TD SYNNEX — hyperscaler acceleration and broad distribution growth

Revenue grew 31% to $19.6B. Gross billings reached $28.9B, up 33%.

• Distribution remains the largest engine. Advanced Solutions grew 31%, while software, cloud and security grew double digits.

• Hyve, its hyperscaler infrastructure business, reached $5.5B in gross billings, up 117%.

• “We have now won programs with all five U.S.-based hyperscalers,” management said. Three have awarded multiple programs. Amazon also holds an equity warrant tied to the expansion of their programs.

• TD SYNNEX is adding over 1 million square feet of US manufacturing capacity.

• PartnerFirst, its digital portal for channel partners, is applying agentic AI to partner recommendations. Management says it has surfaced billions of dollars in untapped opportunity across strategic accounts.

​Patrick Zammit, CEO, on HPE naming TD SYNNEX one of two global distributors: "What we see more and more from the vendors is that being global is becoming the differentiator when they rationalize their go-to-markets."

Ingram Micro — cloud growth and partner automation

Sales grew 13.6% to $14.5B. Cloud-based Solutions grew 47% - it’s just 1% of net sales, but the fastest-growing segment.

• 2/3 of sales are Client and Endpoint: PCs, mobile, components. Another third is Advanced Solutions: servers, storage, networking, security, AI infrastructure.

• IDA, the AI assistant inside the Xvantage digital platform for partners, generated ~$1B in net revenue, ~7% of the quarter. Deals it touched closed at ~4X the rate of traditional quotes.

• MCP adoption up 50% in June, usage up 3X. Partner agents now reach catalog, pricing and quoting through one endpoint

• Xvantage operates in 22 of 57 countries; ~75% of revenue in those markets flows through it.

Arrow Electronics — components and solution engineering

Revenue +32%.

• Global Components - semiconductors and parts used to build infrastructure - rose 39%, driving ~86% of Arrow's revenue increase

• Enterprise Computing Solutions —servers, storage, networking, security, software and cloud sold through channel partners — grew its backlog by over 75% to an all-time high. Security grew 21%, compute 51% and business applications 26%.

• Memory and SSD shortages are constraining on-prem storage and compute. Arrow is directing customers toward “software and public cloud solutions” through ArrowSphere.​

Distributors are absorbing the hard work between demand, AI buildout and deployment:

• They help build AI infrastructure

• Make partner offers easier to find, transact and manage

• Help partners bring complex solutions to customers

​HPE picked TD SYNNEX and Ingram as its two global distributors on exactly that logic: global coverage, technical depth, consistent execution.