TD SYNNEX (SNX) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY26 results with non-GAAP gross billings of $25.8B (up 24%–24.4% YoY), non-GAAP EPS of $4.73 (up 68.9%–69% YoY), and strong performance in both Distribution and Hyve businesses, reflecting strategic alignment and operational momentum.

• Revenue reached $17.2B, up 18.1% YoY, exceeding guidance, with margin expansion and significant earnings growth.

• Updated reporting structure highlights Distribution (three regional segments) and Hyve as distinct businesses, providing clearer insight into performance and capital allocation.

• Returned $118M to shareholders in Q1 via $80M in share repurchases and $39M in dividends; announced a 9% YoY increase in quarterly dividend to $0.48 per share.

• Achieved Microsoft Frontier Distributor designation globally and received multiple distributor awards from NVIDIA, Palo Alto Networks, and IBM.

Financial highlights

• Q1 non-GAAP gross billings reached $25.8B, up 24% YoY (20% in constant currency), exceeding guidance.

• Revenue was $17.2B, up 18%–18.1% YoY; constant currency growth was 13%–13.2%.

• Non-GAAP operating income was $590M, up 48% YoY; non-GAAP EPS was $4.73, up 68.9%–69% YoY.

• GAAP operating income was $489M, up 60.7%–61% YoY; GAAP EPS was $4.04, up 104% YoY.

• Free cash flow (TTM) was $1.2B; Q1 FCF was $(929)M due to working capital movements.

Outlook and guidance

• Q2 FY26 guidance: non-GAAP gross billings ~$25.1B ± $500M (+16% YoY), revenue ~$16.5B ± $400M, non-GAAP net income ~$322M ± $20M, non-GAAP diluted EPS ~$4 ± $0.25 (+34% YoY midpoint).

• Q2 FY26 revenue expected between $16.1B and $16.9B; non-GAAP gross billings between $24.6B and $25.6B.

• Share repurchases expected to increase in Q2; guidance reflects continued momentum in both Distribution and Hyve.

• Cautiously optimistic for the second half of FY26, with both Distribution and Hyve expected to grow.