TE Connectivity announces first quarter results for fiscal year 2026

Rhea-AI Summary

TE Connectivity (NYSE: TEL) reported fiscal Q1 results for the period ended Dec. 26, 2025, with net sales $4.7B (+22% reported, +15% organic) and GAAP diluted EPS $2.53 (+45% YoY). Adjusted EPS was $2.72 (+33% YoY). GAAP operating margin was 20.6% (+260 bps) and adjusted operating margin was 22.2% (+180 bps). Record orders reached $5.1B (+28% YoY). Operating cash flow was $865M, free cash flow $608M, and the company returned $615M to shareholders.

Q2 FY26 outlook: sales ~$4.7B (+13% reported, +6% organic) and adjusted EPS ~$2.65 (up ~20% YoY); GAAP EPS expected ~$2.26. The company also updated non-GAAP treatment of intangible amortization beginning in FY26.

Positive

• Net sales $4.7B, up 22% year-over-year
• GAAP EPS $2.53, up 45% year-over-year
• Adjusted EPS $2.72, up 33% year-over-year
• Adjusted operating margin 22.2%, expanded 180 basis points
• Record orders of $5.1B, up 28% year-over-year
• Free cash flow $608M with $615M returned to shareholders

Negative

• None.

News Market Reaction

-0.97% 2.4x vol

2 alerts

-0.97% News Effect

-9.0% Trough Tracked

-$672M Valuation Impact

$68.63B Market Cap

2.4x Rel. Volume

On the day this news was published, TEL declined 0.97%, reflecting a mild negative market reaction. Argus tracked a trough of -9.0% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $672M from the company's valuation, bringing the market cap to $68.63B at that time. Trading volume was elevated at 2.4x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q1 FY26 net sales: $4.7 billion GAAP EPS: $2.53 Adjusted EPS: $2.72 +5 more

8 metrics

Q1 FY26 net sales $4.7 billion First quarter 2026, up 22% reported and 15% organically YoY

GAAP EPS $2.53 Q1 FY26 from continuing operations, up 45% YoY

Adjusted EPS $2.72 Q1 FY26, up 33% year over year

GAAP operating margin 20.6% Q1 FY26, up 260 basis points year over year

Adjusted operating margin 22.2% Q1 FY26, expanded 180 basis points year over year

Record orders $5.1 billion Q1 FY26, up 28% YoY and 9% sequentially

Operating cash flow $865 million Q1 FY26 cash flow from operating activities

Q2 FY26 adj. EPS outlook $2.65 Guidance for Q2 FY26, expected up 20% year over year

Market Reality Check

Price: $222.78 Vol: Volume 3,778,776 is 2.32x...

high vol

$222.78 Last Close

Volume Volume 3,778,776 is 2.32x the 20-day average of 1,627,065, indicating elevated trading interest ahead of the print. high

Technical Price at 233.27 trades above the 200-day MA 197.84 but is 6.94% below the 52-week high of 250.67.

Peers on Argus

TEL was down 3.21% while key peers like GLW, APH, CLS, and FLEX rose between 1.1...

TEL was down 3.21% while key peers like GLW, APH, CLS, and FLEX rose between 1.15% and 2.72%, with only JBL slightly negative. This points to a stock-specific move rather than a sector-wide shift.

Historical Context

5 past events · Latest: Jan 05 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 05	Earnings timing	Neutral	-0.8%	Announcement of Q1 FY26 earnings release date and call logistics.
Jan 05	Correction notice	Neutral	-0.8%	Correction to prior release on reporting date and access details.
Dec 17	Dividend declaration	Positive	+1.4%	Quarterly cash dividend of <b>$0.71</b> per ordinary share declared.
Dec 01	AGM announcement	Neutral	+1.7%	Scheduling of 2026 annual general meeting and voting details.
Nov 10	Board appointment	Positive	-0.2%	Appointment of Ken Washington to board highlighting technology expertise.

Pattern Detected

Recent corporate and scheduling announcements have generally seen modest price moves, while dividend news drew a more clearly positive reaction.

Recent Company History

Over the last few months, TEL’s news flow centered on corporate housekeeping and capital returns. An upcoming Q1 FY26 earnings date and its correction in early January 2026 had limited impact. A regular quarterly dividend of $0.71 per share in December 2025 coincided with a positive move. Governance items like the 2026 AGM notice and a new board appointment produced small price changes, suggesting investors largely viewed them as routine alongside the broader uptrend in fundamentals.

Market Pulse Summary

This announcement highlights a robust Q1 FY26, with net sales of $4.7B up 22%, adjusted EPS of $2.72...

Analysis

This announcement highlights a robust Q1 FY26, with net sales of $4.7B up 22%, adjusted EPS of $2.72 up 33%, and record orders of $5.1B. Margins expanded meaningfully, and management guided to continued double-digit sales and earnings growth in Q2. Historically, TEL’s earnings reports have been important catalysts, with an average move of 6.16%. Investors may watch future orders, margin sustainability, and execution in AI, energy and next-generation vehicle applications.

Key Terms

gaap, eps, adjusted eps, operating margin, +2 more

6 terms

gaap financial

"GAAP diluted earnings per share (EPS) from continuing operations was $2.53"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

eps financial

"GAAP diluted earnings per share (EPS) from continuing operations was $2.53"

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

adjusted eps financial

"Adjusted EPS was $2.72, an increase of 33% year over year."

Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.

operating margin financial

"GAAP operating margin was 20.6%, an increase of 260 basis points year over year."

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

free cash flow financial

"Cash flow from operating activities was $865 million and free cash flow was $608 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

non-gaap financial measures financial

"Information about TE Connectivity's use of non-GAAP financial measures is provided below."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. Not financial advice.

Exceeds guidance with 22% sales growth and over 30% EPS growth year over year

GALWAY, Ireland, Jan. 21, 2026 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 26, 2025.

First Quarter Highlights 

• Net sales were $4.7 billion, an increase of 22% on a reported basis year over year, driven by growth in both the Industrial and Transportation segments, and 15% organically.
• GAAP diluted earnings per share (EPS) from continuing operations was $2.53, an increase of 45% year over year. Adjusted EPS was $2.72, an increase of 33% year over year.
• GAAP operating margin was 20.6%, an increase of 260 basis points year over year. Adjusted operating margin expanded 180 basis points year over year to 22.2%, driven by strong operational performance across both segments.
• Record orders of $5.1 billion, an increase of 28% year over year and 9% sequentially.
• Cash flow from operating activities was $865 million and free cash flow was $608 million, with $615 million returned to shareholders.

"Our teams delivered strongly against our strategy, resulting in first quarter earnings growth over 30% and sales growth of more than 20%, both of which were above our guidance and driven by growth in both segments," said CEO Terrence Curtin. "We continue to benefit from a broadening of growth from our investments in data and power connectivity in key applications such as AI, energy grid hardening and next generation vehicles that are driving our auto content growth above market. Our positioning and team execution resulted in record quarterly orders of over $5 billion, setting up TE for another year of strong growth and margin expansion.      

"We expect double-digit sales and adjusted earnings growth again in our second quarter as our teams continue to innovate with our customers to ensure next generation technologies are brought to life."

Second Quarter FY26 Outlook

For the second quarter of fiscal 2026, the company expects sales of approximately $4.7 billion, an increase of 13% on a reported basis and 6% organically year over year. Adjusted EPS is expected to be approximately $2.65, up 20% year over year. GAAP EPS from continuing operations is expected to be approximately $2.26.

Beginning in fiscal 2026, the company is excluding amortization expense on intangible assets and, if applicable, the related tax effects from its calculation of certain non-GAAP measures.

Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast

The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:

• At TE Connectivity's website: investors.te.com
• By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 715-9871 and for international callers, the dial-in number is (646) 307-1963.
• A replay of the conference call will be available on TE Connectivity's investor website at investors.te.com at 11:30 a.m. ET on Jan. 21.

About TE Connectivity

TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram. 

Non-GAAP Financial Measures

We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

• Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management's control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.
  
  
• Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.
  
  
• Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any.
  
  
• Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.
  
  
• Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.
  
  
• Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management's and the Board of Directors' discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.

Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc's Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

 

TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	For the Quarters Ended
	December 26,			December 27,
	2025			2024
	(in millions, except per share data)
Net sales	$	4,669		$	3,836
Cost of sales		2,930			2,476
Gross margin		1,739			1,360
Selling, general, and administrative expenses		538			427
Research, development, and engineering expenses		225			188
Acquisition and integration costs		3			5
Restructuring and other charges, net		10			50
Operating income		963			690
Interest income		25			23
Interest expense		(30)			(6)
Other income (expense), net		3			(1)
Income from continuing operations before income taxes		961			706
Income tax expense		(210)			(178)
Income from continuing operations		751			528
Loss from discontinued operations, net of income taxes		(1)			—
Net income	$	750		$	528
Basic earnings per share:
Income from continuing operations	$	2.55		$	1.77
Loss from discontinued operations		—			—
Net income		2.55			1.77
Diluted earnings per share:
Income from continuing operations	$	2.53		$	1.75
Loss from discontinued operations		—			—
Net income		2.53			1.75
Weighted-average number of shares outstanding:
Basic		294			299
Diluted		297			301

 

TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED)
	December 26,			September 26,
	2025			2025
	(in millions, except share data)
Assets
Current assets:
Cash and cash equivalents	$	1,251		$	1,255
Accounts receivable, net of allowance for doubtful accounts of $48 and $44, respectively		3,469			3,403
Inventories		2,951			2,699
Prepaid expenses and other current assets		697			609
Total current assets		8,368			7,966
Property, plant, and equipment, net		4,395			4,312
Goodwill		7,162			7,126
Intangible assets, net		2,177			2,227
Deferred income taxes		2,429			2,507
Other assets		1,021			943
Total assets	$	25,552		$	25,081
Liabilities, redeemable noncontrolling interests, and shareholders' equity
Current liabilities:
Short-term debt	$	852		$	852
Accounts payable		2,149			2,021
Accrued and other current liabilities		2,068			2,247
Total current liabilities		5,069			5,120
Long-term debt		4,856			4,842
Long-term pension and postretirement liabilities		766			767
Deferred income taxes		198			198
Income taxes		441			414
Other liabilities		1,086			1,010
Total liabilities		12,416			12,351
Commitments and contingencies
Redeemable noncontrolling interests		149			145
Shareholders' equity:
Preferred shares, $1.00 par value, 2 shares authorized, none outstanding		—			—
Ordinary class A shares,  €1.00 par value, 25,000 shares authorized, none outstanding		—			—
Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 303,796,785 and 302,889,075 shares issued, respectively		3			3
Accumulated earnings		14,543			13,932
Ordinary shares held in treasury, at cost, 10,086,721 and 8,330,931 shares, respectively		(1,762)			(1,356)
Accumulated other comprehensive income		203			6
Total shareholders' equity		12,987			12,585
Total liabilities, redeemable noncontrolling interests, and shareholders' equity	$	25,552		$	25,081

 

TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	For the Quarters Ended
	December 26,			December 27,
	2025			2024
	(in millions)
Cash flows from operating activities:
Net income	$	750		$	528
Loss from discontinued operations, net of income taxes		1			—
Income from continuing operations		751			528
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization		259			186
Deferred income taxes		77			98
Non-cash lease cost		39			34
Provision for losses on accounts receivable and inventories		43			41
Share-based compensation expense		50			35
Other		4			12
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net		(79)			146
Inventories		(301)			(118)
Prepaid expenses and other current assets		20			68
Accounts payable		139			150
Accrued and other current liabilities		(217)			(295)
Income taxes		45			30
Other		35			(37)
Net cash provided by operating activities		865			878
Cash flows from investing activities:
Capital expenditures		(258)			(205)
Proceeds from sale of property, plant, and equipment		1			1
Acquisition of businesses, net of cash acquired		—			(325)
Other		3			(8)
Net cash used in investing activities		(254)			(537)
Cash flows from financing activities:
Net increase in commercial paper		—			90
Proceeds from exercise of share options		44			34
Repurchase of ordinary shares		(405)			(303)
Payment of ordinary share dividends to shareholders		(209)			(189)
Other		(46)			(27)
Net cash used in financing activities		(616)			(395)
Effect of currency translation on cash		1			(11)
Net decrease in cash, cash equivalents, and restricted cash		(4)			(65)
Cash, cash equivalents, and restricted cash at beginning of period		1,255			1,319
Cash, cash equivalents, and restricted cash at end of period	$	1,251		$	1,254
Supplemental cash flow information:
Income taxes paid, net of refunds		88			49

 

TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED)
	For the Quarters Ended
	December 26,			December 27,
	2025			2024
	(in millions)
Net cash provided by operating activities	$	865		$	878
Capital expenditures, net		(257)			(204)
Free cash flow (1)	$	608		$	674

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

 

TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED)
	For the Quarters Ended
	December 26,						December 27,
	2025						2024
	($ in millions)
	Net Sales						Net Sales
Transportation Solutions	$	2,467					$	2,243
Industrial Solutions		2,202						1,593
Total	$	4,669					$	3,836
	Operating			Operating			Operating			Operating
	Income			Margin			Income			Margin
Transportation Solutions	$	501		20.3	%		$	446		19.9	%
Industrial Solutions		462		21.0				244		15.3
Total	$	963		20.6	%		$	690		18.0	%
	Adjusted			Adjusted			Adjusted			Adjusted
	Operating			Operating			Operating			Operating
	Income (1)			Margin (1)			Income (1)			Margin (1)
Transportation Solutions	$	523		21.2	%		$	495		22.1	%
Industrial Solutions		513		23.3				289		18.1
Total	$	1,036		22.2	%		$	784		20.4	%

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

 

TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)
	Change in Net Sales for the Quarter Ended December 26, 2025
	versus Net Sales for the Quarter Ended December 27, 2024
	Net Sales						Organic Net Sales
	Growth						Growth (Decline) (1)						Translation (2)			Acquisitions
	($ in millions)
Transportation Solutions:
Automotive	$	163		9.5	%		$	112		6.5	%		$	51		$	—
Commercial transportation		58		18.6				51		16.3				7			—
Sensors		3		1.4				(5)		(2.3)				8			—
Total Transportation Solutions		224		10.0				158		7.0				66			—
Industrial Solutions:
Digital data networks		294		71.2				288		69.7				6			—
Automation and connected living		70		14.6				55		11.6				14			1
Aerospace, defense, and marine		47		14.1				36		10.9				11			—
Energy		190		88.0				32		14.6				7			151
Medical		8		5.3				8		5.3				—			—
Total Industrial Solutions		609		38.2				419		26.3				38			152
Total	$	833		21.7	%		$	577		15.0	%		$	104		$	152

(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

 

TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 26, 2025 (UNAUDITED)
					Adjustments
					Acquisition-			Restructuring
					Related			and Other			Amortization			Adjusted
	U.S. GAAP				Charges (1)			Charges, Net (1)			Expense (1)			(Non-GAAP) (2)
	($ in millions, except per share data)
Operating income:
Transportation Solutions	$	501			$	—		$	4		$	18		$	523
Industrial Solutions		462				6			6			39			513
Total	$	963			$	6		$	10		$	57		$	1,036
Operating margin		20.6	%												22.2	%
Income tax expense	$	(210)			$	(1)		$	(3)		$	(11)		$	(225)
Effective tax rate		21.9	%												21.8	%
Income from continuing operations	$	751			$	5		$	7		$	46		$	809
Diluted earnings per share from continuing operations	$	2.53			$	0.02		$	0.02		$	0.15		$	2.72

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

   

TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 27, 2024 (UNAUDITED)
					Adjustments
					Acquisition-			Restructuring
					Related			and Other			Amortization						Adjusted
	U.S. GAAP				Charges (1)			Charges, Net (1)			Expense (1)			Tax Items (2)			(Non-GAAP) (3)
	($ in millions, except per share data)
Operating income:
Transportation Solutions	$	446			$	—		$	32		$	17		$	—		$	495
Industrial Solutions		244				5			18			22			—			289
Total	$	690			$	5		$	50		$	39		$	—		$	784
Operating margin		18.0	%															20.4	%
Income tax expense	$	(178)			$	(1)		$	(9)		$	(7)		$	13		$	(182)
Effective tax rate		25.2	%															22.8	%
Income from continuing operations	$	528			$	4		$	41		$	32		$	13		$	618
Diluted earnings per share from continuing operations	$	1.75			$	0.01		$	0.14		$	0.11		$	0.04		$	2.05

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.

(3) See description of non-GAAP financial measures.

 

TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended March 28, 2025 (UNAUDITED)
					Adjustments
					Acquisition-			Restructuring
					Related			and Other			Amortization						Adjusted
	U.S. GAAP				Charges (1)			Charges, Net (1)			Expense (1)			Tax Items (2)			(Non-GAAP) (3)
	($ in millions, except per share data)
Operating income:
Transportation Solutions	$	445			$	—		$	33		$	17		$	—		$	495
Industrial Solutions		303				12			12			24			—			351
Total	$	748			$	12		$	45		$	41		$	—		$	846
Operating margin		18.1	%															20.4	%
Income tax expense	$	(742)			$	(2)		$	(11)		$	(8)		$	574		$	(189)
Effective tax rate		98.3	%															22.2	%
Income from continuing operations	$	13			$	10		$	34		$	33		$	574		$	664
Diluted earnings per share from continuing operations	$	0.04			$	0.03		$	0.11		$	0.11		$	1.91		$	2.21

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024.

(3) See description of non-GAAP financial measures.

 

TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 26, 2025 (UNAUDITED)
					Adjustments
					Acquisition-			Restructuring
					Related			and Other			Amortization						Adjusted
	U.S. GAAP				Charges (1)			Charges, Net (1)			Expense (1)			Tax Items (2)			(Non-GAAP) (3)
	($ in millions, except per share data)
Operating income:
Transportation Solutions	$	1,818			$	—		$	75		$	70		$	—		$	1,963
Industrial Solutions		1,393				57			51			120			—			1,621
Total	$	3,211			$	57		$	126		$	190		$	—		$	3,584
Operating margin		18.6	%															20.8	%
Income tax expense	$	(1,361)			$	(12)		$	(13)		$	(37)		$	618		$	(805)
Effective tax rate		42.5	%															22.5	%
Income from continuing operations	$	1,843			$	45		$	113		$	153		$	618		$	2,772
Diluted earnings per share from continuing operations	$	6.16			$	0.15		$	0.38		$	0.51		$	2.07		$	9.27

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards.

(3) See description of non-GAAP financial measures.

 

TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of January 21, 2026 (UNAUDITED)
	Outlook for
	Quarter Ending
	March 27,
	2026
Diluted earnings per share from continuing operations	$	2.26
Acquisition-related charges		0.01
Restructuring and other charges, net		0.23
Amortization expense		0.15
Adjusted diluted earnings per share from continuing operations (1)	$	2.65
Net sales growth		13.4	%
Translation		(4.3)
(Acquisitions) divestitures, net		(2.9)
Organic net sales growth (1)		6.2	%

(1) See description of non-GAAP financial measures.

 

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SOURCE TE Connectivity plc

FAQ

What were TE Connectivity's Q1 FY26 sales and EPS (TEL) reported on Jan. 21, 2026?

Q1 FY26 sales were $4.7B (up 22% YoY) and GAAP diluted EPS was $2.53 (up 45% YoY).

How did TE Connectivity (TEL) perform on margins in Q1 FY26?

GAAP operating margin was 20.6% (up 260 bps YoY) and adjusted operating margin was 22.2% (up 180 bps YoY).

What guidance did TE Connectivity (TEL) give for Q2 FY26 on Jan. 21, 2026?

TE expects Q2 sales of approximately $4.7B (+13% reported, +6% organic) and adjusted EPS of about $2.65; GAAP EPS expected near $2.26.

How much cash did TE Connectivity (TEL) generate and return to shareholders in Q1 FY26?

Operating cash flow was $865M, free cash flow was $608M, and the company returned $615M to shareholders.

What drove TE Connectivity's (TEL) Q1 FY26 revenue growth?

Growth was driven by both Industrial and Transportation segments and increased content in AI, energy grid, and next-generation vehicles, contributing to 15% organic sales growth.