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SNX Q1 EPS hit $4.73, up 69% Y/Y, beating estimates by 45.24% amid strong revenue growth.
TD SYNNEX revenues rose 18.1% to $17.2B, driven by Endpoint, Advanced, and Hyve Solutions gains.
SNX expands margins, boosts billings, and guides Q2 revenues and EPS above consensus.
TD SYNNEX (SNX - Free Report) reported non-GAAP earnings of $4.73 per share for the first quarter of fiscal 2026, which beat the Zacks Consensus Estimate by 45.24%. The bottom line increased 69% year over year.
SNX’s revenues increased 18.1% year over year to $17.2 billion and beat the consensus mark by 10.4%. On a constant-currency (cc) basis, revenues represented 13.2% year-over-year growth, driven by advancements in the Endpoint Solutions and Advanced Solutions portfolios.
SNX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.8%.
First-quarter gross profit increased 25.5% year over year to $1.25 billion, whereas the gross margin expanded 40 basis points (bps) to 7.3%.
Adjusted selling, general & administrative (SG&A) expenses increased to $662.6 million from the year-ago quarter’s $599.2 million. As a percentage of revenues, SG&A expenses contracted 30 bps on a year-over-year basis to 3.9%.
The fiscal first-quarter non-GAAP operating income was up 47.8% year over year to $589.6 million. The non-GAAP operating margin expanded by 70 bps on a year-over-year basis to 3.4%.
Non-GAAP gross billings were $25.8 billion at the end of the first quarter, up 24.4% on a year-over-year basis. On a cc basis, non-GAAP gross billings increased 19.9% from the prior-year quarter.
TD SYNNEX’s Balance Sheet & Cash Flow Details
As of Feb. 28, 2026, TD SYNNEX’s cash and cash equivalents were $1.56 billion compared with $2.44 billion as of Nov. 30, 2025.
The long-term debt was $3.59 billion for the reported quarter, in line with the prior quarter’s level.
During the first quarter, the company used $895.9 million of cash for operational activities and generated a negative free cash flow of $929 million.
In the first quarter of fiscal 2026, SNX returned $118 million to its stockholders through repurchasing shares worth $80 million and paying $39 million in dividends.
Concurrent with the first quarter results, management announced that its board of directors declared a quarterly cash dividend of 48 cents per share. The newly declared cash dividend will be payable on April 29 to shareholders of record as of April 15.
SNX Initiates Q2 Guidance
For the second quarter of fiscal 2026, SNX expects revenues of $16.1-$16.9 billion. Non-GAAP earnings are expected to be in the range of $3.75-$4.25 per share. The Zacks Consensus Estimate for revenues is pegged at $15.65 billion, and the consensus mark for earnings is pinned at $3.42 per share, revised upward by 2 cents over the past 30 days.
Non-GAAP net income is expected to be in the range of $302-$342 million.
The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings has moved upward by 12 cents to $8.32 per share in the past 30 days, indicating a year-over-year surge of 29.8%. Advanced Energy Industries’ shares have increased 89.7% in the past six months.
The Zacks Consensus Estimate for Digital Turbine’s fiscal 2026 earnings has been unchanged at 36 cents over the past 30 days and suggests a year-over-year increase of 2.8%. Digital Turbine shares have lost 54% in the past six months.
The Zacks Consensus Estimate for Ciena's fiscal 2026 earnings has been revised upward by 71 cents to $6.01 per share over the past 30 days, suggesting a year-over-year increase of 127.6%. Ciena shares have surged 171.8% in the past six months.
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TD SYNNEX's Q1 Earnings Crush Estimates, Revenues Increase Y/Y
Key Takeaways
TD SYNNEX (SNX - Free Report) reported non-GAAP earnings of $4.73 per share for the first quarter of fiscal 2026, which beat the Zacks Consensus Estimate by 45.24%. The bottom line increased 69% year over year.
SNX’s revenues increased 18.1% year over year to $17.2 billion and beat the consensus mark by 10.4%. On a constant-currency (cc) basis, revenues represented 13.2% year-over-year growth, driven by advancements in the Endpoint Solutions and Advanced Solutions portfolios.
SNX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.8%.
TD SYNNEX’s Q1 Details
Categorically, revenues from Endpoint Solutions reached $8.5 billion, reflecting 19% year-over-year growth. Revenues from Advanced Solutions totaled $6.5 billion, reflecting 15% year-over-year growth. Revenues from Hyve Solutions reached $2.2 billion, reflecting 24% year-over-year growth.
TD SYNNEX Corporation Price, Consensus and EPS Surprise
TD SYNNEX Corporation price-consensus-eps-surprise-chart | TD SYNNEX Corporation Quote
First-quarter gross profit increased 25.5% year over year to $1.25 billion, whereas the gross margin expanded 40 basis points (bps) to 7.3%.
Adjusted selling, general & administrative (SG&A) expenses increased to $662.6 million from the year-ago quarter’s $599.2 million. As a percentage of revenues, SG&A expenses contracted 30 bps on a year-over-year basis to 3.9%.
The fiscal first-quarter non-GAAP operating income was up 47.8% year over year to $589.6 million. The non-GAAP operating margin expanded by 70 bps on a year-over-year basis to 3.4%.
Non-GAAP gross billings were $25.8 billion at the end of the first quarter, up 24.4% on a year-over-year basis. On a cc basis, non-GAAP gross billings increased 19.9% from the prior-year quarter.
TD SYNNEX’s Balance Sheet & Cash Flow Details
As of Feb. 28, 2026, TD SYNNEX’s cash and cash equivalents were $1.56 billion compared with $2.44 billion as of Nov. 30, 2025.
The long-term debt was $3.59 billion for the reported quarter, in line with the prior quarter’s level.
During the first quarter, the company used $895.9 million of cash for operational activities and generated a negative free cash flow of $929 million.
In the first quarter of fiscal 2026, SNX returned $118 million to its stockholders through repurchasing shares worth $80 million and paying $39 million in dividends.
Concurrent with the first quarter results, management announced that its board of directors declared a quarterly cash dividend of 48 cents per share. The newly declared cash dividend will be payable on April 29 to shareholders of record as of April 15.
SNX Initiates Q2 Guidance
For the second quarter of fiscal 2026, SNX expects revenues of $16.1-$16.9 billion. Non-GAAP earnings are expected to be in the range of $3.75-$4.25 per share. The Zacks Consensus Estimate for revenues is pegged at $15.65 billion, and the consensus mark for earnings is pinned at $3.42 per share, revised upward by 2 cents over the past 30 days.
Non-GAAP net income is expected to be in the range of $302-$342 million.
SNX’s Zacks Rank & Stocks to Consider
Currently, SNX carries a Zacks Rank #3 (Hold).
Advanced Energy Industries (AEIS - Free Report) , Digital Turbine (APPS - Free Report) and Ciena (CIEN - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Advanced Energy Industries and Ciena sport a Zacks Rank #1 (Strong Buy) each at present, while Digital Turbine carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings has moved upward by 12 cents to $8.32 per share in the past 30 days, indicating a year-over-year surge of 29.8%. Advanced Energy Industries’ shares have increased 89.7% in the past six months.
The Zacks Consensus Estimate for Digital Turbine’s fiscal 2026 earnings has been unchanged at 36 cents over the past 30 days and suggests a year-over-year increase of 2.8%. Digital Turbine shares have lost 54% in the past six months.
The Zacks Consensus Estimate for Ciena's fiscal 2026 earnings has been revised upward by 71 cents to $6.01 per share over the past 30 days, suggesting a year-over-year increase of 127.6%. Ciena shares have surged 171.8% in the past six months.