01—Abstract
Summary
Summary of the 10-Q filed April 2, 2026. Cited figures are marked; the original filing is the authoritative source.
TD SYNNEX Corporation's 10-Q for the quarter ended February 28, 2026 shows revenue of $17.16 billiona, up from $14.53 billion in the prior-year quarter, and net income of $326.9 million, compared with $167.5 million a year earlier.
Diluted EPS was $4.04b versus $1.98. Operating income rose to $489.4 million from $304.5 million, and the filing attributes the gain to revenue growth across Advanced Solutions, Endpoint Solutions and Hyve Solutions, along with higher gross margin. Net income also benefited from a $22.4 million gain on the sale of an equity investment.
Management states that the company resegmented into four reportable segments (Americas distribution, Europe distribution, APJ distribution and Hyve Solutions) in the first quarter of fiscal 2026, with prior periods recast; this change had no effect on consolidated results. The balance sheet expanded during the quarter, with total assets of $35.08 billion and inventories rising to $10.98 billionc from $9.50 billion at November 30, 2025. Cash and cash equivalents fell to $1.56 billion from $2.44 billion, and net cash used in operating activities was $895.9 million, versus $748.0 million a year earlier, which the filing ties to larger inventory growth and higher receivables.
Total borrowings were about $4.7 billiond, including $700.0 million of Senior Notes due in August 2026, and management states that cash, operating cash flow and credit availability are sufficient for at least the next twelve months. Shareholder-return activity included $79.7 million of share repurchases in the quarter, leaving $1.1 billion authorized under the $2.0 billion program, and a declared quarterly dividend of $0.48 per share payable April 29, 2026. The filing also reports that the company remains in compliance with material financial covenants and that the Apple and HP shares of revenue were 12% and 10%, respectively.
02—Key points
Key Highlights
- Revenue of $17.16 billion rose from $14.53 billion, with revenue in constant currency up 13.2% (filing states $1.9 billion increase in constant-currency terms).
- Operating income increased to $489.4 million from $304.5 million, and operating margin rose to 2.85% from 2.10%.
- Net income was $326.9 million, or $4.04 diluted EPS, versus $167.5 million, or $1.98 diluted EPS, a year earlier; non-GAAP diluted EPS was $4.73 versus $2.80.
- Hyve Solutions revenue grew to $2.15 billion from $1.73 billion, and its operating income reached $155.5 million versus $93.9 million.
- Inventories increased to $10.98 billion from $9.50 billion, and net cash used in operating activities was $895.9 million, with cash and equivalents falling to $1.56 billion.
- The company repurchased $79.7 million of common stock and declared a $0.48 quarterly dividend, with $1.1 billion remaining under its $2.0 billion repurchase authorization.
- A $700.0 million Senior Notes maturity due in August 2026 is covered, per management, by existing cash, cash flows and credit availability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, TD Synnex kept $0.02.
- Revenue$17.16B100.0%
- Cost of revenue−$15.91B92.7%
- Gross profit$1.25B7.3%
- Operating costs−$762.8M4.4%
- Operating income$489.4M2.9%
- Interest, other & tax−$162.4M0.9%
- Net income$326.9M1.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 2, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $17.16B$14.53B | +18.1% |
| Cost of Revenue | $15.91B$13.53B | +17.6% |
| Gross Profit | $1.25B$998.01M | +25.5% |
| SG&A Expenses | $762.79M$693.55M | +10.0% |
| Operating Income | $489.36M$304.46M | +60.7% |
| Net Income | $326.92M$167.54M | +95.1% |
| EPS (Basic) | $4.05$1.98 | +104.5% |
| EPS (Diluted) | $4.04$1.98 | +104.0% |
| Shares Outstanding (Basic) | 79.95M83.61M | −4.4% |
| Shares Outstanding (Diluted) | 80.18M83.97M | −4.5% |
05—Questions
Frequently Asked Questions
Why did operating cash flow decline this quarter?
Net cash used in operating activities was $895.9 million versus $748.0 million a year earlier. The filing attributes this mainly to a larger increase in inventory to support business growth and a year-over-year increase in accounts receivable from sales growth, partly offset by higher accounts payable and net income.
How did segment performance compare?
Americas distribution revenue rose to $7.77 billion from $7.07 billion, with operating income of $196.1 million versus $132.1 million. Europe distribution revenue was $6.24 billion versus $4.96 billion, with operating income of $107.9 million versus $67.9 million. APJ distribution revenue was $999.6 million versus $770.4 million, and Hyve Solutions revenue was $2.15 billion versus $1.73 billion.
What drove the increase in net income?
The filing cites higher operating income from revenue growth and gross margin expansion, a $22.4 million gain on the sale of an equity investment, and a provision for income taxes of $95.5 million versus $47.3 million. Interest expense and finance charges, net, were slightly lower at $86.5 million versus $87.9 million.
What is the company's liquidity position?
Cash and cash equivalents were $1.56 billion at February 28, 2026, and total borrowings were about $4.7 billion. No amounts were outstanding under the U.S. AR Arrangement or the TD SYNNEX Revolving Credit Facility, and management believes cash, operating cash flows and credit availability will cover needs for at least the next twelve months.
Are there any notable customer concentrations?
Apple, Inc. accounted for 12% of consolidated revenue this quarter, down from 13% a year earlier, and HP Inc. accounted for 10% in both periods. The filing states that no single customer exceeded 10% of total revenue in the current quarter.
06—Continue