TD SYNNEX delivered a solid QQ2 2024 earnings performance amid stabilizing IT spend and ongoing portfolio transformation. Total gross billings rose 3% year over year to $19.3 billion, signaling a rebound in demand across Endpoint Solutions, Advanced Solutions, and Strategic Technologies, with the latter now comprising 25% of gross billings (up from 22% a year earlier). However, net revenue declined slightly (~0.8% YoY) to $13.9 billion as software-as-a-service (SaaS) mix shifted revenue recognition, reinforcing TD SYNNEX’s view that gross billings is a better top-line proxy in a SaaS-influenced mix. Non-GAAP gross profit reached $974 million with a gross margin of about 7.0%, up 9 basis points YoY, while non-GAAP operating income was $388 million and non-GAAP earnings per share (EPS) $2.73, inching toward the guidance midpoint. GAAP results showed net income of $143.6 million and GAAP EPS of $1.67, reflecting the mix and one-time-style adjustments embedded in the period. Management signaled confidence in a stronger back half of the year driven by PC refresh activity, data center and cloud investments, and hyperscale capex, including AI-related opportunities. The quarter also featured a notable leadership transition: Rich Hume will retire as CEO in September with Patrick Zammit named as successor, reinforcing a continuity of strategy around growth, margin discipline, and an expanding role for strategic technologies. Cash generation remained a constraint in QQ2, with negative operating cash flow of about $115 million and negative free cash flow of roughly $153 million, primarily due to Hyve ramp investments and working-capital needs. The company reaffirmed a target of approximately $1.2 billion of free cash flow for the year and a capital-allocation framework aimed at returning 50% of free cash flow to shareholders. Forecasts for Q3 imply gross billings of $18.9–$20.1 billion (about +5% YoY at the midpoint) and revenue of $13.3–$14.9 billion, signaling a continuation of the improving market environment. Investors should monitor AI-related demand, Hyve onboarding cadence, working capital dynamics, and the evolving mix between Endpoint Solutions, Advanced Solutions, and Strategic Technologies as the path to profitability and cash flow normalization unfolds.