Supplemental Financial Information
for the fiscal third quarter ended August 31, 2026
Financial Highlights by Business (Currency in thousands)
(Amounts may not add or compute due to rounding) (Unaudited)
Fiscal Quarters
Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Non-GAAP gross billings(1)
Distribution(2) $ 18,754,906 $ 19,129,602 $ 19,508,920 $ 20,644,885 $ 21,951,278 $ 23,418,657 $ 24,819,534
Year-over-year growth | 17 % | 22 % | 27 % | ||||
Hyve Solutions | $ 1,963,290 | $ 2,517,928 | $ 3,222,247 | $ 3,682,145 | $ 3,824,177 | $ 5,460,444 | $ 7,008,153 |
Year-over-year growth | 95 % | 117 % | 117 % | ||||
Consolidated | $ 20,718,196 | $ 21,647,530 | $ 22,731,167 | $ 24,327,030 | $ 25,775,455 | $ 28,879,101 | $ 31,827,687 |
Consolidated year-over-year growth | 7.5 % | 12.1 % 12.1 % | 14.7 % | 24.4 % | 33.4 % | 40.0 % | |
Gross profit | |||||||
Distribution(2) | $ 885,188 | $ 926,876 | $ 942,276 | $ 1,079,654 | $ 1,138,729 | $ 1,149,712 | |
Gross profit %(1)(3) | 4.72 % | 4.85 % | 4.83 % | 4.92 % | 4.86 % | 4.63 % | |
Hyve Solutions | $ 112,818 | $ 119,497 | $ 187,577 | $ 172,492 | $ 200,732 | $ 275,702 | |
Gross profit %(1)(3) | 5.75 % | 4.75 % | 5.82 % | 4.51 % | 3.68 % | 3.93 % | |
Consolidated | $ 998,006 | $ 1,046,373 | $ 1,129,853 | $ 1,194,750 | $ 1,252,146 | $ 1,339,461 | $ 1,425,414 |
Gross profit % (1)(3) | 4.82 % | 4.83 % | 4.97 % | 4.91 % | 4.86 % | 4.64 % | 4.48 % |
Non-GAAP operating income`(1) | |||||||
Distribution(2) | $ 303,033 | $ 318,116 | $ 312,621 | $ 430,666 | $ 434,008 | $ 483,468 | |
Non-GAAP operating income % (1)(4) | 1.62 % | 1.66 % | 1.60 % | 1.96 % | 1.85 % | 1.95 % | |
Hyve Solutions | $ 95,756 | $ 95,919 | $ 162,308 | $ 158,926 | $ 181,008 | $ 252,953 | |
Non-GAAP operating income % (1)(4) | 4.88 % | 3.81 % | 5.04 % | 4.16 % | 3.31 % | 3.61 % | |
Consolidated | $ 398,789 | $ 414,035 | $ 474,929 | $ 497,032 | $ 589,592 | $ 615,016 | $ 736,421 |
Non-GAAP operating income % (1)(4) | 1.92 % | 1.91 % | 2.09 % | 2.04 % | 2.29 % | 2.13 % | 2.31 % |
Consolidated non-GAAP net income(1) | $ 237,371 | $ 250,517 | $ 296,244 | $ 313,005 | $ 382,567 | $ 390,424 | $ 455,864 |
Year-over-year growth | 10.8 % | 5.8 % | 20.7 % | 18.8 % | 61.2 % | 55.8 % | 53.9 % |
Non-GAAP net income %(1)(5) | 1.15 % | 1.16 % | 1.30 % | 1.29 % | 1.48 % | 1.35 % | 1.43 % |
Non-GAAP diluted EPS(1) | $ 2.80 | $ 2.99 | $ 3.58 | $ 3.83 | $ 4.73 | $ 4.85 | $ 5.68 |
Year-over-year (decline) growth | (6.4)% | 9.5 % | 25.2 % | 24.0 % | 68.9 % | 62.2 % | 58.7 % |
Non-GAAP measure. See the appendix for definitions of non-GAAP measures and a reconciliation of such measures to GAAP.
"Distribution" represents the combined totals of the Americas distribution, Europe distribution, and APJ distribution reportable segments.
Gross profit % refers to gross profit as a % of non-GAAP gross billings.
Non-GAAP operating income % refers to non-GAAP operating income as a % of non-GAAP gross billings.
Non-GAAP net income % refers to non-GAAP net income as a % of non-GAAP gross billings.
Product Financial Highlights
(Amounts may not add or compute due to rounding) (Unaudited)
Fiscal Quarters
Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Non-GAAP gross billings(1) (in billions)
Endpoint Solutions(2) $ 8.3 | $ 8.8 | $ 8.9 | $ 10.3 | $ 9.5 | $ 9.9 | $ 10.3 |
Year-over-year growth 8 % | 13 % | 10 % | 12 % | 14 % | 13 % | 16 % |
Advanced Solutions(2) $ 10.4 $ 10.3 $ 10.6 $ 10.4 $ 12.4 $ 13.5 $ 14.5
Year-over-year growth | 19 % | 31 % | 37 % | ||||
Hyve Solutions | $ 2.0 | $ 2.5 | $ 3.2 | $ 3.7 | $ 3.8 | $ 5.5 | $ 7.0 |
Year-over-year growth | 95 % | 117 % | 117 % | ||||
Consolidated | $ 20.7 | $ 21.6 | $ 22.7 | $ 24.3 | $ 25.8 | $ 28.9 | $ 31.8 |
Year-over-year growth | 8 % | 12 % | 12 % | 15 % | 24 % | 33 % | 40 % |
Gross to net %(1) | |||||||
Endpoint Solutions(2) | (14)% | (14)% | (13)% | (12)% | (11)% | (11)% | (10)% |
Advanced Solutions(2) | (46)% | (47)% | (49)% | (46)% | (48)% | (42)% | (41)% |
Hyve Solutions | (12)% | (21)% | (22)% | (23)% | (44)% | (46)% | (46)% |
Consolidated | (30)% | (31)% | (31)% | (29)% | (33)% | (32)% | (32)% |
Revenue (in billions) | |||||||
Endpoint Solutions(2) | $ 7.1 | $ 7.5 | $ 7.7 | $ 9.0 | $ 8.5 | $ 8.8 | $ 9.3 |
Year-over-year growth | 5 % | 12 % | 11 % | 12 % | 19 % | 17 % | 20 % |
Advanced Solutions(2) | $ 5.7 | $ 5.4 | $ 5.4 | $ 5.6 | $ 6.5 | $ 7.8 | $ 8.5 |
Year-over-year growth | 15 % | 43 % | 57 % | ||||
Hyve Solutions | $ 1.7 | $ 2.0 | $ 2.5 | $ 2.8 | $ 2.2 | $ 3.0 | $ 3.8 |
Year-over-year growth | 24 % | 49 % | 52 % | ||||
Consolidated | $ 14.5 | $ 14.9 | $ 15.7 | $ 17.4 | $ 17.2 | $ 19.6 | $ 21.6 |
Year-over-year growth | 4 % | 7 % 7 % | 10 % | 18 % | 31 % | 38 % | |
Gross profit (in millions) | |||||||
Endpoint Solutions(2) | $ 375 | $ 412 | $ 415 | $ 472 | $ 443 | $ 491 | $ 507 |
Gross margin | 5.3 % | 5.5 % | 5.4 % | 5.2 % | 5.2 % | 5.6 % | 5.5 % |
Gross profit % (1)(3) | 4.5 % | 4.7 % | 4.7 % | 4.6 % | 4.7 % | 5.0 % | 4.9 % |
Advanced Solutions(2) | $ 510 | $ 515 | $ 527 | ||||
Gross margin | 9.0 % | 9.5 % | 9.7 % | ||||
Gross profit % (1)(3) | 4.9 % | 5.0 % | 5.0 % | ||||
Hyve Solutions | $ 113 | $ 119 | $ 188 | ||||
Gross margin | 6.5 % | 6.0 % | 7.5 % | ||||
Gross profit % (1)(3) | 5.7 % | 4.7 % | 5.8 % | ||||
Consolidated | $ 998 | $ 1,046 | $ 1,130 | $ 1,195 | $ 1,252 | $ 1,339 | $ 1,425 |
Gross margin | 6.9 % | 7.0 % | 7.2 % | 6.9 % | 7.3 % | 6.8 % | 6.6 % |
Gross profit % (1)(3) | 4.8 % | 4.8 % | 5.0 % | 4.9 % | 4.9 % | 4.6 % | 4.5 % |
$ 637 | $ 648 | $ 643 | |
9.8 % | 8.3 % | 7.6 % | |
5.1 % | 4.8 % | 4.4 % | |
$ 172 | $ 201 | $ 276 | |
8.0 % | 6.8 % | 7.3 % | |
4.5 % | 3.7 % | 3.9 % |
Non-GAAP measure. See the appendix for definitions of non-GAAP measures and a reconciliation of such measures to GAAP.
Metrics are approximations, subject to certain allocations and other factors and may also change if the company aligns their products and services differently.
Gross profit % refers to gross profit as a % of non-GAAP gross billings.
Fiscal Quarters | |||||||
Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | |
Distribution(2) product categories(1) as an approximate % of non-GAAP gross billings(3) | |||||||
PCs | 18 % | 19 % | 20 % | 20 % | 19 % | 20 % | 19 % |
Peripherals & Print | 14 % | 14 % | 14 % | 16 % | 13 % | 12 % | 13 % |
Mobile | 6 % | 5 % | 5 % | 7 % | 6 % | 4 % | 4 % |
Servers and Storage | 15 % | 17 % | 14 % | 14 % | 16 % | 19 % | 18 % |
Networking | 14 % | 15 % | 15 % | 13 % | 13 % | 15 % | 14 % |
Software | 26 % | 23 % | 25 % | 23 % | 26 % | 23 % | 25 % |
Services | 7 % | 7 % | 7 % | 7 % | 7 % | 7 % | 7 % |
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.
Non-GAAP measure. See the appendix for definitions of non-GAAP measures and a reconciliation of such measures to GAAP.
(Currency in thousands)
(Amounts may not add or compute due to rounding) (Unaudited)
Fiscal Quarters
Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | |
Non-GAAP gross billings(1) | |||||||
Americas distribution | $ 11,036,965 | $ 11,402,035 | $ 11,704,060 | $ 11,327,893 | $ 12,240,299 | $ 13,860,344 | $ 14,984,404 |
Year-over-year growth | 10.9 % | 21.6 % | 28.0 % | ||||
Europe distribution | $ 6,627,045 | $ 6,562,600 | $ 6,479,496 | $ 7,965,222 | $ 8,281,204 | $ 8,042,883 | $ 8,163,563 |
Year-over-year growth | 25.0 % | 22.6 % | 26.0 % | ||||
Asia-Pacific and Japan ("APJ") distribution | $ 1,090,896 | $ 1,164,967 | $ 1,325,364 | $ 1,351,770 | $ 1,429,775 | $ 1,515,430 | $ 1,671,567 |
Year-over-year growth | 31.1 % | 30.1 % | 26.1 % | ||||
Hyve Solutions | $ 1,963,290 | $ 2,517,928 | $ 3,222,247 | $ 3,682,145 | $ 3,824,177 | $ 5,460,444 | $ 7,008,153 |
Year-over-year growth | 94.8 % | 116.9 % | 117.5 % | ||||
Consolidated | $ 20,718,196 | $ 21,647,530 | $ 22,731,167 | $ 24,327,030 | $ 25,775,455 | $ 28,879,101 | $ 31,827,687 |
Year-over-year growth | 7.5 % | 12.1 % | 12.1 % | 14.7 % | 24.4 % | 33.4 % | 40.0 % |
Gross to net %(1) | |||||||
Americas distribution (35.9)% | (34.3)% | (37.0)% | (33.8)% | (36.5)% | (31.1)% | (31.1)% | |
Europe distribution (25.2)% | (28.7)% | (24.6)% | (23.0)% | (24.7)% | (24.9)% | (22.0)% | |
APJ distribution (29.4)% | (31.9)% | (33.6)% | (32.1)% | (30.1)% | (32.7)% | (35.9)% | |
Hyve Solutions (11.8)% | (21.0)% | (22.2)% | (23.1)% | (43.8)% | (45.7)% | (45.7)% | |
Consolidated (29.9)% | (31.0)% | (31.1)% | (28.6)% | (33.4)% | (32.2)% | (32.3)% | |
Revenue | |||||||
Americas distribution | $ 7,070,532 | $ 7,486,566 | $ 7,376,484 | $ 7,495,146 | $ 7,773,442 | $ 9,545,327 | $ 10,319,406 |
Year-over-year growth | 9.9% | 27.5% | 39.9% | ||||
Europe distribution | $ 4,958,256 | $ 4,676,539 | $ 4,888,624 | $ 6,135,469 | $ 6,237,172 | $ 6,043,771 | $ 6,366,004 |
Year-over-year growth | 25.8 % | 29.2 % | 30.2 % | ||||
APJ distribution | $ 770,362 | $ 793,665 | $ 880,360 | $ 918,165 | $ 999,588 | $ 1,020,152 | $ 1,071,038 |
Year-over-year growth | 29.8 % | 28.5 % | 21.7 % | ||||
Hyve Solutions | $ 1,732,557 | $ 1,989,545 | $ 2,505,456 | $ 2,830,360 | $ 2,150,996 | $ 2,965,563 | $ 3,801,958 |
Year-over-year growth | 24.2 % | 49.1 % | 51.7 % | ||||
Consolidated | $ 14,531,707 | $ 14,946,315 | $ 15,650,924 | $ 17,379,140 | $ 17,161,198 | $ 19,574,813 | $ 21,558,406 |
Year-over-year growth | 4.0 % | 7.2 % | 6.6 % | 9.7 % | 18.1 % | 31.0 % | 37.7 % |
Gross profit | |||||||
Americas distribution | $ 501,738 | $550,585 | $558,586 | $ 588,010 | $ 661,248 | $ 657,807 | |
Gross margin | 7.10 % | 7.35 % | 7.57 % | 7.56 % | 6.93 % | 6.37 % | |
Gross profit %(1)(2) | 4.65 % | 4.83 % | 4.77 % | 4.80 % | 4.77 % | 4.39 % | |
Europe distribution | $ 326,515 | $311,104 | $315,546 | $ 409,807 | $ 395,587 | $ 414,657 | |
Gross margin | 6.59 % | 6.65 % | 6.45 % | 6.57 % | 6.55 % | 6.51 % | |
Gross profit %(1)(2) | 4.93 % | 4.74 % | 4.87 % | 4.95 % | 4.92 % | 5.08 % | |
APJ distribution | $ 56,935 | $65,187 | $68,144 | $ 81,837 | $ 81,894 | $ 77,248 | |
Gross margin | 7.39 % | 8.21 % | 7.74 % | 8.19 % | 8.03 % | 7.21 % | |
Gross profit %(1)(2) | 5.22 % | 5.60 % | 5.14 % | 5.72 % | 5.40 % | 4.62 % | |
Hyve Solutions | $ 112,818 | $119,497 | $187,577 | $ 172,492 | $ 200,732 | $ 275,702 | |
Gross margin | 6.51 % | 6.01 % | 7.49 % | 8.02 % | 6.77 % | 7.25 % | |
Gross profit %(1)(2) | 5.75 % | 4.75 % | 5.82 % | 4.51 % | 3.68 % | 3.93 % | |
Consolidated | $ 998,006 | $ 1,046,373 | $ 1,129,853 | $ 1,194,750 | $ 1,252,146 | $ 1,339,461 | $ 1,425,414 |
Gross margin | 6.87 % | 7.00 % | 7.22 % | 6.87 % | 7.30 % | 6.84 % | 6.61 % |
Gross profit %(1)(2) | 4.82 % | 4.83 % | 4.97 % | 4.91 % | 4.86 % | 4.64 % | 4.48 % |
Non-GAAP measure. See the appendix for definitions of non-GAAP measures and a reconciliation of such measures to GAAP.
Gross profit % refers to gross profit as a % of non-GAAP gross billings.
TD SYNNEX Corporation Reportable Segment Financial Highlights
(Currency in thousands)
(Amounts may not add or compute due to rounding) (Unaudited)
Operating Income
Americas distribution
Fiscal Quarters
Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Year-over-year growth |
$ 132,111 $182,931 $172,733 1.87 % 2.44 % 2.34 % $ 67,920 $32,889 $34,878 1.37 % 0.70 % 0.71 % $ 10,571 $17,724 $14,570 1.37 % 2.23 % 1.66 % $ 93,857 $94,595 $161,476 5.42 % 4.75 % 6.44 % | $ 196,141 $ 243,249 $ 255,416 | |
48.5 % 33.0 % 47.9 % | ||
2.52 % 2.55 % 2.48 % | ||
$ 107,905 $ 72,110 $ 117,450 | ||
58.9 % 119.3 % 236.7 % | ||
1.73 % 1.19 % 1.84 % | ||
$ 29,840 $ 25,192 $ 20,582 | ||
182.3 % 42.1 % 41.3 % | ||
2.99 % 2.47 % 1.92 % | ||
$ 155,474 $ 178,811 $ 249,431 | ||
65.6 % 89.0 % 54.5 % | ||
7.23 % 6.03 % 6.56 % |
Operating margin Europe distribution
Year-over-year growth Operating margin
APJ distribution
Year-over-year growth |
Operating margin Hyve Solutions
Year-over-year growth Operating margin
Consolidated | $ 304,459 | $ 328,139 | $ 383,657 | $ 398,664 | $ 489,360 | $ 519,362 | $ 642,879 |
Year-over-year growth | 0.6 % | 24.3 % | 26.7 % | 22.7 % | 60.7 % | 58.3 % | 67.6 % |
Operating Margin | 2.10 % | 2.20 % | 2.45 % | 2.29 % | 2.85 % | 2.65 % | 2.98 % |
Non-GAAP operating income(1)
$ 251,120 | $ 296,561 | $ 305,559 | |||||
36.0 % | 28.8 % | 36.2 % | |||||
Non-GAAP operating income %(1)(2) | 1.67 % | 2.02 % | 1.92 % | 2.05 % | 2.14 % | 2.04 % | |
Europe distribution | $ 105,547 | $68,364 | $71,791 | $ 147,258 | $ 110,158 | $ 155,327 | |
Year-over-year growth | 39.5 % | 61.1 % | 116.4 % | ||||
Non-GAAP operating income %(1)(2) | 1.59 % | 1.04 % | 1.11 % | 1.78 % | 1.37 % | 1.90 % | |
APJ distribution | $ 12,814 | $19,432 | $16,424 | $ 32,288 | $ 27,289 | $ 22,582 | |
Year-over-year growth | 152.0 % | 40.4 % | 37.5 % | ||||
Non-GAAP operating income %(1)(2) | 1.17 % | 1.67 % | 1.24 % | 2.26 % | 1.80 % | 1.35 % | |
Hyve Solutions | $ 95,756 | $95,919 | $162,308 | $ 158,926 | $ 181,008 | $ 252,953 | |
Year-over-year growth | 66.0 % | 88.7 % | 55.8 % | ||||
Non-GAAP operating income %(1)(2) | 4.88 % | 3.81 % | 5.04 % | 4.16 % | 3.31 % | 3.61 % | |
Consolidated | $ 398,789 | $ 414,035 | $ 474,929 | $ 497,032 | $ 589,592 | $ 615,016 | $ 736,421 |
Year-over-year (decline) growth | (6.1)% | 6.7 % | 20.9 % | 17.9 % | 47.8 % | 48.5 % | 55.1 % |
Non-GAAP operating income %(1)(2) | 1.92 % | 1.91 % | 2.09 % | 2.04 % | 2.29 % | 2.13 % | 2.31 % |
Americas distribution $ 184,672 $230,320 $224,406 Year-over-year growth
Non-GAAP measure. See the appendix for definitions of non-GAAP measures and a reconciliation of such measures to GAAP.
Non-GAAP operating income % refers to non-GAAP operating income as a % of non-GAAP gross billings.
Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Net cash (used in) provided by operating
activities $ (747,997) $ 573,182 $ 246,141 $ 1,460,378 $ (895,866) $ (265,611) $ (916,717)
Purchases of property and equipment (41,525) (30,243) (32,221) (38,293) (33,147) (66,822) (58,884)
Free cash flow(1) $ (789,522) $ 542,939 $ 213,920 $ 1,422,085 $ (929,013) $ (332,433) $ (975,601)
Free cash flow(1) $ (789,522) $ 542,939 $ 213,920 $ 1,422,085 $ (929,013) $ (332,433) $ (975,601)
Net borrowings (repayments) on debt
and debt issuance costs 420,795 (227,628) 136,391 377,539 112,769 11,153 795,072
Dividends paid (37,220) (36,898) (36,300) (35,963) (38,742) (38,528) (38,378)
Net repurchases of common stock and
reissuances of treasury stock (94,979) (150,668) (159,457) (188,481) (64,703) (111,748) (89,121)
Acquisition of businesses, net of cash acquired
(3,793)
(666)
(72,994)
(6,213)
(7,786)
-
-
Other investing and financing cash flows and effect of exchange rate
changes on cash and cash equivalents (12,796) 98,157 25,691 (7,928) 54,643 3,180 (36,851)
Net (decrease) increase in cash and cash equivalents
$ (517,515) $ 225,236 $ 107,251 $ 1,561,039 $ (872,832) $ (468,376) $ (344,879)
Non-GAAP measure. See the appendix for definitions of non-GAAP measures. Reconciliation of free cash flow to the comparable GAAP measure, "net cash provided by (used in) operating activities", is included above.
Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | |
Adjusted selling, general and administrative expenses(1) | $ 599,217 | $ 632,338 | $ 654,924 | $ 697,718 | $ 662,554 | $ 724,445 | $ 688,993 |
Year-over-year increase | 3.1 % | 8.0 % | 15.3 % | 12.6 % | 10.6 % | 14.6 % | 5.2 % |
Adjusted selling, general and administrative expenses(1) as a % of gross profit | 60.0 % | 60.4 % | 58.0 % | 58.4 % | 52.9 % | 54.1 % | 48.3 % |
Non-GAAP diluted earnings per share(1) | $ 2.80 | $ 2.99 | $ 3.58 | $ 3.83 | $ 4.73 | $ 4.85 | $ 5.68 |
Year-over-year (decline) growth | (6.4)% | 9.5 % | 25.2 % | 23.9 % | 68.9 % | 62.2 % | 58.7 % |
Cash conversion cycle | |||||||
Days sales outstanding | 58 | 62 | 64 | 61 | 63 | 61 | 64 |
Days inventory outstanding | 56 | 57 | 58 | 53 | 62 | 70 | 70 |
Days payable outstanding | 87 | 96 | 99 | 98 | 102 | 107 | 103 |
Cash conversion cycle | 27 | 23 | 23 | 16 | 23 | 24 | 31 |
Cash conversion cycle (gross cash days)(1) | |||||||
Days sales outstanding (gross) | 41 | 43 | 44 | 44 | 42 | 41 | 43 |
Days inventory outstanding (gross) | 39 | 39 | 39 | 37 | 40 | 47 | 47 |
Days payable outstanding (gross) | 60 | 65 | 67 | 69 | 66 | 71 | 68 |
Cash conversion cycle (gross cash days) | 20 | 17 | 16 | 12 | 16 | 17 | 22 |
Non-GAAP measure. See the appendix for definitions of non-GAAP measures and a reconciliation of such measures to GAAP.
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 541,863 $ 767,099 $ 874,350 $ 2,435,389 $ 1,562,557 $ 1,094,181 | $ 749,302 |
Accounts receivable, net | 9,424,100 10,127,960 10,925,068 11,707,581 11,936,790 12,995,129 | 14,953,804 |
Receivables from vendors, net | 969,784 987,901 843,648 972,658 945,061 836,776 | 915,407 |
Inventories | 8,359,741 8,655,741 9,137,505 9,504,340 10,980,995 13,894,044 | 15,291,597 |
Other current assets | 663,385 954,078 797,343 669,470 683,821 768,779 | 983,781 |
Total current assets | 19,958,873 21,492,779 22,577,914 25,289,438 26,109,224 29,588,909 | 32,893,891 |
Property and equipment, net | 468,389 482,912 489,256 496,291 504,209 540,357 | 565,111 |
Goodwill | 3,877,529 3,997,641 4,103,604 4,099,297 4,128,374 4,116,247 | 4,108,529 |
Intangible assets, net | 3,819,180 3,893,177 3,888,134 3,774,952 3,735,545 3,642,670 | 3,559,885 |
Other assets, net | 672,095 642,673 624,294 590,920 606,353 617,830 | 717,067 |
Total assets | $ 28,796,066 $ 30,509,182 $ 31,683,202 $ 34,250,898 $ 35,083,705 $ 38,506,013 | $ 41,844,483 |
LIABILITIES AND EQUITY
Current liabilities:
Borrowings, current | $ 590,956 | $ 382,425 | $ 1,194,794 | $ 1,018,321 | $ 1,128,634 | $ 1,125,798 | $ 1,926,400 |
Accounts payable | 13,037,467 | 14,542,575 | 15,651,286 | 17,624,254 | 18,055,340 | 21,179,061 | 22,442,942 |
Other accrued liabilities | 2,105,434 | 2,197,402 | 2,034,654 | 2,318,265 | 2,257,021 | 2,368,166 | 3,237,907 |
Total current liabilities | 15,733,857 | 17,122,402 | 18,880,734 | 20,960,840 | 21,440,995 | 24,673,025 | 27,607,249 |
Long-term borrowings | 3,737,009 | 3,723,280 | 3,044,048 | 3,592,130 | 3,593,006 | 3,594,171 | 3,595,337 |
Other long-term liabilities | 462,547 | 487,227 | 463,900 | 447,981 | 462,364 | 486,499 | 524,345 |
Deferred tax liabilities | 812,258 | 833,906 | 840,719 | 799,518 | 804,604 | 801,959 | 815,749 |
Total liabilities | 20,745,671 | 22,166,815 | 23,229,401 | 25,800,469 | 26,300,969 | 29,555,654 | 32,542,680 |
Stockholders' equity: | |||||||
Common stock | 99 | 99 | 99 | 99 | 99 | 99 | 99 |
Additional paid-in capital | 7,446,315 | 7,448,114 | 7,457,713 | 7,431,231 | 7,446,803 | 7,454,525 | 7,535,960 |
Treasury stock | (1,595,512) | (1,737,413) | (1,895,564) | (2,038,528) | (2,095,613) | (2,198,129) | (2,287,489) |
Accumulated other comprehensive loss | (686,605) | (402,554) | (333,063) | (379,433) | (293,786) | (326,929) | (345,422) |
Retained earnings | 2,886,098 | 3,034,121 | 3,224,616 | 3,437,060 | 3,725,233 | 4,020,793 | 4,398,655 |
Total stockholders' equity | 8,050,395 | 8,342,367 | 8,453,801 | 8,450,429 | 8,782,736 | 8,950,359 | 9,301,803 |
Total liabilities and equity $ 28,796,066 $ 30,509,182 $ 31,683,202 $ 34,250,898 $ 35,083,705 $ 38,506,013 $ 41,844,483
TD SYNNEX Corporation Consolidated Statements of Operations
(Currency and share amounts in thousands, except per share amounts) (Amounts may not add or compute due to rounding)
(Unaudited)
Fiscal Quarters
outstanding: | |||||||
Basic | 83,615 | 82,626 | 81,561 | 80,632 | 79,955 | 79,557 | 79,213 |
Diluted | 83,970 | 82,935 | 81,901 | 80,932 | 80,178 | 79,755 | 79,413 |
Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Revenue | $ 14,531,707 | $ 14,946,315 | $ 15,650,924 | $ 17,379,140 | $ 17,161,198 | $ 19,574,813 | $ 21,558,406 | |
Cost of revenue | (13,533,701) | (13,899,942) | (14,521,071) | (16,184,390) | (15,909,052) | (18,235,352) | (20,132,992) | |
Gross profit | 998,006 | 1,046,373 | 1,129,853 | 1,194,750 | 1,252,146 | 1,339,461 | 1,425,414 | |
Selling, general and administrative expenses | (693,547) | (718,234) | (746,196) | (796,086) | (762,786) | (820,099) | (782,535) | |
Operating income | 304,459 | 328,139 | 383,657 | 398,664 | 489,360 | 519,362 | 642,879 | |
Interest expense and finance charges, net | (87,880) | (89,982) | (91,188) | (87,558) | (86,534) | (97,841) | (120,518) | |
Other (expense) income, net | (1,696) | (79) | 792 | (74) | 19,582 | 8,412 | 32,889 | |
Income before income taxes | 214,883 | 238,078 | 293,261 | 311,032 | 422,408 | 429,933 | 555,250 | |
Provision for income taxes | (47,346) | (53,157) | (66,466) | (62,625) | (95,493) | (95,845) | (139,010) | |
Net income | $ 167,537 | $ 184,921 | $ 226,795 | $ 248,407 | $ 326,915 | $ 334,088 | $ 416,240 | |
Earnings per common share: | ||||||||
Basic | $ 1.98 | $ 2.22 | $ 2.76 | $ 3.05 | $ 4.05 | $ 4.16 | $ 5.20 | |
Diluted | $ 1.98 | $ 2.21 | $ 2.74 | $ 3.04 | $ 4.04 | $ 4.15 | $ 5.18 | |
Weighted-average common shares | ||||||||
TD SYNNEX Corporation Consolidated Statements of Cash Flows
(Currency in thousands)
(Amounts may not add or compute due to rounding) (Unaudited)
Fiscal Quarters | |||||||
Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | |
Cash flows from operating activities: | |||||||
Net income | $ 167,537 | $ 184,921 | $ 226,795 | $ 248,407 | $ 326,915 | $ 334,088 | $ 416,240 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 99,710 | 103,595 | 105,836 | 105,078 | 104,675 | 105,279 | 106,242 |
Share-based compensation Provision for common stock | 21,861 | 11,950 | 12,427 | 20,190 | 23,645 | 17,875 | 16,251 |
warrants | - | - | - | - | - | - | 14,502 |
Provision for doubtful accounts | 6,366 | 4,576 | 10,765 | 13,364 | 6,833 | 16,360 | 9,363 |
Deferred income taxes | - | - | - | (46,809) | - | - | - |
Gains on investments | - | - | - | - | (22,354) | (10,753) | - |
Other | 4,373 | 1,579 | (2,237) | 2,972 | (435) | 633 | 156 |
Changes in assets and liabilities, net of acquisition of businesses:
Accounts receivable, net 854,220 (393,970) (726,435) (851,835) (136,327) (1,147,557) (1,992,906)
Receivables from vendors, net (16,640) 9,599 150,350 (134,416) 36,723 102,520 (80,913)
Inventories (102,861) (111,776) (439,862) (397,379) (1,417,512) (2,946,352) (1,419,742)
Accounts payable (1,970,112) 1,099,965 1,005,984 2,039,800 284,497 3,203,711 1,309,585
Other operating assets and liabilities 187,549 (337,257) (97,482) 461,006 (102,526) 58,585 704,505
Net cash (used in) provided by operating activities
(747,997)
573,182
246,141
1,460,378
(895,866)
(265,611)
(916,717)
Cash flows from investing activities:
Purchases of property and equipment (41,525) (30,243) (32,221) (38,293) (33,147) (66,822) (58,884)
Acquisition of businesses, net of cash acquired
(3,793)
(666)
(72,994)
(6,213)
(7,786)
-
-
Proceeds from sale of investments in equity securities
-
-
-
-
29,854
12,880
-
Settlement of net investment hedges - - (347) - - - (22,102)
Net cash used in investing activities
(44,532)
(26,546)
(105,679)
(44,409)
(11,599)
(53,863)
(80,907)
Other 786 4,363 (117) 97 (520) 79 79
Proceeds from reissuance of treasury stock
9,781
2,732
14,852
6,256
18,615
3,713
11,939
Cash flows from financing activities:
Dividends paid (37,220) (36,898) (36,300) (35,963) (38,742) (38,528) (38,378)
Repurchases of common stock for tax withholdings on equity awards
(4,250)
(4,582)
(508)
(21,757)
(3,576)
(3,106)
(789)
Repurchases of common stock (100,510) (148,818) (173,801) (172,980) (79,742) (112,355) (100,271)
Net borrowings (repayments) on
Principal payments on long-term debt (627) (14,914) - (583,031) (661) (13,896) (700,226)
revolving credit loans 421,422 (212,714) 136,391 (182,839) 113,430 25,049 1,500,057
Cash paid for debt issuance costs - - - (8,750) - - (4,759)
Borrowings on long-term debt - - - 1,152,159 - - -
Net cash provided by (used in) financing activities
288,596
(415,194)
(59,366)
153,095
7,587
(139,489)
660,079
Other - - - - (1,737) (366) (7,494)
Effect of exchange rate changes on
Net (decrease) increase in cash and cash equivalents
(517,515)
225,236
107,251
1,561,039
(872,832)
(468,376)
(344,879)
cash and cash equivalents (13,582) 93,794 26,155 (8,025) 27,046 (9,413) (7,334)
Cash and cash equivalents at
beginning of quarter 1,059,378 541,863 767,099 874,350 2,435,389 1,562,557 1,094,181
Cash and cash equivalents at end of
quarter $ 541,863 $ 767,099 $ 874,350 $ 2,435,389 $ 1,562,557 $ 1,094,181 $ 749,302
Appendix(1)Use of Non-GAAP Financial Information
In addition to the financial results presented in accordance with GAAP, TD SYNNEX uses and refers to:
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 serve as an important performance metric in internally managing our operations. TD SYNNEX also uses gross profit as a percentage of non-GAAP gross billings.
"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 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 as a percentage of gross profit.
Non-GAAP operating income and non-GAAP operating margin exclude acquisition, integration and restructuring costs, the amortization of intangible assets and share-based compensation expense. TD SYNNEX also uses non-GAAP operating income as a percentage of non-GAAP gross billings.
Non-GAAP net income and non-GAAP diluted earnings per share, which exclude acquisition, integration and restructuring costs, the amortization of intangible assets, share-based compensation expense, dividends and realized gains upon sale related to certain equity securities ("dividends and gains on investments") and the related tax effects thereon. TD SYNNEX also uses non-GAAP net income as a percentage of non-GAAP gross billings.
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.
In prior periods, TD SYNNEX has excluded other items relevant to those periods for purposes of its non-GAAP financial measures.
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 Consolidated 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.
Dividends and gains on investments includes benefits recorded in other (expense) income, net during the first three fiscal quarters of fiscal 2026 resulting from dividends and realized gains upon sale related to certain equity securities.
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 document.
Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | |
Non-GAAP Gross Billings | |||||||
Consolidated | |||||||
Revenue | $ 14,531,707 | $ 14,946,315 | $ 15,650,924 | $ 17,379,140 | $ 17,161,198 | $ 19,574,813 | $ 21,558,406 |
Costs incurred and netted against | |||||||
revenue related to sales of third-party | |||||||
supplier service contracts, software as a service arrangements and | |||||||
certain fulfillment contracts 6,186,489 | 6,701,215 | 7,080,243 | 6,947,890 | 8,614,257 | 9,304,288 | 10,269,281 | |
Non-GAAP gross billings $ 20,718,196 | $ 21,647,530 | $ 22,731,167 | $ 24,327,030 | $ 25,775,455 | $ 28,879,101 | $ 31,827,687 | |
Americas distribution | |||||||
Revenue | $ 7,070,532 | $ 7,486,566 | $ 7,376,484 | $ 7,495,146 | $ 7,773,442 | $ 9,545,327 | $ 10,319,406 |
Costs incurred and netted against | |||||||
revenue related to sales of third-party | |||||||
supplier service contracts, software as a service arrangements and | |||||||
certain fulfillment contracts 3,966,433 | 3,915,469 | 4,327,576 | 3,832,747 | 4,466,857 | 4,315,017 | 4,664,998 | |
Non-GAAP gross billings $ 11,036,965 | $ 11,402,035 | $ 11,704,060 | $ 11,327,893 | $ 12,240,299 | $ 13,860,344 | $ 14,984,404 | |
Europe distribution | |||||||
Revenue | $ 4,958,256 | $ 4,676,539 | $ 4,888,624 | $ 6,135,469 | $ 6,237,172 | $ 6,043,771 | $ 6,366,004 |
Costs incurred and netted against | |||||||
revenue related to sales of third-party | |||||||
supplier service contracts, software as a service arrangements and | |||||||
certain fulfillment contracts 1,668,789 | 1,886,061 | 1,590,872 | 1,829,753 | 2,044,032 | 1,999,112 | 1,797,559 | |
Non-GAAP gross billings $ 6,627,045 | $ 6,562,600 | $ 6,479,496 | $ 7,965,222 | $ 8,281,204 | $ 8,042,883 | $ 8,163,563 | |
APJ distribution | |||||||
Revenue | $ 770,362 | $ 793,665 | $ 880,360 | $ 918,165 | $ 999,588 | $ 1,020,152 | $ 1,071,038 |
Costs incurred and netted against | |||||||
revenue related to sales of third-party | |||||||
supplier service contracts, software as a service arrangements and | |||||||
certain fulfillment contracts 320,534 | 371,302 | 445,004 | 433,605 | 430,187 | 495,278 | 600,529 | |
Non-GAAP gross billings $ 1,090,896 | $ 1,164,967 | $ 1,325,364 | $ 1,351,770 | $ 1,429,775 | $ 1,515,430 | $ 1,671,567 | |
Hyve Solutions | |||||||
Revenue | $ 1,732,557 | $ 1,989,545 | $ 2,505,456 | $ 2,830,360 | $ 2,150,996 | $ 2,965,563 | $ 3,801,958 |
Costs incurred and netted against | |||||||
revenue related to sales of third-party | |||||||
supplier service contracts, software as a service arrangements and | |||||||
certain fulfillment contracts 230,733 | 528,383 | 716,791 | 851,785 | 1,673,181 | 2,494,881 | 3,206,195 | |
Non-GAAP gross billings $ 1,963,290 | $ 2,517,928 | $ 3,222,247 | $ 3,682,145 | $ 3,824,177 | $ 5,460,444 | $ 7,008,153 | |
Fiscal Quarters
Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Non-GAAP cost of revenue
Cost of revenue $ 13,533,701 $ 13,899,942 $ 14,521,071 $ 16,184,390 $ 15,909,052 $ 18,235,352 $ 20,132,992
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and | ||||||
certain fulfillment contracts 6,186,489 | 6,701,215 | 7,080,243 | 6,947,890 | 8,614,257 | 9,304,288 | 10,269,281 |
Non-GAAP cost of revenue $ 19,720,190 | $ 20,601,157 | $ 21,601,314 | $ 23,132,280 | $ 24,523,309 | $ 27,539,640 | $ 30,402,273 |
Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | |
Adjusted selling, general and administrative expenses | |||||||
Gross profit | $ 998,006 | $ 1,046,373 | $ 1,129,853 | $ 1,194,750 | $ 1,252,146 | $ 1,339,461 | $ 1,425,414 |
Selling, general and administrative expenses | $ 693,547 | $ 718,234 | $ 746,196 | $ 796,086 | $ 762,786 | $ 820,099 | $ 782,535 |
Acquisition, integration and restructuring costs | (1,062) | (664) | (2,304) | (3,150) | (884) | (2,116) | (2,101) |
Amortization of intangibles | (71,407) | (73,282) | (76,541) | (75,028) | (75,703) | (75,663) | (75,190) |
Share-based compensation | (21,861) | (11,950) | (12,427) | (20,190) | (23,645) | (17,875) | (16,251) |
Adjusted selling, general and administrative expenses | $ 599,217 | $ 632,338 | $ 654,924 | $ 697,718 | $ 662,554 | $ 724,445 | $ 688,993 |
Selling, general and administrative expenses as a % of gross profit | 69.5 % | 68.6 % | 66.0 % | 66.6 % | 60.9 % | 61.2 % | 54.9 % |
Adjusted selling, general and administrative expenses as a % of gross profit | 60.0 % | 60.4 % | 58.0 % | 58.4 % | 52.9 % | 54.1 % | 48.3 % |
Fiscal Quarters | ||||||||
Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | ||
Non-GAAP operating income | ||||||||
Consolidated | ||||||||
Operating income | $ 304,459 | $ 328,139 | $ 383,657 | $ 398,664 | $ 489,360 | $ 519,362 | $ 642,879 | |
Acquisition, integration and restructuring costs | 1,062 | 664 | 2,304 | 3,150 | 884 | 2,116 | 2,101 | |
Amortization of intangibles | 71,407 | 73,282 | 76,541 | 75,028 | 75,703 | 75,663 | 75,190 | |
Share-based compensation | 21,861 | 11,950 | 12,427 | 20,190 | 23,645 | 17,875 | 16,251 | |
Non-GAAP operating income | $ 398,789 | $ 414,035 | $ 474,929 | $ 497,032 | $ 589,592 | $ 615,016 | $ 736,421 | |
Americas distribution | |||||||
Operating income | $ 132,111 | $ 182,931 | $ 172,733 | $ 196,141 | $ 243,249 | $ 255,416 | |
Acquisition, integration and | |||||||
restructuring costs | 324 | 58 | 1,526 | 2,071 | 2,130 | 1,476 | |
Amortization of intangibles | 40,417 | 40,488 | 42,429 | 41,192 | 41,213 | 41,145 | |
Share-based compensation | 11,820 | 6,843 | 7,718 | 11,716 | 9,969 | 7,522 | |
Non-GAAP operating income | $ 184,672 | $ 230,320 | $ 224,406 | $ 251,120 | $ 296,561 | $ 305,559 | |
Europe distribution
Operating income | $ 67,920 | $ 32,889 | $ 34,878 | $ 107,905 | $ 72,110 | $ 117,450 | |
Acquisition, integration and | |||||||
restructuring costs | 626 | 499 | 375 | (1,298) | (37) | 508 | |
Amortization of intangibles | 30,189 | 31,988 | 33,299 | 33,535 | 33,472 | 33,073 | |
Share-based compensation | 6,812 | 2,988 | 3,239 | 7,116 | 4,613 | 4,296 | |
Non-GAAP operating income | $ 105,547 | $ 68,364 | $ 71,791 | $ 147,258 | $ 110,158 | $ 155,327 |
APJ distribution | |||||||
Operating income | $ 10,571 | $ 17,724 | $ 14,570 | $ 29,840 | $ 25,192 | $ 20,582 | |
Acquisition, integration and | |||||||
restructuring costs | 112 | 107 | 403 | 111 | 23 | 117 | |
Amortization of intangibles | 801 | 806 | 813 | 976 | 978 | 972 | |
Share-based compensation | 1,330 | 795 | 638 | 1,361 | 1,096 | 911 | |
Non-GAAP operating income | $ 12,814 | $ 19,432 | $ 16,424 | $ 32,288 | $ 27,289 | $ 22,582 | |
Hyve Solutions
Operating income | $ 93,857 | $ 94,595 | $ 161,476 | $ 155,474 | $ 178,811 | $ 249,431 | |
Share-based compensation | 1,899 | 1,324 | 832 | 3,452 | 2,197 | 3,522 | |
Non-GAAP operating income | $ 95,756 | $ 95,919 | $ 162,308 | $ 158,926 | $ 181,008 | $ 252,953 |
(Currency amounts in thousands, except per share amounts) (Amounts may not add or compute due to rounding) (Unaudited)
Fiscal Quarters
Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26
Non-GAAP net income and non-GAAP diluted EPS(1)
Revenue $ 14,531,707 $ 14,946,315 $ 15,650,924 $ 17,379,140 $ 17,161,198 $ 19,574,813 $ 21,558,406
Costs incurred and netted against revenue related to sales of third-party supplier service contracts, software as a service arrangements and | |||||||
certain fulfillment contracts 6,186,489 | 6,701,215 | 7,080,243 | 6,947,890 | 8,614,257 | 9,304,288 | 10,269,281 | |
Non-GAAP gross billings $ 20,718,196 | $ 21,647,530 | $ 22,731,167 | $ 24,327,030 | $ 25,775,455 | $ 28,879,101 | $ 31,827,687 | |
Net income | $ 167,537 | $ 184,921 | $ 226,795 | $ 248,407 | $ 326,915 | $ 334,088 | $ 416,240 |
Acquisition, integration and restructuring costs | 1,062 | 664 | 2,304 | 3,150 | 884 | 2,116 | 2,101 |
Amortization of intangibles | 71,407 | 73,282 | 76,541 | 75,028 | 75,703 | 75,663 | 75,190 |
Share-based compensation | 21,861 | 11,950 | 12,427 | 20,190 | 23,645 | 17,875 | 16,251 |
Gain on investments | - | - | - | - | (22,354) | (10,753) | (37,354) |
Income taxes related to the above | (24,496) | (20,300) | (21,823) | (33,770) | (22,226) | (28,565) | (16,564) |
Non-GAAP net income | $ 237,371 | $ 250,517 | $ 296,244 | $ 313,005 | $ 382,567 | $ 390,424 | $ 455,864 |
Net income year-over-year (decline) growth | (2.7)% | 28.8 % | 27.0 % | 27.5 % | 95.1 % | 80.7 % | 83.5 % |
Non-GAAP net income year-over-year (decline) growth | (10.8)% | 5.8 % | 20.7 % | 18.8 % | 61.2 % | 55.8 % | 53.9 % |
Net income as a % of revenue | 1.15 % | 1.24 % | 1.45 % | 1.43 % | 1.90 % | 1.71 % | 1.93 % |
Non-GAAP net income %(2) | 1.15 % | 1.16 % | 1.30 % | 1.29 % | 1.48 % | 1.35 % | 1.43 % |
Diluted EPS(1) | $ 1.98 | $ 2.21 | $ 2.74 | $ 3.04 | $ 4.04 | $ 4.15 | $ 5.18 |
Acquisition, integration and restructuring costs | 0.01 | 0.01 | 0.03 | 0.04 | 0.01 | 0.03 | 0.03 |
Amortization of intangibles | 0.84 | 0.87 | 0.92 | 0.91 | 0.94 | 0.94 | 0.94 |
Share-based compensation | 0.26 | 0.14 | 0.15 | 0.25 | 0.29 | 0.22 | 0.20 |
Gain on investments | - | - | - | - | (0.28) | (0.13) | (0.46) |
Income taxes related to the above | (0.29) | (0.24) | (0.26) | (0.41) | (0.27) | (0.36) | (0.21) |
Non-GAAP diluted EPS(1) | $ 2.80 | $ 2.99 | $ 3.58 | $ 3.83 | $ 4.73 | $ 4.85 | $ 5.68 |
Diluted EPS year-over-year growth | 2.6 % | 33.1 % | 31.7 % | 32.8 % | 104.0 % | 87.8 % | 89.1 % |
Non-GAAP diluted EPS year-over-year (decline) growth | (6.4)% | 9.5 % | 25.2 % | 24.0 % | 68.9 % | 62.2 % | 58.7 % |
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 calculated Diluted EPS, net income allocated to participating securities was immaterial for all period presented.
Non-GAAP net income % refers to non-GAAP net income as a % of non-GAAP gross billings.
Cash conversion cycle | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 |
Days sales outstanding | |||||||
Revenue (a) | $ 14,531,707 | $ 14,946,315 | $ 15,650,924 | $ 17,379,140 | $ 17,161,198 | $ 19,574,813 | $ 21,558,406 |
Accounts receivable, net (b) | 9,424,100 | 10,127,960 | 10,925,068 | 11,707,581 | 11,936,790 | 12,995,129 | 14,953,804 |
(c) = ((b)/ (a))*the number of days during Days sales outstanding the period | 58 | 62 | 64 | 61 | 63 | 61 | 64 |
Days inventory outstanding | |||||||
Cost of revenue (d) | $ 13,533,701 | $ 13,899,942 | $ 14,521,071 | $ 16,184,390 | $ 15,909,052 | $ 18,235,352 | $ 20,132,992 |
Inventories (e) | 8,359,741 | 8,655,741 | 9,137,505 | 9,504,340 | 10,980,995 | 13,894,044 | 15,291,597 |
(f) = ((e)/ (d))*the number of Days inventory days during outstanding the period | 56 | 57 | 58 | 53 | 62 | 70 | 70 |
Days payable outstanding | |||||||
Cost of revenue (g) | $ 13,533,701 | $ 13,899,942 | $ 14,521,071 | $ 16,184,390 | $ 15,909,052 | $ 18,235,352 | $ 20,132,992 |
Accounts payable (h) | 13,037,467 | 14,542,575 | 15,651,286 | 17,624,254 | 18,055,340 | 21,179,061 | 22,442,942 |
(i) = ((h)/ (g))*the number of Days payable days during outstanding the period | 87 | 96 | 99 | 98 | 102 | 107 | 103 |
Cash conversion cycle (j) = (c)+(f)-(i) | 27 | 23 | 23 | 16 | 23 | 24 | 31 |
Cash conversion cycle (gross cash days) | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 |
Days sales outstanding (gross) | |||||||
Non-GAAP gross billings (a) | $ 20,718,196 | $ 21,647,530 | $ 22,731,167 | $ 24,327,030 | $ 25,775,455 | $ 28,879,101 | $ 31,827,687 |
Accounts receivable, net (b) | 9,424,100 | 10,127,960 | 10,925,068 | 11,707,581 | 11,936,790 | 12,995,129 | 14,953,804 |
(c) = ((b)/ (a))*the number of Days sales outstanding days during (gross) the period | 41 | 43 | 44 | 44 | 42 | 41 | 43 |
Days inventory outstanding (gross) | |||||||
Non-GAAP cost of revenue (d) | $ 19,720,190 | $ 20,601,157 | $ 21,601,314 | $ 23,132,280 | $ 24,523,309 | $ 27,539,640 | $ 30,402,273 |
Inventories (e) | 8,359,741 | 8,655,741 | 9,137,505 | 9,504,340 | 10,980,995 | 13,894,044 | 15,291,597 |
(f) = ((e)/ (d))*the number of Days inventory days during outstanding (gross) the period | 39 | 39 | 39 | 37 | 40 | 47 | 47 |
Days payable outstanding (gross) | |||||||
Non-GAAP cost of revenue (g) | $ 19,720,190 | $ 20,601,157 | $ 21,601,314 | $ 23,132,280 | $ 24,523,309 | $ 27,539,640 | $ 30,402,273 |
Accounts payable (h) | 13,037,467 | 14,542,575 | 15,651,286 | 17,624,254 | 18,055,340 | 21,179,061 | 22,442,942 |
(i) = ((h)/ (g))*the number of Days payable days during outstanding (gross) the period | 60 | 65 | 67 | 69 | 66 | 71 | 68 |
Cash conversion cycle (gross cash days) (j) = (c)+(f)-(i) | 20 | 17 | 16 | 12 | 16 | 17 | 22 |