TE Connectivity (TEL) Q4 2026 earnings summary

Executive summary

• FY26 set records for sales ($19.885B), adjusted operating margin (22%), adjusted EPS ($11.52) and free cash flow ($3.412B).

• Q4 sales reached $5.312B, up 12% reported and 13% organically; adjusted EPS rose 21% to $3.14.

• Record FY26 orders of $22.2B, up 27%, and record backlog support expectations for double-digit FY27 organic growth, similar to FY26’s 12%.

Financial highlights

• Q4 net sales were $5.312B versus $4.749B; operating income was $1.093B versus $916M, and adjusted operating income was $1.176B versus $1.001B.

• Q4 diluted GAAP EPS was $3.10 versus $2.23; adjusted EPS was $3.14 versus $2.59.

• FY26 reported sales were $19.885B, up 15%; organic sales rose 12%, and adjusted EPS increased 24% to $11.52.

• FY26 cash from operating activities was $4.525B; free cash flow was $3.412B, with 100.7% conversion.

• FY26 adjusted operating margin was 22.0%, up 120 bps; Q4 adjusted operating margin was 22.1%, up 100 bps YoY.

Outlook and guidance

• Q1 FY27 sales are forecast at $5.35B, up 15% reported and organically YoY; adjusted EPS is expected at $3.30, up 21%.

• FY27 organic sales growth is expected to remain double digit and similar to FY26; Q1 growth is expected to be above seasonal, led by Industrial.

• DDN revenue is expected to increase by more than $1B in FY27, mostly from AI applications; more than half of growth is expected in H2.

• Adjusted tax rate forecast at 21% in Q1 and 22% for FY27; FY27 restructuring charges expected below $100M.

• Global vehicle production is expected to decline slightly in FY27; automotive growth over market is forecast at 4%–6%.