TD Synnex (SNX) · Q2 2026 results and valuation

At 0.1% growth a year (3-year revenue growth), the model's fair value is $144.10 a share — the stock trades 67% above it. Today's price assumes 5.5% growth a year.

1. Key theme

   Free cash flow consumption for the quarter was approximately $330 million as the company invested in working capital to support accelerated growth in Hyve.

   Source quote

   “On cash flow and capital allocation — free cash flow consumption for the quarter was approximately $330 million. 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. 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.”

2. Guidance

   Turning to its outlook for the third quarter of fiscal 2026 — TD Synnex expects non-GAAP gross billings of approximately $27.7 billion plus or minus $500 million.

   Source quote

   “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%...”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“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.”

“Europe is a clear proof point — our EMEA team competes head-to-head against pure play specialists, runs digital and high-touch motions in parallel, and is weighted toward high-growth technologies and...”

“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.”