Summary
TE Connectivity plc (TEL) reported robust financial performance for the first quarter of fiscal year 2026, with net sales increasing significantly by 21.7% year-over-year to $4.7 billion. This growth was driven by strong organic sales increases of 15.0% and contributions from acquisitions. The company saw substantial improvements in both its Transportation Solutions and Industrial Solutions segments, with the latter experiencing particularly strong growth in areas like digital data networks and energy. Profitability also saw a healthy rise, with operating income increasing by 39.6% to $963 million and diluted earnings per share from continuing operations reaching $2.53, up from $1.75 in the prior year's comparable quarter. The company maintained a strong cash flow from operations, providing ample resources for investing activities, debt repayment, and returning capital to shareholders through dividends and share repurchases. Management provided an optimistic outlook for the second quarter of fiscal 2026, expecting continued sales growth and solid earnings.
Financial Highlights
48 data points| Revenue | $4.67B |
| Cost of Revenue | $2.93B |
| Gross Profit | $1.74B |
| SG&A Expenses | $538.00M |
| Operating Income | $963.00M |
| Net Income | $750.00M |
| EPS (Basic) | $2.55 |
| EPS (Diluted) | $2.53 |
| Shares Outstanding (Basic) | 294.00M |
| Shares Outstanding (Diluted) | 297.00M |
Key Highlights
- 1Net sales surged by 21.7% to $4.7 billion in Q1 FY2026, driven by 15.0% organic growth and acquisitions.
- 2Operating income grew by 39.6% to $963 million, with operating margin expanding to 20.6% from 18.0% in the prior year.
- 3Diluted EPS from continuing operations increased substantially to $2.53 from $1.75 year-over-year.
- 4The Industrial Solutions segment demonstrated exceptional growth of 38.2% in net sales, bolstered by key markets like digital data networks and energy.
- 5Transportation Solutions also saw solid growth of 10.0%, primarily in the automotive sector.
- 6Net cash provided by operating activities remained strong at $865 million.
- 7The company declared a quarterly cash dividend of $0.71 per share and continues its share repurchase program with $983 million remaining authorization.