TD Synnex Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.81%.
Did SNX Beat Earnings? Q1 2026 Results
TD SYNNEX delivered a standout fiscal first quarter, posting non-GAAP diluted EPS of $4.73 against a consensus estimate of $3.31, a beat of 43.04%, while revenue climbed 18.1% year over year to $17.16 billion, topping the $15.65 billion consensus by 9.67%. The strength was broad-based, with accelerating demand in AI-related infrastructure and cloud computing powering both the core distribution business and the Hyve Solutions segment, which designs and manufactures advanced compute and cloud infrastructure. Non-GAAP gross billings surged 24.4% to $25.78 billion, reflecting a meaningful mix shift toward higher-value service and SaaS arrangements, while non-GAAP operating income rose 47.8% to $589.59 million. Shares reached notable highs following the report, with analysts at RBC Capital and Raymond James raising their price targets in response. Looking ahead, management guided fiscal Q2 revenue of $16.10 billion to $16.90 billion and non-GAAP diluted EPS of $3.75 to $4.25, pointing to continued momentum even as the company raised its quarterly dividend 9% to $0.48 per share.
- Strong performance across both distribution and Hyve Solutions businesses
- Revenue increased 18.1% YoY, 13.2% on constant currency basis
- Non-GAAP gross billings grew 24.4% YoY to $25.8 billion
- Non-GAAP operating margin expanded 70 basis points to 3.44%
- Gross margin improved 43 basis points to 7.30%
- Non-GAAP diluted EPS increased 68.9% YoY
- Gross-to-net percentage expanded to 33.4% from 29.9%, reflecting increased SaaS and service contract activity
- Realized gain on sale of equity securities of $22.4 million
“We're pleased with how we've started fiscal 2026. In the first quarter, we delivered record non-GAAP gross billings and non-GAAP diluted earnings per share, while continuing to expand profitability and build on the execution and momentum established over the past year.”
TD SYNNEX CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q2 2026 (three months ending May 31, 2026), TD SYNNEX expects revenue of $16.1 billion to $16.9 billion, non-GAAP gross billings of $24.6 billion to $25.6 billion, GAAP net income of $234 million to $274 million, non-GAAP net income of $302 million to $342 million, GAAP diluted EPS of $2.90 to $3.40, non-GAAP diluted EPS of $3.75 to $4.25, and estimated outstanding diluted weighted average shares of 79.8 million.
SNX YoY Financials
SNX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.