TD SYNNEX Corporation

Good morning. My name is Tracy and I will be your conference operator today. I'd like to welcome everyone to the TD SYNNEX second quarter fiscal 2026 earnings call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. At this time, for opening remarks, I would like to pass the call over to Nate Fridell, head of investor relations at TD SYNNEX. Nate, you may begin.

Good morning, everyone, and welcome to TD Synnex's fiscal 2026 second quarter earnings call. Joining me on today's call are Chief Executive Officer Patrick Zammit and Chief Financial Officer David Jordan. Before we continue, let me remind you that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections, or other statements about future events, including statements about our strategy, demand, Plans and Positioning, Growth, Cash Flow, Capital Allocation, and Stockholder Return, as well as our financial expectations for future fiscal periods. Actual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties discussed in today's earnings release, in the Form 8K we filed today, in the Risk Factors section of our Form 10K, and our other reports and filings with the FCC. We do not intend to update any forward-looking statements. Also, during this call, we will reference certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP results are included in our earnings press release in the related form 8K available on our investor relations website, ir.tdsynnex.com. This conference call is the property of TD Synnex and may not be recorded or rebroadcast without our permission. I will now turn the call over to Patrick.

Thank you, Nate, and good morning, everyone. We delivered a record quarter with broad-based strength across distribution and HIVE, building on the momentum we have carried out of recent quarters. Our results reflect consistent execution against our strategy and deepening relationships within a macro environment that is becoming increasingly complex. Rising component costs, supply constraints, geopolitical uncertainty, and a once-in-a-generation AI build-out are challenging businesses to move faster and with more precision. That complexity is exactly where TD SYNNEX adds the most value, and you can see it in the demand across our business. AI is becoming a growing portion of our mix and is driving demand across both businesses from hyperscale infrastructure build-outs to enterprise data center modernization to AI-capable devices in our endpoint mix. And we are capturing that growth across technologies, regions, and customers. With that context, I start with our distribution performance. Distribution had an excellent quarter. Non-GAAP gross billings of $23.4 billion, up 22% year-over-year. Strength was broad-based across every region and the portfolio, with international growth and operating margin expansion as a real bright spot. We believe the combination of our global reach, end-to-end portfolio, and specialized go-to market is very difficult to replicate. This differentiated value proposition, coupled with strong execution against our strategy, has driven new customer wins, new expanded vendor partnerships, and a large share of wallet with our more strategic relationships, all of which have proven to be incremental growth drivers. Three pillars of our strategy are driving our growth. First, We meet our customers however they want to engage in a true omni-channel motion. Digital, when they want self-serve speed. Human, when they want expertise and enablement. And we move seamlessly between the two in real time. Our digital capabilities are enabled by Partner First, which we've built for depth and speed at scale to deliver a connected experience for our partners. As one of the world's largest distributors, we have the data and intelligence to support our partners in identifying demand opportunities. We're applying machine learning, generative and agentic AI to the data we gather across our ecosystem to personalize each partner's experience, their navigation, their dashboards, and customized recommendations and opportunities we surface. This reduces friction and drives higher conversion, stronger attachment, and faster cycle times. Second, we segment our commercial teams in groups of specialists. We break our customer base into strategic tiers, and in some cases, we reallocate resources monthly based on what each tier needs. We use the same discipline on the technology and vendor side. The impact shows up in the data. SMB customers are growing well above market, and some of our most strategic accounts have surfaced billions of dollars of untapped opportunity. Third, we invest in enablement. We accelerate our customers' time to market by equipping them with advanced training, certifications, and technical expertise tailored to each customer's technologies and segment. We provide labs to test the solutions. We believe that our partnership sharpens their capabilities and drives faster adoption of solutions. When we can help customers become more successful, they stay with us and grow with us. 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 segments. The share gains there are structural and it's the same model we've extended across our entire distribution business globally. These are the reasons why earlier this quarter, HPE selected TD SYNNEX as one of just two global distribution partners across its full networking, cloud, and AI portfolio, including the assets from the Juniper acquisition. It unifies our reach and meaningfully expands our relationship with one of the most strategic vendors in the industry. These are the kinds of outcomes our model produces. Hive also had an excellent quarter. Non-GAAP gross billings of $5.5 billion, up 117% year over year, driven by new programs with existing customers. We have built a suite of services to support hyperscaleless digital infrastructure deployments, which is key to our success. Coupled with strong execution against core pillars of our strategy, we've earned expanded program opportunities with some of our most strategic relationships, which has driven the triple-digit growth we have experienced year-to-date. Hive's North Star is simple. to be the partner of choice that hyperscalers trust to design, build, and deploy their data center infrastructure globally. That starts with design and co-design, from board manufacturing to full rack integration and other key components, helping customers accelerate time to deployment. Beyond the build, we offer supply chain services that are designed to support our customers across the full data center lifecycle. Ahead of demand, we aim to secure key components to give our customers supply assurance in a complex environment. And throughout the lifecycle, we manage the spare parts and final components to help ensure our customers have what they need when they need it. As we mentioned last quarter, we have secured at least one program with each of the top five US-based hyperscalers. We have begun the early stages of the ramp with our third and the programs with the additional two hyperscalers are on track with ramp expected in late fiscal year 26 or early fiscal year 27. We also issued an equity warrant to Amazon, a long-standing customer of ours, structured to grow in value as our programs together expand. Across these partnerships, we are being selected as a manufacturing and supply chain partner for multiple aspects of our customers' digital infrastructure build-outs. To support the future growth and needs of our customers, we are in the process of expanding our manufacturing facilities by more than 1 million square feet in several locations throughout the US, with current plans to add more. Hyve is quickly becoming the go-to partner for US hyperscalers seeking a consolidated approach to the design and build of their digital infrastructure that is paired with full lifecycle supply chain services. This full set of capabilities is key to winning new programs and onboarding new customers, ultimately enabling Hyve to grow at a premium to market. In closing, there are three key things I'm focused on as we move through the year. First, partnering with vendors and our customers through the current demand environment. The macro backdrop creates complexity and challenges that we aim to solve. But the underlying demand signals currently remain solid. We believe the shift to AI capable devices is just beginning. Enterprises are prioritizing the modernization of their data centers, and AI is driving incremental investment across the stack. We are watching unit elasticity carefully, but the net revenue impact from higher ASPs has been positive. Second, our execution at Hive. We are bringing new capacity online, investing in engineering capabilities ahead of the ramp, and standing up new programs alongside expansion at existing customers. The bar I'm holding the team to is best-in-class service. That's what's gotten us here, and it's what wins the next program. Third, growing operating profit faster than billings. David will cover the details. But this is the metric that matters most to me. We aim to convert top-line growth into margin expansion and shareholder value. I now pass it to David to go over the financial performance and outlook.