It has been about a month since the last earnings report for TD SYNNEX (SNX). Shares have added about 20.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is TD SYNNEX due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for TD SYNNEX Corporation before we dive into how investors and analysts have reacted as of late.
TD SYNNEX Q1 Earnings Beat Estimates, Revenues Increase Y/Y
TD SYNNEX 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.
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.
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 Q2 FY26 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. Non-GAAP net income is expected to be in the range of $302-$342 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 18.97% due to these changes.
VGM Scores
At this time, TD SYNNEX has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TD SYNNEX has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
