How did TE Connectivity perform versus its own guidance in Q3 FY2026?

The company said results were above guidance. Sales of $5.16B were a record and grew 14% reported and 12% organically. Adjusted EPS of $2.94 was also a record. The company has not restated its prior Q3 guidance figures in this filing, so the size of the beat relative to specific guidance numbers is not quantified here.

What is the outlook for the fourth quarter and full fiscal 2026?

For Q4 FY26, TE expects sales of about $5.25B (up 11% reported and organically), adjusted EPS of about $3.05 (up 18%), and GAAP EPS from continuing operations of about $2.84 (up 27%). Management says full-year sales should grow about 15% reported and 11% organically, and adjusted EPS about 23%, implying full-year adjusted EPS of roughly $11.43. The company calls this performance significantly ahead of its Investor Day business model.

Why is the Astrodyne TDI acquisition important, and how will it be financed?

Astrodyne TDI provides power management and filtering solutions for mission-critical industrial applications, which fits TE's push into power and AI-driven data center and energy infrastructure. It is expected to add more than $250M in annual sales to Industrial Solutions at an approximate $1.4B price, about 5-6x annual sales. The filing does not describe the financing structure. Closing is expected by the end of calendar 2026, subject to regulatory approvals and customary conditions.

Is TE generating enough cash to fund growth and shareholder returns?

Yes, based on the reported figures. Year-to-date operating cash flow was $3.0B and free cash flow was $2.17B, versus $2.06B a year earlier. Year-to-date returns were about $2.0B, including $1.35B of buybacks and $0.64B of dividends. Year-end cash was $1.24B, and total debt was about $5.6B at June 26, 2026. Investors should note that free cash flow is a non-GAAP measure that excludes voluntary pension contributions and certain special items. Also, the investor presentation labels year-to-date free cash flow growth as 22%, but the reconciliation implies roughly 5% growth ($2,171M vs. $2,060M).

TEL 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed July 22, 2026. Cited figures are marked; the original filing is the authoritative source.

TE Connectivity reported fiscal third-quarter 2026 results (quarter ended June 26, 2026) that beat its own guidance.

Net sales reached a record $5.16 billion^a, up 14% reported and 12% organically, with Industrial Solutions up 22% and Transportation Solutions up 7%. GAAP diluted EPS from continuing operations was $2.55 (up 19%), and adjusted EPS was a record $2.94 (up 22%). The adjusted operating margin expanded 90 basis points to 21.9%, and orders hit a record $5.7 billion, up 27% year over year, with a book-to-bill of 1.1.

Operating cash flow was $1.19 billion^b for the quarter and $3.0 billion year to date, and free cash flow was $883 million for the quarter and $2.17 billion year to date. The company returned about $2.0 billion to shareholders year to date through buybacks and dividends. For the fourth quarter, management guided to sales of about $5.25 billion (up 11% reported and organically) and adjusted EPS of about $3.05 (up 18%).

GAAP EPS from continuing operations is expected at about $2.84^c. Management said it expects double-digit sales and EPS growth for fiscal 2026 and is significantly outperforming the business model it presented at its Investor Day. The implied full-year figures are about 15% reported sales growth, 11% organic growth, and about 23% adjusted EPS growth.

TE also agreed to acquire Astrodyne TDI, a provider of power management and filtering solutions for mission-critical industrial applications, from Tinicum L.P. for an approximate purchase price of $1.4 billion^d. The business is expected to add more than $250 million in annual sales to the Industrial Solutions segment, and closing is expected by the end of calendar 2026, subject to regulatory approvals. Investors should note that the GAAP-to-adjusted gap widened this quarter, driven by $83 million of restructuring and other charges, versus $14 million a year earlier.

02—Key points

Key Highlights

Record quarterly net sales of $5.16B, up 14% reported and 12% organic; Industrial up 22% and Transportation up 7% reported.
Adjusted EPS of $2.94 (up 22%) vs. GAAP diluted EPS of $2.55 (up 19%); adjusted operating margin of 21.9%, up 90 bps.
Record orders of $5.7B, up 27% YoY and 7% sequentially, with a book-to-bill of 1.1; Digital Data Networks orders up 70% YTD on AI demand.
Q4 FY26 guidance: sales of about $5.25B (+11%) and adjusted EPS of about $3.05 (+18%); implied FY26 adjusted EPS growth of about 23%.
Agreed to acquire Astrodyne TDI for about $1.4B, adding more than $250M in annual sales to Industrial Solutions; expected to close by end of calendar 2026.
Year-to-date operating cash flow of $3.0B and free cash flow of $2.17B; about $2.0B returned to shareholders year to date (buybacks of $1.35B and dividends of $0.64B).
Q3 GAAP results include $83M of restructuring and other charges (vs. $14M prior year), widening the gap between GAAP and adjusted EPS.

03—Questions

Frequently Asked Questions

How did TE Connectivity perform versus its own guidance in Q3 FY2026?
The company said results were above guidance. Sales of $5.16B were a record and grew 14% reported and 12% organically. Adjusted EPS of $2.94 was also a record. The company has not restated its prior Q3 guidance figures in this filing, so the size of the beat relative to specific guidance numbers is not quantified here.
What is the outlook for the fourth quarter and full fiscal 2026?
For Q4 FY26, TE expects sales of about $5.25B (up 11% reported and organically), adjusted EPS of about $3.05 (up 18%), and GAAP EPS from continuing operations of about $2.84 (up 27%). Management says full-year sales should grow about 15% reported and 11% organically, and adjusted EPS about 23%, implying full-year adjusted EPS of roughly $11.43. The company calls this performance significantly ahead of its Investor Day business model.
Why is the Astrodyne TDI acquisition important, and how will it be financed?
Astrodyne TDI provides power management and filtering solutions for mission-critical industrial applications, which fits TE's push into power and AI-driven data center and energy infrastructure. It is expected to add more than $250M in annual sales to Industrial Solutions at an approximate $1.4B price, about 5-6x annual sales. The filing does not describe the financing structure. Closing is expected by the end of calendar 2026, subject to regulatory approvals and customary conditions.
Is TE generating enough cash to fund growth and shareholder returns?
Yes, based on the reported figures. Year-to-date operating cash flow was $3.0B and free cash flow was $2.17B, versus $2.06B a year earlier. Year-to-date returns were about $2.0B, including $1.35B of buybacks and $0.64B of dividends. Year-end cash was $1.24B, and total debt was about $5.6B at June 26, 2026. Investors should note that free cash flow is a non-GAAP measure that excludes voluntary pension contributions and certain special items. Also, the investor presentation labels year-to-date free cash flow growth as 22%, but the reconciliation implies roughly 5% growth ($2,171M vs. $2,060M).

04—Continue

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