TD SYNNEX Reports Record First Quarter Fiscal 2026 Results: Revenue, Profitability, and Dividend on the Rise

TD SYNNEX Corporation (NYSE: SNX) has announced its financial results for the first quarter of fiscal 2026, stunning investors with record-breaking revenue, robust profit growth, and an increased dividend—a set of results that is likely to be highly price-sensitive and could impact the company’s share value.

Key Highlights from Q1 FY2026

• Revenue: \$17.2 billion, up 18.1% year-over-year, significantly surpassing the high end of guidance. On a constant currency basis, revenue rose 13.2%.
• Non-GAAP Gross Billings: \$25.8 billion, up 24.4% year-over-year, also beating the upper end of outlook. On a constant currency basis, non-GAAP gross billings grew 19.9%.
• Diluted Earnings Per Share (EPS): \$4.04 (GAAP), more than doubling from \$1.98 last year—a 104% increase.
• Non-GAAP Diluted EPS: \$4.73, a 68.9% jump compared to Q1 FY2025.
• Gross Profit: \$1.25 billion, up 25.5% year-over-year. Gross margin expanded by 43 basis points to 7.3%.
• Operating Income: \$489 million (GAAP), up 60.8% year-over-year; Non-GAAP operating income reached \$590 million, up 47.8%.
• Net Income: \$327 million (GAAP), up 95.1% from \$168 million a year ago; Non-GAAP net income was \$383 million, up 61.2%.
• Shareholder Returns: \$118 million returned to shareholders (\$80 million in share repurchases, \$39 million in dividends).
• Dividend Raised: Quarterly cash dividend increased to \$0.48 per share, up 9% year-over-year.

CEO Commentary

Patrick Zammit, CEO of TD SYNNEX, commented: “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. Our results reflect strong performance across both our distribution and Hyve businesses, as well as the continued alignment between our strategy and the needs of our partners. Together, this reinforces the strength of our operating model and our ability to create long-term value for shareholders.”

Segment Realignment: Strategic Update

A significant structural change was made during Q1 FY2026: TD SYNNEX revised its reportable segments, now operating in four segments—three geographic (Americas, Europe, Asia-Pacific/Japan) for its global distribution business and a fourth, Hyve Solutions, which operates globally. This realignment aligns with how the Chief Operating Decision Maker manages the business, and may signal a more focused and transparent approach to segment performance going forward—a potentially price-moving detail for investors.

Outlook for Q2 FY2026

• Revenue: Expected between \$16.1 billion and \$16.9 billion.
• Non-GAAP Gross Billings: Expected between \$24.6 billion and \$25.6 billion.
• Net Income (GAAP): \$234 million to \$274 million.
• Non-GAAP Net Income: \$302 million to \$342 million.
• Diluted EPS (GAAP): \$2.90 to \$3.40.
• Non-GAAP Diluted EPS: \$3.75 to \$4.25.
• Dividend: \$0.48 per share, payable April 29, 2026, to shareholders of record as of April 15, 2026.

Financial Position

• Cash and Cash Equivalents: \$1.56 billion as of February 28, 2026.
• Total Assets: \$35.08 billion.
• Total Liabilities: \$26.30 billion.
• Stockholders’ Equity: \$8.78 billion.

The company’s balance sheet remains robust, with significant liquidity and a strong capital position, despite a decrease in cash during the quarter due to working capital changes and significant inventory build-up.

Cash Flow

• Operating Activities: Net cash used in operating activities was \$(895.9) million (Q1 FY2026), reflecting higher inventory investment and timing of working capital movements.
• Free Cash Flow: \$(929.0) million, down from \$(789.5) million in Q1 FY2025.

Shareholder Impact and Price-Sensitive Information

• Substantial Earnings Growth: The massive increases in revenue, profit, and earnings per share are likely to be viewed very positively by investors and could support a higher share price.
• Dividend Increase: The 9% hike in the quarterly dividend signals management confidence in future cash flows and profitability, and is likely to attract income-focused investors.
• Share Buybacks: \$80 million in repurchases demonstrates a commitment to returning capital to shareholders and may provide downside protection for the stock.
• Segment Realignment: The new segment structure could lead to greater operational focus and transparency, potentially unlocking shareholder value.
• Guidance Above Expectations: The Q2 outlook, while slightly lower sequentially (as is typical with seasonality), remains robust and above prior trends, supporting a bullish medium-term view.

Risks and Forward-Looking Statements

Investors should note that the company’s guidance and outlook statements are forward-looking and subject to a wide range of risks, including macroeconomic uncertainties, supply chain issues, customer concentration, OEM and supplier dynamics, market competition, changes in foreign currency and interest rates, and other factors as disclosed in recent SEC filings. The company’s strong Q1 performance may not be indicative of future quarters, especially given potential volatility in IT spending and global economic conditions.

About TD SYNNEX

TD SYNNEX is a leading global distributor, solutions aggregator, and original design manufacturer, connecting over 150,000 customers across more than 100 countries, and supporting a comprehensive portfolio of edge-to-cloud solutions, including cybersecurity, analytics, AI, mobility, and Everything-as-a-Service.

Investor Call

TD SYNNEX will host a conference call to discuss these results. The webcast is available at ir.tdsynnex.com.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. All forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from projections. Investors should review the company’s official filings and consult with their financial advisors before making investment decisions.

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