01—Abstract
Summary
Summary of the 10-Q filed January 23, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
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 millionb 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.
02—Key points
Key Highlights
- Net sales surged by 21.7% to $4.7 billion in Q1 FY2026, driven by 15.0% organic growth and acquisitions.
- Operating income grew by 39.6% to $963 million, with operating margin expanding to 20.6% from 18.0% in the prior year.
- Diluted EPS from continuing operations increased substantially to $2.53 from $1.75 year-over-year.
- The Industrial Solutions segment demonstrated exceptional growth of 38.2% in net sales, bolstered by key markets like digital data networks and energy.
- Transportation Solutions also saw solid growth of 10.0%, primarily in the automotive sector.
- Net cash provided by operating activities remained strong at $865 million.
- The company declared a quarterly cash dividend of $0.71 per share and continues its share repurchase program with $983 million remaining authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, TE Connectivity plc kept $0.16.
- Revenue$4.67B100.0%
- Cost of revenue−$2.93B62.8%
- Gross profit$1.74B37.2%
- Operating costs−$776.0M16.6%
- Operating income$963.0M20.6%
- Interest, other & tax−$213.0M4.6%
- Net income$750.0M16.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed January 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.67B$3.84B | +21.7% |
| Cost of Revenue | $2.93B$2.48B | +18.3% |
| Gross Profit | $1.74B$1.36B | +27.9% |
| SG&A Expenses | $538.00M$427.00M | +26.0% |
| Operating Income | $963.00M$690.00M | +39.6% |
| Net Income | $750.00M$528.00M | +42.0% |
| EPS (Basic) | $2.55$1.77 | +44.1% |
| EPS (Diluted) | $2.53$1.75 | +44.6% |
| Shares Outstanding (Basic) | 294.00M299.00M | −1.7% |
| Shares Outstanding (Diluted) | 297.00M301.00M | −1.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of TE Connectivity's net sales growth in the quarter?
The primary driver of TE Connectivity's net sales growth was a combination of strong organic sales increases, particularly in the Industrial Solutions segment (26.3% organic growth), and the positive impact from acquisitions, notably the Richards Manufacturing acquisition. Foreign currency translation also contributed positively.
How did the company's profitability evolve during the quarter?
Profitability significantly improved. Gross margin increased to 37.2% from 35.5%, driven by higher volume and manufacturing productivity. Operating income rose by 39.6% to $963 million, and diluted earnings per share from continuing operations grew to $2.53 from $1.75 year-over-year.
What is the company's outlook for the next quarter?
TE Connectivity expects net sales of approximately $4.7 billion for the second quarter of fiscal 2026, an increase from the prior year's comparable quarter, driven by growth in both its Industrial Solutions and Transportation Solutions segments. Diluted earnings per share from continuing operations are projected to be approximately $2.26.
What are the key risks or contingencies mentioned in the filing?
The company mentioned ongoing legal proceedings, trade compliance matters (specifically related to potential Section 301 unpaid duties for which $27 million has been reserved), and environmental matters. While not expected to have a material adverse effect individually or in aggregate, these are areas investors should monitor.
06—Continue