TE Connectivity — Fiscal Q4 2026 Earnings Summary

Financial Performance:

• Q4 2026 net sales reached a record $5.3 billion, a 12% increase on a reported basis and 13% organically year over year.
• Full-year 2026 net sales were $19.9 billion, a 15% increase on a reported basis and 12% organically.
• Q4 2026 GAAP diluted EPS from continuing operations was $3.10, up 39% year over year; adjusted EPS was $3.14, up 21%.
• Full-year 2026 GAAP EPS was $11.07, up 80% year over year; adjusted EPS was $11.52, up 24%.
• Q4 2026 GAAP operating margin was 21% and adjusted operating margin was 22%.
• Full-year 2026 GAAP operating margin was 20% and adjusted operating margin was 22%.
• Q4 2026 orders were $6.1 billion, up 29% year over year and 6% sequentially.
• Full-year 2026 orders were $22.2 billion, up 27% year over year.
• Q4 2026 cash flow from operating activities was $1.5 billion and free cash flow was $1.2 billion.
• Full-year 2026 cash flow from operating activities was $4.5 billion and free cash flow was $3.4 billion.
• Q4 2026 short-term debt was $502 million and long-term debt was $5.1 billion.
• Full-year 2026 total assets were $26.7 billion and total shareholders' equity was $13.6 billion.

Guidance and Future Outlook:

• The company expects double-digit sales growth in fiscal 2027.
• For Q1 fiscal 2027, the company expects sales of approximately $5.35 billion, up 15% on a reported and organic basis year over year.
• Q1 fiscal 2027 GAAP EPS is expected to be approximately $3.04, up 20% year over year; adjusted EPS is expected to be approximately $3.30, up 21%.
• For the full fiscal year 2027, the company expects organic sales growth similar to the strong performance in fiscal 2026.
• Management expects the strong momentum from 2026 to continue into 2027.

Business Segments and Product Lines:

• Q4 2026 growth was driven by strong performance in the Industrial and Transportation segments.
• The Industrial Solutions segment grew 26% in fiscal 2026.
• Q4 2026 Transportation Solutions net sales were $2.6 billion (up 7.7% reported, 6.9% organic).
• Q4 2026 Industrial Solutions net sales were $2.8 billion (up 19.8% reported, 20.0% organic).
• Full-year 2026 Transportation Solutions net sales were $10.1 billion (up 7.3% reported, 4.5% organic).
• Full-year 2026 Industrial Solutions net sales were $9.9 billion (up 25.8% reported, 20.8% organic).
• Digital data networks within Industrial Solutions saw a 44.2% reported sales increase for the full year.
• Energy within Industrial Solutions saw a 40.4% reported sales increase for the full year.
• Customers are driving demand for increased data and power connectivity.
• AI investments by customers are creating opportunities from inside the data center rack to the networking edge and energy grid.

Market and Competitive Landscape:

• Growth is supported by strategic positioning around accelerating data and power trends.
• The company serves customers in approximately 130 countries with over 100,000 employees.
• The company is well-positioned to capitalize on growth drivers related to next-generation architectures.

Risks and Challenges:

• Forward-looking statements are subject to risks including business interruptions, economic and regulatory conditions, competition, pricing pressure, foreign currency fluctuations, and commodity price changes.
• Risks include natural disasters, political and military instability, credit market developments, goodwill impairment, and compliance with environmental laws.
• Changes in tax laws and treaties could impact results.

Management Commentary and Tone:

• CEO Terrence Curtin stated the team delivered a strong fourth quarter to finish a year setting records in sales, earnings, and cash generation.
• Management expressed confidence that strong momentum will continue into fiscal 2027.
• Management highlighted the benefit of customer AI investments driving demand for connectivity innovations.

Other Key Points:

• Approximately $800 million was returned to shareholders in Q4 2026.
• Approximately $2.8 billion was returned to shareholders for the full year 2026.
• The company committed $1.6 billion for bolt-on acquisitions in the Industrial segment to broaden optics and power filtering portfolios.
• Reconciling items related to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers impacted segment net sales and operating income.
• The company will hold a conference call on October 28, 2026, at 8:30 a.m. ET.