TE Connectivity announces first quarter results for fiscal year 2026

Exceeds guidance with 22% sales growth and over 30% EPS growth year over year

GALWAY, Ireland, Jan. 21, 2026 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 26, 2025.

First Quarter Highlights

"Our teams delivered strongly against our strategy, resulting in first quarter earnings growth over 30% and sales growth of more than 20%, both of which were above our guidance and driven by growth in both segments," said CEO Terrence Curtin. "We continue to benefit from a broadening of growth from our investments in data and power connectivity in key applications such as AI, energy grid hardening and next generation vehicles that are driving our auto content growth above market. Our positioning and team execution resulted in record quarterly orders of over $5 billion, setting up TE for another year of strong growth and margin expansion.

"We expect double-digit sales and adjusted earnings growth again in our second quarter as our teams continue to innovate with our customers to ensure next generation technologies are brought to life."

Second Quarter FY26 Outlook

For the second quarter of fiscal 2026, the company expects sales of approximately $4.7 billion, an increase of 13% on a reported basis and 6% organically year over year. Adjusted EPS is expected to be approximately $2.65, up 20% year over year. GAAP EPS from continuing operations is expected to be approximately $2.26.

Beginning in fiscal 2026, the company is excluding amortization expense on intangible assets and, if applicable, the related tax effects from its calculation of certain non-GAAP measures.

Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast

The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:

About TE Connectivity

TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram.

Non-GAAP Financial Measures

We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc's Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

TE CONNECTIVITY PLC

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

December 26,

December 27,

2025

2024

(in millions, except per share data)

Net sales

4,669

3,836

Cost of sales

2,930

2,476

Gross margin

1,739

1,360

Selling, general, and administrative expenses

538

427

Research, development, and engineering expenses

225

188

Acquisition and integration costs

Restructuring and other charges, net

Operating income

963

690

Interest income

Interest expense

(30)

(6)

Other income (expense), net

(1)

Income from continuing operations before income taxes

961

706

Income tax expense

(210)

(178)

Income from continuing operations

751

528

Loss from discontinued operations, net of income taxes

(1)

—

Net income

750

528

Basic earnings per share:

Income from continuing operations

2.55

1.77

Loss from discontinued operations

—

Net income

2.55

1.77

Diluted earnings per share:

Income from continuing operations

2.53

1.75

Loss from discontinued operations

—

Net income

2.53

1.75

Weighted-average number of shares outstanding:

Basic

294

299

Diluted

297

301

TE CONNECTIVITY PLC

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

December 26,

September 26,

2025

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

1,251

1,255

Accounts receivable, net of allowance for doubtful accounts of $48 and $44, respectively

3,469

3,403

Inventories

2,951

2,699

Prepaid expenses and other current assets

697

609

Total current assets

8,368

7,966

Property, plant, and equipment, net

4,395

4,312

Goodwill

7,162

7,126

Intangible assets, net

2,177

2,227

Deferred income taxes

2,429

2,507

Other assets

1,021

943

Total assets

25,552

25,081

Liabilities, redeemable noncontrolling interests, and shareholders' equity

Current liabilities:

Short-term debt

852

Accounts payable

2,149

2,021

Accrued and other current liabilities

2,068

2,247

Total current liabilities

5,069

5,120

Long-term debt

4,856

4,842

Long-term pension and postretirement liabilities

766

767

Deferred income taxes

198

Income taxes

441

414

Other liabilities

1,086

1,010

Total liabilities

12,416

12,351

Commitments and contingencies

Redeemable noncontrolling interests

149

145

Shareholders' equity:

Preferred shares, $1.00 par value, 2 shares authorized, none outstanding

—

Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding

—

Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 303,796,785 and 302,889,075

shares issued, respectively

Accumulated earnings

14,543

13,932

Ordinary shares held in treasury, at cost, 10,086,721 and 8,330,931 shares, respectively

(1,762)

(1,356)

Accumulated other comprehensive income

203

Total shareholders' equity

12,987

12,585

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

25,552

25,081

TE CONNECTIVITY PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

December 26,

December 27,

2025

2024

(in millions)

Cash flows from operating activities:

Net income

750

528

Loss from discontinued operations, net of income taxes

—

Income from continuing operations

751

528

Adjustments to reconcile income from continuing operations to net cash provided by operating

activities:

Depreciation and amortization

259

186

Deferred income taxes

Non-cash lease cost

Provision for losses on accounts receivable and inventories

Share-based compensation expense

Other

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

Accounts receivable, net

(79)

146

Inventories

(301)

(118)

Prepaid expenses and other current assets

Accounts payable

139

150

Accrued and other current liabilities

(217)

(295)

Income taxes

Other

(37)

Net cash provided by operating activities

865

878

Cash flows from investing activities:

Capital expenditures

(258)

(205)

Proceeds from sale of property, plant, and equipment

Acquisition of businesses, net of cash acquired

—

(325)

Other

(8)

Net cash used in investing activities

(254)

(537)

Cash flows from financing activities:

Net increase in commercial paper

—

Proceeds from exercise of share options

Repurchase of ordinary shares

(405)

(303)

Payment of ordinary share dividends to shareholders

(209)

(189)

Other

(46)

(27)

Net cash used in financing activities

(616)

(395)

Effect of currency translation on cash

(11)

Net decrease in cash, cash equivalents, and restricted cash

(4)

(65)

Cash, cash equivalents, and restricted cash at beginning of period

1,255

1,319

Cash, cash equivalents, and restricted cash at end of period

1,251

1,254

Supplemental cash flow information:

Income taxes paid, net of refunds

TE CONNECTIVITY PLC

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

December 26,

December 27,

2025

2024

(in millions)

Net cash provided by operating activities

865

878

Capital expenditures, net

(257)

(204)

Free cash flow (1)

608

674

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

SEGMENT DATA (UNAUDITED)

For the Quarters Ended

December 26,

December 27,

2025

2024

($ in millions)

Net Sales

Transportation Solutions

2,467

2,243

Industrial Solutions

2,202

1,593

Total

4,669

3,836

Operating

Income

Margin

Income

Margin

Transportation Solutions

501

20.3

446

19.9

Industrial Solutions

462

21.0

244

15.3

Total

963

20.6

690

18.0

Adjusted

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

523

21.2

495

22.1

Industrial Solutions

513

23.3

289

18.1

Total

1,036

22.2

784

20.4

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)

Change in Net Sales for the Quarter Ended December 26, 2025

versus Net Sales for the Quarter Ended December 27, 2024

Net Sales

Organic Net Sales

Growth

Growth (Decline) (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions:

Automotive

163

9.5

112

6.5

—

Commercial transportation

18.6

16.3

—

Sensors

1.4

(5)

(2.3)

—

Total Transportation Solutions

224

10.0

158

7.0

—

Industrial Solutions:

Digital data networks

294

71.2

288

69.7

—

Automation and connected living

14.6

11.6

Aerospace, defense, and marine

14.1

10.9

—

Energy

190

88.0

14.6

151

Medical

5.3

—

Total Industrial Solutions

609

38.2

419

26.3

152

Total

833

21.7

577

15.0

104

152

(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended December 26, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

501

—

523

Industrial Solutions

462

513

Total

963

1,036

Operating margin

20.6

22.2

Income tax expense

(210)

(1)

(3)

(11)

(225)

Effective tax rate

21.9

21.8

Income from continuing operations

751

809

Diluted earnings per share from

continuing operations

2.53

0.02

0.15

2.72

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in

effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended December 27, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

446

—

495

Industrial Solutions

244

—

289

Total

690

—

784

Operating margin

18.0

20.4

Income tax expense

(178)

(1)

(9)

(7)

(182)

Effective tax rate

25.2

22.8

Income from continuing operations

528

618

Diluted earnings per share from

continuing operations

1.75

0.01

0.14

0.11

0.04

2.05

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for

each such jurisdiction.

(2) Represents income tax expense related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 28, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

445

—

495

Industrial Solutions

303

—

351

Total

748

—

846

Operating margin

18.1

20.4

Income tax expense

(742)

(2)

(11)

(8)

574

(189)

Effective tax rate

98.3

22.2

Income from continuing operations

574

664

Diluted earnings per share from

continuing operations

0.04

0.03

0.11

1.91

2.21

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for

each such jurisdiction.

(2) Represents income tax expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained

by a Swiss subsidiary in fiscal 2024.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 26, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,818

—

1,963

Industrial Solutions

1,393

120

—

1,621

Total

3,211

126

190

—

3,584

Operating margin

18.6

20.8

Income tax expense

(1,361)

(12)

(13)

(37)

618

(805)

Effective tax rate

42.5

22.5

Income from continuing operations

1,843

113

153

618

2,772

Diluted earnings per share from

continuing operations

6.16

0.15

0.38

0.51

2.07

9.27

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for

each such jurisdiction.

(2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax

credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S.

tax loss and credit carryforwards.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of January 21, 2026

(UNAUDITED)

Outlook for

Quarter Ending

March 27,

2026

Diluted earnings per share from continuing operations

2.26

Acquisition-related charges

0.01

Restructuring and other charges, net

0.23

Amortization expense

0.15

Adjusted diluted earnings per share from continuing operations (1)

2.65

Net sales growth

13.4

Translation

(4.3)

(Acquisitions) divestitures, net

(2.9)

Organic net sales growth (1)

6.2

(1) See description of non-GAAP financial measures.

SOURCE TE Connectivity plc