, how do you expect that trending going forward? And maybe just adding on to that, like given that you talked about new customers, like any implications from a mix perspective, we should think as those start to onboard maybe in the latter part of this year going into next year?
Joe, this is David. So it's a good question, and I think you're thinking about it the right way. So at a high level, and I'm going to answer an additional question that you didn't ask. When you look at Hyve's margins on a year-over-year basis, the decline was largely driven by mix. We put that in the transcript.
And what the mix was related to was some large GPU fulfillment deals that went through, a lot of those programs are recorded on a net basis. And so you've actually seen the opposite impact to margins on a net basis.
When you think about Hyve, each one of the programs is set up slightly differently and the gross versus net components can be different. And so that's why we've always looked at the business on a gross billings basis. And depending on how the mix will shift, you could have a higher margin on a net basis based on the relative weighting. And we would likely expect as we move forward, some of these net programs are growing faster than the overall.
Your next question comes from the line of Katherine Murphy with Goldman Sachs.
Thank you for the question. To ask another 1 on Hive in the deck you disclosed that Supply Chain Services grew in excess of 100% year-over-year in the quarter. it would be helpful if you could talk more about the strength here.
And in the prepared remarks, you also noted a strategy fit to sell in more complete solutions and Hyve. Is there any impact we should think about on the Supply Chain Services business as it stands today?
Okay. So good morning. So this is -- chain services is really a service we render to the customer. And it's a relatively volatile business. The reason being that -- taking into account the market environment, we may have more requests from our customers to basically support them in that space. buy inventory in advance and store it.
So I mean clearly, lots of demand at the moment, driven by the pricing volatility, so that explains why, I mean, we had such a growth in Supply Chain services.
But at the same time, you can see that our manufacturing activity is also growing extremely fast and we believe faster than market. And so yes, I just wanted to raise it here on the call.
Sorry. And just to answer your second question, the growth through time, so we are confident about the growth in manufacturing. This is more steady. You are talking about programs with better visibility. So if the demand from the customer stays consistent, then we should continue to see stable growth in that space.
Again, the supply chain segment is more volatile and it really depends on the market environment. So here, I would be a little bit more cautious, and we probably will see more variations in the growth rates quarter-by-quarter, again, depending on the needs of the customers.
Your next question comes from the line of Keith Housum with North Coast Research. Please go ahead.
Appreciate it, and thanks for additional color here. As we think about the quarter and looking forward, obviously, investors are struggling with trying to understand the magnitude of the price increases and the impact of demand destruction.
So I guess, David, as you look about the second quarter guidance, how much does that 2% grow in terms of what you think the impact is from the increased prices and then I guess the second part of the question is, at what point do you think we start seeing demand destruction?
Is it when you hit 15% or 20% price increases or as we've already seen, you've got a lot more on that in some different product categories out there right now.
So I'll start and kind of help frame up the Q2 guidance. And then Patrick, you can comment on kind of elasticity. So when we built the guidance for Q2, we did a full bottoms-up roll-up from the teams. And what I can tell you is, for the moment, demand remains strong. This is true both in the distribution business. It's also true in Hyve.
One thing to think about as you think about price increases and how that makes its way into our P&L. Remember that we have a lot of revenue that is back to back, meaning it's billed, put into a backlog, it might take 2, 3, 4, 5 months to ship. And so it's not like you're going to see this massive hockey stick into our P&L immediately from price increases.
But we do expect, as we move through the quarters to have price increases become slightly more meaningful than they were in the first quarter. And then maybe, Patrick, if you can provide a little bit of color on how you think about units and demand as it relates to the latter part of the year.
Yes. So let me look at the 4 main hardware categories for us. The first one is PCs, so the refresh is not over, and so that continues to be a tailwind for us. But the other aspect is that the weight of PC continues to increase and I think that one of the driver for it is that you will have more and more applications -- AI applications, running at the edge.
So having an AI PC is going to become more and more important in companies, so that's for PCs. When you look at general compute general servers. Here again, there's a refresh cycle going through at the moment.
So yes, it should be continues to be a tailwind. But similar to PC, we see an acceleration of the purchase of AI, AI-enabled service. What we see is that end users have not defined their use cases. They are starting to build their AI factories, and that's driving demand in the market, which we are benefiting from.
And then you have storage. And this quarter, we had a very good quarter on storage. And we believe that the data center modernization which has been a topic, but not really materializing in the previous quarters, maybe we are going to see more of it going forward.
And last, networking, I mean, clearly, after 2 very difficult years, I mean, networking is back, is growing single to double digits, depending on the regions. And again, I'm quite optimistic when it comes to the networking category.
I guess, Patrick, what we're hearing from some of our contacts is some of the equipment that you guys are selling are seeing price increases well beyond the 20% and 30%, sometimes 60%, 70%, 80%.
I guess it would seem natural that there's got to be some demand disruption and people just going to the refurb market or just pushing things off entirely.
Are you hearing this from customers yet? And I guess, how are you guys I understand you want to give guidance for the second half of the year, but what are your thoughts or what any color you can provide in the remainder of the year?
So -- based on what we see again, and it's reflected in our guidance, we -- our assumptions have been reflected. And so we haven't seen it yet in Q1, the demand destruction. We continue to be confident for Q2. For the rest of the year, I will leave you with that. There may be some demand disruption. Again, everybody is waiting for how bad -- how good or bad the elasticity will be on volume.
I mean, I shared with you some of the tailwinds, which could mitigate a little bit the impact. But from a revenue standpoint, when you have such ASP increases, I think the net between potential decline in units and the ASP increase net-net revenue growth -- sorry, it should impact positively the growth in revenue.
Your next question comes from the line of David Vogt with UBS.
Great. I have 2 also. So Patrick, historically, Hyve has been a more traditional compute networking-centric business in terms of billings and revenue. Can you share with us kind of how that's evolving as you onboard incremental hyperscaler customers. And you talked about having at least 1 program at the how that mix is changing going forward to a more accelerated compute and networking mix?
And then I'll have dated my question as well. So David, when we think about the price increases, I know everyone is talking about PCs, but we're seeing incredibly strong development for traditional CPU-based server, just generally speaking in the industry right now, would love to get a sense for how you're thinking about that demand ex sort of the price increases because we're seeing relatively strong demand or hard to get CPU-based products. I just love to kind of get your perspective on that.
Yes. Thanks for the question. So historically, Hyve demand is driven by general compute and networking. Some of the wins will be accelerated or accelerated compute wins. So that starting -- we are going to start seeing it in the mix in the coming quarters.
Just doing up a little bit. When you look at the Hyve strategy for many quarters now, and we are starting to see the benefits is -- I mean, we had 2 objectives, diversified the customer base and also going after the 4 main technologies we can serve, namely general compute, accelerated compute networking and storage.
And really, we've made investments in both our engineering capabilities and manufacturing capabilities to be well positioned to go after those opportunities. And so expect in the coming quarters to see a diversification of the customer base, but also a diversification of the program, the program types.
And David, just to provide a little color on your question around general compute. So we have worked hand-in-hand with both vendors and customers to raise pricing on a variety of infrastructure products.
As Patrick said, for the moment, demand remains quite strong, and it is true in some of these categories, the price increases are double digits. Our current thesis is that while there will be some elasticity around unit demand, our belief is that the price increases will more than offset that.
And so again, we'll continue to give you guys updates, but for the moment, demand remains strong, and there's less elasticity around pricing than people would initially thought.
Your next question comes from the line of Ruplu Bhattacharya with Bank of America. Please go ahead.
Patrick, a question on Hyve. You mentioned that Hyve secured at least 1 program in the top 5 U.S. hyperscalers. Can you give us more details on what type of opportunities these are?
Are they for full rack bills or for supply chain services -- so first, how should we think about CapEx for Hyve? Do you have enough capacity to support the programs? And second, when I look at operating margin, it was 7.4% this quarter on a revenue basis.
You said 4.2% on a billings basis. But when you think about the AI server space and rack building space, the industry itself is getting squeezed in terms of margins, right? So should we think that margin can take a dip initially as you ramp these new hyperscalers? And what are you doing to offset some of that margin pressure?
Thanks, Ruplu. I will answer the first question. David will take the second one. So I mean, the programs we won are full racks. So it's really for the manufacturing segment. We also won some supply chain. But as I mentioned, the supply chain opportunities are more volatile. So what -- when we refer to those program wins, it's really for our manufacturing activity. And then up, when you think about the overall I'm sorry.
I was just going to follow up on that and ask for the CapEx question I had. In the past, you said that you need that capacity. .
So I'll take it. So obviously, I mean we're constantly looking at our capacity requirements, and we are investing in increasing our capacity as we speak to be able to be in a good position to serve our customers. So yes, CapEx are required. Again, as -- when you look at the amount at stake, it's very reasonable. And I want to insist on the fact that both distribution and Hyve continue to do a great job of reducing the cash days so improving the working capital velocity.
And that's, again, enabling us not only to finance the growth without any issues, but also to finance investments in capital expenditures. So -- no concerns from that point of view either.
And then just on the margin side, David, I think you were saying about -- was there -- do we expect any initial margin pressure from the ramp of these programs? Or how should we think about these margins going forward? .
No, you bet. So at a high level, when you think about Hyve's operating margins, we feel pretty good about where they are. It is true as you ramp new customers, especially in the early innings. There can be a slight headwind in operating margins as we make investments and kind of get the programs up speed.
What I would tell you is each of these are going to ramp on a different time line, and we'll continue to provide you updates, but we feel very good about the current operating margins high, the programs that they have and how that will play out as we move forward.
And then actually, let me clarify one thing for you, Ruplu. You mentioned accelerated compute. While we do have some accelerated compute programs, it is not the majority of our portfolio. And so some of the margin pressure that you may have seen from others won't play out to the same degree in Hyve, just given the overall mix in the programs that we have.
Your next question comes from the line of Vincent Colicchio with Barrington Research.
Yes. Can you talk to the relative distribution strength in Europe? Is there -- do you have legs there? And has there been any change in sentiment given the geopolitical environment?
Yes. Vince, thanks for the question. So the market in Europe in distribution grew mid-single digits in Q1. And I mean the market forecast for the rest of the year is between low to mid-single-digit growth for the rest of the year.
And so I mean, when you look at our results, we are growing at double digit.
So we -- so I would say the market conditions continue to be positive. But most important, in that market environment, the team continues to grow much faster vendor market. I mean we have an end-to-end portfolio.
We are very well positioned on every technology. And we're also very well positioned in all the key markets in Europe. We have really a strong pan-European presence.
So we are taking, I would say, advantage of the -- okay, some countries growing a little bit faster than the average in Europe. So for example, Poland is growing faster. Spain is growing faster. And again, it's a favorable mix and we are well positioned in those countries.
So net-net, it explains the double-digit growth and the fact that we are growing significantly faster than market. And we've done so now for several quarters, and I'm confident for the quarters to come.
And my follow-up is on acquisitions. What are your thoughts in terms of what you're looking at currently and have the valuations come in with the overall public markets? .
Yes. So M&A is at the core of the strategy. And for us, M&A is a way to accelerate the execution of our strategy by geo, by technology or to acquire vendors we are missing in some countries. So we are looking at several opportunities in basically all the regions.
In terms of valuation, we are very strict. We -- our objective is that the price we would have to pay. I mean, we would have the right return within 2 years of the acquisition and after completion of the integration. So that's our north star when it comes to M&A.
And with that in mind, so we are working on the projects sticking to our strong financial discipline and we'll see if some of the opportunities materialize in the coming quarters.
Your next question comes from the line of Ananda Baruah with Loop Capital.
A couple of I apologize for your background noise here. I guess the first, Patrick is, a few moments ago, you talked about starting to see data center modernization.
And what customer base -- are you seeing that across, I would guess, hyperscale, but also in non-hyperscale are you seeing it there as well, oloon-prem,other -- would love to get some context there. And then I have a quick follow-up as well.
Yes, so obviously, it's -- I'm talking on-prem. And yes, we see enterprise but also the higher end of the -- so the high end of the mid segment, we saw very promising activities.
Again, I'm a little bit cautious, of course, because that was not what we've seen in the prior quarters. But this quarter, we saw very solid demand. And so, yes.
That's super helpful. And then the follow-up is just on Hyve mix longer term, you're getting more into GPU base. So is it as simple as saying, over time, the mix begins to shift to include more of that? Or could you also see more stores and North as well given like the resource requirements of [indiscernible].
And then also just to that real quick, could Arm just given their announcement last week, and the revenue ramp that they're talking about the CT so that ARM become a distribution partner of the company as well. That's it for me.
So let me start with ARM. So yes, I mean, when you have a vendor who is changing his strategy and is starting to produce its own products, we believe that use TD SYNNEX, in particular, a fantastic partner to accelerate the go-to-market. So nothing to disclose today, but in principle, I mean, if there's an opportunity to partner, we will absolutely do it.
I mean back to Hyve. So what's important is that our customers are looking for support across all 4 technologies. Okay? So general compute, accelerated compute, storage and networking. And so that's the reason it's important for us to have the capabilities, the expertise to be able to respond to their needs and requirements.
Now when you look in the store, we will have more accelerated compute wins in our portfolio. But I think that still going forward, general compute, networking and storage will represent the majority of our total business.
There are no further questions at this time. I will now turn the call back to Patrick Zammit, CEO, for closing remarks.
So thank you for joining us today. I want to close by thanking our coworkers around the world for their hard work and dedication and our customers and vendors for the trust they place in us.
And to everyone on the call, thank you for your continued interest in TD SYNNEX. Have a great day.
That concludes today's conference call. You may now disconnect. Have a nice day.
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SYNNEX Corporation — Q1 2026 Earnings Call
SYNNEX Corporation — Q4 2025 Earnings Call
1. Management Discussion
Good morning. My name is Jeannie, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX Fourth Quarter and Full Year Fiscal 2025 Earnings Call. Today's call is being recorded. [Operator Instructions] Thank you. At this time, for opening remarks, I would like to pass the call over to Nate Friedel. Head of Investor Relations at TD SYNNEX. Nate, you may begin.
Thank you. Good morning, everyone, and thank you for joining us for today's call. With me today is Patrick Zammit, our CEO; and David Jordan, our CFO. 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 TDX and may not be recorded or rebroadcast without our permission.
I will now turn the call over to Patrick. Patrick?
Thank you, Nate. Good morning, everyone, and thank you for joining us today. We are pleased to report another set of record results that complete an outstanding year for our organization. Over the full year, our business, excluding Hyve increased its gross billings in the high single digits year-over-year, while improving both its gross margin and operating margin profile. Additionally, Hyve grew its gross billings double digits and well above our expectations and has made further progress expanding its set of offerings and diversifying its customer base.
Turning to the fourth quarter. Our non-GAAP gross billings of $24.3 billion represented an increase of 15% year-over-year or 13% in constant currency and non-GAAP diluted earnings per share of $3.83 represented an increase of 24% year-over-year. Both of these established new records for our company, demonstrating the value of our diversified business model and the successful execution of our long-term strategy.
Within TD SYNNEX, excluding Hyve, our momentum continued with gross billings increasing 10% year-over-year and gross profit and operating income, each also increasing by double digits. Hyve experienced another strong quarter with gross billings increasing by more than 50% year-over-year and ODMCM gross billings increasing 39% year-over-year driven by sustained broad-based demand in cloud data center infrastructure from our hyperscaler customers. Hyve's operating income also grew meaningfully year-over-year and continues to become a larger portion of our overall mix.
Our results reflect its strength across all regions and key technologies. North America continued to grow steadily supported by demand across each of our key customer segments, prioritization of increased security requirements and ongoing shifts towards complex, multi-cloud architectures. Europe grew faster than we anticipated as customers prioritize infrastructure software, PC device upgrades and modernization of aging infrastructure, despite the slower macroeconomic backdrop.
As we've seen over the last few quarters, Asia Pacific and Japan remain a key growth engine, driven by rapid cloud expansion, PC device upgrades, accelerating AI development and strong demand from fast digitizing economies across the region. Lastly, our growth story in Latin America remains encouraging delivering double-digit top line momentum with strong engagement across our portfolio and customer base.
Our performance is a direct outcome of executing on the strategy we outlined at Investor Day. As we enter 2026, we are sharpening execution around 4 focus areas that will define what we want to be known for. We will start with omnichannel engagement. Through disciplined investments in our partner first digital portal, we've built a frictionless interface that meets customers wherever they transact and simplifies the experience end-to-end. By pairing seamless digital engagement with our personalized relationship-driven support, our highly skilled teams help customers navigate complexity and move beyond transactions, earning the role of trusted adviser and forging long-term partnerships.
In Q4, we enhanced our partner first digital bridge functionality with a new AI system that enables customers to transact in a self-service mode 24/7 in their working environment. This enhancement transforms how our customer sales teams access and act on information to support their end customers in real time. Our customers have already attested but the new capability has saved employees in sales and product procurement operations multiple hours per day.
The industry is also recognizing our strength in this area. During the quarter, we were awarded U.K. Cloud Marketplace of the Year by CRN. We received this honor due to the differentiated quality of our platform, along with our leadership and customer enablement and technical training, helping our customers navigate what has been a transformative year in this space and ultimately accelerating growth throughout our cloud portfolio.
The next strategic pillar is specialized go-to-market. Our collection of specialist approach combines deep technical expertise with a deep understanding of our customers' go-to-market strategy and needs. This newer competency accelerates technology adoption and positions us as a growth catalyst for our vendors and customers. It's a differentiated capability that strengthens stickiness and expand our wallet share in high-growth segments.
Our Q4 accomplishments within this pillar include winning a global security [ RSP ] that will enable us to expand our portfolio in existing geographies with large enterprise customers, which is a segment that has not historically purchased through TD SYNNEX. We were chosen due to our global presence, and deep security specialization as well as for our ability to unlock substantial cost savings for the vendor while simultaneously improving customer experience. We expect these customers will increasingly leverage our broader product and service portfolio over time, enabling them to consolidate spend and capture additional growth in the market.
Our emphasis on specialization has been recognized by our vendors as well. In Q4, Cisco named TD SYNNEX as Distributor of the Year globally as well as regionally in the Americas and EMEA. These awards reflect how our specialization, deep alignment with Cisco and innovation across markets consistently deliver real business outcomes for our customers.
Our next pillar is focused on delivering best-in-class enablement. We accelerate time to market by equipping our customers with advanced training certification programs, enablement tools and precise resources and expertise tailored by technology and customer segments. This approach reduces ramp-up time, strengthens customer capabilities and drive faster adoption of high-value solutions, which ultimately improves productivity and expand our share of wallet.
During Q4, we announced AI game plan, a new customer-led workshop experience designed to help their sales teams translate AI opportunities into real-world business outcomes for their end customers. We are just at the beginning, and we'll continue turning our vast data lake and algorithms into industry-leading scalable digital services but enhanced experiences, lower cost and unlock new revenue and efficiency opportunities for our existing customers.
This strategy is work in concert to support and substantiate our 5 strategic pillar, expanding our brand visibility. Our brand promise, making IT personal describes our role as an indispensable partner in the technology channel. We aim to be visible, personal and influential at every stage of the customer journey, reinforcing trust and driving loyalty. The sustained presence amplifies our market relevance and underpins long-term growth.
By bringing our strategy to life every day across these 4 pillars. We are continuing to strengthen our competitive position as the strategic business partner that our partners can rely on to create more opportunities that deliver sustainable long-term growth.
Moving to Hyve. We continue to experience sizable growth, benefiting from broad-based demand for cloud data center infrastructure across our hyperscaler customers. And we believe that we are very well positioned to continue to get more opportunities that showcase our ability to support a wide breadth of programs for our customers. Our customers are turning to us for among other things, our production flexibility, favorable U.S. footprint, ability to codevelop complex solutions and secure supply chain. These differentiators position us to continue to be a trusted partner in the assembly and deployment of complete rack level systems across all market environments through time.
Looking ahead, I am bullish on the long-term value proposition of Hyve and IT distribution. We believe the untapped market opportunities in front of us in both businesses remains substantial as we aim to service a greater portion of the overall IT market through time.
Now I will pass it to David to go over the financial performance and outlook in more detail. David?
Thanks, Patrick, and good morning, everyone. We're pleased to report a strong close to our fiscal year with fourth quarter results that exceeded the midpoint of our guidance across all key metrics. Gross billings increased 15% year-over-year, reflecting broad-based strength across both distribution and Hyve. Our gross operating margins expanded year-over-year driven by a combination of operational efficiencies, favorable mix and disciplined margin management. Non-GAAP earnings per share increased 24% year-over-year, delivering meaningful value for shareholders and underscoring the strength and value of our business model.
Moving into the details. Our endpoint solutions portfolio increased gross billings 12% year-over-year due to continued demand for PCs driven by the ongoing Windows 11 refresh and sustained demand for premium devices, which has continued to be a tailwind. Globally, PCs have now increased double digits for 4 consecutive quarters and we expect continued momentum heading into the initial months of 2026.
Our advanced solutions portfolio increased gross billings by 17% year-over-year and 8% year-over-year when excluding the impact of Hyve driven by meaningful growth in cloud, security, software and other strategic technologies. Hyve, which is reported within the Advanced Solutions portfolio increased more than 50% year-over-year, primarily due to strength in programs associated with server and networking rack builds.
In the quarter, there was approximately 29% reduction from gross billings to net revenue, which was in line with expectations. Our net treatment as a percentage of buildings continues to remain elevated versus the prior year, primarily driven by a higher mix of software within distribution and increases in certain Hyve programs. As a result, net revenue was $17.4 billion, up 10% year-over-year and above the high end of our guidance range. Gross profit increased 15% year-over-year to $1.2 billion gross margin as a percentage of gross billings was 5%, which was flat year-over-year.
Non-GAAP SG&A expense was $698 million or 3% of gross billings, our cost to gross profit percentage, which we define as the ratio of non-GAAP SG&A expense to gross profit was 58% in Q4, an improvement of approximately 100 basis points year-over-year demonstrating our progress toward managing costs as a percentage of gross profit down over time. Non-GAAP operating income increased 18% year-over-year to $497 million. Non-GAAP operating margin as a percentage of gross billings was 2.04%, representing a 5 basis point improvement year-over-year. Interest expense and finance charges was $88 million, an increase of $1 million year-over-year.
Our non-GAAP effective tax rate was approximately 24% compared to 21% in the prior year. Total non-GAAP net income was $313 million and non-GAAP diluted earnings per share was $3.83, an increase of 24% year-over-year and another all-time high for TD SYNNEX.
Free cash flow was $1.4 billion, driven by strong earnings growth and meaningful improvements in our cash conversion cycle quarter-over-quarter. This also brings our annual free cash flow to $1.4 billion, which was well ahead of our expectations. FY '25 marks the third consecutive year that we have generated annual free cash flow of over $1 billion demonstrating our commitment to sustainable cash generation.
Within the quarter, we returned $209 million to shareholders with $173 million in share repurchases and $36 million in dividend payments. In total, we returned $742 million to shareholders this fiscal year, bringing our cumulative return to shareholders over the last 3 years to over $2.2 billion. This is approximately 61% of our free cash flow during that same time period within the medium-term range of 50% to 75% outlined at our Investor Day.
Underscoring our belief in the strength of our business and the commitment to creating long-term shareholder value. As of November 30, we have $1.2 billion remaining on our share repurchase authorization. Net working capital was $2.9 billion, down approximately $300 million from the prior year. Our gross cash days were 12 days, a 2-day improvement from the prior year, which I'll talk more about shortly. We ended the quarter with $2.4 billion in cash and cash equivalents and debt of $4.6 billion. Our gross leverage ratio was 2.4x, and our net leverage ratio was 1.1x. You'll note that our cash position was elevated at year-end. This is the result of 2 primary factors.
First, we successfully completed a new debt issuance during the quarter, which will be used to pay off $700 million of debt that matures in August of 2026. Additionally, as you'll see in our working capital, our teams across both distribution and Hyve did an outstanding job driving cash flow and made meaningful improvements toward optimizing the return on capital for both businesses. At the same time, it's important to remember that the balance sheet is a snapshot at a single point in time. At year-end, we had a few large receipts come in just before period end that would have normally fallen into the next quarter. We estimate Q4 benefited a few hundred million dollars, which will normalize in FY '26.
Going forward, we continue to be laser-focused on generating sustainable free cash flow and improving our return on invested capital. For the current quarter, our Board of Directors has approved a cash dividend of $0.48 per common share that will be payable on January 30, 2026, to shareholders of record as of the close of business on January 16, 2026.
Moving on to our outlook. For the first quarter of fiscal '26, we expect non-GAAP gross billings in the range of $22.7 million to $23.7 billion representing an increase of approximately 12% at the midpoint. Our outlook is based on a euro to dollar exchange rate of [ 1.16 ] net revenue in the range of $15.1 million to $15.9 billion, which translates to an anticipated gross to net adjustment of 33%. The non-GAAP net income in the range of $243 million to $283 million.
Non-GAAP diluted earnings per share in the range of $3 to $3.50 per diluted share based on a weighted average shares outstanding of approximately $80.1 million. We are anticipating a cash outflow in Q1, in part due to typical seasonality of the business and due to the timing impact that benefited Q4 which we described earlier. We expect that our cumulative free cash flow over fiscal '25 and fiscal '26 will be in line with our medium-term framework of 95% non-GAAP net income to free cash flow conversion.
While we are not providing full year guidance today, our long-term outlook remains consistent with the multiyear compounded annual growth rates that we outlined at our Investor Day earlier this year. We'll remain focused on delivering against that financial framework we've shared with you, which includes stable growth, margin expansion over time, consistent cash generation and deploying capital where it maximizes long-term value creation within our capital allocation framework.
To close, we're proud of what we've achieved this year, strong financial performance, disciplined execution and continued progress against our strategy. We're entering fiscal '26 with solid momentum, a healthy balance sheet and a clear set of priorities that support durable growth will remain focused on operational excellence and delivering long-term value to shareholders.
With that, we'll open up the call for questions. Operator?
[Operator Instructions] Your first question comes from the line of Keith Housum with Northcoast Research.
2. Question Answer
Obviously, outstanding growth in Europe and Asia Pacific, especially Asia Pacific and Japan there. As we think about that growth here that's happening, I guess, can you talk about perhaps how much of it is market growth versus your ability to take market share? And then second, how sustainable are some of these growth rates that we're seeing going forward?
Okay. Thanks, and good morning. So in FPGA, we, for sure, we've experienced very nice high double-digit growth. As you know, our share in the region is relatively low. So we are investing significantly in the region to gain share and grow our market. So when you look at the results, for sure, we gained significant share. We are also positioned in countries, especially India where, as you know, the growth of the market is significantly above the average of the region. And the team is focused on product segments, vendors and customer segments, which should make the growth sustainable for the long run. So very, very pleased, very proud of the team and very confident for the future.
The only thing I would add is that it's not only the growth in sales, we're also experiencing an [indiscernible] proportional growth in operating income in the region as the team is investing but also keeping a good cost discipline.
Great. And how about for Europe because Europe, obviously, it was better than we would expect to consider the macro conditions you have there.
So just -- so we got the market data. Europe, the European market grew let's say, mid-single digits, so slightly better even than North America. But for sure, we had outstanding performance. We continue to gain significant share in the region. We have a strategy which is very well executed, again, we are going after technologies, vendors and customer segments where we can enjoy higher growth in the market, and that's what you are seeing in the results.
Your next question comes from the line of Ruplu Bhattacharya with Bank of America.
Patrick, you reported strong 15% growth in billings for 4Q and are guiding 12% billings growth for 1Q, how are you handicapping any end market destruction -- demand destruction from higher component costs like DRAM and NAND. And one for David, can you just update us on the CapEx spend for this year as well as any investments planned for Hyve for 2026?
Yes. So thanks a lot for the question. So again, the guidance for Q1 reflects what we see from the regions, from the BUs. So I can confirm that the memory price has increased dramatically. And what we are seeing already is an increase in ASP on a series of product families, especially PCs, servers, storage. So -- the ASP increase is, on one hand, a tailwind in the short term. What will be interesting to see is what will be the impact on the volume going forward. But again, specifically for Q1, the guidance reflects the result of the bottom-up exercise with the regions and the forecast is done by technology, by country.
And Ruplu, the only thing I would add is when you think about total CapEx for TD SYNNEX we're probably planning for a similar level of CapEx in '26 relative to '25. And that would include the investments needed to support Hyve's continued growth.
Can I just clarify, have you actually seen any demand destruction from higher component costs? Or -- and is that factored into your guidance?
So specifically, I haven't seen it. And again, what is reflected in the guidance is the outcome of our bottom exercise.
Your next question comes from the line of Erik Woodring with Morgan Stanley.
Patrick, I'm going to stay on the same line of questioning there is Ruplu, which is just -- can you maybe ask it a different way. Can you maybe help us understand what you're seeing in terms of any potential pull forward in either the November quarter or the January quarter just with customers wanting to get ahead of future pricing increases for any of those kind of memory exposed products you just mentioned, PC, servers, storage, smartphones? And just how you might think more broadly, I know you're not guiding to fiscal '26, but just -- how do you think that this dynamic could have an impact on either revenue or profitability seasonality for the year?
Okay. So let me start with the broad forwards. So it's difficult to assess, but very pretty confident that we haven't had any, I would say, material brought forward in the last quarter. Now, again, what's going -- so the Q1 guidance reflects the -- what the countries are seeing in their region, and again, for PCs, servers and storage.
If I look at the overall year. So -- the tailwind for us is clearly the ASP increase. And as you know, I mean, when the vendors increased their prices we usually pass it through to the market. So no concerns on the margin quality. On the demand tailwind related to the ASP increase. And then what's going to be interesting to watch is what will be the impact on the volume. And as you know, the elasticity will be different by product category. And probably, the category, which is going to be the most sensitive PCs, but we's have a very, very low position on consumer pieces. We primarily focus on commercial PC. So I'm relatively confident that here the elasticity should be relatively low. So I continue to be relatively optimistic about the prospects of the PC market.
Let's not forget that the refresh is not over. There is -- I mean, it started a little bit later than expected. So we should continue to benefit from it -- I mean, in the next quarter. And then when you look at storage and server. I think here, again, the elasticity related to the price increase should be relatively low. So again, on the demand. I think the demand is going to be driven by other considerations the need for customers to embrace AI, upgrade their servers. I mean, there is a server refresh happening as we speak, and it's not over. So again, I think on the demand relatively -- or I should say, cautiously optimistic and then the ASP increase should help.
Your next question comes from the line of David Vogt with UBS.
Great -- maybe for David. So David, you mentioned in your prepared remarks, free cash flow cumulatively for '25 and '26 is going to be consistent with the long-term framework of 95% of net income. Given kind of the mix of business going into fiscal '26, it sounds like netted down is going to be a bigger portion of that based on the guide, at least for Q1. Can you talk through kind of the mix of the revenue that drives that netted down effect? And then what sounds like a decline in free cash flow, even adjusting for the $200 million of payments in Q4 that was pulled forward in '26 versus '25.
Sure. David, when we -- in our prepared remarks, we said we expect cumulative free cash flow across '25 and '26 to be within the 95% conversion rate. Here's the way to think about it. Historically, our business consumes cash in the first half and generates cash in the second half. What you saw in Q4 is we had a really, really strong cash flow quarter. And so some of that will normalize as we go into Q1. And so we still feel really good about generating cash for the full year, but we do expect an outflow in Q1 that will ultimately be recouped as we work through the balance of the year. And it's not as much mix driven per se as it's just the additional cash that we generated in Q1 that will be normalized -- or sorry, that we generated in Q4 that will be normalized in Q1.
Your next question comes from the line of Adam Tindle with Raymond James.
Okay. I want to just to acknowledge, Patrick, the strong return on capital, primarily great working capital management. But if I look at the margin side of things, it does look like some of that is being a little bit suppressed, and you talked about investments in Hyve I wanted to ask about that. This has been an ongoing theme. I wonder if you could maybe just recap some of the prior investment decisions that you made in Hyve and the outcomes that lead you to invest further in Hyve, including any potential further new customers, for example?
And for David, as we kind of look at this in the model, if you could maybe help us quantify or break out the investments in Hyve. Is it going to increase throughout the year? Are we sort of at the right run rate? What does this look like throughout fiscal '26?
So maybe I can start and Patrick chime in. So in the prepared remarks, we talked about Hyve grew meaningfully both billings and profits. And so I wouldn't impute that there's a margin issue. In terms of investments in Hyve , we continue to invest in Hyve. And so Patrick talked about, we've invested in leadership. We've invested in the engineering team. We've invested in some additional capabilities within the site. We have enough capacity to support our current demand, and we'll continue to make investments to ensure Hyve can truly be an end-to-end go-to-market player for Tier 1 hyperscalers and others. And so we feel very good about how the business is performing, the investments we've made and the prospects going forward.
Your next question comes from the line of David Paige with RBC Capital Markets.
Really nice results here. Just a quick follow-up on Hyve, the 50% growth. Is that coming -- is that evenly split between ODM and CM or both the customers? Or maybe just a little bit more details around the growth there?
Yes. So we had -- so as you know, we have our ODMCM business, that 1 grew very nicely in line, if not slightly better than the pace of the market. And then we had a very strong also quarter with, let's call it, supply chain [indiscernible] division. As you know, this is a more lumpy opportunistic business as a service to be rendered. So it's highly dependent on what the customers are asking for. And in Q4, we had a very strong quarter and better than expected. So that's how I would summarize the sales growth for the quarter for Hyve.
Your next question comes from the line of Joseph Cardoso with JPMorgan.
Maybe another follow-up on the Hyve business. I just wanted to touch on like the progress that you're making with high relative to capturing additional share with your existing large customers there and perhaps what you're seeing from a portfolio perspective or kind of the products that you're shipping there towards the mix moving more towards AI servers, networking rack, storage racks and the opportunity to onboard potentially a new large customer beyond the 2 that you have today?
Yes. So again, I mean, we mentioned it in the prior calls, we continue to invest to expand the capabilities and capacity of Hyve. And so we are very active in bidding on new programs with our existing customers and potential new customers. I would say that thanks to the investments we've made, especially in engineering and some of the differentiators of Hyve in the market. I mean, we are seeing -- we are making very good progress on winning some new programs and potentially new customers.
Now I would say that those programs take some time to ramp. So again, when you look back at our Q1 guidance, it reflects what we have as forecast for the next quarter. But going forward, yes, I would say we continue to make good progress and are confident about the prospects.
Your next question is coming from the line of [ Austin Banker ] with Loop Capital.
Just really quick, I guess, -- would love to understand how margins -- you view margins for Hyve kind of going forward? Are they improving normalizing as volume scales? And then lastly, how do you feel about the visibility for Hyve programs today versus maybe this time last year?
So I can take that -- we feel pretty good about the overall margin profile of TD SYNNEX. When you think about what we laid out at Investor Day was a couple of things. We want to grow operating profit faster than billings. And so we're constantly looking for ways both within Hyve and within our distribution business to focus where we can make additional margin. And so again, we feel very good about that business.
Yes, I would just add that -- when I look at the pipeline and I compare it to where we were last year, I think we are in a very healthy position. And again, that's what is reflected in our Q1 guidance.
Your next question comes from the line of Vincent Colicchio with Barrington Research.
Yes, Patrick, another good quarter on PCs. Just could you give us an update on your thinking in terms of what inning we're in here?
Yes. So thanks a lot. Yes. So solid again, Q4 for PCs, broad-based primarily driven from commercial. So going forward, as I mentioned, I think that the refresh is not over. So that tailwind should continue again in 2026. We have also the weight of AI PC, we have a slightly higher ASP. That should continue to be -- so there's still a lot of potential for upgrading the PCs and make them AI compatible in the market. So that should be a tailwind. We talked about the memory price increase impacting the the ASP of the PCs that should be, again, a tailwind.
And then you have the uncertainty related to the price on the demand. But again, the fact that we are primarily focused on the commercial pieces I mean, I think we are in a slightly better position than if you would have a high weight of consumer pieces. So I would say for next year, continue to be confident about the prospects of the PC market. And again, back to the guidance for Q1. I mean the various assumptions have been taken into account and are reflected in the guidance.
And did AI PCs perform incrementally better this quarter?
Yes, it continues to -- the weight of AI PC continues to nicely increase. So that's a positive.
Your next question comes from the line of David Vogt with UBS.
I just wanted to ask a follow-up, David, on the netted down impact, it looks like there's a big tick up in Q1. That's what I was trying to understand also, is it mix driven? That's going to be a bigger headwind to your revenue conversion kind of can you talk about what's going on there from a netted down effect in the guide?
Yes. And sorry, I missed that part of your question. That's my fault. Gross to net gross to net increased in Q4, and we've got an increase into Q1. There's a couple of dynamics. One, strategic technologies continues to become a bigger portion of our business. A lot of that business is software, which, as you know, is netted. Additionally, within Hyve, there are a number of programs that are also net. And as the mix changes, that does influence that metric. And so if you think about how we set Q1, that's probably a realistic assumption of kind of the run rate gross to net that we expect for FY '26. Hopefully, that helps.
And that would suggest that software in Hyve continues to grow as a portion of the overall billings pie? Is that a reasonable takeaway?
Exactly right. You're right.
There are no further questions at this time. I will now turn the call back over to Patrick for closing remarks.
So thank you, everyone, for joining us. I want to close by emphasizing that we'll remain committed to profitable growth and free cash flow generation. Our strategy is designed to ensure that every step forward strengthens our business and supports greater long-term value creation. With our reach, our people, our unique capabilities and our momentum, we are confident in our ability to continue to succeed. Thank you, and have a great day.
That concludes today's conference call. You may now disconnect. Have a nice day.
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SYNNEX Corporation — Q3 2025 Earnings Call
1. Management Discussion
Good morning. My name is Tiffany, and I will be your conference operator today. I would like to welcome everyone to the TD SYNNEX Third Quarter Fiscal 2025 Earnings Call. Today's call is being recorded.
[Operator Instructions]
At this time, for opening remarks, I would like to pass the call over to David Jordan, America's CFO and Head of Investor Relations at TD SYNNEX. David, you may begin.
Thank you. Good morning, everyone, and thank you for joining us on today's call. With me today is Patrick Zammit, our CEO; and Marshall Witt, our CFO.
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 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?
Thank you, David. Good morning, everyone, and thank you for joining us today. I'm excited to report that our third quarter non-GAAP gross billings and diluted earnings per share established new records for our company. Our performance is a clear result of our team's strong execution, a differentiated go-to-market strategy and a global end-to-end portfolio of products and services that is unrivaled.
Beginning with our financial performance for the quarter, consolidated gross billings were $22.7 billion, growing 12%, 10% in constant currency. And non-GAAP diluted earnings per share of $3.58 exceeded the high end of our guidance, representing a 25% increase year-over-year. Within TD SYNNEX, excluding Hyve, gross billings increased 9% year-over-year with gross profit and operating income each increasing by double digits. Hyve had a strong quarter with gross billings increasing in the mid-30s year-over-year and ODM/CM gross billings increasing 57% year-over-year, fueled by continued strength in hyperscaler investments in cloud infrastructure. Hyve total gross margins returned to historical levels and operating profit exceeded expectations.
The majority of our technology products and services in endpoint and advanced solutions experienced an increase in gross billings year-over-year. Highlighting a few key areas. Software continued to be a standout, experiencing a 26% increase in gross billings, fueled by cybersecurity and infrastructure software. Additionally, we are still experiencing strong demand in PCs, driven by a higher mix of AI PCs and the Windows 11 refresh cycle.
We experienced healthy momentum across each of our regions with exceptionally dynamic performance in Latin America and Asia Pacific and Japan, each increasing strong double digits in gross billings in the quarter and exceeding expectations. Broad-based adoption of IT products and services continues to build in these geographies, validating the strength of our go-to-market strategy and positioning us to continue to capture profitable growth.
Moving to our diversified customer end markets. We are experiencing broad-based strength in SMB and MSPs, which grew substantially above the company average in most of our geographies. By developing bespoke value propositions and deploying dedicated commercial teams with deep industry knowledge, we have successfully positioned ourselves as a trusted partner for this strategic customer segment. Enterprise demand remains largely stable with balanced revenue growth throughout the majority of this customer base.
Our U.S. public sector business increased its gross billings low single digits in the quarter. Strength in state and local was offset by anticipated softness in federal as our customers navigate a dynamic environment, led by the revaluation of budgets and expected changes to federal funding programs. As a reminder, federal is a small portion of our total portfolio, but one we will continue to invest in growing.
Next, our differentiated and highly specialized go-to-market strategy that we outlined during Investor Day strengthens our competitive position and drives our business forward every day. A great example of this strategy in action is expanding our addressable market by introducing new vendors to the channel and leveraging our network of partners to accelerate growth. Last year, we onboarded a cybersecurity vendor in North America, who was attracted by our specialist go-to-market and partner enablement capabilities. Within 18 to 24 months, we have grown that business from zero to hundreds of millions of dollars by expanding the customer base and improving their net revenue retention rates with existing clients.
We have many more examples like this, and we are continuing to onboard cutting-edge vendors and help accelerate the adoption of new technologies in the market. As the adoption of AI technologies evolves, we are enhancing our Destination AI enablement program to include 3 strategic focus areas that are designed to help our partners adopt, scale and secure AI solutions. Agentic AI, security for AI and AI factory. Launching next week, these programs will deliver comprehensive solution support such as designing modern architectures that blend multiple AI technologies and enable hybrid deployment models that deliver flexible, intelligent threat detection, prevention and responses.
Within Hyve, we are extremely proud of our performance during the quarter and remain confident in our ability to be a leading partner for data center infrastructure build-out. We are continuing to invest in new capabilities, taking a holistic approach to data center requirements that anticipate our customers' needs and provides an end-to-end solution for the world's leading hyperscalers and cloud service providers. As a result, our portfolio is becoming more diversified.
We are participating in more compute, networking and storage rack builds as the deployment of GPU and AI integrated racks accelerate, and we have seen robust growth throughout the majority of our programs. Additionally, our customer mix is also shifting favorably, and we have seen substantial growth beyond our top customer. Moreover, our second largest customer grew faster than expected within the quarter, and we anticipate similar strength in Q4.
At our Investor Day, we outlined a digital strategy, including the creation of a unified experience, seamless workflows and actionable insights to drive customers' growth. Today, we are taking the next step of that journey with the launch of TD SYNNEX Partner First in North America, a unified portal that optimizes the partner experience by combining commerce, services, education and community in a single digital environment. Partner First marks an important milestone in TD SYNNEX omnichannel strategy using AI, automation and advanced analytics to enhance our operations and streamline the buying journey. Partner First will be rolled out globally in the coming quarters.
In summary, our team's strong execution, our differentiated and highly specialized go-to-market strategy and our unrivaled global end-to-end portfolio of products and services are enabling us to continue to deliver a superior level of service and customer experience.
Now I will pass it to Marshall to go over the financial performance and Q4 outlook in more detail. Marshall?
Thanks, Patrick, and good morning, everyone. As Patrick highlighted, we're excited to report that we achieved 12% gross billings growth and 25% non-GAAP diluted EPS growth in the third quarter, which exceeded the high end of our guidance range. Our Endpoint Solutions portfolio increased gross billings 10% year-over-year, driven by continued demand for PCs as the refresh cycle progresses as well as a higher mix of AI PCs. Globally, PCs have increased double digits for 3 consecutive quarters, and we believe that we are in the mid- to late innings of the refresh cycle.
Advanced Solutions portfolio increased gross billings by 13% year-over-year and 8% year-over-year when excluding the impact of Hyve, driven by meaningful demand in cloud, security, software and other high-growth technologies. Hyve, which is reported within the Advanced Solutions portfolio, increased in the mid-30s, primarily due to strength in programs associated with server and networking rack builds. Hyve's capabilities, capacity and U.S. manufacturing footprint positions it to support the increased demand.
In the quarter, there was an approximately 31% reduction from gross billings to net revenue, which was slightly higher than our expectations, but consistent with previous quarters. Our net treatment as a percentage of billings continues to remain elevated versus the prior year, primarily driven by an increase in Hyve transactions where we act as an agent and a higher mix of software within distribution. As a result, net revenue was $15.7 billion, up 7% year-over-year and above the high end of our guidance range.
Gross profit increased 18% year-over-year to $1.1 billion. Gross margin as a percentage of gross billings was 5%, which increased 23 basis points year-over-year and improved sequentially. Notably, we expanded our gross margin profile in both distribution and Hyve. Non-GAAP SG&A expense was $655 million or 3% of gross billings. Our cost to gross profit percentage, which we define as the ratio of non-GAAP SG&A expense to gross profit was 58% in Q3 and an improvement from the 60% level that we experienced in the first half of the year, demonstrating our progress towards managing cost as a percentage of gross profit down over time while still making key investments into the business.
Non-GAAP operating income increased 21% year-over-year to $475 million. Non-GAAP operating margin as a percentage of gross billings was 2.09%, representing a 15 basis point improvement year-over-year. Interest expense and finance charges were $91 million, an increase of $11 million year-over-year. Our non-GAAP effective tax rate was approximately 23% compared to 21% in the prior year. Total non-GAAP net income was $296 million, and non-GAAP diluted earnings per share was $3.58, an increase of 25% year-over-year and an all-time high for TD SYNNEX.
Free cash flow was $214 million, driven by strong earnings growth and a slight improvement in our cash conversion cycle. Within the quarter, we returned $210 million to stockholders with $174 million in share repurchases and $36 million in dividend payments, bringing our total return to stockholders for the year up to $534 million. Net working capital was $4 billion, which is consistent with quarter 2.
We have added a gross cash days metric to the investor presentation, which we believe better reflects the fundamentals of the 2-tier distribution industry and our organization. Our gross cash days were approximately 16 days, which was consistent with the prior year and a 1-day improvement from the prior quarter. We ended the quarter with $874 million in cash and cash equivalents and debt of $4.2 billion. Our gross leverage ratio was 2.3x, and our net leverage ratio was 1.8x. For the current quarter, our Board of Directors has approved a cash dividend of $0.44 per common share that will be payable on October 31, 2025, to stockholders of record as of the close of business on October 17, 2025.
Now moving on to our outlook. These numbers are all non-GAAP. For the fourth quarter, we expect gross billings in the range of $23 billion to $24 billion, representing an increase of approximately 11% at the midpoint. Our outlook is based on a euro to dollar exchange rate of $1.18. Net revenue in the range of $16.5 billion to $17.3 billion, which translates to an anticipated gross to net adjustment of 28%. Non-GAAP net income in the range of $281 million to $322 million. Non-GAAP diluted earnings per share in the range of $3.45 to $3.95 per diluted share based on weighted average shares outstanding of approximately 80.7 million. We expect a non-GAAP effective tax rate of approximately 23% and interest expense of $91 million.
In closing, we remain in a strong financial position to close out what has been a great year for our business and are leveraging our strategic pillars that we outlined during our Investor Day to ensure we continue to be the partner of choice in IT.
With that, we'll open it up for your questions. Operator?
[Operator Instructions]
Your first question comes from the line of Erik Woodring with Morgan Stanley.
2. Question Answer
This is Maya on for Erik. Last quarter, you talked about the potential for Hyve to potentially decline in the fiscal 4Q on tough compares. Given the strong results in the August quarter and the strong November quarter guide and the momentum we're seeing in cloud CapEx trends more broadly, how should we think about Hyve dynamics in fiscal 4Q? And then any high-level color on as we look to next year?
Thanks a lot for the question. So indeed, we were a little bit cautious last quarter. As you know, I mean, Hyve is a lumpy business. But I mean, the quarter did -- I mean, went extremely well as did distribution, by the way. So what explains the overperformance? First, I mean, we saw growth, significant growth across all the programs and all the customers. So that's point number one. Point number two, we see our second customer demand coming back, and we are confident, by the way, for next quarter 2. That's the second thing.
Then also, we saw more demand for supply chain services than expected. And so the combination explains the overperformance of Hyve. And we believe that, I mean, those dynamics will remain in Q4 and is reflected in our guidance.
And Maya, this is Marshall. Just thinking about the growth expectations being above what we initially had thought. As we said in previous discussions, we continue to make investments in skill sets, engineering capabilities, capacity, manufacturing, et cetera, to ensure that we stay ahead of capacity requirements.
Your next question comes from the line of David Paige with RBC.
I guess I had 2 questions. Just any comments around the pull forward for PCs in the quarter? I believe last quarter it was anywhere from $100 million to $200 million. And if I could stick one other question in on free cash flow. Should we still expect $1.1 billion for 2025?
David, thanks for the questions. On the first one, so again, we looked at it, as you know, it's difficult to assess, but we think it's very limited. I mean what we see is we continue to see very good momentum on PCs across the world. So all regions are contributing to it. And again, it's driven really by the refresh related to Windows 11, the refresh of the base, which was built during the pandemic. And we also see the start of some momentum on AI PC. So some customers coming to us because they want an AI PC. Again, the vast majority is related to the refresh.
And David, in regards to free cash flow expectations for the year, our expectation is that the free cash flow will be approximately $800 million for the year. And let me give you some color behind that. As we were thinking about H2 coming out of H1, we had given a mid-single-digit growth rate to the overall portfolio with distribution being a little bit above and Hyve being that flat to down. Clearly, the results for quarter 3 showed a 10% growth rate and expectations again for a 10% growth rate in Q4.
So in essence, that has lifted the overall working capital requirements for the entire portfolio, both distribution and Hyve. As you know, Hyve has a little bit longer cash conversion cycle given what is required in terms of raw materials to ultimately finish racks and how that sells through and staying ahead of our customers' requirements ensuring they have a smooth supply chain. If we think about quarter 4, which ultimately is where this goes, if you look at our press release, you could see that our year-to-date free cash flow was 0 coming into Q4. So how do we get there?
And thinking about Q4 cash flow, we think that's going to be around -- free cash flow is going to be around $850 million. It's roughly divided evenly between earnings growth for the quarter and expected cash conversion improvement of 2 to 3 days. I will say with that and thinking about what we had said at Investor Day, we still believe over the medium-term cycle that net income to free cash flow conversion should stay right around 95%.
Your next question comes from the line of Keith Housum with Northcoast Research.
I apologize if my phone is breaking up. Guys, great quarter, obviously, in terms of better than expected. I guess the question that may be asked here is, how sustainable do we see this being -- is there any pull forward that we saw from fourth quarter and the third quarter?
Yes. Again, I mean, if you look at what is driving the overperformance, so if I think about distribution, it's PCs, it's software, it's cybersecurity, it's compute. I mean we believe that, that dynamic will continue into Q4. And then Hyve benefits from a very favorable environment. Hyperscalers are confirming or increasing their spend, and we are positioned on programs where the demand continues to be healthy.
Your next question comes from the line of Michael Ng with Goldman Sachs.
I just have 2 quick ones on Hyve. First, I was just wondering if you could talk a little bit about the progress in onboarding new customers beyond the 2 main ones that you have. And then secondly, could you just talk about whether the growth in Hyve volumes tend to be more from the traditional server side or AI server side?
Mike, I'll start and then Patrick, please chime in. So we continue to make good progress in what we'll call programs, as Patrick mentioned earlier, programs to us is the way we define our ability to continue to grow our presence in Hyve and ODM/CM and data center supply chain management. We do expect to continue to diversify our portfolio. Our pipeline remains quite healthy and strong. That continues to grow. We will continue to seek out more customers in the Super 6 and beyond that. And so we feel good about where that's heading. Patrick, do you want to cover?
Just adding that the growth is coming from networking and compute and more traditional compute. We have some GPU projects in the pipe. But when you look at Q3 and the vast majority of Q4, again, the demand will come from networking and traditional compute.
That concludes our question-and-answer session. I will now turn the call back over to Patrick Zammit for closing remarks.
So thank you, everyone, for joining us. I want to close by reiterating that our goal isn't simply to perform today. It is to continue building a company that can do so reliably over the long term. That means continuing to invest in our people, in innovation and in the systems that allow us to anticipate change rather than react to it. Our approach has always been about building enduring capabilities, deep customer and vendor relationships, operational discipline and a culture that adapts quickly to change.
These are the factors that we believe will allow us to continue to deliver differentiated performance year after year regardless of the market cycle. Of course, none of this will be possible without our coworkers around the globe who are the driving force behind our success. We are grateful for the trust our vendors, customers and shareholders place in us, and we remain focused on earning it every day.
Thank you, and have a great day.
That concludes today's conference call. You may now disconnect. Have a nice day.
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SYNNEX Corporation — Q3 2025 Earnings Call
Finanzdaten von SYNNEX Corporation
Umsatz
Der Umsatz stellt die Summe aller Einnahmen eines Unternehmens z. B. für dessen Produkte oder Dienstleistungen dar.
Umsatz (TTM) einfach erklärtDirekte Kosten
Direkte Kosten sind die Kosten, die direkt im Zusammenhang mit der Herstellung des Produkts oder der Dienstleistung entstehen.
Bruttoertrag
Der Bruttoertrag gibt an, wie viel vom Umsatz nach Abzug der direkten Herstellkosten im Unternehmen verbleibt. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der Bruttomarge (engl. Gross Margin).
Brutto Marge einfach erklärtVertriebs- und Verwaltungskosten
Die Vertriebs- & Verwaltungskosten (engl. Selling, General & Administrative expenses, kurz SG&A) beinhalten alle Aufwände für Marketing und den Verkauf sowie die allgemeine Verwaltung des Unternehmens.
Forschungs- und Entwicklungskosten
Die Forschungs- und Entwicklungskosten (engl. research & development costs, kurz R&D) geben Auskunft darüber, wie viel das Unternehmen in die Forschung und die Entwicklung seiner Produkte investiert. Vor allem prozentual vom Umsatz und im Vergleich zu direkten Wettbewerbern sind die Kosten interessant.
EBITDA
Das EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ist der Gewinn des Unternehmens vor Zinsen, Steuern und Abschreibungen. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der EBITDA-Marge.
Abschreibungen
Abschreibungen stellen Wertminderungen von Vermögensgegenständen des Unternehmens dar (z.B. durch Abnutzung von Maschinen).
EBIT (Operatives Ergebnis)
Das EBIT (engl. Earnings Before Interest and Taxes) ist der Gewinn des Unternehmens vor Zinsen und Steuern, das auch als operatives Ergebnis bezeichnet wird. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von
der EBIT-Marge.
Nettogewinn
Der Nettogewinn stellt den Gewinn oder Verlust nach Abzug aller Kosten dar.
Nettogewinn einfach erklärtaktien.guide Premium
| Mai '26 |
+/-
%
|
||
| Umsatz | 69.766 69.766 |
16 %
16 %
100 %
|
|
| - Direkte Kosten | 64.850 64.850 |
16 %
16 %
93 %
|
|
| Bruttoertrag | 4.916 4.916 |
21 %
21 %
7 %
|
|
| - Vertriebs- und Verwaltungskosten | 3.117 3.117 |
12 %
12 %
4 %
|
|
| - Forschungs- und Entwicklungskosten | - - |
-
-
|
|
| EBITDA | 2.220 2.220 |
33 %
33 %
3 %
|
|
| - Abschreibungen | 421 421 |
4 %
4 %
1 %
|
|
| EBIT (Operatives Ergebnis) EBIT | 1.799 1.799 |
42 %
42 %
3 %
|
|
| Nettogewinn | 1.126 1.126 |
57 %
57 %
2 %
|
|
Angaben in Millionen USD.
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Firmenprofil
SYNNEX Corp. bietet Vertriebs-, Logistik- und Integrationsdienstleistungen für die Technologiebranche an. Sie ist in den folgenden Segmenten tätig: Technologielösungen und Concentrix. Das Segment Technology Solutions vertreibt Peripheriegeräte, IT-Systeme einschließlich Server- und Speicherlösungen für Rechenzentren, Systemkomponenten, Software, Netzwerkausrüstung, Unterhaltungselektronik und ergänzende Produkte. Das Segment Concentrix bietet ein Portfolio von strategischen Lösungen und End-to-End-Business-Services für Kunden in vertikalen Branchenmärkten. Das Unternehmen wurde im November 1980 von Robert T. Huang gegründet und hat seinen Hauptsitz in Fremont, Kalifornien.
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| Hauptsitz | USA |
| CEO | Mr. Zammit |
| Mitarbeiter | 24.000 |
| Gegründet | 1980 |
| Webseite | www.techdata.com |


