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TE Connectivity Beats Expectations with 15% Sales Growth

TE Connectivity reported fiscal second-quarter results that topped its own guidance, with net sales rising 15% year over year to $4.74 billion. On an organic basis, sales increased 7%.

Adjusted diluted earnings per share reached a record $2.73, up 24% from a year earlier. GAAP diluted EPS from continuing operations was $2.90.

Operating performance also improved sharply. GAAP operating margin widened to 20%, up 200 basis points from the prior-year quarter. Adjusted operating margin rose to 22%, an increase of 130 basis points.

Orders hit a record $5.3 billion, climbing 25% year over year. The company said both industrial and transportation posted double-digit order growth, with gains across all businesses.

For the first half of fiscal 2026, cash flow from operating activities totaled $1.8 billion. Free cash flow came in at $1.3 billion, up 17% from the same period last year. TE also returned $1.2 billion to shareholders in the first half and raised its quarterly cash dividend by 10%.

Looking ahead, TE guided fiscal third-quarter sales to about $5 billion, which would be up 10% year over year, or 9% organically. It expects adjusted EPS of about $2.83, up 17%, and GAAP EPS from continuing operations of about $2.44, up 14%. As a result of these announcements, the company's shares have moved -3.25% on the market, and are now trading at a price of $203.20. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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