TD SYNNEX Corporation (NYSE: SNX) experienced a significant increase in its stock price following the announcement of its fourth-quarter earnings, which exceeded analyst expectations. The information technology services provider reported a revenue of $17.4 billion, surpassing forecasts of $16.9 billion, and reflecting a robust year-over-year growth of 9.7%.
The company’s revenue growth was primarily driven by its Advanced Solutions and Endpoint Solutions segments. On a constant-currency basis, revenue increased by 7.5% year over year. However, a higher mix of net-reported sales contributed to a decline of approximately 5% in reported revenue. Breaking down the numbers by region, the Americas saw a growth of 2.9% to $9.5 billion, Europe increased by 18.1% to $6.5 billion, and the Asia-Pacific and Japan region surged 24.7% to $1.4 billion for the quarter.
Financial Performance and Shareholder Returns
In addition to strong revenue figures, TD SYNNEX reported adjusted gross billings of $24.3 billion, an increase of 14.7% year over year, exceeding the company’s expectations. Adjusted operating income rose to $497 million, up from $422 million in the same quarter last year, with an improved operating margin of 2.9% compared to 2.7% previously.
The company also announced an adjusted earnings per share (EPS) of $3.83, comfortably exceeding the forecasted $3.73 per share and showcasing a year-over-year growth of 24.0%. Operating cash flow increased significantly to $1.5 billion from $562 million, while free cash flow rose to $1.4 billion from $513 million.
TD SYNNEX returned $209 million to shareholders through share repurchases and dividends. The board has approved a quarterly cash dividend of 48 cents per share, marking a 9.1% increase from the previous dividend of 44 cents. This dividend will be payable on January 30, 2026, to shareholders of record as of January 16, 2026.
Patrick Zammit, CEO of TD SYNNEX, expressed confidence in the company’s future, stating, “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.”
Outlook for Fiscal 2026
Looking ahead, TD SYNNEX provided guidance for the first quarter of fiscal 2026, projecting an adjusted EPS in the range of $3.00 to $3.50, compared with a consensus estimate of $3.21. The company anticipates sales between $15.1 billion and $15.9 billion, surpassing expectations of $15.43 billion. Additionally, adjusted gross billings for the upcoming quarter are projected to fall between $22.7 billion and $23.7 billion.
As a result of this strong performance and positive outlook, TD SYNNEX shares rose by 3.26% to $155.92 at the time of publication, according to data from Benzinga Pro. The company’s impressive financial results and commitment to shareholder returns highlight its strategy for sustained growth in the competitive technology landscape.
