TE Connectivity (TEL) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 sales of $5.16 billion, up 14% year-over-year and 12% organically, with strong growth in Industrial and Transportation segments.

• Adjusted EPS rose 22% to $2.94; GAAP EPS was $2.55, up 19% year-over-year.

• Orders reached a record $5.7 billion, up 27% year-over-year and 7% sequentially, with a book-to-bill ratio of 1.1.

• Strong operational performance drove margin expansion and robust free cash flow generation.

• Entered agreement to acquire Astrodyne TDI for $1.4 billion, expanding the Industrial segment's power portfolio.

Financial highlights

• Net sales increased to $5.16 billion, up 14% reported and 12% organic year-over-year.

• Adjusted operating margin expanded to 21.9%; GAAP operating margin was 19%.

• Adjusted EPS rose to $2.94 from $2.41 year-over-year.

• Year-to-date free cash flow reached $2.2 billion; $2 billion returned to shareholders via dividends and buybacks.

• Free cash flow for Q3 was $883 million.

Outlook and guidance

• Q4 FY26 sales expected to be ~$5.25 billion, up 11% year-over-year; adjusted EPS projected at ~$3.05, up 18% year-over-year.

• Full-year outlook implies 15% reported and 11% organic sales growth, with adjusted EPS up 23% year-over-year.

• Double-digit increases in sales and EPS anticipated for full fiscal 2026.

• Strong backlog and order momentum support confidence in continued growth into FY27.