TE Connectivity (TEL) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 FY26 sales of $5.16 billion, up 14% year-over-year and 12% organically, with strong growth in both Industrial and Transportation segments.

• Adjusted EPS rose 22% to $2.94; GAAP diluted EPS increased 19% to $2.55.

• 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, expected to add over $250 million in annual sales and expand the Industrial segment's power portfolio.

Financial highlights

• Q3 net sales: $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 grew to $2.94; GAAP EPS was $2.55.

• Year-to-date free cash flow was $2.2 billion; Q3 free cash flow was $883 million.

• $2 billion returned to shareholders year-to-date via dividends and buybacks.

Outlook and guidance

• Q4 FY26 sales expected at ~$5.25 billion, up 11% year-over-year; adjusted EPS projected at ~$3.05, GAAP EPS at ~$2.84.

• Full-year adjusted EPS growth projected at 23% year-over-year.

• FY26 sales expected to grow ~15%, adding over $2.5 billion in incremental revenue.

• Guidance excludes results from the pending Astrodyne TDI acquisition and reflects a $10 million negative FX impact.

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