01—Abstract
Summary
Summary of the 10-Q filed April 24, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
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 $2.90b, 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 billionc, 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 billiond 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.
02—Key points
Key Highlights
- Net 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.
- Organic net sales growth was a healthy 7.2% for the second quarter, indicating strong underlying business performance.
- Diluted 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.
- Gross 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.
- Net cash provided by operating activities for the first six months of fiscal 2026 was strong at $1.81 billion.
- The 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.
- Significant growth in the Industrial Solutions segment (up 27.0% in Q2) was driven by strong performance in digital data networks and energy markets.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, TE Connectivity plc kept $0.18.
- Revenue$4.74B100.0%
- Cost of revenue−$3.00B63.2%
- Gross profit$1.75B36.8%
- Operating costs−$791.0M16.7%
- Operating income$954.0M20.1%
- Interest, other & tax−$99.0M2.1%
- Net income$855.0M18.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed April 24, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $4.74B$4.14B | +14.5% |
| Cost of Revenue | $3.00B$2.68B | +11.7% |
| Gross Profit | $1.75B$1.46B | +19.6% |
| SG&A Expenses | $536.00M$454.00M | +18.1% |
| Operating Income | $954.00M$748.00M | +27.5% |
| Net Income | $855.00M$13.00M | +6476.9% |
| EPS (Basic) | $2.92$0.04 | +7200.0% |
| EPS (Diluted) | $2.90$0.04 | +7150.0% |
| Shares Outstanding (Basic) | 293.00M298.00M | −1.7% |
| Shares Outstanding (Diluted) | 295.00M300.00M | −1.7% |
05—Questions
Frequently Asked Questions
What were the main drivers of the revenue growth in the second quarter of fiscal year 2026?
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.
How did TE Connectivity's profitability change compared to the prior year's second quarter?
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.
What is the company's outlook for the third quarter of fiscal year 2026?
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.
How is the company managing its debt and returning capital to shareholders?
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.
06—Continue