01—Abstract
Summary
Summary of the 10-Q filed July 2, 2026. Cited figures are marked; the original filing is the authoritative source.
TD SYNNEX Corporation's 10-Q for the quarter ended May 31, 2026 shows revenue of $19.57 billiona for the three months, up from $14.95 billion a year earlier, and $36.74 billion for the six months versus $29.48 billion.
Net income was $334.1 millionb for the quarter ($4.15 diluted EPS) versus $184.9 million ($2.21) a year earlier, and $661.0 million for the six months ($8.19 diluted EPS). Management attributes growth to Advanced Solutions and Endpoint Solutions distribution as well as Hyve Solutions, partly offset by a higher share of revenue presented on a net basis and higher personnel and credit costs. Non-GAAP diluted EPS was $4.85 for the quarter and $9.58 for the six months.
Cash flow was weaker: net cash used in operating activities was $1.16 billionc for the six months, driven by a $4.36 billion increase in inventories and a $1.28 billion increase in accounts receivable, partly offset by a $3.49 billion increase in accounts payable. Cash and cash equivalents fell to $1.09 billion from $2.44 billion at November 30, 2025. Inventories rose to $13.89 billion from $9.50 billion, and the cash conversion cycle lengthened to 24 days from 16 days at fiscal year-end.
The company has $700.0 milliond of 1.750% Senior Notes due August 9, 2026, which management says it expects to repay from available liquidity. In May 2026 it issued a warrant to Amazon.com NV Investment Holdings LLC for up to 3,238,066 shares, of which 215,871 vested immediately. The filing also reports a June 2026 declaration of a $0.48 quarterly dividend and $1.0 billion remaining under the $2.0 billion share repurchase program.
02—Key points
Key Highlights
- Revenue rose to $19.57 billion in the quarter from $14.95 billion, and to $36.74 billion for the six months from $29.48 billion.
- Diluted EPS was $4.15 for the quarter versus $2.21 a year earlier; non-GAAP diluted EPS was $4.85 versus $2.99.
- Gross margin was 6.84% in the quarter versus 7.00%, while operating margin improved to 2.65% from 2.20%.
- Net cash used in operating activities was $1.16 billion for the six months, compared with $174.8 million a year earlier, mainly due to inventory growth.
- Inventories increased to $13.89 billion from $9.50 billion at November 30, 2025, and the cash conversion cycle lengthened to 24 days.
- Cash and cash equivalents declined to $1.09 billion from $2.44 billion at November 30, 2025.
- The company issued a warrant to Amazon for up to 3,238,066 shares, with 215,871 vesting immediately at $0.01 per share and the rest vesting on qualifying payment thresholds at $191.10 per share.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, TD Synnex kept $0.02.
- Revenue$19.57B100.0%
- Cost of revenue−$18.24B93.2%
- Gross profit$1.34B6.8%
- Operating costs−$820.1M4.2%
- Operating income$519.4M2.7%
- Interest, other & tax−$185.3M0.9%
- Net income$334.1M1.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 2, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $19.57B$14.95B | +31.0% |
| Cost of Revenue | $18.24B$13.90B | +31.2% |
| Gross Profit | $1.34B$1.05B | +28.0% |
| SG&A Expenses | $820.10M$718.23M | +14.2% |
| Operating Income | $519.36M$328.14M | +58.3% |
| Net Income | $334.09M$184.92M | +80.7% |
| EPS (Basic) | $4.16$2.22 | +87.4% |
| EPS (Diluted) | $4.15$2.21 | +87.8% |
| Shares Outstanding (Basic) | 79.56M82.63M | −3.7% |
| Shares Outstanding (Diluted) | 79.75M82.94M | −3.8% |
05—Questions
Frequently Asked Questions
How did TD SYNNEX perform in the second quarter of fiscal 2026?
Revenue was $19.57 billion, up from $14.95 billion, and net income was $334.1 million versus $184.9 million. Diluted EPS was $4.15 compared with $2.21, and operating income was $519.4 million versus $328.1 million.
Why did operating cash flow turn significantly negative?
Management attributed the $1.16 billion of net cash used in operating activities for the six months primarily to a $4.36 billion increase in inventory to support business growth and a $1.28 billion increase in accounts receivable from sales growth. These were partly offset by a $3.49 billion increase in accounts payable and higher net income.
What is the company's debt position and near-term maturity?
Total outstanding borrowings were approximately $4.7 billion at May 31, 2026. The $700.0 million 1.750% Senior Notes due August 9, 2026 are current, and management believes available cash, operating cash flows and credit availability will be sufficient to repay them. The $1.5 billion U.S. AR Arrangement and $3.5 billion revolving credit facility had no amounts outstanding at quarter end.
What did the Amazon warrant involve?
In May 2026 the company issued Amazon.com NV Investment Holdings LLC a warrant for up to 3,238,066 shares. 215,871 shares vested immediately at $0.01 per share, and the remaining 3,022,195 shares vest in tranches at $191.10 per share upon attainment of qualifying payment thresholds. The company recorded no revenue reductions related to the warrant in the period.
What are the capital return plans?
The board declared a quarterly cash dividend of $0.48 per share, payable July 31, 2026 to holders of record on July 17, 2026. The company repurchased 1.1 million shares for $192.1 million in the six months, and $1.0 billion remains available under the $2.0 billion repurchase program.
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