TD SYNNEX (SNX) Earnings Date & Reports
TD Synnex Corp is a distributor and solutions aggregator for the IT ecosystem... Show more
SNX is expected to report earnings to fall 13.11% to $4.11 per share on June 25
TD SYNNEX (SNX) Fiscal First Quarter 2026 Earnings Recap: Record Revenue Powers Massive EPS Beat
Key Takeaways
- Record revenue of $17.2 billion, up 18.1% year-over-year (YoY) from $14.5 billion, surpassing consensus estimates around $15.7 billion.
- Non-GAAP diluted earnings per share (EPS) of $4.73, a 68.9% YoY increase from $2.80, crushing analyst expectations of approximately $3.24 by 46%.
- GAAP gross margin expanded 43 basis points to 7.30%, with operating income rising 60.7% to $489 million.
- Strong performance across distribution and Hyve Solutions segments, with non-GAAP gross billings up 24.4% to $25.8 billion.
- Returned $118 million to shareholders through $80 million in share repurchases and $39 million in dividends; quarterly dividend increased 9% to $0.48 per share.
- Q2 FY2026 guidance: revenue $16.1–$16.9 billion; non-GAAP EPS $3.75–$4.25.
Earnings Context and Why It Matters
As a leading global distributor of IT products and services, TD SYNNEX plays a critical role in the technology supply chain, serving resellers, retailers, and enterprises with hardware, software, and solutions. This fiscal first quarter 2026 earnings report (for the period ended February 28, 2026) is pivotal amid surging demand for AI infrastructure, cloud computing, and endpoint devices. Following solid prior quarters, investors watched for sustained momentum in IT spending and margin expansion. Strong results underscore the company's positioning in high-growth areas like advanced solutions and Hyperscale/Cloud, offering insights into broader tech sector health and potential ripple effects for partners like PC makers and data center providers.
TD SYNNEX delivered standout fiscal Q1 2026 results, exceeding expectations across key metrics. Revenue reached a record $17.2 billion, reflecting 18.1% YoY growth and a 10.45% beat over consensus forecasts. Non-GAAP gross billings, which include customer reimbursable items, climbed 24.4% to $25.8 billion.
Profitability soared, with non-GAAP diluted EPS hitting $4.73—well above the $3.24 consensus and up 68.9% YoY—while GAAP EPS more than doubled to $4.04. GAAP net income rose 95.1% to $327 million, and non-GAAP net income increased 61.2% to $383 million. Margins improved notably: GAAP gross margin to 7.30% (up 43 basis points) and operating margin to 2.85% (up 75 basis points). Growth was broad-based, with the distribution business (Americas, Europe, APJ) and Hyve Solutions (compute and cloud infrastructure) both contributing strongly.
Guidance for Q2 (ending May 31, 2026) came in at revenue of $16.1–$16.9 billion and non-GAAP EPS of $3.75–$4.25, signaling continued confidence despite seasonal factors.
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Market Reaction and Investor Sentiment
TD SYNNEX shares jumped following the blowout results, reflecting investor enthusiasm for the significant beats and robust guidance, though some pre-market volatility occurred with a brief 1.95% dip before recovery. Sentiment turned positive on strong execution in high-margin areas like Hyve Solutions and endpoint devices, amid optimism for AI-related tailwinds. Trading volume spiked, with analysts highlighting the results as a re-rating catalyst.
Forward Outlook and Key Factors to Monitor
Investors should focus on execution in Q2 FY2026, as guided revenue slightly trails Q1 but maintains elevated levels, with non-GAAP EPS outlook implying steady profitability. Hyve Solutions' hyperscale and cloud growth—up significantly YoY—remains a bright spot, driven by AI infrastructure demand.
Broader distribution performance across regions (Americas, Europe, APJ) will be key, particularly endpoint and advanced solutions amid PC refresh cycles and enterprise IT upgrades. Monitor gross margin trends, as supply chain stabilization and product mix shifts could further expand profitability.
Macro factors like global IT spending, currency fluctuations (given constant currency growth), and partner dynamics with vendors will influence results. Shareholder returns continue via dividends (now $0.48/share) and buybacks. Upcoming Q2 earnings around late June will provide updates on these trends and FY2026 trajectory.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
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General Information
a developer of computer systems and complementary products
Industry ElectronicsApplianceStores