TE Connectivity reported record sales and earnings for fiscal 2026, with growth accelerating in its fourth quarter as demand rose across its industrial and transportation businesses. The connector and sensor maker also pointed to strong orders entering fiscal 2027, forecasting double-digit sales growth for the year.
The results highlight the company’s exposure to rising demand for data and power connectivity, including investment in AI-related data centers. TE also plans to put capital toward bolt-on acquisitions in its Industrial segment, while returning cash to shareholders.
Key details
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Fourth-quarter sales and orders strengthened. Sales reached a record $5.3 billion for the quarter ended Sept. 25, up 12% from a year earlier on a reported basis and 13% organically. Orders rose 29% year over year to $6.1 billion and were up 6% from the prior quarter.
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Quarterly earnings grew faster than sales. GAAP earnings per share from continuing operations were $3.10, up 39% year over year. Adjusted EPS was $3.14, up 21%. GAAP operating margin was 21%, while adjusted operating margin was 22%.
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The company generated substantial cash in the quarter. Cash from operations was $1.5 billion and free cash flow was $1.2 billion. TE returned about $800 million to shareholders.
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Fiscal 2026 set records across several measures. Full-year sales were $19.9 billion, up 15% on a reported basis and 12% organically. Orders totaled $22.2 billion, an increase of 27%. TE said it achieved annual records for sales, orders, operating margin, EPS and cash generation.
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Annual earnings and cash generation rose. GAAP EPS was $11.07, up 80% from the prior year; adjusted EPS was $11.52, up 24%. GAAP operating margin was 20% and adjusted operating margin was 22%. Cash from operations totaled $4.5 billion, with free cash flow of $3.4 billion.
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Industrial Solutions was a major growth area. The segment grew 26% in fiscal 2026. TE tied demand to customers’ AI investments, which it said are creating opportunities in data centers, networking and power infrastructure extending to the energy grid. The company also cited broad demand for data and power connectivity across its portfolio.
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TE returned cash and allocated funds to acquisitions. The company returned approximately $2.8 billion to shareholders during the year and committed $1.6 billion to bolt-on acquisitions in the Industrial segment, intended to broaden its optics and power-filtering portfolios.
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Fiscal 2027 guidance calls for continued growth. For the full year, TE expects organic sales growth similar to fiscal 2026’s 12% rate. Management said strong orders across its businesses support that outlook.
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The first-quarter forecast points to a strong start. TE expects sales of about $5.35 billion, up 15% year over year on both reported and organic bases. It forecasts GAAP EPS of approximately $3.04, up 20%, and adjusted EPS of approximately $3.30, up 21%.
The reported results show TE combining strong order growth with higher earnings and substantial free cash flow. Its stated priorities include capitalizing on data- and power-connectivity demand, expanding selected Industrial portfolios through acquisitions, and continuing shareholder returns.