TE Connectivity delivers results above guidance with 15% sales growth and over 20% EPS growth in second quarter of fiscal 2026

Rhea-AI Summary

TE Connectivity (NYSE: TEL) reported fiscal Q2 results for the quarter ended March 27, 2026, with net sales of $4.74B (+15% reported, +7% organic) and GAAP EPS $2.90. Adjusted EPS was a record $2.73 (+24% YoY) and adjusted operating margin rose to 22%.

Orders were a record $5.3B (+25% YoY). Free cash flow was $1.3B (+17% YoY). The company returned $1.2B to shareholders and raised its quarterly dividend by 10%.

Positive

• Net sales +15% year-over-year to $4.74 billion
• Adjusted EPS record of $2.73, up 24% year-over-year
• Record orders of $5.3 billion, up 25% year-over-year
• Adjusted operating margin expanded to 22%, +130 bps YoY
• Free cash flow of $1.3 billion, up 17% year-over-year

Negative

• None.

News Market Reaction – TEL

-9.10% 1.8x vol

29 alerts

-9.10% Session close to close

-7.1% Trough in 4 hr 43 min

$71.36B Market Cap

1.8x Rel. Volume

In the Apr 22 session, TEL declined 9.10%, reflecting a notable negative market reaction. Argus tracked a trough of -7.1% from its starting point during tracking. Our momentum scanner triggered 29 alerts that day, indicating elevated trading interest and price volatility. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved -9.1% in the session following this news. A negative reaction despite strong results...

Analysis

The stock moved -9.1% in the session following this news. A negative reaction despite strong results would fit prior patterns where positive announcements, such as the dividend increase on March 11, 2026, were followed by declines. The company reported Q2 net sales of $4.74 billion with 15% growth and record adjusted EPS of $2.73, plus double-digit Q3 growth guidance. Historically, such strength has not always translated into sustained share gains as investors weighed valuation and positioning.

Key Figures

Net sales: $4.74 billion Adjusted EPS: $2.73 GAAP operating margin: 20% +5 more

8 metrics

Net sales $4.74 billion Fiscal Q2 2026; 15% reported growth, 7% organic YoY

Adjusted EPS $2.73 Fiscal Q2 2026; record level, up 24% YoY

GAAP operating margin 20% Fiscal Q2 2026; up 200 basis points YoY

Adjusted operating margin 22% Fiscal Q2 2026; expanded 130 basis points YoY

Orders $5.3 billion Fiscal Q2 2026; record level, 25% YoY increase

Free cash flow $1.3 billion First half FY26; up 17% YoY

Capital returns $1.2 billion Returned to shareholders in first half FY26

Q3 sales outlook $5 billion Fiscal Q3 2026 guidance; 10% reported, 9% organic YoY growth

Historical Context

5 past events · Latest: Apr 01 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 01	Earnings timing update	Neutral	+1.3%	Announced date and access details for Q2 FY26 earnings release.
Mar 27	Legal dispute settlement	Neutral	-0.5%	Settled AEC technology disputes with Credo via license and settlement.
Mar 23	AI adoption survey	Positive	+2.5%	Released Industrial Technology Index showing rising AI adoption and ROI focus.
Mar 18	Ethics award recognition	Positive	-4.0%	Named a World’s Most Ethical Company for 12th consecutive year.
Mar 11	Dividend and buyback	Positive	-3.6%	Raised quarterly dividend and increased share repurchase authorization.

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

Pattern Detected

Positive corporate news (ethics recognition, dividend increase) has sometimes seen negative next-day moves, while AI-related updates drew a positive reaction, indicating mixed alignment between good news and price.

Recent Company History

Over recent months, TE Connectivity has highlighted governance, capital returns, and technology positioning. A March 11, 2026 dividend increase and larger buyback authorization were followed by a share price decline, as was recognition among the World's Most Ethical Companies on March 18, 2026. In contrast, the March 23, 2026 AI-focused Industrial Technology Index coincided with a positive move. The current strong Q2 results and double-digit Q3 outlook extend a narrative of operational strength and shareholder returns against occasionally contrarian price reactions.

Key Terms

gaap, free cash flow, basis points, non-GAAP financial measures

4 terms

gaap financial

"GAAP diluted earnings per share (EPS) from continuing operations was $2.90."

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

free cash flow financial

"Free cash flow was $1.3 billion, up 17% year over year."

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.

View in glossary

basis points financial

"GAAP operating margin was 20%, an increase of 200 basis points year over year."

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

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. How Rhea-AI works. Not financial advice.

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Third quarter guidance reflects double digit sales and EPS growth

GALWAY, Ireland, April 22, 2026 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal second quarter ended March 27, 2026.

Second Quarter Highlights

• Net sales were $4.74 billion, an increase of 15% on a reported basis year over year, driven by growth in both the Industrial and Transportation segments, and 7% organically.
• GAAP diluted earnings per share (EPS) from continuing operations was $2.90. Adjusted EPS was a record $2.73, an increase of 24% year over year.
• GAAP operating margin was 20%, an increase of 200 basis points year over year. Adjusted operating margin expanded 130 basis points year over year to 22%, driven by strong operational performance across both segments.
• Record orders of $5.3 billion, an increase of 25% year over year with double-digit order growth in both segments and growth in all businesses.
• Cash flow from operating activities during the first half of the fiscal year was $1.8 billion. Free cash flow was $1.3 billion, up 17% year over year.
• Returned $1.2 billion to shareholders during the first half and announced 10% increase in quarterly cash dividend.

"Our teams delivered another quarter of results above guidance, including double-digit sales growth and record adjusted EPS," said CEO Terrence Curtin. "This performance and our record orders were driven by our strategic positioning in key trends including AI, next generation transportation and electric grid modernization, along with the broadening of growth across our portfolio. We're well positioned to capitalize on the proliferation of data and power to provide our customers with leading interconnect technologies. Our strong margin performance reflects the resilience we've built to mitigate the dynamic environment we continue to operate in around the world.

"Looking ahead to the third quarter, our ongoing orders momentum across all businesses positions us to deliver double digit sales growth to $5 billion, with continued strong operational performance to drive a double-digit increase in EPS. We continue to invest in innovative products and technologies that support our global customers and fuel our future growth."

Third Quarter FY26 Outlook
For the third quarter of fiscal 2026, the company expects sales of approximately $5 billion, an increase of 10% on a reported basis and 9% organically year over year. Adjusted EPS is expected to be approximately $2.83, an increase of 17% year over year. GAAP EPS from continuing operations is expected to be approximately $2.44, an increase of 14% 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 (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 April 22.

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						For the Six Months Ended
	March 27,			March 28,			March 27,			March 28,
	2026			2025			2026			2025
	(in millions, except per share data)
Net sales	$	4,744		$	4,143		$	9,413		$	7,979
Cost of sales		2,999			2,684			5,929			5,160
Gross margin		1,745			1,459			3,484			2,819
Selling, general, and administrative expenses		536			454			1,074			881
Research, development, and engineering expenses		237			203			462			391
Acquisition and integration costs		8			9			11			14
Restructuring and other charges, net		10			45			20			95
Operating income		954			748			1,917			1,438
Interest income		21			22			46			45
Interest expense		(32)			(14)			(62)			(20)
Other income (expense), net		(1)			(1)			2			(2)
Income from continuing operations before income taxes		942			755			1,903			1,461
Income tax expense		(87)			(742)			(297)			(920)
Income from continuing operations		855			13			1,606			541
Loss from discontinued operations, net of income taxes		—			—			(1)			—
Net income	$	855		$	13		$	1,605		$	541
Basic earnings per share:
Income from continuing operations	$	2.92		$	0.04		$	5.46		$	1.81
Loss from discontinued operations		—			—			—			—
Net income		2.92			0.04			5.46			1.81
Diluted earnings per share:
Income from continuing operations	$	2.90		$	0.04		$	5.43		$	1.80
Loss from discontinued operations		—			—			—			—
Net income		2.90			0.04			5.42			1.80
Weighted-average number of shares outstanding:
Basic		293			298			294			299
Diluted		295			300			296			301

TE CONNECTIVITY PLC
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
	March 27,			September 26,
	2026			2025
	(in millions, except share data)
Assets
Current assets:
Cash and cash equivalents	$	1,110		$	1,255
Accounts receivable, net of allowance for doubtful accounts of $52 and $44, respectively		3,454			3,403
Inventories		2,995			2,699
Prepaid expenses and other current assets		682			609
Total current assets		8,241			7,966
Property, plant, and equipment, net		4,473			4,312
Goodwill		7,437			7,126
Intangible assets, net		2,145			2,227
Deferred income taxes		2,337			2,507
Other assets		1,046			943
Total assets	$	25,679		$	25,081
Liabilities, redeemable noncontrolling interests, and shareholders' equity
Current liabilities:
Short-term debt	$	102		$	852
Accounts payable		2,224			2,021
Accrued and other current liabilities		2,039			2,247
Total current liabilities		4,365			5,120
Long-term debt		5,553			4,842
Long-term pension and postretirement liabilities		750			767
Deferred income taxes		198			198
Income taxes		306			414
Other liabilities		1,125			1,010
Total liabilities		12,297			12,351
Commitments and contingencies
Redeemable noncontrolling interests		148			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, 295,773,434 and 302,889,075 shares issued, respectively		3			3
Accumulated earnings		13,900			13,932
Ordinary shares held in treasury, at cost, 3,632,502 and 8,330,931 shares, respectively		(818)			(1,356)
Accumulated other comprehensive income		149			6
Total shareholders' equity		13,234			12,585
Total liabilities, redeemable noncontrolling interests, and shareholders' equity	$	25,679		$	25,081

TE CONNECTIVITY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	For the Quarters Ended						For the Six Months Ended
	March 27,			March 28,			March 27,			March 28,
	2026			2025			2026			2025
	(in millions)
Cash flows from operating activities:
Net income	$	855		$	13		$	1,605		$	541
Loss from discontinued operations, net of income taxes		—			—			1			—
Income from continuing operations		855			13			1,606			541
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization		243			192			502			378
Deferred income taxes		82			603			159			701
Non-cash lease cost		39			35			78			69
Provision for losses on accounts receivable and inventories		6			2			49			43
Share-based compensation expense		42			34			92			69
Other		(29)			22			(25)			34
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net		20			(317)			(59)			(171)
Inventories		(30)			(14)			(331)			(132)
Prepaid expenses and other current assets		(34)			72			(14)			140
Accounts payable		38			(4)			177			146
Accrued and other current liabilities		(47)			(3)			(264)			(298)
Income taxes		(129)			25			(84)			55
Other		(109)			(7)			(74)			(44)
Net cash provided by operating activities		947			653			1,812			1,531
Cash flows from investing activities:
Capital expenditures		(270)			(230)			(528)			(435)
Proceeds from sale of property, plant, and equipment		3			1			4			2
Acquisition of businesses, net of cash acquired		(200)			4			(200)			(321)
Other		(3)			1			—			(7)
Net cash used in investing activities		(470)			(224)			(724)			(761)
Cash flows from financing activities:
Net increase in commercial paper		100			1,155			100			1,245
Proceeds from issuance of debt		750			773			750			773
Repayment of debt		(851)			(579)			(851)			(579)
Proceeds from exercise of share options		20			25			64			59
Repurchase of ordinary shares		(414)			(306)			(819)			(609)
Payment of ordinary share dividends to shareholders		(208)			(193)			(417)			(382)
Other		(12)			(6)			(58)			(33)
Net cash provided by (used in) financing activities		(615)			869			(1,231)			474
Effect of currency translation on cash		(3)			2			(2)			(9)
Net increase (decrease) in cash, cash equivalents, and restricted cash		(141)			1,300			(145)			1,235
Cash, cash equivalents, and restricted cash at beginning of period		1,251			1,254			1,255			1,319
Cash, cash equivalents, and restricted cash at end of period	$	1,110		$	2,554		$	1,110		$	2,554
Supplemental cash flow information:
Income taxes paid, net of refunds	$	135		$	115		$	223		$	164

TE CONNECTIVITY PLC
RECONCILIATION OF FREE CASH FLOW (UNAUDITED)
	For the Quarters Ended						For the Six Months Ended
	March 27,			March 28,			March 27,			March 28,
	2026			2025			2026			2025
	(in millions)
Net cash provided by operating activities	$	947		$	653		$	1,812		$	1,531
Capital expenditures, net		(267)			(229)			(524)			(433)
Free cash flow (1)	$	680		$	424		$	1,288		$	1,098
(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 Six Months Ended
		March 27,						March 28,						March 27,						March 28,
		2026						2025						2026						2025
		($ in millions)
		Net Sales						Net Sales						Net Sales						Net Sales
Transportation Solutions		$	2,422					$	2,314					$	4,889					$	4,557
Industrial Solutions			2,322						1,829						4,524						3,422
Total		$	4,744					$	4,143					$	9,413					$	7,979
		Operating			Operating			Operating			Operating			Operating			Operating			Operating			Operating
		Income			Margin			Income			Margin			Income			Margin			Income			Margin
Transportation Solutions		$	503		20.8	%		$	445		19.2	%		$	1,004		20.5	%		$	891		19.6	%
Industrial Solutions			451		19.4				303		16.6				913		20.2				547		16.0
Total		$	954		20.1	%		$	748		18.1	%		$	1,917		20.4	%		$	1,438		18.0	%
		Adjusted			Adjusted			Adjusted			Adjusted			Adjusted			Adjusted			Adjusted			Adjusted
		Operating			Operating			Operating			Operating			Operating			Operating			Operating			Operating
		Income (1)			Margin (1)			Income (1)			Margin (1)			Income (1)			Margin (1)			Income (1)			Margin (1)
Transportation Solutions		$	522		21.6	%		$	495		21.4	%		$	1,045		21.4	%		$	990		21.7	%
Industrial Solutions			507		21.8				351		19.2				1,020		22.5				640		18.7
Total		$	1,029		21.7	%		$	846		20.4	%		$	2,065		21.9	%		$	1,630		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 March 27, 2026
	versus Net Sales for the Quarter Ended March 28, 2025
	Net Sales						Organic Net Sales
	Growth (Decline)						Growth (Decline) (1)						Translation (2)			Acquisition
	($ in millions)
Transportation Solutions:
Automotive	$	27		1.6	%		$	(67)		(3.8)	%		$	94		$	—
Commercial transportation		76		21.3				62		17.1				14			—
Sensors		5		2.3				(7)		(3.0)				12			—
Total Transportation Solutions		108		4.7				(12)		(0.5)				120			—
Industrial Solutions:
Digital data networks		232		48.1				222		46.1				10			—
Automation and connected living		67		13.1				42		8.2				25			—
Aerospace, defense, and marine		34		9.1				21		5.4				13			—
Energy		166		59.5				31		11.2				15			120
Medical		(6)		(3.3)				(7)		(3.5)				1			—
Total Industrial Solutions		493		27.0				309		16.9				64			120
Total	$	601		14.5	%		$	297		7.2	%		$	184		$	120
	Change in Net Sales for the Six Months Ended March 27, 2026
	versus Net Sales for the Six Months Ended March 28, 2025
	Net Sales						Organic Net Sales
	Growth						Growth (Decline) (1)						Translation (2)			Acquisitions
	($ in millions)
Transportation Solutions:
Automotive	$	190		5.5	%		$	45		1.3	%		$	145		$	—
Commercial transportation		134		20.0				113		16.7				21			—
Sensors		8		1.9				(12)		(2.7)				20			—
Total Transportation Solutions		332		7.3				146		3.2				186			—
Industrial Solutions:
Digital data networks		526		58.8				510		57.0				16			—
Automation and connected living		137		13.8				97		9.8				39			1
Aerospace, defense, and marine		81		11.4				57		8.0				24			—
Energy		356		71.9				63		12.7				22			271
Medical		2		0.6				1		0.4				1			—
Total Industrial Solutions		1,102		32.2				728		21.3				102			272
Total	$	1,434		18.0	%		$	874		11.0	%		$	288		$	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.

TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 27, 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	$	503			$	—		$	1		$	18		$	—		$	522
Industrial Solutions		451				8			9			39			—			507
Total	$	954			$	8		$	10		$	57		$	—		$	1,029
Operating margin		20.1	%															21.7	%
Income tax expense	$	(87)			$	(2)		$	2		$	(12)		$	(114)		$	(213)
Effective tax rate		9.2	%															20.9	%
Income from continuing operations	$	855			$	6		$	12		$	45		$	(114)		$	804
Diluted earnings per share from continuing operations	$	2.90			$	0.02		$	0.04		$	0.15		$	(0.39)		$	2.73

(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 net income tax benefit related primarily to the settlement of prior period tax matters.

(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 Six Months Ended March 27, 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	$	1,004			$	—		$	5		$	36		$	—		$	1,045
Industrial Solutions		913				14			15			78			—			1,020
Total	$	1,917			$	14		$	20		$	114		$	—		$	2,065
Operating margin		20.4	%															21.9	%
Income tax expense	$	(297)			$	(3)		$	(1)		$	(23)		$	(114)		$	(438)
Effective tax rate		15.6	%															21.4	%
Income from continuing operations	$	1,606			$	11		$	19		$	91		$	(114)		$	1,613
Diluted earnings per share from continuing operations	$	5.43			$	0.04		$	0.06		$	0.31		$	(0.39)		$	5.45

(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 net income tax benefit related primarily to the settlement of prior period tax matters.

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

TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Six Months 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	$	891			$	—		$	65		$	34		$	—		$	990
Industrial Solutions		547				17			30			46			—			640
Total	$	1,438			$	17		$	95		$	80		$	—		$	1,630
Operating margin		18.0	%															20.4	%
Income tax expense	$	(920)			$	(3)		$	(20)		$	(15)		$	587		$	(371)
Effective tax rate		63.0	%															22.4	%
Income from continuing operations	$	541			$	14		$	75		$	65		$	587		$	1,282
Diluted earnings per share from continuing operations	$	1.80			$	0.05		$	0.25		$	0.22		$	1.95		$	4.26

(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) Includes 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 $13 million 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 June 27, 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	$	462			$	—		$	7		$	17		$	486
Industrial Solutions		395				30			7			35			467
Total	$	857			$	30		$	14		$	52		$	953
Operating margin		18.9	%												21.0	%
Income tax expense	$	(208)			$	(7)		$	1		$	(11)		$	(225)
Effective tax rate		24.6	%												23.9	%
Income from continuing operations	$	638			$	23		$	15		$	41		$	717
Diluted earnings per share from continuing operations	$	2.14			$	0.08		$	0.05		$	0.14		$	2.41

(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 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 April 22, 2026
(UNAUDITED)
	Outlook for
	Quarter Ending
	June 26,
	2026
Diluted earnings per share from continuing operations	$	2.44
Acquisition-related charges		0.02
Restructuring and other charges, net		0.22
Amortization expense		0.15
Adjusted diluted earnings per share from continuing operations (1)	$	2.83
Net sales growth		10.3	%
Translation		(1.1)
(Acquisitions) divestitures, net		—
Organic net sales growth (1)		9.2	%
(1) See description of non-GAAP financial measures.

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SOURCE TE Connectivity plc

FAQ

What were TE Connectivity's Q2 FY26 sales and growth rate (TEL)?

TE Connectivity reported $4.74 billion in Q2 sales, a 15% year-over-year increase. According to the company, organic growth was 7%, with strength across Industrial and Transportation segments driving reported growth.

How much did TE Connectivity report for adjusted EPS in Q2 FY26 (TEL)?

Adjusted EPS was a record $2.73, up 24% year-over-year. According to the company, strong operational performance across segments and margin expansion supported the adjusted EPS increase.

What guidance did TE Connectivity give for Q3 FY26 sales and EPS (TEL)?

The company expects Q3 sales of about $5.0 billion and adjusted EPS of about $2.83, both double-digit increases year-over-year. According to the company, ongoing order momentum underpins this outlook.

How much cash did TE Connectivity return to shareholders in H1 FY26 (TEL)?

TE returned $1.2 billion to shareholders during the first half of FY26 and announced a 10% quarterly dividend increase. According to the company, this reflects confidence in cash generation and capital allocation.

What were TE Connectivity's cash flow and free cash flow results for H1 FY26 (TEL)?

Cash flow from operations for the first half was $1.8 billion, with free cash flow of $1.3 billion, up 17% year-over-year. According to the company, strong cash conversion supported shareholder returns and investments.