TD SYNNEX (SNX) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 FY26 results with non-GAAP gross billings of $25.8B (up 24% year-over-year) and revenue of $17.2B (up 18.1%), driven by strong performance in both Distribution and Hyve businesses, reflecting strategic alignment and operational momentum.

• Non-GAAP diluted EPS rose 68.9% year-over-year to $4.73, and GAAP EPS reached $4.04, reflecting disciplined capital allocation and operational efficiency.

• Net income more than doubled to $327M, with operating income up 60.7% to $489M and operating margin expanding to 2.85%.

• Updated reporting structure highlights Distribution (Americas, Europe, APJ) 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; quarterly dividend increased to $0.48 per share.

Financial highlights

• Q1 non-GAAP gross billings reached $25.8B, up 24% year-over-year; revenue was $17.2B, up 18.1% year-over-year; gross profit was $1.25B, up 25.5%.

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

• GAAP operating income was $489M, up 60.7% year-over-year; GAAP EPS was $4.04, up 104% year-over-year.

• Free cash flow usage in Q1 was $(929)M, mainly due to inventory and accounts receivable growth; trailing twelve months FCF was $1.2B.

• Cash and cash equivalents at quarter end were $1.56B; leverage ratio at 1.5x.

Outlook and guidance

• Q2 FY26 guidance: non-GAAP gross billings ~$25.1B (16% YoY), revenue ~$16.5B (10% YoY), non-GAAP net income ~$322M, non-GAAP diluted EPS ~$4.00 (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; sufficient liquidity and credit capacity to support operations and capital needs.

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