TD Synnex beats revenue outlook citing AI demand, Hyve growth in Q2

TD Synnex Corp. once again reported record revenue well above its outlook in its fiscal Q2 2026 results due to investment in artificial intelligence (AI) and increasing complexity in the industry.

“We delivered a record quarter with broad-based strength across Distribution and Hyve, building on the momentum we have carried out of recent quarters,” CEO Patrick Zammit said in a written statement. 

The IT distribution company recorded $19.6 billion in revenue in the quarter ended May 31. That represented an increase of 31.0% year over year. Net income grew by 80.7% to $334 million in the quarter. 

TD Synnex forecasted that growth would continue into Q3. It expects revenue from billings to grow 22% to $27.7 billion.

TD Synnex Q2 results by category

The distribution category of the business, which consists of IT and hardware, had an “excellent quarter,” Zammit said. Distribution billings grew 22% to $23.4 billion, with strength across every region, TD Synnex said. 

“We believe the combination of our global reach, end-to-end portfolio, and specialized go-to-market is very difficult to replicate,” Zammit assessed. “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 most strategic relationships, all of which have proven to be incremental growth drivers.”

HP selected TD Synnex to be just one of its two global distribution partners, which was a particular success of the quarter, he added.

Hyve nearly doubled its billings, increasing 117% to $5.5 billion in Q2. The data center division’s growth was mostly driven by existing customers adding new programs, TD Synnex said. 

Hyve now has deals with each of the five largest U.S. hyperscalers, including AWS, Microsoft Azure, and Google Cloud. The business is ramping up its program with the third hyperscaler, with the final two expected to launch in late 2026 or early 2027.

Finally, the Endpoint Solutions category grew 13% year over year, driven by continued strength in PCs. 

TD Synnex digital customer service

The distribution company continued to develop ways to improve the digital customer experience in Q2, it said. Digital customers want speed from self-service, access to help from human agents with expertise, and the ability to move between the two, Zammit said.

“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,” Zammit said. 

TD Synnex is using machine learning, generative AI, and agentic AI to gather data to personalize and improve customer experience, like with dashboards and customized reputations. That leads to higher conversion and stronger customer attachments, he added.

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