TD SYNNEX Reports Strong Q2 Growth, Increased Cash Usage for Working Capital, and New European Financing
SNX sits 82% above its 52-week low of $134.31.
Summary
TD SYNNEX reported robust second-quarter revenue and net income growth, but also a substantial increase in cash used for operating activities, which is being supported by a new €650 million European receivables securitization program.
Key Events · Earnings and Guidance · SNX
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Strong Q2 Financial Performance
For the three months ended May 31, 2026, revenue increased by 31.0% to $19.57 billion, and net income rose by 80.7% to $334.09 million year-over-year. Diluted EPS grew 87.8% to $4.15.
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Significant Cash Outflow from Operations
Net cash used in operating activities increased substantially to $1.16 billion for the six months ended May 31, 2026, compared to $174.8 million used in the prior year, primarily due to increased inventory and accounts receivable to support business growth.
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Increased Cash Conversion Cycle
The cash conversion cycle (CCC) increased to 24 days as of May 31, 2026, up from 16 days as of November 30, 2025, indicating more working capital is tied up in operations.
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New European Receivables Securitization Program
The company entered into a new European receivables securitization program on June 26, 2026, with a maximum borrowing capacity of €650 million (approximately $700 million), enhancing liquidity.
Analysis · SNX · Trade & Services
While TD SYNNEX delivered strong Q2 financial results, largely pre-announced, the detailed 10-Q reveals a significant increase in cash used in operating activities, primarily due to higher inventory and accounts receivable to support business growth. This has led to a longer cash conversion cycle. To manage liquidity, the company has established a new €650 million European receivables securitization program. The company also continued its share repurchase program, buying back $113 million in stock during the quarter. Investors will weigh the strong top-line growth against the increased working capital demands and the associated financing.
At the time of this filing, SNX was trading at $244.64 on NYSE in the Trade & Services sector, with a market capitalization of approximately $19.6B. The 52-week trading range was $134.31 to $296.47. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.