TD SYNNEX Corporation Q1 FY2026 earnings call

Patrick discussed updating reportable segments to distribution and Hive. Distribution had strong results across geographies and tech categories with growth and margin expansion. Hive had impressive growth driven by cloud and AI data center demand, focusing on system-level solutions. Strategic pillars like omnichannel engagement and specialized go-to-market were highlighted.

Distribution generated non-GAAP gross billings of $22 billion, increasing 17% year-over-year. Non-GAAP operating income was $431 million, increasing 42% year-over-year. Hive generated non-GAAP gross billings of $3.8 billion, increasing 95% year-over-year. Non-GAAP operating income was $159 million, increasing 66% year-over-year.

Expects non-GAAP gross billings for Q2 2026 of approximately $25.1 billion, plus or minus $500 million. Revenue approximately $16.5 billion, plus or minus $400 million. Non-GAAP net income approximately $322 million, plus or minus $20 million. Non-GAAP diluted earnings per share approximately $4, plus or minus $0.25. Share repurchases to increase from first quarter.

Actual results may differ from forward-looking statements due to risks and uncertainties discussed in filings.

Q: Congrats on great results, curious on Hive growth concentration.

A: Growth came from main customers, ramp up of programs to show impact later.

Q: Thoughts on PC demand evolution.

A: Reasonably optimistic, focused on B2B, ASP increases with some unit reduction but less than consumer.

Q: EPS progression color.

A: Demand strong, cautiously optimistic for second half with prior strong second half.

Q: Vendor margin impact on distribution.

A: No impact in Q1, close collaboration with vendors and customers to mitigate.

Q: Pull forward risk.

A: Based on data, feedback, and market behaviors, pull forwards limited.

Q: Hive growth and margin.

A: Hive to grow faster than distribution, margins reasonable with ongoing investments.

Q: Customer behavior and backlog.

A: Backlog increasing, vendors clear on price increases, visibility good.

Q: Hive gross billings vs revenue variance.

A: Driven by mix, some programs recorded net, mix shifts impact margins.

Q: Hive supply chain services and strategy pivot.

A: Supply chain services growth due to demand, strategy pivot to complete solutions with steady manufacturing growth.

Q: Q2 guidance and demand destruction.

A: Demand strong, price increases impact P&L over time, no major demand destruction seen yet.

Q: Hive mix evolution and general compute demand.

A: Hive mix to diversify with accelerated compute, general compute demand strong with price increases offsetting unit elasticity.

Q: Hive program details and margin.

A: Programs are full racks, CapEx needed, margin pressure possible initially but current margins good.

Q: Distribution in Europe and M&A.

A: Europe growing double-digit, faster than market, M&A focused on accelerating strategy with strict valuation.

Q: Data center modernization and Arm partnership.

A: Seen in on-prem and enterprise, open to Arm partnership if opportunity arises, Hive focuses on four tech areas.