TE Connectivity delivers 12% sales increase and over 20% EPS growth in fiscal fourth quarter

Orders rose 27% for fiscal 2026, while TE expects double-digit sales growth in fiscal 2027.

Rhea-AI Summary

TE Connectivity (NYSE: TEL) reported fourth-quarter sales of $5,312 million, with growth in both its Industrial and Transportation segments. Sales rose 12% reported and 13% organically year over year. GAAP diluted earnings per share from continuing operations increased 39% to $3.10; adjusted EPS rose 21% to $3.14. Orders reached $6.1 billion, up 29% year over year.

Fiscal 2026 sales rose 15% to $19,885 million, while GAAP EPS from continuing operations increased 80% to $11.07. Operating cash flow totaled $4,525 million. Approximately $2.8 billion was returned to shareholders, and $1.6 billion was committed to Industrial acquisitions. TE expects fiscal 2027 double-digit sales growth and organic growth similar to fiscal 2026's 12%. First-quarter guidance calls for approximately $5.35 billion in sales and GAAP EPS from continuing operations of approximately $3.04.

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Positive

• Moderate pointFourth-quarter sales rose 12% reported and 13% organically year over year to $5,312 million.
• Moderate pointFourth-quarter GAAP diluted EPS from continuing operations increased 39% to $3.10 year over year.
• Moderate pointFourth-quarter orders reached $6.1 billion, up 29% year over year and 6% sequentially. 9.3% of market cap
• Moderate pointFourth-quarter operating income increased to $1,093 million from $916 million a year earlier.
• Moderate pointFourth-quarter operating cash flow increased to $1,528 million from $1,421 million a year earlier.
• Moderate pointFiscal 2026 sales increased 15% reported and 12% organically to $19,885 million.
• Moderate pointFiscal 2026 GAAP EPS from continuing operations increased 80% to $11.07.
• Moderate pointFiscal 2026 orders rose 27% to $22.2 billion. 34% of market cap
• Moderate pointFiscal 2026 operating income increased to $3,991 million from $3,211 million in fiscal 2025.
• Moderate pointFiscal 2026 operating cash flow increased to $4,525 million from $4,139 million in fiscal 2025.
• Moderate pointFiscal 2026 shareholder returns totaled approximately $2.8 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Industrial acquisition commitments of $1.6 billion aim to broaden the optics and power filtering portfolios. 2.5% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.TE expects fiscal 2027 double-digit sales growth, with organic growth similar to fiscal 2026's 12%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.First-quarter fiscal 2027 sales guidance is approximately $5.35 billion, up 15% reported and organically year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.First-quarter fiscal 2027 GAAP EPS guidance from continuing operations is approximately $3.04, up 20% year over year.

11 minor points

• Minor pointFourth-quarter adjusted EPS increased 21% to $3.14 year over year.
• Minor pointFourth-quarter free cash flow reached $1.2 billion.
• Minor pointFourth-quarter shareholder returns totaled approximately $800 million.
• Minor pointFiscal 2026 adjusted EPS increased 24% to $11.52.
• Minor pointIndustrial Solutions grew 26% in fiscal 2026.
• Minor pointFiscal 2026 free cash flow totaled $3.4 billion.
• Minor point. Forward-looking: it has not happened yet and may not happen.First-quarter fiscal 2027 adjusted EPS guidance is approximately $3.30, up 21% year over year.
• Minor pointCash and equivalents increased to $1,697 million from $1,255 million at the prior fiscal year-end.
• Minor pointShort-term debt declined to $502 million from $852 million at the prior fiscal year-end.
• Minor pointFiscal 2026 restructuring and other charges declined to $117 million from $126 million in fiscal 2025.
• Minor pointFiscal 2026 acquisition and integration costs declined to $32 million from $47 million in fiscal 2025.

Negative

• Minor pointLong-term debt increased to $5,137 million from $4,842 million at the prior fiscal year-end.
• Minor pointFiscal 2026 interest expense increased to $124 million from $77 million in fiscal 2025.
• Minor pointFiscal 2026 selling, general and administrative expenses rose to $2,124 million from $1,866 million.
• Minor pointFiscal 2026 research, development and engineering expenses rose to $942 million from $829 million.
• Minor pointFourth-quarter acquisition and integration costs increased to $12 million from $6 million a year earlier.

Key Figures

Fourth-quarter net sales: $5.3 billion; +12% reported, +13% organically Adjusted EPS: $3.14; +21% Full-year net sales: $19.9 billion; +15% reported, +12% organically +3 more

Fourth-quarter net sales

$5.3 billion; +12% reported, +13% organically

Fiscal fourth quarter, year over year

Adjusted EPS

$3.14; +21%

Fiscal fourth quarter, year over year

Full-year net sales

$19.9 billion; +15% reported, +12% organically

Fiscal 2026

Full-year adjusted EPS

$11.52; +24%

Fiscal 2026, year over year

Full-year orders

$22.2 billion; +27%

Fiscal 2026, year over year

Free cash flow

$3.4 billion

Fiscal 2026

Historical Context

1 past event · Latest: Jul 22

1 event

1. Jul 22

   Q3 earnings

   24h Move

   -4.2%

   Q3 sales rose 14%, adjusted EPS rose 22%, and orders increased 27%.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap

2 terms

gaap financial

"GAAP diluted earnings per share (EPS) from continuing operations was $3.10"

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.

View in glossary

non-gaap financial

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

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

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Delivered strong full-year performance with sales growth of 15% and more than 20% EPS growth

Expects double digit sales growth in fiscal 2027

GALWAY, Ireland, Oct. 28, 2026 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal fourth quarter and fiscal year ended September 25, 2026.

Fourth Quarter Highlights

• Net sales were a record $5.3 billion, an increase of 12% on a reported basis and 13% organically year over year, driven by strong growth in both the Industrial and Transportation segments.
• Orders of $6.1 billion, an increase of 29% year over year and 6% sequentially.
• GAAP diluted earnings per share (EPS) from continuing operations was $3.10, up 39% year over year. Adjusted EPS was $3.14, an increase of 21% year over year.
• GAAP Operating margin was 21% and adjusted operating margin was 22%, driven by strong operational performance across both segments.
• Cash flow from operating activities was $1.5 billion and free cash flow was $1.2 billion, with approximately $800 million returned to shareholders.

Full Year Highlights

• Company delivered full-year records for sales, orders, operating margin, EPS and cash generation.
• Net sales were $19.9 billion, up 15% on a reported basis and 12% organically, with broad growth across the portfolio due to customer needs for increased data and power connectivity.
• Orders of $22.2 billion, up 27%, supporting expected double-digit sales growth in fiscal 2027.
• GAAP operating margin was 20% and adjusted operating margin was 22%, driven by strong operational performance.
• GAAP EPS was $11.07, an increase of 80%, and adjusted EPS was $11.52, up 24%
• Cash flow from operating activities was $4.5 billion and free cash flow was $3.4 billion.
• Returned approximately $2.8 billion to shareholders and committed $1.6 billion for bolt-on acquisitions in the Industrial segment to broaden the optics and power filtering portfolios.

"Our teams delivered a strong fourth quarter to finish a year in which we set records in sales, earnings and cash generation," said CEO Terrence Curtin. "Our growth is supported by our strategic positioning of TE around accelerating data and power trends that are driving customer demand for connectivity innovations that are essential to next generation architectures. In our Industrial Solutions segment, which grew 26% in 2026, we continue to benefit from our customers' AI investments, which create opportunities extending from inside the rack in the data center to the networking edge all the way to the energy grid.   

"Entering fiscal 2027, we expect that the strong momentum from 2026 will continue as we are well positioned to keep capitalizing on growth drivers and deliver value for our shareholders. With strong orders across our businesses, we expect first quarter sales to be up mid-teens and to deliver more than 20 percent EPS growth year over year. For the full fiscal year, we expect to deliver organic sales growth that is similar to our strong performance in fiscal 2026."

First Quarter FY27 Outlook
For the first quarter of fiscal 2027, the company expects sales of approximately $5.35 billion, up 15% on a reported and organic basis year over year. GAAP EPS from continuing operations is expected to be approximately $3.04, an increase of 20% year over year, with adjusted EPS of approximately $3.30, up 21% year over year.

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 (833) 461-5787 and for international callers, the dial-in number is (585) 542-9983; meeting ID: 968971220.
• 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 October 28.

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 100,000 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						For the Years Ended
	September 25,			September 26,			September 25,			September 26,
	2026			2025			2026			2025
	(in millions, except per share data)
Net sales	$	5,312		$	4,749		$	19,885		$	17,262
Cost of sales		3,425			3,089			12,679			11,183
Gross margin		1,887			1,660			7,206			6,079
Selling, general, and administrative expenses		518			494			2,124			1,866
Research, development, and engineering expenses		250			227			942			829
Acquisition and integration costs		12			6			32			47
Restructuring and other charges, net		14			17			117			126
Operating income		1,093			916			3,991			3,211
Interest income		23			21			90			83
Interest expense		(31)			(29)			(124)			(77)
Other expense, net		(9)			(11)			(7)			(13)
Income from continuing operations before income taxes		1,076			897			3,950			3,204
Income tax expense		(175)			(233)			(695)			(1,361)
Income from continuing operations		901			664			3,255			1,843
Loss from discontinued operations, net of income taxes		(1)			(1)			(2)			(1)
Net income	$	900		$	663		$	3,253		$	1,842
Basic earnings per share:
Income from continuing operations	$	3.12		$	2.25		$	11.15		$	6.21
Loss from discontinued operations		—			—			(0.01)			—
Net income		3.11			2.25			11.14			6.20
Diluted earnings per share:
Income from continuing operations	$	3.10		$	2.23		$	11.07		$	6.16
Loss from discontinued operations		—			—			(0.01)			—
Net income		3.09			2.22			11.06			6.16
Weighted-average number of shares outstanding:
Basic		289			295			292			297
Diluted		291			298			294			299

 

TE CONNECTIVITY PLC
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
	September 25,			September 26,
	2026			2025
	(in millions, except share data)
Assets
Current assets:
Cash and cash equivalents	$	1,697		$	1,255
Accounts receivable, net of allowance for doubtful accounts of $55 and $44, respectively		3,839			3,403
Inventories		2,962			2,699
Prepaid expenses and other current assets		785			609
Total current assets		9,283			7,966
Property, plant, and equipment, net		4,637			4,312
Goodwill		7,420			7,126
Intangible assets, net		2,031			2,227
Deferred income taxes		2,128			2,507
Other assets		1,173			943
Total assets	$	26,672		$	25,081
Liabilities, redeemable noncontrolling interests, and shareholders' equity
Current liabilities:
Short-term debt	$	502		$	852
Accounts payable		2,455			2,021
Accrued and other current liabilities		2,407			2,247
Total current liabilities		5,364			5,120
Long-term debt		5,137			4,842
Long-term pension and postretirement liabilities		625			767
Deferred income taxes		246			198
Income taxes		346			414
Other liabilities		1,231			1,010
Total liabilities		12,949			12,351
Commitments and contingencies
Redeemable noncontrolling interests		150			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, 296,288,773 and 302,889,075 shares issued, respectively		3			3
Accumulated earnings		15,244			13,932
Ordinary shares held in treasury, at cost, 8,788,224 and 8,330,931 shares, respectively		(1,892)			(1,356)
Accumulated other comprehensive income		218			6
Total shareholders' equity		13,573			12,585
Total liabilities, redeemable noncontrolling interests, and shareholders' equity	$	26,672		$	25,081

 

TE CONNECTIVITY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	For the Quarters Ended						For the Years Ended
	September 25,			September 26,			September 25,			September 26,
	2026			2025			2026			2025
	(in millions)
Cash flows from operating activities:
Net income	$	900		$	663		$	3,253		$	1,842
Loss from discontinued operations, net of income taxes		1			1			2			1
Income from continuing operations		901			664			3,255			1,843
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization		275			244			1,033			838
Deferred income taxes		60			166			321			938
Non-cash lease cost		41			39			159			145
Provision for losses on accounts receivable and inventories		10			(4)			71			58
Share-based compensation expense		38			44			168			149
Other		14			20			(37)			80
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net		(227)			50			(582)			(341)
Inventories		49			139			(316)			(160)
Prepaid expenses and other current assets		54			60			92			91
Accounts payable		162			(8)			595			290
Accrued and other current liabilities		132			41			(108)			(35)
Income taxes		14			(25)			(80)			147
Other		5			(9)			(46)			96
Net cash provided by operating activities		1,528			1,421			4,525			4,139
Cash flows from investing activities:
Capital expenditures		(290)			(271)			(1,122)			(936)
Proceeds from sale of property, plant, and equipment		3			4			9			11
Acquisition of businesses, net of cash acquired		(12)			—			(212)			(2,628)
Other		(3)			(3)			(9)			(15)
Net cash used in investing activities		(302)			(270)			(1,334)			(3,568)
Cash flows from financing activities:
Net increase (decrease) in commercial paper		—			—			100			(255)
Proceeds from issuance of debt		—			—			750			2,231
Repayment of debt		(1)			—			(852)			(580)
Proceeds from exercise of share options		3			81			82			182
Repurchase of ordinary shares		(544)			(437)			(1,892)			(1,347)
Payment of ordinary share dividends to shareholders		(226)			(209)			(869)			(803)
Other		(1)			(1)			(68)			(57)
Net cash used in financing activities		(769)			(566)			(2,749)			(629)
Effect of currency translation on cash		1			(2)			—			(6)
Net increase (decrease) in cash, cash equivalents, and restricted cash		458			583			442			(64)
Cash, cash equivalents, and restricted cash at beginning of period		1,239			672			1,255			1,319
Cash, cash equivalents, and restricted cash at end of period	$	1,697		$	1,255		$	1,697		$	1,255
Supplemental cash flow information:
Interest paid on debt, net	$	28		$	21		$	110		$	34
Income taxes paid, net of refunds		101			92			454			276

 

TE CONNECTIVITY PLC
RECONCILIATION OF FREE CASH FLOW (UNAUDITED)
	For the Quarters Ended						For the Years Ended
	September 25,			September 26,			September 25,			September 26,
	2026			2025			2026			2025
	(in millions)
Net cash provided by operating activities	$	1,528		$	1,421		$	4,525		$	4,139
Capital expenditures, net		(287)			(267)			(1,113)			(925)
Free cash flow (1)	$	1,241		$	1,154		$	3,412		$	3,214
(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												For the Years Ended
	September 25,						September 26,						September 25,						September 26,
	2026						2025						2026						2025
	($ in millions)
	Net Sales						Net Sales						Net Sales						Net Sales
Transportation Solutions	$	2,600					$	2,413					$	10,069					$	9,388
Industrial Solutions		2,799						2,336						9,903						7,874
Reconciling item (1)		(87)						—						(87)						—
Total	$	5,312					$	4,749					$	19,885					$	17,262
	Operating			Operating			Operating			Operating			Operating			Operating			Operating			Operating
	Income			Margin			Income			Margin			Income			Margin			Income			Margin
Transportation Solutions	$	521		20.0	%		$	465		19.3	%		$	1,969		19.6	%		$	1,818		19.4	%
Industrial Solutions		568		20.3				451		19.3				2,018		20.4				1,393		17.7
Reconciling item (2)		4						—						4						—
Total	$	1,093		20.6	%		$	916		19.3	%		$	3,991		20.1	%		$	3,211		18.6	%
	Adjusted			Adjusted			Adjusted			Adjusted			Adjusted			Adjusted			Adjusted			Adjusted
	Operating			Operating			Operating			Operating			Operating			Operating			Operating			Operating
	Income (3)			Margin (3)			Income (3)			Margin (3)			Income (3)			Margin (3)			Income (3)			Margin (3)
Transportation Solutions	$	545		21.0	%		$	487		20.2	%		$	2,131		21.2	%		$	1,963		20.9	%
Industrial Solutions		627		22.4				514		22.0				2,235		22.6				1,621		20.6
Reconciling item (2)		4						—						4						—
Total	$	1,176		22.1	%		$	1,001		21.1	%		$	4,370		22.0	%		$	3,584		20.8	%
(1) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers.
(2) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026.
(3) 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 September 25, 2026
	versus Net Sales for the Quarter Ended September 26, 2025
	Net Sales						Organic Net Sales						Translation
	Growth (Decline)						Growth (Decline) (1)						and Other (2)			Acquisitions
	($ in millions)
Transportation Solutions:
Automotive	$	127		7.0	%		$	107		5.9	%		$	20		$	—
Commercial transportation		65		17.9				64		17.8				1			—
Sensors		(5)		(2.0)				(4)		(1.7)				(1)			—
Total Transportation Solutions		187		7.7				167		6.9				20			—
Industrial Solutions:
Digital data networks		242		34.2				246		34.4				(4)			—
Automation and connected living		103		17.6				101		17.6				2			—
Energy		55		11.8				54		11.7				1			—
Aerospace, defense, and marine		61		15.2				63		16.0				(2)			—
Medical		2		1.1				3		1.3				(1)			—
Total Industrial Solutions		463		19.8				467		20.0				(4)			—
Reconciling item (3)		(87)						—						(87)			—
Total	$	563		11.9	%		$	634		13.4	%		$	(71)		$	—
	Change in Net Sales for the Year Ended September 25, 2026
	versus Net Sales for the Year Ended September 26, 2025
	Net Sales						Organic Net Sales						Translation
	Growth (Decline)						Growth (Decline) (1)						and Other (2)			Acquisitions
	($ in millions)
Transportation Solutions:
Automotive	$	417		5.9	%		$	212		3.0	%		$	205		$	—
Commercial transportation		264		19.3				233		17.1				31			—
Sensors		—		—				(22)		(2.4)				22			—
Total Transportation Solutions		681		7.3				423		4.5				258			—
Industrial Solutions:
Digital data networks		975		44.2				961		43.5				14			—
Automation and connected living		333		15.5				281		13.1				51			1
Energy		543		40.4				243		18.1				29			271
Aerospace, defense, and marine		187		12.6				163		11.0				24			—
Medical		(9)		(1.3)				(9)		(1.3)				—			—
Total Industrial Solutions		2,029		25.8				1,639		20.8				118			272
Reconciling item (3)		(87)						—						(87)			—
Total	$	2,623		15.2	%		$	2,062		11.9	%		$	289		$	272
(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 and IEEPA tariff refunds.
(3) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers.

 

TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended September 25, 2026
(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	$	521			$	1		$	5		$	18		$	—		$	545
Industrial Solutions		568				11			9			39			—			627
Reconciling item (4)		4				—			—			—			—			4
Total	$	1,093			$	12		$	14		$	57		$	—		$	1,176
Operating margin		20.6	%															22.1	%
Income tax expense	$	(175)			$	(2)		$	2		$	(11)		$	(59)		$	(245)
Effective tax rate		16.3	%															21.1	%
Income from continuing operations	$	901			$	10		$	16		$	46		$	(59)		$	914
Diluted earnings per share from continuing operations	$	3.10			$	0.03		$	0.05		$	0.16		$	(0.20)		$	3.14
(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 a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards.
(3) See description of non-GAAP financial measures.
(4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026.

 

 

TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter 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	$	465			$	—		$	3		$	19		$	—		$	487
Industrial Solutions		451				10			14			39			—			514
Total	$	916			$	10		$	17		$	58		$	—		$	1,001
Operating margin		19.3	%															21.1	%
Income tax expense	$	(233)			$	(2)		$	6		$	(11)		$	31		$	(209)
Effective tax rate		26.0	%															21.3	%
Income from continuing operations	$	664			$	8		$	23		$	47		$	31		$	773
Diluted earnings per share from continuing operations	$	2.23			$	0.03		$	0.08		$	0.16		$	0.10		$	2.59
(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 $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards and an income tax benefit of $13 million related to the revaluation of deferred tax liabilities 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 Year Ended September 25, 2026
(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	$	1,969			$	2		$	89		$	71		$	—			$		2,131
Industrial Solutions		2,018				33			28			156			—					2,235
Reconciling item (4)		4				—			—			—			—					4
Total	$	3,991			$	35		$	117		$	227		$	—			$		4,370
Operating margin		20.1	%																	22.0		%
Income tax expense	$	(695)			$	(7)		$	(21)		$	(45)		$	(173)			$		(941)
Effective tax rate		17.6	%																	21.7		%
Income from continuing operations	$	3,255			$	28		$	96		$	182		$	(173)			$		3,388
Diluted earnings per share from continuing operations	$	11.07			$	0.10		$	0.33		$	0.62		$	(0.59)			$		11.52
(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 a $114 million net income tax benefit related primarily to the settlement of prior period tax matters and a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards.
(3) See description of non-GAAP financial measures.
(4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026.

 

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 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 FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES
TO FORWARD-LOOKING GAAP FINANCIAL MEASURES
As of October 28, 2026
(UNAUDITED)
	Outlook for
	Quarter Ending
	December 25,
	2026
Diluted earnings per share from continuing operations	$	3.04
Acquisition-related charges		0.06
Restructuring and other charges, net		0.05
Amortization expense		0.15
Adjusted diluted earnings per share from continuing operations (1)	$	3.30
Net sales growth		14.6	%
Translation and other (2)		0.7
(Acquisitions) divestitures, net		—
Organic net sales growth (1)		15.3	%
(1) See description of non-GAAP financial measures.
(2) Includes IEEPA tariff refunds expected to be received in fiscal 2027 and returned to customers.

 

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SOURCE TE Connectivity plc

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were TE Connectivity's fourth-quarter fiscal 2026 sales and earnings?

TE Connectivity reported sales of $5,312 million and GAAP diluted EPS from continuing operations of $3.10. Sales increased 12% reported and 13% organically year over year, while GAAP EPS increased 39%. Adjusted EPS was $3.14, up 21%.

What is TE Connectivity's first-quarter fiscal 2027 outlook?

TE expects sales of approximately $5.35 billion and GAAP EPS from continuing operations of approximately $3.04. Those figures represent year-over-year growth of 15% for sales, both reported and organic, and 20% for GAAP EPS. Adjusted EPS is expected to be approximately $3.30, up 21%.