Galway, Ireland, October 28th / PRNewswire / -- TE Connectivity plc ( NYSE : TEL ) Today, the company announced its financial results for the fourth quarter and the full year of fiscal year 2026, as of September 25, 2026.
Highlights of the Fourth Fiscal Quarter
Net sales reached a record $5.3 billion, a year-on-year increase of 12% based on the reported figures and 13% based on organic growth, mainly driven by strong growth in the industrial and transportation sectors.
The order volume amounted to 6.1 billion US dollars, a year-on-year increase of 29% and a month-on-month increase of 6%.
GAAP The operating profit margin is 21%, and after adjustment, it has increased to 22%, mainly due to the strong operational performance of two business segments.
Highlights of the Year
The company has set annual records in terms of sales revenue, orders, operating profit margin, earnings per share, and cash generation.
Net sales amounted to $19.9 billion, representing a year-on-year increase of 15% based on the reported figures and 12% based on organic growth. The company stated that this growth was attributed to the broad expansion of its entire product portfolio driven by customers' increasing demand for higher-quality data and power connectivity.
The order volume amounted to 22.2 billion US dollars, a year-on-year increase of 27%, supporting the company's expectation of achieving double-digit sales growth for the fiscal year 2027.
GAAP The operating profit margin is 20%, and after adjustment, it has increased to 22%, mainly driven by strong operational performance.
GAAP reported earnings of $11.07 per share, a year-on-year increase of 80%; adjusted earnings per share were $11.52, a year-on-year increase of 24%.
Cash flow from operating activities amounted to $4.5 billion, and free cash flow was $3.4 billion.
CEO Terrence Curtin stated: "Our team concluded the year with a strong fourth quarter, during which we set records in sales, profitability, and cash generation. Our growth is attributed to the strategic positioning made by TE around the accelerating trends in data and power, which have driven customers' demand for connectivity innovations that are crucial for the next generation of architectures. In our Industrial Solutions business, this segment grew by 26% in 2026, and we continue to benefit from customers' investments in artificial intelligence, which have opened up opportunities ranging from within data center cabinets to the network edge and on to the power grid."
Entering the fiscal year 2027, we expect the strong momentum of 2026 to continue, as we are well-prepared to continue to leverage growth drivers and create value for shareholders. With strong orders across our businesses, we anticipate that sales in the first fiscal quarter will experience double-digit growth, and earnings per share will increase by more than 20% year-over-year. For the full year, we expect organic sales growth to be similar to the strong performance of the fiscal year 2026.
2027 Fiscal Year First Quarter Outlook
The company expects that in the first fiscal quarter of fiscal year 2027, sales will be approximately $5.35 billion, representing a year-over-year increase of 15% both on a reported basis and on an organic basis. The earnings per share from continuing operations GAAP are expected to be around $3.04, a year-over-year increase of 20%; adjusted earnings per share are expected to be around $3.30, a year-over-year increase of 21%.
Regarding the use of TE Connectivity for financial indicators that are not GAAP, please refer to the following text. For the reconciliation of these non-GAAP financial indicators with the GAAP indicators, please refer to the attached table.
Teleconference and online live broadcast
The company will hold a conference call for investors at 8:30 a.m. Eastern Time today. Investors can participate in the following ways:
- TE Connectivity Website: investors.te.com
- Telephone: Participants within the United States who "only wish to listen" and those who wish to participate in the Q&A session should call (833) 461-5787, while international users should call (585) 542-9983; Meeting ID: 968971220.
The call meeting replay will be available on the TE Connectivity investor website at investors.te.com starting at 11:30 a.m. Eastern Time on October 28th.
About TE Connectivity
TE Connectivity plc ( NYSE : TEL ) is a global leader in industrial technology, committed to creating a safer, more sustainable, more efficient, and interconnected future. As a trusted innovation partner, the company's extensive connectivity and sensing solutions enable the transmission of power, signals, and data, driving the development of next-generation transportation, energy networks, automated factories, and data centers that support artificial intelligence. The company employs over 100,000 people, including 10,000 engineers, and its business spans approximately 130 countries. In this rapidly advancing world, TE ensures that "every connection matters." For more information, please visit www.te.com as well as LinkedIn, Facebook, WeChat, and Instagram.
Non-GAAP financial indicators
The company stated that the reason for providing non-GAAP performance and liquidity indicators is that it believes investors should consider adjusted financial indicators in addition to the results under U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP indicators are merely supplementary information and should not be regarded as a substitute for the GAAP results. Management uses these non-GAAP indicators in internal planning, forecasting, and decision-making processes related to company operations. The company believes that these indicators help to enhance the understanding of operational performance, cash generation capability, and business trends, and also facilitate investors to use the same financial indicators as management to evaluate the company's operations.
The company pointed out that the main limitation of these indicators is that they exclude items that could potentially increase or decrease the reported results. To better understand the range, nature, and impact of changes in the reported amounts, these non-GAAP indicators should be used in conjunction with the most directly comparable GAAP indicators. Such indicators may not be directly comparable to those with the same names used by other companies.
The following is the company's additional explanation for financial indicators other than GAAP:
- Organic net sales growth (decline) – refers to the growth (decline) in net sales, but does not include the impact of foreign exchange rate fluctuations and acquisitions and divestitures that have occurred within the past 12 months (if any). The company believes this indicator is helpful in measuring performance as it excludes items that management cannot fully control, as well as mergers and acquisitions and divestiture activities that do not reflect the company's underlying growth.
- Adjusted operating income and adjusted operating margin – refer to the operating income and operating margin before special items, including restructuring and other expenses, acquisition-related expenses, amortization of intangible assets, impairment of goodwill, and other revenues or expenses (if any). The company uses these indicators in conjunction with operating income and operating margin to evaluate the performance at the segment level and to assist management in assessing the implementation of business plans and market conditions.
- Adjusted income tax (expense) income and adjusted effective tax rate – refers to the income tax (expense) income and effective tax rate calculated after adjusting for the tax impacts of special items.
- Earnings after adjustments for ongoing operations —— refer to the earnings from ongoing operations before special items and related tax effects.
- Adjusted earnings per share —— refers to the earnings per share attributable to the continuing operations before special items and related tax effects.
- Free Cash Flow ( FCF ) – Used to measure a company's ability to generate cash. It is defined as the net cash generated from operating activities, after deducting voluntary pension contributions, the impact of special items on cash (if any), and net capital expenditures. The company states that certain cash items are ultimately decided by management and the board of directors, and therefore are deducted when calculating free cash flow. However, this does not imply that all of the free cash flow can be used for future discretionary expenditures, as the definition does not take into account non-discretionary expenses such as debt repayment. In addition, other discretionary expenditures such as dividends, share repurchases, and business acquisitions are also not included in this calculation.
Forward-looking Statements
This press release contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainties, and changes in circumstances. Actual results, performance, financial conditions, or achievements may differ significantly from those anticipated. Any statements that are not clearly historical in nature are considered forward-looking statements. Words such as “expected,” “believes,” “anticipates,” “estimates,” and “plans” are commonly used to identify forward-looking statements. Except as required by law, the company has no intention nor obligation to update or modify these forward-looking statements due to new information, future events, or other reasons.
Forward-looking statements in this press release include descriptions of the company's future financial condition and operating results. Factors that could cause significant differences between actual results and forward-looking statements include, but are not limited to: the extent, severity, and duration of business disruptions that have a negative impact on the company's operations; commercial, economic, competitive, and regulatory risks that affect demand in the automotive industry and other industries served by the company; competitive and pricing pressures; fluctuations in foreign exchange rates and commodity prices; natural disasters, as well as political, economic, and military instability in the countries where the company operates, including ongoing military conflicts in certain regions of the world; developments in the credit market; potential impairment of goodwill in the future; compliance with current and future environmental and other laws and regulations; and the possible impact of changes in tax laws, tax treaties, and other legislation on the company. For more detailed information regarding these and other factors, please refer to the company's 10-K annual report for the fiscal year ending September 26, 2025, available at TE Connectivity plc, as well as the company's 10-Q quarterly reports, 8-K filings, and other reports submitted to the U.S. Securities and Exchange Commission.
