TD SYNNEX Corporation (NYSE: SNX), a prominent information technology services company, revealed its strong financial performance for the fourth quarter, exceeding analyst forecasts and setting a positive precedent for the start of fiscal year 2026. The company demonstrated notable growth in revenue and profitability, accompanied by increased returns to shareholders.
In the reported quarter, TD SYNNEX generated revenue of $17.4 billion, outpacing analysts' expectations, which had forecasted $16.9 billion. This represented a significant 9.7% increase compared to the same period in the previous year. When adjusted for constant currency, the revenue growth remained robust at 7.5%, fueled by solid gains in both Advanced Solutions and Endpoint Solutions segments. However, it is important to note that a higher proportion of net-reported sales negatively impacted reported revenue by approximately 5% year-over-year.
Examining the geographic segments, the Americas experienced a moderate growth rate of 2.9%, reaching $9.5 billion in revenue. Europe saw a substantial increase of 18.1%, bringing in $6.5 billion, while the Asia-Pacific and Japan region surpassed expectations with a remarkable 24.7% rise, culminating in $1.4 billion in revenue for the quarter.
Adjusted gross billings, a key metric that indicates sales volume, rose by 14.7% year-over-year to $24.3 billion, exceeding the upper boundary of the company's guidance.
In terms of profitability, adjusted operating income climbed to $497 million, up from $422 million in the corresponding quarter last year. This increase led to an improvement in the operating margin from 2.7% previously to 2.9% currently. On the earnings per share (EPS) front, TD SYNNEX reported an adjusted EPS of $3.83, which comfortably surpassed the forecasted $3.73 per share and marked an impressive 24.0% growth compared to the prior year.
The company's cash flow generation also showed significant improvement. Operating cash flow escalated to $1.5 billion from $562 million a year earlier, while free cash flow more than doubled to $1.4 billion from $513 million. These figures underscore the company's increasing ability to generate liquidity and fund operations.
Returning value to shareholders remained a priority, with TD SYNNEX distributing $209 million through share buybacks and dividends during the period. Further, the board approved a quarterly cash dividend of 48 cents per share, representing a 9.1% increase over the previous dividend of 44 cents. The upcoming dividend payment is scheduled for January 30, 2026, to shareholders of record as of January 16, 2026.
Patrick Zammit, Chief Executive Officer at TD SYNNEX, commented on the results stating, "Our specialized business model and extensive portfolio, focused on high-growth technology areas, position us strongly for the year ahead. Coupled with our dedication to delivering superior customer experiences, we are confident in our capacity to sustain long-term growth."
Looking forward to the first quarter of fiscal 2026, TD SYNNEX forecasts adjusted EPS to range between $3.00 and $3.50, compared to consensus estimates of $3.21. Sales projections stand between $15.1 billion and $15.9 billion, which encompasses the consensus estimate of $15.43 billion. Additionally, the company anticipates adjusted gross billings to fall within $22.7 billion to $23.7 billion for this period.
Following the earnings release, TD SYNNEX’s stock price noted an increase, with shares rising approximately 3.26% to $155.92 during intraday trading.