TE Connectivity Reports Impressive 22% Sales Growth

By Chris Stiles • Wednesday, January 21 10:55 • Permanent Link

TE Connectivity PLC (NYSE: TEL) has reported its results for the fiscal first quarter ended December 26, 2025, and the numbers are impressive. Net sales were $4.7 billion, marking a 22% increase on a reported basis year over year, with 15% organic growth. The company's GAAP diluted earnings per share (EPS) from continuing operations was $2.53, a 45% increase year over year. Adjusted EPS was $2.72, showing a 33% increase year over year.

The GAAP operating margin increased by 260 basis points year over year to 20.6%, while the adjusted operating margin expanded by 180 basis points to 22.2%. TE Connectivity also achieved record orders of $5.1 billion, reflecting a 28% increase year over year and a 9% sequential increase.

The company's cash flow from operating activities was $865 million, and free cash flow stood at $608 million, with $615 million returned to shareholders. Looking ahead, TE Connectivity expects sales of approximately $4.7 billion for the second quarter of fiscal 2026, representing a 13% increase on a reported basis and 6% organically year over year. The company anticipates adjusted EPS of approximately $2.65, reflecting a 20% increase year over year, while GAAP EPS from continuing operations is expected to be approximately $2.26.

TE Connectivity's CEO, Terrence Curtin, expressed confidence in the company's performance, stating that the first quarter's earnings growth exceeding 30% and sales growth of more than 20% were above their guidance. He highlighted the record quarterly orders of over $5 billion, setting up TE for another year of strong growth and margin expansion.

The company's robust performance is attributed to growth in both the industrial and transportation segments, driven by investments in data and power connectivity in key applications such as AI, energy grid hardening, and next-generation vehicles.

As a result of these announcements, the company's shares have moved -0.38% on the market, and are now trading at a price of $241.01. For the full picture, make sure to review TE Connectivity's 8-K report.

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