TD SYNNEX : Second Quarter 2026 Presentation

About this update from Teledyne Technologies Incorporated

Investor Presentation June 2026 Patrick Zammit CEO BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Q2 2026 global business overview Our differentiated value proposition continues to support profitable growth, operating margin expansion, and earnings growth over time Q2 FY26 Y/Y Non-GAAP gross billings(1) ($B) $28.9 33% / 32%(2) Gross to net %(1) (32.2)% (120) bps Revenue ($B) $19.6 31% / 29%(2) Non-GAAP operating income(1) ($M) $615 49% / 48%(2) Non-GAAP operating income % (1)(3) 2.13% 22 bps Non-GAAP diluted earnings per share(1) $4.85 62% Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP Growth rate adjusted for constant currency which is a non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP Non-GAAP operating income % represents non-GAAP operating income as a percentage of non-GAAP gross billings Key takeaways 1 Non-GAAP gross billings(1) significantly exceeded the high end of our guidance and increased 33% y/y primarily driven by continued momentum across Distribution and Hyve 2 Non-GAAP operating income %(1)(3) expanded by 22 bps y/y reflecting a greater mix of Hyve and improved operating margins within Distribution 3 Non-GAAP diluted earnings per share(1) increased 62% y/y, supported by our focus on profitable growth and disciplined capital allocation framework 4 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Q2 2026 | Distribution(1) highlights Non-GAAP gross billings(2) Non-GAAP operating income(1) Key Highlights $19.1B +22% $23.4B $318M +36% $434M Selected by HPE as 1 of 2 Global Distribution Partners under unified model Recognized with multiple HPE Partner of the Year awards across NA and Europe Dell's 2026 LATAM Growth Distributor of the Year Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 NVIDIA's 2026 EMEA Distributor of the Year Driven by strong demand across the portfolio, supported by our broad customer base and global footprint Driven by non-GAAP gross billings(1) growth, favorable mix, and disciplined cost management Equinix's 2026 APAC Distributor of the Year IBM's Distribution Growth Leader -North America, Latin America and APAC "Distribution" represents the combined totals of the Americas distribution, Europe distribution, and APJ distribution reportable segments Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP 5 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Q2 2026 | Hyve Solutions highlights Non-GAAP gross billings(1) Non-GAAP operating income(1) Key Highlights $2.5B +89% +117% $5.5B $96M $181M Manufacturing and engineering represented approximately two-thirds of Hyve and gross billings growth increased more than the total business, primarily driven by increased volumes with our existing customer base Supply chain services represented approximately one-third of Hyve, and Q2 FY25 Q2 FY26 Driven by increased volumes in manufacturing with our existing customer base, along with continued strength in supply chain services Q2 FY25 Q2 FY26 Driven by non-GAAP gross billings(1) growth and mix of program offerings growth was driven by increased demand for components supporting our customers' infrastructure deployments Expanding U.S. facility footprint by more than one million square feet to support future growth and the needs of our customers Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP 6 David Jordan CFO BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Q2 2026 | Portfolio Overview Broad-based growth across our portfolio and geographies driven by disciplined execution Portfolio Performance Consolidated Non-GAAP gross Gross to ($B) Revenue Y/Y billings(1) Y/Y net %(1) Distribution(2) $16.6 +28% $23.4 + 22% (29)% Advanced Solutions(3) $7.8 +43% $13.5 + 31% (42)% Endpoint Solutions(3) $8.8 +17% $9.9 + 13% (11)% Hyve Solutions $3.0 +49% $5.5 + 117% (46)% Consolidated $19.6 +31% $28.9 + 33% (32)% Non-GAAP operating Non-GAAP operating ($M) income(1) Y/Y income(1) Y/Y Distribution(2) $434 + 36% $434 + 36% Hyve Solutions $181 + 89% $181 + 89% Consolidated $615 + 49% $615 + 49% Non-GAAP operating margin(1) Y/Y Non-GAAP operating income % (1)(4) Y/Y Distribution(2) 2.61% + 15 bps 1.85% + 19 bps Hyve Solutions 6.10% + 128 bps 3.31% - 50 bps Consolidated 3.14% + 37 bps 2.13% + 22 bps Non-GAAP gross billings(1) 19% $28.9B 81% Distribution(2) Hyve Solutions Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP "Distribution" represents the combined totals of the Americas distribution, Europe distribution, and APJ distribution reportable segments Metric is an approximation, subject to certain allocations and other factors and may also change if the company aligns their products and services differently Non-GAAP operating income % represents non-GAAP operating income as a percentage of non-GAAP gross billings Non-GAAP operating income(1) 29% $615M 71% Distribution(2) Hyve Solutions 8 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Cash flow and shareholder returns Profitable growth and disciplined capital allocation support attractive longterm shareholder returns Free cash flow(1) TTM $0.4B Return on equity(1) TTM 16.08% +379 bps Y/Y $688M Shareholder returns TTM More than 100% of TTM FCF returned to shareholders $0.6B $0.5B $1.4B $1.2B $0.4B 12.29% 12.76% 13.27% 14.76% 16.08%DividendsShare Repurchases $670M $742M $723M $688M $550M Q2 FY25 TTM Q3 FY25 TTM Q4 FY25 TTM Q1 FY26 TTM Q2 FY26 TTM Q2 FY25 TTM Q3 FY25 TTM Q4 FY25 TTM Q1 FY26 TTM Q2 FY26 TTM Q2 FY25 TTM Q3 FY25 TTM Q4 FY25 TTM Q1 FY26 TTM Q2 FY26 TTM Net Working Capital(2) as of Q2 FY26 of $4.9B, and gross CCC(1) of 17 days Net working capital(2) and gross CCC(1) We ended Q2 FY26 with $1.1B of cash and cash equivalents and a net leverage ratio(1) of 1.6x Leverage ratio and cash position Returned $151M to shareholders in Q2 FY26 through ~$112M of share repurchases and ~$39M of dividends Shareholder returns 9 Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP Net working capital is defined as current assets excluding cash and cash equivalents, minus current liabilities excluding borrowings BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Q3 2026 | Financial Outlook Our guidance reflects continued momentum across both our Distribution(1) and Hyve businesses Q3 2026E Midpoint Range Non-GAAP gross billings(2) ~$27.7B 22% y/y(3) +/- $500 million Gross to net %(2) ~(33)% (2)% y/y(3) Revenue ($B) ~$18.6B 19% y/y(3) +/- $400 million Non-GAAP net income(2) ~$361M 22% y/y(3) +/- $20 million Est. outstanding diluted weighted avg. shares ~79.4M Non-GAAP diluted earnings per share(2) ~$4.50 26% y/y(3) +/- 25 cents 10 "Distribution" represents the combined totals of the Americas distribution, Europe distribution, and APJ distribution reportable segments Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP Y/Y growth rates compare the Q3 FY26 forecasted metrics to the Q3 FY25 actuals BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Broad-based growth across all Distribution(1) technologies Approximate % of total non-GAAP gross billings(2) by product category(3) for Q2 2026 22% Y/Y Growth 22% 24% 35% 26% 6% 21% 16% Y/Y Growth Y/Y Growth Y/Y Growth Y/Y Growth Y/Y Growth Y/Y Growth Y/Y Growth $19.1B $23.4B Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Q2 FY25 Q2 FY26 Software PCs Servers & Storage(4) Networking Peripherals & Print Services Mobile "Distribution" represents the combined totals of the Americas distribution, Europe distribution, and APJ distribution reportable segments Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP Product metrics are approximations, subject to certain allocations and other factors and may also change if the company aligns their products and services differently The Servers and Storage product category includes Cloud Infrastructure as a Service ("IaaS") 11 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Q2 2026 performance by Distribution(1) segment Region Revenue Non-GAAP gross billings(2) Non-GAAP operating income(2) Non-GAAP operating income %(2)(3) Americas distribution $9.5B +28% y/y $13.9B +22% y/y $297M +29% y/y 2.14% +12 bps y/y Europe distribution $6.0B +29% y/y $8.0B +23% y/y $110M +61% y/y 1.37% +33 bps y/y APJ distribution $1.0B +29% y/y $1.5B +30% y/y $27M +40% y/y 1.80% +13 bps y/y Disciplined execution against our strategy is driving above market growth across our reportable segments Total Distribution $16.6B +28%y/y $23.4B +22% y/y $434M +36% y/y 1.85% +19 bps y/y "Distribution" represents the combined totals of the Americas distribution, Europe distribution, and APJ distribution reportable segments Non-GAAP measure. See the appendix to this presentation for definitions of non-GAAP measures and reconciliation of such measures to GAAP Non-GAAP operating income % represents non-GAAP operating income as a percentage of non-GAAP gross billings Key takeaways Americas distribution non-GAAP gross 1 growth in Advanced Solutions billings(1) were $13.9B, representing an increase of 22% y/y driven primarily by Europe distribution non-GAAP gross 2 growth in Endpoint Solutions billings(1) were $8.0B, representing an increase of 23% y/y driven primarily by APJ distribution non-GAAP gross 3 broad-based growth billings(1) were $1.5B, representing an increase of 30% y/y driven primarily by 1 Americas distribution non-GAAP gross billings(2) were $13.9B, representing an increase of 22% y/y driven primarily by growth within Advanced Solutions 2 Europe distribution non-GAAP gross billings(2) were $8.0B, representing an increase of 23% y/y driven by growth across Endpoint and Advanced Solutions 3 APJ distribution non-GAAP gross billings(2) were $1.5B, representing an increase of 30% y/y driven primarily by growth within Advanced Solutions 12 ‌Appendix BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Non-GAAP financial measures In addition to the financial results presented in accordance with GAAP, TD SYNNEX uses and refers to: Revenue in constant currency, which adjusts for the translation effect of foreign currencies so that certain financial results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our performance. Financial results adjusted for constant currency are calculated by translating current period activity using the comparable prior year periods' currency conversion rate. Non-GAAP gross billings, which are the amounts billed to the customer prior to any presentation adjustment under ASC Topic 606 for those arrangements where the Company does not act as the principal; and non-GAAP cost of revenue, which represents cost of revenue prior to any presentation adjustment under ASC Topic 606 for those arrangements where the Company does not act as the principal. These are useful non-GAAP metrics in understanding the volume of our business activity and they serve as an important performance metric in internally managing our operations. TD SYNNEX also refers to gross billings on a constant currency basis, adjusted for foreign exchange fluctuations in a similar manner as revenue in constant currency mentioned above. "Gross to net %" refers to the percentage of adjustments made to non-GAAP gross billings for costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts. Adjusted selling, general and administrative expenses, which is a non-GAAP financial measure that excludes acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. TD SYNNEX also uses adjusted selling, general and administrative expenses and adjusted selling, general and administrative expenses as a percentage of gross profit. Non-GAAP operating income and non-GAAP operating margin, which are non-GAAP financial measures that exclude acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. TD SYNNEX also refers to non-GAAP operating income on a constant currency basis, adjusted for foreign exchange fluctuations in a similar manner as revenue in constant currency mentioned above. Furthermore, TD SYNNEX refers to non-GAAP operating income as a percentage of non-GAAP gross billings. Non-GAAP net income and non-GAAP diluted earnings per share, which are non-GAAP financial measures that exclude acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense, realized gains upon sale of certain equity securities ("gain on investments") and the related tax effects thereon. Earnings before interest, taxes, depreciation and amortization ("EBITDA"), which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, and amortization of intangibles. The Company also uses adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") which excludes interest expense and finance charges, net, the provision for income taxes, depreciation, amortization of intangibles, other income (expense), net, acquisition, integration and restructuring costs, and share-based compensation expense. Non-GAAP income before income taxes, which is a non-GAAP financial measure that excludes acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense and gain on investments. TD SYNNEX also uses non-GAAP provision for income taxes which factors in the income tax impacts related to those adjustments which in turn determines the non-GAAP effective tax rate. Free cash flow which is cash flow from operating activities, reduced by purchases of property and equipment. TD SYNNEX uses free cash flow to conduct and evaluate its business because, although it is similar to cash flow from operations, TD SYNNEX believes it is an additional useful measure of cash flows since purchases of property and equipment are a necessary component of ongoing operations. Free cash flow reflects an additional way of viewing TD SYNNEX's liquidity that, when viewed with its GAAP results, provides a more complete understanding of factors and trends affecting its cash flows. Free cash flow has limitations as it does not represent the residual cash flow available for discretionary expenditures. For example, free cash flow does not incorporate payments for business acquisitions. Therefore, TD SYNNEX believes it is important to view free cash flow as a complement to its entire Consolidated Statements of Cash Flows. Return on equity ("ROE") is a non-GAAP measure calculated based on trailing twelve months non-GAAP net income, divided by trailing five quarters average total stockholders' equity. TD SYNNEX believes this is additional useful information for investors because it measures how effectively the Company uses stockholders' equity to generate profits. In prior periods,TD SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures. TD SYNNEX management uses non-GAAP financial measures internally to understand, manage and evaluate the business, to establish operational goals, and in some cases for measuring performance for compensation purposes. These non-GAAP measures are intended to provide investors with an understanding of TD SYNNEX's operational results and trends that more readily enable investors to analyze TD SYNNEX's base financial and operating performance and to facilitate period-to-period comparisons and analysis of operational trends, as well as for planning and forecasting in future periods. Management believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. As these non-GAAP financial measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures, and should be read only in conjunction with TD SYNNEX's Consolidated Financial Statements prepared in accordance with GAAP. A reconciliation of TD SYNNEX's GAAP to non-GAAP financial information is set forth in the supplemental tables at the end of this presentation. Acquisition, integration and restructuring costs, which are expensed as incurred, primarily represent professional services costs for legal, banking, consulting and advisory services, severance and other personnel-related costs, share-based compensation expense and debt extinguishment fees that are incurred in connection with acquisition, integration, restructuring, and divestiture activities. From time to time, this category may also include transaction-related gains/losses on divestitures/spin-off of businesses, costs related to long-lived assets including impairment charges and accelerated depreciation and amortization expense due to changes in asset useful lives, as well as various other costs associated with the acquisition or divestiture. TD SYNNEX's acquisition activities have resulted in the recognition of finite-lived intangible assets which consist primarily of customer relationships and vendor lists. Finite-lived intangible assets are amortized over their estimated useful lives and are tested for impairment when events indicate that the carrying value may not be recoverable. The amortization of intangible assets is reflected in the Company's Statements of Operations. Although intangible assets contribute to the Company's revenue generation, the amortization of intangible assets does not directly relate to the sale of the Company's products. Additionally, intangible asset amortization expense typically fluctuates based on the size and timing of the Company's acquisition activity. Accordingly, the Company believes excluding the amortization of intangible assets, along with the other non-GAAP adjustments, which neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance, enhances the Company's and investors' ability to compare the Company's past financial performance with its current performance and to analyze underlying business performance and trends. Intangible asset amortization excluded from the related non-GAAP financial measure represents the entire amount recorded within the Company's GAAP financial statements, and the revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. Intangible asset amortization is excluded from the related non-GAAP financial measure because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. Share-based compensation expense is a non-cash expense arising from the grant of equity awards to employees and non-employee members of the Company's Board of Directors based on the estimated fair value of those awards. Although share-based compensation is an important aspect of the compensation of our employees, the fair value of the share-based awards may bear little resemblance to the actual value realized upon the vesting or future exercise of the related share-based awards and the expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Given the variety and timing of awards and the subjective assumptions that are necessary when calculating share-based compensation expense, TD SYNNEX believes this additional information allows investors to make additional comparisons between our operating results from period to period. Gain on investments includes benefits recorded in other income (expense), net during the first and second quarters of fiscal 2026 resulting from realized gains upon sale of certain equity securities. 14 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Revenue in constant currency May 31, 2026 May 31, 2025 Revenue $ 19,574,813 $ 14,946,315 Impact of changes in foreign currencies (280,184) - Revenue in constant currency $ 19,294,629 $ 14,946,315 Y/Y revenue growth 31.0 % Y/Y revenue growth in constant currency 29.1 % 15 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Non-GAAP gross billings in constant currency May 31, 2026 May 31, 2025 Revenue $ 19,574,813 $ 14,946,315 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 9,304,288 6,701,215 Non-GAAP gross billings $ 28,879,101 $ 21,647,530 Impact of changes in foreign currencies (375,832) - Non-GAAP gross billings in constant currency $ 28,503,269 $ 21,647,530 Y/Y non-GAAP gross billings growth 33.4 % Y/Y non-GAAP gross billings in constant currency growth 31.7 % 16 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Non-GAAP operating income and non-GAAP operating margin in constant currency May 31, 2026 May 31, 2025 Revenue $ 19,574,813 $ 14,946,315 arrangements and certain fulfillment contracts 9,304,288 6,701,215 Non-GAAP gross billings $ 28,879,101 $ 21,647,530 Operating income $ 519,362 $ 328,139 Acquisition, integration and restructuring costs 2,116 664 Amortization of intangibles 75,663 73,282 Share-based compensation 17,875 11,950 Non-GAAP operating income $ 615,016 $ 414,035 Impact of changes in foreign currencies (3,734) - Non-GAAP operating income in constant currency $ 611,282 $ 414,035 Operating margin 2.65 % 2.20 % Non-GAAP operating margin 3.14 % 2.77 % Non-GAAP operating income %(1) 2.13 % 1.91 % Y/Y non-GAAP operating income growth 48.5 % Y/Y non-GAAP operating income in constant currency growth 47.6 % Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service (1) Non-GAAP operating income % represents non-GAAP operating income as a percentage of non-GAAP gross billings 17 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Consolidated Americas distribution Europe distribution APJ distribution Hyve Solutions Non-GAAP gross billings, non-GAAP operating income and non- GAAP operating margin May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Revenue $ 19,574,813 $ 14,946,315 $ 9,545,327 $ 7,486,566 $ 6,043,771 $ 4,676,539 $ 1,020,152 $ 793,665 $ 2,965,563 $ 1,989,545 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 9,304,288 6,701,215 4,315,017 3,915,469 1,999,112 1,886,061 495,278 371,302 2,494,881 528,383 Non-GAAP gross billings $ 28,879,101 $ 21,647,530 $ 13,860,344 $ 11,402,035 $ 8,042,883 $ 6,562,600 $ 1,515,430 $ 1,164,967 $ 5,460,444 $ 2,517,928 Operating income $ 519,362 $ 328,139 $ 243,249 $ 182,931 $ 72,110 $ 32,889 $ 25,192 $ 17,724 $ 178,811 $ 94,595 Acquisition, integration and restructuring costs 2,116 664 2,130 58 (37) 499 23 107 - - Amortization of intangibles 75,663 73,282 41,213 40,488 33,472 31,988 978 806 - - Share-based compensation 17,875 11,950 9,969 6,843 4,613 2,988 1,096 795 2,197 1,324 Non-GAAP operating income $ 615,016 $ 414,035 $ 296,561 $ 230,320 $ 110,158 $ 68,364 $ 27,289 $ 19,432 $ 181,008 $ 95,919 Operating margin 2.65 % 2.20 % 2.55 % 2.44 % 1.19 % 0.70 % 2.47 % 2.23 % 6.03 % 4.75 % Non-GAAP operating margin 3.14 % 2.77 % 3.11 % 3.08 % 1.82 % 1.46 % 2.67 % 2.45 % 6.10 % 4.82 % Non-GAAP operating income % (1) 2.13 % 1.91 % 2.14 % 2.02 % 1.37 % 1.04 % 1.80 % 1.67 % 3.31 % 3.81 % Y/Y non-GAAP gross billings growth 33.4 % 21.6 % 22.6 % 30.1 % 116.9 % Y/Y non-GAAP operating income growth 48.5 % 28.8 % 61.1 % 40.4 % 88.7 % (1) Non-GAAP operating income % represents non-GAAP operating income as a percentage of non-GAAP gross billings 18 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Amounts may not add or compute due to rounding) Three Months Ended (in billions) Distribution(2) Advanced Solutions(1) Endpoint Solutions(1) Non-GAAP gross billings - Advanced Solutions(1) and Endpoint Solutions(1) May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025 Revenue $ 16.6 $ 13.0 $ 7.8 $ 5.4 $ 8.8 $ 7.5 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 6.8 6.1 5.7 4.9 1.1 1.3 Non-GAAP gross billings $ 23.4 $ 19.1 $ 13.5 $ 10.3 $ 9.9 $ 8.8 Product metrics are approximations, subject to certain allocations and other factors and may also change if the company aligns their products and services differently "Distribution" represents the combined totals of the Americas distribution, Europe distribution, and APJ distribution reportable segments. 19 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Non-GAAP cost of revenue May 31, 2026 Cost of revenue $ 18,235,352 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 9,304,288 Non-GAAP cost of revenue $ 27,539,640 20 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Adjusted selling, general and administrative expenses May 31, 2026 May 31, 2025 Gross profit $ 1,339,461 $ 1,046,373 Selling, general and administrative expenses $ 820,099 $ 718,234 Acquisition, integration and restructuring costs (2,116) (664) Amortization of intangibles (75,663) (73,282) Share-based compensation (17,875) (11,950) Adjusted selling, general and administrative expenses $ 724,445 $ 632,338 Selling, general and administrative expenses as a percentage of gross profit 61.2 % 68.6 % Adjusted selling, general and administrative expenses as a % of gross profit 54.1 % 60.4 % 21 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Non-GAAP income before income taxes, non-GAAP provision for income taxes and non-GAAP effective tax rate May 31, 2026 Income before income taxes $ 429,933 Acquisition, integration & restructuring costs 2,116 Amortization of intangibles 75,663 Share based compensation 17,875 Gain on investments (10,753) Non-GAAP income before income taxes $ 514,834 Provision for income taxes $ 95,845 Income taxes related to the above 28,565 Non-GAAP provision for income taxes $ 124,410 Effective tax rate 22.29 % Non-GAAP effective tax rate 24.17 % 22 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands, except per share amounts) (Amounts may not add or compute due to rounding) Three Months Ended Non-GAAP net income and non-GAAP diluted EPS(1) May 31, 2026 May 31, 2025 Net income $ 334,088 $ 184,921 Acquisition, integration & restructuring costs 2,116 664 Amortization of intangibles 75,663 73,282 Share-based compensation 17,875 11,950 Gain on investments (10,753) - Income taxes related to the above (28,565) (20,300) Non-GAAP net income $ 390,424 $ 250,517 Diluted EPS(1) $ 4.15 $ 2.21 Acquisition, integration & restructuring costs 0.03 0.01 Amortization of intangibles 0.94 0.87 Share-based compensation 0.22 0.14 Gain on investments (0.13) - Income taxes related to the above (0.36) (0.24) Non-GAAP diluted EPS(1) $ 4.85 $ 2.99 23 (1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees, as well as vested but unexercised common stock warrants, are considered participating securities. For purposes of calculating Diluted EPS, net income allocated to participating securities was immaterial BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Trailing Twelve Months ended Return on Equity May 31, 2026 February 28, 2026 November 30, 2025 August 31, 2025 May 31, 2025 Net income $ 1,136,205 $ 987,038 $ 827,660 $ 774,055 $ 725,816 Acquisition, integration & restructuring costs 8,454 7,002 7,180 5,154 3,506 Amortization of intangibles 302,935 300,554 296,258 294,725 291,357 Share-based compensation 74,137 68,212 66,428 68,343 72,092 Gain on investments (33,107) (22,354) - - - Income taxes related to the above (106,384) (98,119) (100,389) (94,731) (96,030) Non-GAAP net income $ 1,382,240 $ 1,242,333 $ 1,097,137 $ 1,047,546 $ 996,741 Trailing five quarters' avg. total stockholders' equity $ 8,595,938 $ 8,415,946 $ 8,266,485 $ 8,209,216 $ 8,109,748 Return on equity 16.08% 14.76% 13.27% 12.76% 12.29% 24 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended May February November August May February November August Non-GAAP net income 31, 2026 28, 2026 30, 2025 31, 2025 31, 2025 28, 2025 30, 2024 31, 2024 Net income $ 334,088 $ 326,915 $ 248,407 $ 226,795 $ 184,921 $ 167,537 $ 194,802 $ 178,556 Acquisition, integration & restructuring costs 2,116 884 3,150 2,304 664 1,062 1,124 656 Amortization of intangibles 75,663 75,703 75,028 76,541 73,282 71,407 73,495 73,173 Share-based compensation 17,875 23,645 20,190 12,427 11,950 21,861 22,105 16,176 Gain on investments (10,753) (22,354) - - - - - - Income taxes related to the above (28,565) (22,226) (33,770) (21,823) (20,300) (24,496) (28,112) (23,122) Non-GAAP net income $ 390,424 $ 382,567 $ 313,005 $ 296,244 $ 250,517 $ 237,371 $ 263,414 $ 245,439 25 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to Non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended May February November August May February November August Free cash flow 31, 2026 28, 2026 30, 2025 31, 2025 31, 2025 28, 2025 30, 2024 31, 2024 Net cash (used in) provided by operating activities $ (265,611) $ (895,866) $ 1,460,378 $ 246,141 $ 573,182 $ (747,997) $ 561,941 $ 385,782 Purchases of property and equipment (66,822) (33,147) (38,293) (32,221) (30,243) (41,525) (49,060) (47,142) Free cash flow $ (332,433) $ (929,013) $ 1,422,085 $ 213,920 $ 542,939 $ (789,522) $ 512,881 $ 338,640 26 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Cash conversion cycle May 31, 2026 Days sales outstanding Revenue (a) $ 19,574,813 Accounts receivable, net (b) 12,995,129 (c) = ((b)/(a))*the number of Days sales outstanding days during the period 61 Days inventory outstanding Cost of revenue (d) $ 18,235,352 Inventories (e) 13,894,044 (f) = ((e)/(d))*the number of Days inventory outstanding days during the period 70 Days payable outstanding Cost of revenue (g) $ 18,235,352 Accounts payable (h) 21,179,061 (i) = ((h)/(g))*the number of Days payable outstanding days during the period 107 Cash conversion cycle (j) = (c)+(f)-(i) 24 27 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended Cash conversion cycle (gross cash days) May 31, 2026 Days sales outstanding (gross) Non-GAAP gross billings (a) $ 28,879,101 Accounts receivable, net (b) 12,995,129 (c Days sales outstanding (gross) ) = ((b)/(a))*the number of days during the period 41 Days inventory outstanding (gross) Non-GAAP cost of revenue (d) $ 27,539,640 Inventories (e) 13,894,044 (f Days inventory outstanding (gross) ) = ((e)/(d))*the number of days during the period 47 Days payable outstanding (gross) Non-GAAP cost of revenue (g) $ 27,539,640 Accounts payable (h) 21,179,061 Days payable outstanding (gross) Cash conversion cycle (gross cash (i) = ((h)/(g))*the number of days during the period 71 days) (j) = (c)+(f)-(i) 17 28 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Calculation of financial metrics TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Leverage ratio May 31, 2026 Total borrowings (a) $ 4,719,969 Less: cash and cash equivalents (b) 1,094,181 Net debt (c)=(a)-(b) $ 3,625,788 Trailing four quarters Adjusted EBITDA (d) 2,294,502 Debt to Adjusted EBITDA leverage ratio (e)=(a)/(d) 2.1 Net debt to Adjusted EBITDA leverage ratio (f)=(c)/(d) 1.6 29 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Currency in thousands) (Amounts may not add or compute due to rounding) Three Months Ended May 31, 2026 February 28, 2026 November 30, 2025 August 31, 2025 Net income $ 334,088 $ 326,915 $ 248,407 $ 226,795 Interest expense and finance charges, net 97,841 86,534 87,558 91,188 Provision for income taxes 95,845 95,493 62,625 66,466 Depreciation 29,616 28,972 30,050 29,295 Amortization of intangibles 75,663 75,703 75,028 76,541 EBITDA $ 633,053 $ 613,617 $ 503,668 $ 490,285 Other (income) expense, net (8,412) (19,582) 74 (792) Acquisition, integration and restructuring costs 2,116 884 3,150 2,304 Share-based compensation 17,875 23,645 20,190 12,427 Adjusted EBITDA $ 644,632 $ 618,564 $ 527,082 $ 504,224 30 BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Currency in millions, except per share amounts) (Amounts may not add or compute due to rounding) Forecast Three Months Ending August 31, 2026 Non-GAAP net income and non-GAAP diluted EPS Low Midpoint High Net income $ 273 $ 293 $ 313 Amortization of intangibles 75 75 75 Share-based compensation 15 15 15 Income taxes related to the above (22) (22) (22) Non-GAAP net income $ 341 $ 361 $ 381 Diluted EPS(1) $ 3.40 $ 3.65 $ 3.90 Amortization of intangibles 0.93 0.93 0.93 Share-based compensation 0.19 0.19 0.19 Income taxes related to the above (0.27) (0.27) (0.27) Non-GAAP diluted EPS(1) $ 4.25 $ 4.50 $ 4.75 (1) Diluted EPS is calculated using the two-class method. Unvested restricted stock awards granted to employees, as well as vested but unexercised common stock warrants, are considered participating securities. Net income allocable to participating securities is estimated to be approximately 1.1% of the forecast net income for 31 the three months ending August 31, 2026. BUSINESS OVERVIEW COMMERCIAL HIGHLIGHTS PORTFOLIO PERFORMANCE CAPITAL ALLOCATION FINANCIAL OUTLOOK APPENDIX Reconciliation of GAAP to non-GAAP financial measures TD SYNNEX (Currency in billions) (Amounts may not add or com pute due to ro unding) Forecast Three Months Ending August 31, 2026 Non-GAAP gross billings Low Midpoint High Revenue $ 18.2 $ 18.6 $ 19.0 Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and certain fulfillment contracts 9.0 9.1 9.2 Non-GAAP gross billings $ 27.2 $ 27.7 $ 28.2 32 Nate Friedel TD SYNNEX Corporation [email protected] IR website: ir.tdsynnex.com Thank You Attention: This is an excerpt of the original content. To continue reading it, access the original document here.

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