TE Connectivity plc Ordinary Shares
TEL · NYSE
Next quarter
Expected to report Jan 20, 2027 — estimated from last year’s reporting date.
Consensus is $3.31 EPS for Dec 2026 across 2 estimates, ranging $3.30 to $3.31.
TEL Sep 2026
- 1.95%
- $3.08
- $3.14
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Highlights
- Record quarterly sales: Q4 revenue was $5.312 billion, up 11.9% reported and 13.4% organically year over year, versus $5.16 billion in Q3 and $4.749 billion a year ago.
- EPS topped expectations: Adjusted diluted EPS was $3.14, 1.95% above the $3.08 consensus and up 21% year over year; GAAP diluted EPS from continuing operations was $3.10.
- Industrial led growth: Industrial Solutions sales rose 19.8% organically to $2.799 billion, led by digital data networks growth of 34.2%; Transportation Solutions grew 7.7% organically to $2.600 billion.
- Orders strengthened: Q4 orders were $6.1 billion, up 29% year over year and 6% sequentially; full-year orders rose 27% to $22.2 billion.
- Margins improved: GAAP operating margin was 20.6%, up from 19.3% a year ago; adjusted operating margin was 22.1%, versus 21.1%.
- Cash generation and returns: Q4 operating cash flow was $1.528 billion and free cash flow was $1.241 billion; about $800 million was returned to shareholders. Full-year free cash flow reached $3.412 billion.
- Record fiscal year: FY2026 revenue was $19.885 billion, up 15.2% reported and 11.9% organically; adjusted EPS was $11.52, up 24%, and adjusted operating margin was 22.0%.
- Positive FY2027 start: Q1 guidance calls for approximately $5.35 billion in sales, up about 15%, and adjusted EPS of $3.30, up 21% year over year.
Analysis
TE Connectivity closed FY2026 with record quarterly sales and a modest adjusted-EPS beat: revenue of $5.312 billion rose 11.9% year over year, while adjusted EPS of $3.14 exceeded the $3.08 consensus by 1.95%. Sales were up from $5.16 billion in Q3 and $4.749 billion a year earlier; adjusted EPS grew 21% year over year. GAAP diluted EPS from continuing operations was $3.10, up from $2.23 a year ago. The quarter’s defining feature was broad but uneven segment growth: Industrial Solutions expanded 19.8% organically, led by digital data networks, while Transportation Solutions grew 7.7%. Orders accelerated to $6.1 billion, up 29% year over year, supporting management’s expectation of continued double-digit growth.
Profitability and cash generation also strengthened. GAAP operating margin rose to 20.6% from 19.3% a year ago, and adjusted margin reached 22.1%. Operating cash flow was $1.528 billion and free cash flow $1.241 billion. For the full year, revenue grew 15.2% reported, adjusted EPS rose 24% to $11.52, and free cash flow was $3.412 billion. Looking ahead, TE expects Q1 sales of about $5.35 billion and adjusted EPS of $3.30, and says FY2027 organic sales growth should be similar to FY2026’s 11.9%.
Sales and orders
Quarterly sales reached a record $5.312 billion, up 11.9% reported and 13.4% organically. The reported growth rate was lower partly because the sales reconciliation includes $87 million of IEEPA tariff refunds received in FY2026 that are expected to be returned to customers. Orders of $6.1 billion rose 29% from a year ago and 6% sequentially, an encouraging demand signal behind the company’s FY2027 growth outlook. Full-year orders increased 27% to $22.2 billion.
Segment growth
- Industrial Solutions: Sales were $2.799 billion, up 19.8% organically. Digital data networks grew 34.2%, automation and connected living 17.6%, energy 11.8%, and aerospace, defense and marine 15.2%. The company linked demand to rising data and power connectivity needs, including customer AI investments.
- Transportation Solutions: Sales were $2.600 billion, up 7.7% organically. Commercial transportation grew 17.9% and automotive 7.0%, while sensors declined 2.0%.
- Segment profitability: Adjusted operating margin was 22.4% for Industrial Solutions, up from 22.0% a year ago, and 21.0% for Transportation Solutions, up from 20.2%.
Margins and earnings
Operating income increased to $1.093 billion from $916 million a year ago, and GAAP operating margin rose to 20.6% from 19.3%. Adjusted operating income was $1.176 billion, with a 22.1% margin versus 21.1% a year ago. Adjusted EPS of $3.14 grew 21% and beat the $3.08 consensus; GAAP diluted EPS from continuing operations was $3.10, up 39%. The reconciliation includes a $59 million tax benefit from a lower valuation allowance, which reduced adjusted EPS by $0.20; GAAP and adjusted EPS therefore reflect different tax effects.
Cash and capital
- Quarterly cash: Operating cash flow was $1.528 billion and free cash flow was $1.241 billion, compared with $1.421 billion and $1.154 billion, respectively, a year ago.
- Shareholder returns: TE returned approximately $800 million in the quarter. For FY2026 it returned about $2.8 billion, including $1.892 billion of share repurchases and $869 million of dividends.
- Investment: FY2026 capital expenditures were $1.122 billion. The company also committed $1.6 billion for bolt-on acquisitions in Industrial Solutions to broaden its optics and power-filtering portfolios.
FY2026 and outlook
FY2026 set records for sales, orders, operating margin, EPS and cash generation. Revenue was $19.885 billion, up 15.2% reported and 11.9% organically; adjusted operating margin reached 22.0%, and adjusted EPS rose 24% to $11.52. GAAP EPS was $11.07, up 80% from a prior year affected by tax items, so adjusted growth better captures the underlying year-over-year earnings comparison. For Q1 FY2027, TE expects sales of approximately $5.35 billion, with 15.3% organic growth, GAAP EPS of $3.04 and adjusted EPS of $3.30, up 21%. For the full year, management expects organic sales growth similar to FY2026.
