TD Synnex Posts Record $4.73 EPS and 95% Hive Billings Growth
TD Synnex posted record Q1 gross billings and non-GAAP EPS of $4.73, driven by 95% year-over-year Hive billings growth on cloud and AI data center demand. The company returned $118 million to shareholders and used $929 million of free cash flow despite price elasticity and mix-driven margin shifts.
1. Q1 Financial Highlights
TD Synnex reported record non-GAAP EPS of $4.73 and record non-GAAP gross billings in its first fiscal quarter of 2026, surpassing consensus expectations by $1.47 per share and reflecting strong enterprise infrastructure modernization trends.
2. Segment Performance
Both Distribution and Hive segments contributed to growth, with Hive gross billings rising 95% year-over-year due to cloud and AI data center demand; however, Hive’s operating income margin contracted by 72 basis points due to changes in customer and product mix.
3. Capital Allocation and Outlook
The company returned $118 million to shareholders through share repurchases and dividends, while deploying $929 million in free cash flow. Management expressed cautious optimism for the second half of fiscal 2026, citing potential macroeconomic headwinds and elasticity in unit demand from recent price increases.
4. Partnership Expansion
TD Synnex formed a global distribution partnership with FatPipe to add Secure SD-WAN and cybersecurity solutions to its portfolio, aiming to broaden its security offerings, enhance vendor depth and accelerate go-to-market execution with enterprise and hyperscale customers.