Synnex Stock Earnings Reports

TD SYNNEX reported a strong start to fiscal 2026, with record non-GAAP gross billings and non-GAAP EPS. Management reorganized reporting into two primary businesses—Distribution (three regional segments) and Hive—to better reflect how the company is run. Key financials: non-GAAP gross billings of $25.8B (up 24% YoY, 20% in constant currency), non-GAAP operating income $590M (up 48% YoY), non-GAAP EPS $4.73 (up 69% YoY). Distribution gross billings were $22.0B (+17% YoY) with margin expansion driven by favorable mix and disciplined cost management; Endpoint Solutions +14% and Advanced Solutions +19%. Hive delivered 95% YoY billings growth ($3.8B), driven by hyperscaler programs, manufacturing ramp and supply-chain services, with operating income of $159M (+66% YoY) though its operating margin compressed on mix. Management noted two new hyperscaler program wins (now at least one program with each of the top five U.S. hyperscalers) and ongoing investments to shift Hive toward more system-level (rack) solutions across general compute, accelerated compute, networking and storage. Cash and capital allocation: trailing 12-month free cash flow $1.2B, $723M returned to shareholders over that period; ended quarter with $1.6B cash and leverage ~1.5x; board approved $0.48/share dividend. Q2 and FY outlook highlights: Q2 guidance provided; for FY2026 management expects non-GAAP gross billings ~ $25.1B ± $0.5B (midpoint +16% YoY), revenue ~ $16.5B ± $0.4B, non-GAAP net income ~$322M ± $20M, non-GAAP EPS ~$4.00 ± $0.25 (based on ~79.8M diluted shares), and increased share repurchases vs Q1. Key investor considerations and risks: continued vendor-driven price inflation (memory/CPU) supporting ASP-driven revenue growth but raising questions about unit elasticity and possible pull-forward; some Hive margins vary quarter-to-quarter by mix and some programs are recorded net vs gross; management remains cautiously optimistic for H2 and disciplined on costs, capex and M&A (seeking quick, accretive returns).