TE Connectivity Delivers Strong Q2 2026 Results: Sales, EPS, and Orders Reach New Highs

Key Financial Highlights for Q2 2026

• Net Sales: \$4.74 billion, up 15% year-over-year (7% organic growth).
• GAAP Diluted EPS (Continuing Ops): \$2.90.
• Record Adjusted EPS: \$2.73, up 24% year-over-year.
• GAAP Operating Margin: 20%, up 200 basis points.
• Adjusted Operating Margin: 22%, up 130 basis points.
• Record Orders: \$5.3 billion, up 25% year-over-year with double-digit growth in both segments.
• First-Half Cash Flow from Operations: \$1.8 billion; Free Cash Flow: \$1.3 billion, up 17%.
• Shareholder Returns: \$1.2 billion returned in the first half; 10% increase in quarterly cash dividend announced.

Management Commentary

CEO Terrence Curtin highlighted the company’s strong execution, noting results above guidance including double-digit sales and record adjusted EPS. Curtin emphasized TE Connectivity’s strategic positioning in key secular trends such as artificial intelligence, next-generation transportation, and electric grid modernization. He credited the broadening of growth across the portfolio and the company’s ability to capitalize on the proliferation of data and power, providing customers with leading interconnect technologies. Curtin further pointed to robust operational performance and the company’s resilience in a dynamic global environment.

Third Quarter Fiscal 2026 Outlook

• Expected Sales: Approximately \$5 billion (10% reported growth, 9% organic).
• Adjusted EPS Guidance: \$2.83 (up 17% year-over-year).
• GAAP EPS Guidance (Continuing Ops): \$2.44 (up 14% year-over-year).

Management expects ongoing orders momentum across all businesses to support another quarter of double-digit growth in both sales and EPS. The company will continue to invest in innovative products and technologies for future growth.

Segment Performance Details

Transportation Solutions

• Q2 Net Sales: \$2.42 billion (up from \$2.31 billion in Q2 2025).
• Operating Income: \$503 million (20.8% margin), Adjusted Operating Income: \$522 million (21.6% margin).
• Growth Mix: Automotive (+1.6%), Commercial Transportation (+21.3%), Sensors (+2.3%).

Industrial Solutions

• Q2 Net Sales: \$2.32 billion (up from \$1.83 billion in Q2 2025).
• Operating Income: \$451 million (19.4% margin), Adjusted Operating Income: \$507 million (21.8% margin).
• Growth Mix: Digital Data Networks (+48.1%), Automation & Connected Living (+13.1%), Aerospace/Defense/Marine (+9.1%), Energy (+59.5%), Medical (-3.3%).

Balance Sheet & Cash Flow

• Total Assets: \$25.7 billion at end Q2 2026.
• Cash & Equivalents: \$1.11 billion.
• Debt: \$5.65 billion total (short- and long-term).
• Net cash provided by operating activities (first half): \$1.8 billion.
• Free Cash Flow (first half): \$1.29 billion.
• Capital Expenditures (first half): \$528 million.
• Share buybacks and dividends (first half): \$1.24 billion returned to shareholders.

Other Important Items

• Dividend Increase: Announced 10% increase in quarterly cash dividend, a potentially price-sensitive signal of confidence in future cash flows and earnings acceleration.
• Record Orders: \$5.3 billion in Q2, up 25% year-over-year, a leading indicator for future sales momentum and capacity utilization.
• Non-GAAP Adjustments: Significant adjustments to GAAP results for restructuring, acquisition-related charges, and amortization; investors should review both sets of numbers for a full picture.
• Effective Tax Rate: Q2 2026 effective tax rate was 9.2% (adjusted rate 20.9%), with some periods affected by large one-time tax items (e.g., Q2 2025 rate of 98.3% due to Swiss tax credit valuation allowance).
• Share Count: Weighted average diluted shares outstanding in Q2 2026: 295 million, down from 300 million in Q2 2025, reflecting active share repurchase program.

Forward-Looking Statements & Risks

The company’s forward-looking statements depend on continued strength in industrial and transportation end markets, ongoing adoption of AI and grid modernization, and robust demand across all business lines. Key risks include macroeconomic uncertainty, supply chain volatility, foreign exchange fluctuations, regulatory changes, and geopolitical instability.

Conference Call Details

TE Connectivity will host an investor conference call at 8:30 a.m. ET. The call will be webcast on the company’s investor website and available for replay.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation regarding any security. Investors should conduct their own due diligence and consult their financial advisors before making investment decisions. The information contained herein is based on company filings as of April 22, 2026, and is subject to change without notice.

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