TD SYNNEX Delivers Record Results: Gross Billings Surge 24.4% and Non-GAAP EPS Jumps 68.9%
Historic Financial Performance: Non-GAAP Gross Billings and EPS Set New Highs
TD SYNNEX (NYSE:SNX) started fiscal 2026 with a record-setting first quarter, reporting non-GAAP gross billings of $25.78 billion—a 24.4% increase over last year—blowing past the high end of its outlook. On a constant currency basis, gross billings rose 19.9%. Non-GAAP diluted EPS reached $4.73, marking a staggering 68.9% year-over-year jump, also landing well above management’s expectations.
Broad-Based Momentum Across Core Businesses
CEO Patrick Zammit commented on the robust performance, citing strong results from both distribution and Hyve Solutions. "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," Zammit said.
Key Financial Metrics: First Quarter Year-Over-Year Comparison
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Revenue | $17.16B | $14.53B | +18.1% |
| Non-GAAP Gross Billings | $25.78B | $20.72B | +24.4% |
| Gross Profit | $1.25B | $998M | +25.5% |
| Non-GAAP Net Income | $383M | $237M | +61.2% |
| Non-GAAP Diluted EPS | $4.73 | $2.80 | +68.9% |
| Operating Margin (Non-GAAP) | 3.44% | 2.74% | +70 bps |
Shareholder Returns Accelerate With $118 Million Distributed
The company continued to reward shareholders, returning $118 million in Q1 via $80 million in share repurchases and $39 million in dividends. The quarterly dividend was announced at $0.48 per share, up 9% compared to last year, highlighting management’s confidence in future cash flows.
Cash Flow and Balance Sheet Trends: Inventory Up, Cash Down
Free cash flow for the quarter was -$929 million, down from -$790 million a year ago, reflecting increased inventories and changes to working capital. Cash and cash equivalents stood at $1.56 billion, down from $2.44 billion at the end of the prior quarter, while inventories rose nearly $1.5 billion to $10.98 billion, supporting ongoing expansion.
Second Quarter Outlook Signals Continued Strength
Looking ahead, TD SYNNEX projects Q2 revenue between $16.1 and $16.9 billion and non-GAAP gross billings of $24.6 to $25.6 billion. Non-GAAP EPS is expected to land in the $3.75 to $4.25 range—an elevated bar that continues the company’s pattern of beating expectations:
| Q2 2026 Outlook | Low | High |
|---|---|---|
| Revenue | $16.1B | $16.9B |
| Non-GAAP Gross Billings | $24.6B | $25.6B |
| Non-GAAP Net Income | $302M | $342M |
| Non-GAAP Diluted EPS | $3.75 | $4.25 |
Strength in All Segments: Global Distribution and Hyve Drive Growth
TD SYNNEX revamped its reportable segments this quarter to reflect its operational structure: the Americas, Europe, APJ (Asia-Pacific & Japan), and Hyve Solutions. Distribution continues to drive the bulk of growth, while the Hyve segment—supporting cloud and infrastructure partners worldwide—remains a key differentiator for long-term scaling.
Key Takeaway: Execution and Scale Power SNX’s Market Position
Few large technology aggregators have demonstrated the consistency shown by TD SYNNEX. With revenue, profit margins, and earnings all outpacing sector peers—and management guiding towards further gains—investors will want to watch how SNX continues to leverage its global scale and portfolio diversity. The growing dividend, aggressive buybacks, and outlook for solid Q2 results all underline a management team confident in its strategic direction.
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