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| 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.