#Ireland #Galway #fiscal results #TE Connectivity #EPS Growth

TE Connectivity Reports Impressive Q2 Results

TE Connectivity plc (NYSE: TEL) recently announced its financial achievements for the second quarter of fiscal 2026, which concluded on March 27, 2026. The results showcase a notable 15% increase in net sales, amounting to $4.74 billion. This growth can be attributed to robust performances in both the Industrial and Transportation sectors. Organically, the growth rate stood at 7%, indicating a solid foundation for the company’s expansion efforts.

One of the standout achievements for TE Connectivity was its earnings per share (EPS) from continuing operations, which hit $2.90, with an adjusted EPS reaching a remarkable $2.73, marking a significant 24% year-over-year increase. The company's GAAP operating margin increased to 20%, reflecting a 200 basis points uplift compared to the previous year's figures, while the adjusted operating margin grew by 130 basis points year-over-year, settling at 22%. These improvements are a clear testament to the company's operational excellence and strategic focus on key market trends.

In terms of market demand, TE Connectivity experienced record orders totaling $5.3 billion, which is a 25% increase year-over-year. This growth spanned across all business sectors, showcasing double-digit order growth in both the Industrial and Transportation divisions. The strong demand reflects TE Connectivity's strategic positioning amid rising trends like artificial intelligence, modern transportation solutions, and the modernization of electric grids.

Cash flow from operating activities for the first half of the fiscal year stood at $1.8 billion, with free cash flow rising to $1.3 billion—an increase of 17%. In light of these outstanding results, TE Connectivity returned $1.2 billion to shareholders and announced a 10% increase in its quarterly cash dividend, further demonstrating commitment to shareholder value.

As CEO Terrence Curtin stated, the operational prowess and market dynamics have led to another quarter of results that surpassed guidance, with both sales and record adjusted EPS showing resilience in a dynamic environment. The company's outlook for the upcoming third quarter of fiscal 2026 is optimistic as well. TE Connectivity is forecasting sales of approximately $5 billion, an expected increase of around 10% year-over-year, with adjusted EPS projected to be around $2.83, reflecting a 17% rise.

Moving forward, the comprehensive investment strategy in innovative products and technologies underlines TE Connectivity's ambition to not only support its global customers but also fuel future growth. With positive orders momentum established across all business lines, the company is well-poised to achieve further sales growth while maintaining robust operational performance.

In summary, TE Connectivity's second quarter results have set a promising tone for the fiscal year, showcasing its capabilities to meet market demands and drive consistent growth. As industries continue to adapt to emerging technologies, TE Connectivity stands ready to leverage these developments and ensure that every connection counts in its pursuit of a connected and sustainable future.