TD SYNNEX Corporation (SNX) just gave investors exactly what they wanted: strong numbers, better margins, and more cash returned to shareholders. The IT distributor reported first-quarter fiscal 2026 results on Thursday that handily beat expectations across the board.

The Numbers Tell a Growth Story

Revenue came in at $17.4 billion, comfortably ahead of the $16.9 billion analysts were expecting and representing a solid 9.7% increase from the same quarter last year. On a constant-currency basis, revenue grew 7.5% year-over-year, with gains in both Advanced Solutions and Endpoint Solutions. There's a bit of complexity here: a higher mix of net-reported sales actually reduced reported revenue by roughly 5% year-over-year, but the underlying business momentum was clearly positive.

Breaking down the geographic performance, every region contributed to the growth. The Americas segment grew 2.9% year-over-year to $9.5 billion, Europe jumped 18.1% to $6.5 billion, and Asia-Pacific and Japan surged 24.7% to $1.4 billion. Those international numbers are particularly impressive and suggest TD SYNNEX is effectively expanding its footprint beyond its home market.

Adjusted gross billings reached $24.3 billion, up 14.7% year-over-year and exceeding the high end of the company's own guidance. When you're beating your own optimistic projections, that's usually a good sign.

Profitability Improvement

Here's where things get even better. Adjusted operating income climbed to $497 million from $422 million in the year-ago quarter, and operating margin expanded to 2.9% from 2.7%. In the distribution business where margins are notoriously thin, every basis point matters.

Adjusted earnings per share of $3.83 not only beat the consensus estimate of $3.73 but also represented a robust 24% year-over-year growth. That's the kind of bottom-line acceleration that gets Wall Street's attention.

Cash generation was equally impressive. Operating cash flow surged to $1.5 billion from $562 million last year, while free cash flow jumped to $1.4 billion from $513 million. That's real money the company can deploy for shareholders.

Rewarding Investors

TD SYNNEX returned $209 million to stockholders through share repurchases and dividends during the quarter. The board also approved a quarterly cash dividend of 48 cents per share, representing a 9.1% increase from the previous 44 cents. The dividend is payable on January 30, 2026, to stockholders of record as of January 16, 2026.

CEO Patrick Zammit struck an optimistic tone: "We are well positioned for the year ahead, underpinned by our specialized business model, an unrivaled portfolio that is indexed toward higher-growing technologies and our continued focus on delivering best-in-class customer experiences. These strengths give us confidence in our ability to drive sustainable growth through time."

Looking Ahead With Caution

For the current quarter (Q2 fiscal 2026), TD SYNNEX projected adjusted earnings per share of $3.00 to $3.50, compared with the consensus estimate of $3.21. Revenue guidance came in at $15.1 billion to $15.9 billion, versus expectations of $15.43 billion. Adjusted gross billings are projected between $22.7 billion and $23.7 billion.

The guidance ranges are pretty wide, which suggests some uncertainty about demand patterns in the coming months. Still, after delivering such a strong quarter, investors seemed willing to give management the benefit of the doubt.

SNX Price Action: TD SYNNEX shares were trading up 3.26% at $155.92 following the earnings release on Thursday.