TE Connectivity (TEL) Q1 2026 earnings summary

Executive summary

• Q1 net sales reached $4.7 billion, up 22% year-over-year with 15% organic growth, driven by strong performance in both Industrial and Transportation segments and contributions from the Richards Manufacturing acquisition.

• Adjusted EPS rose 33% year-over-year to $2.72, with GAAP EPS at $2.53; net income increased to $751 million.

• Record quarterly orders of $5.1 billion, up 28% year-over-year and 9% sequentially, with a book-to-bill ratio of 1.1.

• Free cash flow was $608 million, with nearly 100% returned to shareholders through buybacks and dividends.

Financial highlights

• Net sales: $4.7 billion (Q1 FY2026) vs. $3.8 billion (Q1 FY2025), up 22% reported and 15% organically.

• Adjusted operating margin expanded to 22.2%, up 180 basis points year-over-year; GAAP operating margin at 20.6%.

• Adjusted EBITDA margin improved to 26.5% from 24.3% year-over-year.

• Cash from operations: $865 million; free cash flow: $608 million.

• Diluted EPS: $2.53 (GAAP), $2.72 (adjusted).

Outlook and guidance

• Q2 sales expected at $4.7 billion, up 13% year-over-year (6% organic); adjusted EPS guidance is ~$2.65, up 20% year-over-year.

• GAAP EPS for Q2 projected at $2.26.

• Full-year sales growth expected to exceed 6–8% through-cycle target, with margin expansion and strong EPS growth.

• CapEx expected to be ~6% of sales for FY2026, supporting AI program growth.

• Guidance reflects positive FX impacts and continued benefit from recent acquisitions.