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%…
TE Connectivity plc (TEL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS RELEASE te.com 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
How this was made
The 30-second read
Why it matters
The company delivered record revenue and earnings, and provided guidance indicating continued double‑digit sales growth and EPS expansion, which is likely to attract buying interest.
Market read
First‑report earnings and guidance for a large‑cap industrial tech firm; material for traders looking for upside opportunities.
What to watch
Potential supply‑chain constraints or macro‑economic headwinds could temper the upside.
TE Connectivity delivers 12% sales increase and over 20% EPS growth in fiscal fourth quarter
Record fourth-quarter and full-year sales, orders, margins, EPS and cash generation were supported by broad Industrial and Transportation growth. First-quarter fiscal 2027 guidance calls for approximately $5.35 billion of sales and adjusted EPS of approximately $3.30.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth-quarter net salesGAAP | $5.31B | – | 11.9 % |
| Fourth-quarter organic net sales growthnon-GAAP | 13.4 % | – | 13.4 % |
| Fourth-quarter ordersother | $6.1B | 6% | 29% |
| Fourth-quarter gross marginGAAP | $1.89B | – | – |
| Fourth-quarter operating incomeGAAP | $1.09B | – | – |
| Fourth-quarter operating marginGAAP | 20.6 % | – | – |
| Fourth-quarter adjusted operating incomenon-GAAP | $1.18B | – | – |
| Fourth-quarter adjusted operating marginnon-GAAP | 22.1 % | – | – |
| Fourth-quarter income from continuing operationsGAAP | $901M | – | – |
| Fourth-quarter net incomeGAAP | $900M | – | – |
| Fourth-quarter diluted earnings per share from continuing operationsGAAP | $3.10 | – | 39% |
| Fourth-quarter adjusted diluted earnings per share from continuing operationsnon-GAAP | $3.14 | – | 21% |
| Fourth-quarter effective tax rateGAAP | 16.3 % | – | – |
| Fourth-quarter adjusted effective tax ratenon-GAAP | 21.1 % | – | – |
| Fourth-quarter net cash provided by operating activitiesGAAP | $1.53B | – | – |
| Fourth-quarter free cash flownon-GAAP | $1.24B | – | – |
| Fiscal 2026 net salesGAAP | $19.89B | – | 15.2 % |
| Fiscal 2026 organic net sales growthnon-GAAP | 11.9 % | – | 11.9 % |
| Fiscal 2026 ordersother | $22.2B | – | 27% |
| Fiscal 2026 gross marginGAAP | $7.21B | – | – |
| Fiscal 2026 operating incomeGAAP | $3.99B | – | – |
| Fiscal 2026 operating marginGAAP | 20.1 % | – | – |
| Fiscal 2026 adjusted operating incomenon-GAAP | $4.37B | – | – |
| Fiscal 2026 adjusted operating marginnon-GAAP | 22.0 % | – | – |
| Fiscal 2026 income from continuing operationsGAAP | $3.25B | – | – |
| Fiscal 2026 net incomeGAAP | $3.25B | – | – |
| Fiscal 2026 diluted earnings per share from continuing operationsGAAP | $11.07 | – | 80% |
| Fiscal 2026 adjusted diluted earnings per share from continuing operationsnon-GAAP | $11.52 | – | 24% |
| Fiscal 2026 effective tax rateGAAP | 17.6 % | – | – |
| Fiscal 2026 adjusted effective tax ratenon-GAAP | 21.7 % | – | – |
| Fiscal 2026 net cash provided by operating activitiesGAAP | $4.53B | – | – |
| Fiscal 2026 free cash flownon-GAAP | $3.41B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Transportation Solutions, fourth quarterAutomotive net sales growth was 7.0 %, commercial transportation net sales growth was 17.9 %, and Sensors net sales growth (decline) was (2.0) %. | $2.6B | – | 7.7 % |
| Industrial Solutions, fourth quarterDigital data networks net sales growth was 34.2 %, automation and connected living was 17.6 %, energy was 11.8 %, aerospace, defense, and marine was 15.2 %, and medical was 1.1 %. | $2.80B | – | 19.8 % |
| Transportation Solutions, fiscal 2026Automotive net sales growth was 5.9 %, commercial transportation was 19.3 %, and Sensors organic net sales growth (decline) was (2.4) %. | $10.07B | – | 7.3 % |
| Industrial Solutions, fiscal 2026Digital data networks net sales growth was 44.2 %, automation and connected living was 15.5 %, energy was 40.4 %, aerospace, defense, and marine was 12.6 %, and medical was (1.3) %. | $9.90B | – | 25.8 % |
First quarter fiscal 2027, quarter ending December 25, 2026 outlook
- Revenueapproximately $5.35 billion
- NoteNet sales growth: 14.6 %
- NoteOrganic net sales growth: 15.3 %
- NoteGAAP diluted earnings per share from continuing operations: $3.04
- NoteAdjusted diluted earnings per share from continuing operations: $3.30
- NoteAcquisition-related charges: 0.06
- NoteRestructuring and other charges, net: 0.05
- NoteAmortization expense: 0.15
- NoteTranslation and other: 0.7
- Note(Acquisitions) divestitures, net: —
- NoteFor the full fiscal year, the company expects to deliver organic sales growth that is similar to its performance in fiscal 2026.
Capital returns
- Approximately $800 million returned to shareholders in the fourth quarter.
- Repurchase of ordinary shares: $(544) million in the fourth quarter and $(1,892) million in fiscal 2026.
- Payment of ordinary share dividends to shareholders: $(226) million in the fourth quarter and $(869) million in fiscal 2026.
- Returned approximately $2.8 billion to shareholders in fiscal 2026.
- Committed $1.6 billion for bolt-on acquisitions in the Industrial segment to broaden the optics and power filtering portfolios.
What drove it
- Fourth-quarter reported net sales growth was driven by strong growth in both the Industrial and Transportation segments.
- The company cited customer needs for increased data and power connectivity as the source of broad fiscal 2026 portfolio growth.
- Industrial Solutions benefited from customers' AI investments, with opportunities spanning inside the data-center rack, the networking edge and the energy grid.
- Fourth-quarter operating performance was strong across both segments.
- Orders were $6.1 billion in the fourth quarter and $22.2 billion for fiscal 2026, supporting expected double-digit sales growth in fiscal 2027.
Concerns
- The fiscal 2026 results include an $87 million reconciling item related to IEEPA tariff refunds received that are expected to be returned to customers.
- Fourth-quarter Sensors net sales growth (decline) was (2.0) %, while fiscal 2026 Sensors organic net sales growth (decline) was (2.4) %.
- Fiscal 2026 Medical net sales growth (decline) was (1.3) %.
- The fourth-quarter GAAP effective tax rate was 16.3 %, including a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards.
What to watch
- Delivery against first-quarter fiscal 2027 sales of approximately $5.35 billion and organic net sales growth of 15.3 %.
- Delivery against first-quarter GAAP diluted EPS from continuing operations of $3.04 and adjusted diluted EPS from continuing operations of $3.30.
- Whether strong orders across the businesses continue to translate into the expected double-digit fiscal 2027 sales growth.
- The pace of Industrial Solutions growth, particularly digital data networks, energy, and customer AI investment activity.
- The effect of IEEPA tariff refunds expected to be received in fiscal 2027 and returned to customers.
Balance sheet and cash flow
- Cash and cash equivalents were $1,697 million at September 25, 2026, compared with $1,255 million at September 26, 2025.
- Short-term debt was $502 million at September 25, 2026, compared with $852 million at September 26, 2025.
- Long-term debt was $5,137 million at September 25, 2026, compared with $4,842 million at September 26, 2025.
- Capital expenditures were $(290) million in the fourth quarter and $(1,122) million in fiscal 2026.
- Acquisition of businesses, net of cash acquired, was $(12) million in the fourth quarter and $(212) million in fiscal 2026.
- Net cash used in financing activities was $(769) million in the fourth quarter and $(2,749) million in fiscal 2026.
Analysis
TE Connectivity closed fiscal 2026 with record fourth-quarter sales of $5,312 million, up 11.9 %, and organic net sales growth of 13.4 %. Orders of $6.1 billion grew 29% year over year and 6% sequentially. Both reporting segments expanded, with Industrial Solutions net sales up 19.8 % and Transportation Solutions up 7.7 %. Digital data networks grew 34.2 % in the quarter, while commercial transportation grew 17.9 %.
Profitability expanded across the reported measures. Fourth-quarter GAAP operating income was $1,093 million, with operating margin of 20.6 %, compared with $916 million and 19.3 % in the prior-year quarter. Adjusted operating income was $1,176 million and adjusted operating margin was 22.1 %, compared with $1,001 million and 21.1 %. GAAP diluted EPS from continuing operations rose 39% to $3.10, while adjusted diluted EPS rose 21% to $3.14. The quarter's GAAP effective tax rate of 16.3 % included a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards.
For fiscal 2026, net sales reached $19,885 million, up 15.2 %, while organic net sales growth was 11.9 %. Industrial Solutions was the larger growth contributor, with sales of $9,903 million and net sales growth of 25.8 %, including 44.2 % growth in digital data networks and 40.4 % growth in energy. Transportation Solutions generated $10,069 million of sales and 7.3 % growth. Fiscal-year GAAP operating margin rose to 20.1 % from 18.6 %, and adjusted operating margin rose to 22.0 % from 20.8 %.
Cash generation remained substantial. Fourth-quarter net cash provided by operating activities was $1,528 million and free cash flow was $1,241 million. Fiscal-year operating cash flow was $4,525 million and free cash flow was $3,412 million. The company repurchased $(1,892) million of ordinary shares and paid $(869) million of ordinary share dividends during fiscal 2026, while committing $1.6 billion for Industrial bolt-on acquisitions. Cash and cash equivalents were $1,697 million at September 25, 2026, and long-term debt was $5,137 million.
The first-quarter fiscal 2027 outlook calls for approximately $5.35 billion of sales, 14.6 % net sales growth, 15.3 % organic net sales growth, GAAP diluted EPS from continuing operations of $3.04, and adjusted diluted EPS from continuing operations of $3.30. Management also expects fiscal 2027 organic sales growth similar to the strong fiscal 2026 performance. The stated outlook is supported by strong orders, although IEEPA tariff refunds remain a reconciling item that is expected to be returned to customers.
Management, verbatim
Our teams delivered a strong fourth quarter to finish a year in which we set records in sales, earnings and cash generation.
Terrence Curtin, CEO
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.
Terrence Curtin, CEO
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.
Terrence Curtin, CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided; comparison of reported results with prior guidance is unavailable.
- First-quarter fiscal 2027 guidance for gross margin, operating expenses and tax rate was not provided.
- Fourth-quarter and fiscal 2026 gross margin percentages were not reported.
- Sequential comparative figures for revenue, margins, income and cash flow were not reported, except for orders.
- Prior-year amounts and year-over-year changes for orders were not provided in the financial tables beyond the press-release percentage statements.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard SEC Form 8‑K reporting TE Connectivity's FY2026 earnings and FY27 outlook.
Ticker impact
TE Connectivity reported record Q4 sales up 12% and FY2026 EPS up 80%, and issued guidance for FY27 with sales up ~15% and EPS up ~20% year over year.
likely upward pressure as the company issued guidance indicating higher sales and EPS growth
The 8‑K filing is the first public disclosure of the results and guidance; the magnitude of earnings growth and the issued outlook are material for a large‑cap industrial tech stock.
Market effects
Boosts outlook for industrial and transportation connectivity segments, may lift peers in the industrial technology space.
Positive for U.S. industrial stocks and broader market sentiment.
Reinforces demand for data and power connectivity worldwide.
Counterpoint
If the market has already priced in the strong results, the stock may face a short‑term pull‑back.
Key entities
- companyTE Connectivity plc
Industrial technology leader reporting FY2026 results and FY27 guidance.
