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, with margin expansion and significant earnings growth.

• Non-GAAP diluted EPS rose 69% year-over-year to $4.73, and GAAP EPS reached $4.04, reflecting disciplined capital allocation and operational efficiency.

• Returned $118M to shareholders in Q1 via $80M in share repurchases and $39M in dividends; quarterly dividend increased to $0.48 per share.

• Updated segment reporting to focus on Distribution (Americas, Europe, APJ) and Hyve Solutions, providing clearer insight into business performance and capital allocation.

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

Financial highlights

• Q1 non-GAAP gross billings: $25.8B, up 24% year-over-year; revenue: $17.2B, up 18.1%; gross profit: $1.25B, up 25.5%; operating income: $590M (non-GAAP), up 48%; GAAP net income: $327M, up 95.1%.

• Non-GAAP EPS: $4.73, up 69% year-over-year; GAAP EPS: $4.04, up 104%.

• Free cash flow usage for Q1: $(929)M, mainly due to inventory and receivables growth; trailing twelve months free cash flow: $1.2B.

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

• $118M returned to shareholders in Q1 via share repurchases and dividends.

Outlook and guidance

• Q2 FY26 non-GAAP gross billings expected at $25.1B ± $500M (up 16% year-over-year at midpoint); revenue guidance: $16.5B ± $400M; non-GAAP net income: $322M ± $20M; non-GAAP diluted EPS: $4 ± $0.25, up 34% year-over-year at midpoint.

• Q2 FY26 revenue expected between $16.1B and $16.9B; non-GAAP gross billings between $24.6B and $25.6B; non-GAAP net income: $302M–$342M; non-GAAP diluted EPS: $3.75–$4.25.

• Share repurchases to increase in Q2; sufficient liquidity and credit capacity expected to support operations and capital needs.

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