TE Connectivity delivers 12% sales increase and over 20% EPS growth in fiscal fourth quarter

TE Connectivity delivers 12% sales increase and over 20% EPS growth in fiscal fourth quarter Delivered strong full-year performance with sales growth of 15% and more than 20% EPS growth

Expects double digit sales growth in fiscal 2027

GALWAY, Ireland, Oct. 28, 2026 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal fourth quarter and fiscal year ended September 25, 2026.

Fourth Quarter Highlights

Full Year Highlights

"Our teams delivered a strong fourth quarter to finish a year in which we set records in sales, earnings and cash generation," said CEO Terrence Curtin. "Our growth is supported by our strategic positioning of TE around accelerating data and power trends that are driving customer demand for connectivity innovations that are essential to next generation architectures. In our Industrial Solutions segment, which grew 26% in 2026, we continue to benefit from our customers' AI investments, which create opportunities extending from inside the rack in the data center to the networking edge all the way to the energy grid.

"Entering fiscal 2027, we expect that the strong momentum from 2026 will continue as we are well positioned to keep capitalizing on growth drivers and deliver value for our shareholders. With strong orders across our businesses, we expect first quarter sales to be up mid-teens and to deliver more than 20 percent EPS growth year over year. For the full fiscal year, we expect to deliver organic sales growth that is similar to our strong performance in fiscal 2026."

First Quarter FY27 Outlook

For the first quarter of fiscal 2027, the company expects sales of approximately $5.35 billion, up 15% on a reported and organic basis year over year. GAAP EPS from continuing operations is expected to be approximately $3.04, an increase of 20% year over year, with adjusted EPS of approximately $3.30, up 21% year over year.

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 100,000 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

For the Years Ended

September 25,

September 26,

September 25,

September 26,

2026

2025

2026

2025

(in millions, except per share data)

Net sales

5,312

4,749

19,885

17,262

Cost of sales

3,425

3,089

12,679

11,183

Gross margin

1,887

1,660

7,206

6,079

Selling, general, and administrative expenses

518

494

2,124

1,866

Research, development, and engineering expenses

250

227

942

829

Acquisition and integration costs

Restructuring and other charges, net

117

126

Operating income

1,093

916

3,991

3,211

Interest income

Interest expense

(31)

(29)

(124)

(77)

Other expense, net

(9)

(11)

(7)

(13)

Income from continuing operations before income taxes

1,076

897

3,950

3,204

Income tax expense

(175)

(233)

(695)

(1,361)

Income from continuing operations

901

664

3,255

1,843

Loss from discontinued operations, net of income taxes

(1)

(2)

(1)

Net income

900

663

3,253

1,842

Basic earnings per share:

Income from continuing operations

3.12

2.25

11.15

6.21

Loss from discontinued operations

—

(0.01)

—

Net income

3.11

2.25

11.14

6.20

Diluted earnings per share:

Income from continuing operations

3.10

2.23

11.07

6.16

Loss from discontinued operations

—

(0.01)

—

Net income

3.09

2.22

11.06

6.16

Weighted-average number of shares outstanding:

Basic

289

295

292

297

Diluted

291

298

294

299

TE CONNECTIVITY PLC

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 25,

September 26,

2026

2025

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

1,697

1,255

Accounts receivable, net of allowance for doubtful accounts of $55 and $44, respectively

3,839

3,403

Inventories

2,962

2,699

Prepaid expenses and other current assets

785

609

Total current assets

9,283

7,966

Property, plant, and equipment, net

4,637

4,312

Goodwill

7,420

7,126

Intangible assets, net

2,031

2,227

Deferred income taxes

2,128

2,507

Other assets

1,173

943

Total assets

26,672

25,081

Liabilities, redeemable noncontrolling interests, and shareholders' equity

Current liabilities:

Short-term debt

502

852

Accounts payable

2,455

2,021

Accrued and other current liabilities

2,407

2,247

Total current liabilities

5,364

5,120

Long-term debt

5,137

4,842

Long-term pension and postretirement liabilities

625

767

Deferred income taxes

246

198

Income taxes

346

414

Other liabilities

1,231

1,010

Total liabilities

12,949

12,351

Commitments and contingencies

Redeemable noncontrolling interests

150

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, 296,288,773 and 302,889,075

shares issued, respectively

Accumulated earnings

15,244

13,932

Ordinary shares held in treasury, at cost, 8,788,224 and 8,330,931 shares, respectively

(1,892)

(1,356)

Accumulated other comprehensive income

218

Total shareholders' equity

13,573

12,585

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

26,672

25,081

TE CONNECTIVITY PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

For the Years Ended

September 25,

September 26,

September 25,

September 26,

2026

2025

2026

2025

(in millions)

Cash flows from operating activities:

Net income

900

663

3,253

1,842

Loss from discontinued operations, net of income taxes

Income from continuing operations

901

664

3,255

1,843

Adjustments to reconcile income from continuing operations to net cash

provided by operating activities:

Depreciation and amortization

275

244

1,033

838

Deferred income taxes

166

321

938

Non-cash lease cost

159

145

Provision for losses on accounts receivable and inventories

(4)

Share-based compensation expense

168

149

Other

(37)

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

divestitures:

Accounts receivable, net

(227)

(582)

(341)

Inventories

139

(316)

(160)

Prepaid expenses and other current assets

Accounts payable

162

(8)

595

290

Accrued and other current liabilities

132

(108)

(35)

Income taxes

(25)

(80)

147

Other

(9)

(46)

Net cash provided by operating activities

1,528

1,421

4,525

4,139

Cash flows from investing activities:

Capital expenditures

(290)

(271)

(1,122)

(936)

Proceeds from sale of property, plant, and equipment

Acquisition of businesses, net of cash acquired

(12)

—

(212)

(2,628)

Other

(3)

(9)

(15)

Net cash used in investing activities

(302)

(270)

(1,334)

(3,568)

Cash flows from financing activities:

Net increase (decrease) in commercial paper

—

100

(255)

Proceeds from issuance of debt

—

750

2,231

Repayment of debt

(1)

—

(852)

(580)

Proceeds from exercise of share options

182

Repurchase of ordinary shares

(544)

(437)

(1,892)

(1,347)

Payment of ordinary share dividends to shareholders

(226)

(209)

(869)

(803)

Other

(1)

(68)

(57)

Net cash used in financing activities

(769)

(566)

(2,749)

(629)

Effect of currency translation on cash

(2)

—

(6)

Net increase (decrease) in cash, cash equivalents, and restricted cash

458

583

442

(64)

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

1,239

672

1,255

1,319

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

1,697

1,255

1,697

1,255

Supplemental cash flow information:

Interest paid on debt, net

110

Income taxes paid, net of refunds

101

454

276

TE CONNECTIVITY PLC

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

For the Years Ended

September 25,

September 26,

September 25,

September 26,

2026

2025

2026

2025

(in millions)

Net cash provided by operating activities

1,528

1,421

4,525

4,139

Capital expenditures, net

(287)

(267)

(1,113)

(925)

Free cash flow (1)

1,241

1,154

3,412

3,214

(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

For the Years Ended

September 25,

September 26,

September 25,

September 26,

2026

2025

2026

2025

($ in millions)

Net Sales

Transportation Solutions

2,600

2,413

10,069

9,388

Industrial Solutions

2,799

2,336

9,903

7,874

Reconciling item (1)

(87)

—

(87)

—

Total

5,312

4,749

19,885

17,262

Operating

Income

Margin

Income

Margin

Income

Margin

Income

Margin

Transportation Solutions

521

20.0

465

19.3

1,969

19.6

1,818

19.4

Industrial Solutions

568

20.3

451

19.3

2,018

20.4

1,393

17.7

Reconciling item (2)

—

Total

1,093

20.6

916

19.3

3,991

20.1

3,211

18.6

Adjusted

Operating

Income (3)

Margin (3)

Income (3)

Margin (3)

Income (3)

Margin (3)

Income (3)

Margin (3)

Transportation Solutions

545

21.0

487

20.2

2,131

21.2

1,963

20.9

Industrial Solutions

627

22.4

514

22.0

2,235

22.6

1,621

20.6

Reconciling item (2)

—

Total

1,176

22.1

1,001

21.1

4,370

22.0

3,584

20.8

(1) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers.

(2) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026.

(3) 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 September 25, 2026

versus Net Sales for the Quarter Ended September 26, 2025

Net Sales

Organic Net Sales

Translation

Growth (Decline)

Growth (Decline) (1)

and Other (2)

Acquisitions

($ in millions)

Transportation Solutions:

Automotive

127

7.0

107

5.9

—

Commercial transportation

17.9

17.8

—

Sensors

(5)

(2.0)

(4)

(1.7)

(1)

—

Total Transportation Solutions

187

7.7

167

6.9

—

Industrial Solutions:

Digital data networks

242

34.2

246

34.4

(4)

—

Automation and connected living

103

17.6

101

17.6

—

Energy

11.8

11.7

—

Aerospace, defense, and marine

15.2

16.0

(2)

—

Medical

1.1

1.3

(1)

—

Total Industrial Solutions

463

19.8

467

20.0

(4)

—

Reconciling item (3)

(87)

—

(87)

—

Total

563

11.9

634

13.4

(71)

—

Change in Net Sales for the Year Ended September 25, 2026

versus Net Sales for the Year Ended September 26, 2025

Net Sales

Organic Net Sales

Translation

Growth (Decline)

Growth (Decline) (1)

and Other (2)

Acquisitions

($ in millions)

Transportation Solutions:

Automotive

417

5.9

212

3.0

205

—

Commercial transportation

264

19.3

233

17.1

—

Sensors

—

(22)

(2.4)

—

Total Transportation Solutions

681

7.3

423

4.5

258

—

Industrial Solutions:

Digital data networks

975

44.2

961

43.5

—

Automation and connected living

333

15.5

281

13.1

Energy

543

40.4

243

18.1

271

Aerospace, defense, and marine

187

12.6

163

11.0

—

Medical

(9)

(1.3)

(9)

(1.3)

—

Total Industrial Solutions

2,029

25.8

1,639

20.8

118

272

Reconciling item (3)

(87)

—

(87)

—

Total

2,623

15.2

2,062

11.9

289

272

(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 and IEEPA tariff refunds.

(3) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended September 25, 2026

(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

521

—

545

Industrial Solutions

568

—

627

Reconciling item (4)

—

Total

1,093

—

1,176

Operating margin

20.6

22.1

Income tax expense

(175)

(2)

(11)

(59)

(245)

Effective tax rate

16.3

21.1

Income from continuing operations

901

(59)

914

Diluted earnings per share from

continuing operations

3.10

0.03

0.05

0.16

(0.20)

3.14

(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 a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards.

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

(4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter 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

465

—

487

Industrial Solutions

451

—

514

Total

916

—

1,001

Operating margin

19.3

21.1

Income tax expense

(233)

(2)

(11)

(209)

Effective tax rate

26.0

21.3

Income from continuing operations

664

773

Diluted earnings per share from

continuing operations

2.23

0.03

0.08

0.16

0.10

2.59

(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 $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards and an income

tax benefit of $13 million related to the revaluation of deferred tax liabilities 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 Year Ended September 25, 2026

(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

1,969

—

2,131

Industrial Solutions

2,018

156

—

2,235

Reconciling item (4)

—

Total

3,991

117

227

—

4,370

Operating margin

20.1

22.0

Income tax expense

(695)

(7)

(21)

(45)

(173)

(941)

Effective tax rate

17.6

21.7

Income from continuing operations

3,255

182

(173)

3,388

Diluted earnings per share from

continuing operations

11.07

0.10

0.33

0.62

(0.59)

11.52

(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 a $114 million net income tax benefit related primarily to the settlement of prior period tax matters and a $59 million income tax benefit related to a

decrease in the valuation allowance for certain tax loss and credit carryforwards.

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

(4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026.

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 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 FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of October 28, 2026

(UNAUDITED)

Outlook for

Quarter Ending

December 25,

2026

Diluted earnings per share from continuing operations

3.04

Acquisition-related charges

0.06

Restructuring and other charges, net

0.05

Amortization expense

0.15

Adjusted diluted earnings per share from continuing operations (1)

3.30

Net sales growth

14.6

Translation and other (2)

0.7

(Acquisitions) divestitures, net

—

Organic net sales growth (1)

15.3

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

(2) Includes IEEPA tariff refunds expected to be received in fiscal 2027 and returned to customers.

SOURCE TE Connectivity plc