10-QPeriod: Q3 FY2026

TE Connectivity plc Quarterly Report for Q3 Ended Jun 26, 2026

Filed July 24, 2026For Securities:TEL

Summary

TE Connectivity plc (TEL) reported a strong financial performance for the nine months ended June 26, 2026, with net sales increasing by 16.5% year-over-year to $14.57 billion. This growth was driven by robust performance in both the Transportation Solutions and Industrial Solutions segments. The company's operating income also saw a significant increase of $603 million to $2.90 billion. A key driver for the Industrial Solutions segment was the strong demand in digital data networks, particularly for AI applications. Financially, TE Connectivity demonstrated solid cash generation, with net cash provided by operating activities reaching $3.00 billion for the nine-month period. The company also continued its commitment to returning capital to shareholders through dividends and a substantial share repurchase program, authorizing an additional $3.0 billion increase. Management has provided an optimistic outlook for the fourth quarter of fiscal 2026, expecting net sales of approximately $5.25 billion and diluted earnings per share from continuing operations around $2.84. Recent strategic moves include the planned acquisition of Astrodyne TDI for $1.4 billion, expected to close by year-end 2026, further bolstering the Industrial Solutions segment, particularly in power and filter solutions. The company also completed a smaller acquisition in the Industrial Solutions segment for $200 million during the nine-month period. These strategic initiatives, combined with strong operational execution, position TE Connectivity for continued growth.

Key Highlights

  • 1Net sales surged by 16.5% to $14.57 billion for the nine months ended June 26, 2026, reflecting strong demand across segments.
  • 2Operating income grew significantly by $603 million to $2.90 billion for the nine-month period.
  • 3Industrial Solutions segment experienced robust growth (28.3% for nine months), driven by demand in digital data networks (AI applications) and energy sectors.
  • 4Net cash provided by operating activities was strong at $3.00 billion for the nine months ended June 26, 2026.
  • 5TE Connectivity announced plans to acquire Astrodyne TDI for $1.4 billion, enhancing its Industrial Solutions portfolio.
  • 6The company authorized a further $3.0 billion for its share repurchase program, demonstrating confidence and commitment to shareholder returns.
  • 7Forward-looking guidance for Q4 fiscal 2026 anticipates net sales of approximately $5.25 billion and diluted EPS of $2.84 per share.

Frequently Asked Questions

TE Connectivity's revenue growth was driven by strong performance in both its Transportation Solutions and Industrial Solutions segments. The Industrial Solutions segment saw particularly high growth, fueled by demand in digital data networks (especially for AI applications), energy, and automation sectors. The Transportation Solutions segment benefited from sales increases in automotive and commercial transportation end markets.

TE Connectivity generated robust operating cash flow of $3.00 billion in the first nine months of fiscal 2026. The company continues to return capital to shareholders through regular dividend payments and an active share repurchase program. The Board of Directors approved a further $3.0 billion increase in the share repurchase authorization, indicating confidence in future cash generation and a commitment to shareholder value.

A significant strategic move is the pending acquisition of Astrodyne TDI for approximately $1.4 billion, which is expected to strengthen the Industrial Solutions segment. Additionally, the company completed a smaller acquisition in the Industrial Solutions segment during the nine-month period. These acquisitions, alongside organic growth initiatives, are expected to contribute to the company's future performance, as reflected in the positive Q4 fiscal 2026 outlook.

The company incurred $103 million in net restructuring and other charges for the nine months ended June 26, 2026, as part of ongoing efforts to optimize its manufacturing footprint. Acquisitions contributed to revenue growth, with the Richards Manufacturing acquisition (completed in fiscal 2025) adding $227 million in sales during the first six months of fiscal 2026. A new acquisition was also completed for $200 million in the nine-month period, and the larger Astrodyne TDI acquisition is pending.