Why Is TD SYNNEX Stock Trading Higher Today?

Core Insights - TD SYNNEX Corporation reported strong earnings growth and positive investor actions, setting a favorable outlook for fiscal 2026 [1] Earnings Performance - The company achieved fourth-quarter revenue of $17.4 billion, exceeding analysts' expectations of $16.9 billion, representing a 9.7% year-over-year increase [2] - On a constant-currency basis, revenue increased by 7.5% year-over-year, driven by growth in Advanced Solutions and Endpoint Solutions, although a higher mix of net-reported sales reduced reported revenue by approximately 5% year-over-year [2] Segment Revenue Growth - Revenue growth was observed across all regions: Americas up 2.9% year-over-year to $9.5 billion, Europe up 18.1% year-over-year to $6.5 billion, and Asia-Pacific and Japan up 24.7% year-over-year to $1.4 billion [3] - Adjusted gross billings rose 14.7% year-over-year to $24.3 billion, surpassing the company's outlook [3] Profitability Metrics - Adjusted operating income increased to $497 million from $422 million in the same quarter last year, with operating margin improving to 2.9% from 2.7% [3] - Adjusted EPS for the quarter was reported at $3.83, exceeding the forecast of $3.73 per share, reflecting a 24.0% year-over-year growth [4] Cash Flow and Dividends - Operating cash flow grew to $1.5 billion from $562 million last year, while free cash flow rose to $1.4 billion from $513 million [4] - The company returned $209 million to shareholders through share repurchases and dividends, and announced a quarterly cash dividend of 48 cents per share, a 9.1% increase from the previous dividend of 44 cents [5] Future Outlook - The CEO expressed confidence in the company's positioning for the upcoming year, supported by a specialized business model and a focus on high-growth technologies [6] - For the first quarter of fiscal 2026, the company projects adjusted EPS between $3.00 and $3.50, compared to the consensus estimate of $3.21, and sales between $15.1 billion and $15.9 billion, against expectations of $15.43 billion [6] - Adjusted gross billings for the next quarter are projected to be between $22.7 billion and $23.7 billion [7] Stock Performance - TD SYNNEX shares increased by 3.26% to $155.92 at the time of publication [7]