10-QPeriod: Q2 FY2026

TE Connectivity plc Quarterly Report for Q2 Ended Mar 27, 2026

Filed April 24, 2026For Securities:TEL

Summary

TE Connectivity plc (TEL) reported a strong second quarter for fiscal year 2026, with net sales increasing by 14.5% year-over-year to $4.74 billion. This growth was driven by robust performance in both the Industrial Solutions and Transportation Solutions segments, with organic net sales up 7.2%. The company demonstrated improved profitability, as evidenced by a higher gross margin of 36.8% compared to 35.2% in the prior year's quarter. Diluted earnings per share (EPS) saw a significant jump to $2.90, from $0.04 in the comparable period of the previous year, reflecting operational improvements and increased sales volumes. For the first six months of fiscal year 2026, net sales grew 18.0% to $9.41 billion, with organic net sales increasing by 11.0%. Diluted EPS for the six-month period reached $5.42, a substantial increase from $1.80 in the prior year. The company's strong operating cash flow of $1.81 billion in the first half of the year underscores its financial health. TE Connectivity also announced a quarterly cash dividend of $0.78 per share and continued its share repurchase program, signaling confidence in its financial outlook and commitment to returning value to shareholders.

Financial Highlights

51 data points
Beta

Revenue

$4.74B

36.8% Gross Margin

Net Income

$855.00M

18.0% Net Margin

EPS (Diluted)

$2.90

Total Assets

$25.68B

Cash & Equivalents

$1.11B

Free Cash Flow

$677.00M

Financial Statements
Beta
Revenue$4.74B
Cost of Revenue$3.00B
Gross Profit$1.75B
SG&A Expenses$536.00M
Operating Income$954.00M
Net Income$855.00M
EPS (Basic)$2.92
EPS (Diluted)$2.90
Shares Outstanding (Basic)293.00M
Shares Outstanding (Diluted)295.00M

Key Highlights

  • 1Net sales for the second quarter of fiscal 2026 surged by 14.5% to $4.74 billion, compared to $4.14 billion in the prior year's quarter.
  • 2Organic net sales growth was a healthy 7.2% for the second quarter, indicating strong underlying business performance.
  • 3Diluted Earnings Per Share (EPS) increased significantly to $2.90 in the second quarter of fiscal 2026, up from $0.04 in the prior year's quarter.
  • 4Gross margin improved to 36.8% in the second quarter of fiscal 2026, compared to 35.2% in the prior year's quarter, driven by higher volume and productivity.
  • 5Net cash provided by operating activities for the first six months of fiscal 2026 was strong at $1.81 billion.
  • 6The company continues to return capital to shareholders, declaring a quarterly dividend of $0.78 per share and having $3.6 billion remaining under its share repurchase authorization.
  • 7Significant growth in the Industrial Solutions segment (up 27.0% in Q2) was driven by strong performance in digital data networks and energy markets.

Frequently Asked Questions

Revenue growth was primarily driven by strong performance in both the Industrial Solutions segment, particularly in digital data networks and energy markets, and the Transportation Solutions segment, supported by automotive and commercial transportation demand. Organic growth, foreign currency translation, and contributions from recent acquisitions also contributed to the overall increase in net sales.

Profitability improved significantly. Gross margin increased to 36.8% from 35.2% due to higher sales volumes and improved manufacturing productivity. Operating income also rose, reflecting strong top-line growth and effective cost management, leading to a substantial increase in diluted EPS to $2.90 from $0.04.

TE Connectivity expects net sales to be approximately $5.0 billion for the third quarter of fiscal 2026, representing an increase from the prior year's third quarter. Diluted earnings per share from continuing operations are projected to be around $2.44. This outlook anticipates continued sales growth in both segments and accounts for positive impacts from foreign currency exchange rates.

The company has a healthy liquidity position with $1.81 billion in operating cash flow for the first six months of fiscal 2026. It recently refinanced its revolving credit facility to $3.0 billion, indicating strong access to capital. TE Connectivity demonstrates commitment to shareholder returns through a regular quarterly dividend of $0.78 per share and an active share repurchase program, with $3.6 billion remaining authorization.