10-Q · April 24, 2026
TE Connectivity reported net sales of $4,744 million in Q2 FY2026, up 14.5% year-over-year (organic +7.2%), driven by Industrial Solutions and Transportation Solutions. Gross margin expanded to 36.8% and operating…
Earnings analysis · 10-Q
TEL earnings analysis
Filed July 24, 2026 · Our reading of the company's report
The latest report
TE delivered a strong Q3, with revenue up 13.8% year over year to $5.160 billion and broad-based growth led by Industrial Solutions' 21.9% increase. Gross and operating margins expanded modestly year over year, while…
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TE delivered a strong Q3, with revenue up 13.8% year over year to $5.160 billion and broad-based growth led by Industrial Solutions' 21.9% increase. Gross and operating margins expanded modestly year over year, while GAAP EPS increased to $2.55 and adjusted EPS of $2.94 beat consensus. Management's Q4 outlook calls for approximately $5.25 billion of sales and $2.84 of GAAP EPS, but investors should monitor sequential margin pressure, elevated commodity prices, weaker medical demand, and execution of the approximately $1.4 billion Astrodyne acquisition.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.55
What stood out
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Double-digit revenue growth
Q3 revenue rose $626 million, or 13.8% year over year, to $5.160 billion, with 12.2% organic growth. Sequentially, sales increased 8.9% from $4.74 billion in Q2 FY2026.
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Year-over-year margin expansion
Gross margin improved 30 basis points year over year to 35.6%, driven primarily by higher volume and manufacturing productivity. Operating margin was 19.0%, up 10 basis points from 18.9% a year ago, though down from 20.1% in Q2 FY2026.
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EPS beat with higher GAAP earnings
GAAP diluted EPS was $2.55, up from $2.14 in Q3 FY2025; adjusted EPS of $2.94 exceeded the $2.84 consensus estimate. GAAP EPS was below Q2 FY2026's $2.90, reflecting differing special-item impacts.
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Industrial demand led by AI and energy
Industrial Solutions revenue grew $464 million, or 21.9%, to $2.580 billion. Organic growth was led by digital data networks at 34.0% and energy at 32.7%, with AI applications and grid-hardening/data-center demand cited as drivers.
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Transportation remained positive
Transportation Solutions revenue increased $162 million, or 6.7%, to $2.580 billion. Commercial transportation organic sales rose 17.8%, while automotive grew 2.9% organically despite a 3.8% Americas decline.
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Strong cash generation supports investment
Nine-month operating cash flow increased $279 million to $2.997 billion. Capex was $832 million, or roughly 5.7% of nine-month sales of $14.573 billion, versus management's expectation for about 6% of FY2026 sales.
What to watch
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Medical and sensors demand remains weak
Medical organic revenue declined 7.2% in Q3, driven primarily by reduced demand from supply-chain dynamics, while Sensors organic revenue declined 2.8% due to weaker transportation applications.
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Higher commodity costs create margin risk
Input-cost exposure is elevated: Q3 average copper was $5.00 per pound versus $4.32 a year earlier, gold was $3,682 per ounce versus $2,715, and the company expects to purchase 195 million pounds of copper in FY2026.
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Astrodyne acquisition adds execution and funding risk
TE agreed to acquire Astrodyne TDI for approximately $1.4 billion in cash, expected to close by the end of calendar 2026. Funding may use cash, commercial paper, credit-facility borrowings and/or new debt financing.
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Restructuring costs precede savings
Restructuring charges were $96 million in the first nine months, including $86 million for the FY2026 program; total FY2026 cash spend is expected to be about $110 million, with $58 million of annualized savings not fully realized until fiscal 2029.
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No formal risk-factor update; CBP review pending
No material changes to risk factors were reported versus the FY2025 10-K. Separately, TE paid $14 million to U.S. Customs and Border Protection related to a Section 301 duty disclosure, though CBP has not completed its review.
Management's outlook
For Q4 FY2026, management expects approximately $5.25 billion of sales and GAAP diluted EPS from continuing operations of approximately $2.84. Outlook assumes current foreign-exchange rates and commodity prices, includes an approximately $10 million FX sales headwind versus Q4 FY2025, and excludes the anticipated Astrodyne TDI acquisition.
Earlier filings 4
10-Q · January 23, 2026
TE Connectivity reported quarter net sales of $4,669 million and diluted EPS of $2.53, driven by stronger margins and higher operating income. Operating cash flow was $865 million and free cash flow was $607 million…
10-Q · July 29, 2024
TE Connectivity reported quarterly net sales of $3,979 million (vs. $3,998 million in the prior-year quarter) with operating income rising to $755 million (from $630 million) and diluted EPS from continuing operations…
10-Q · January 26, 2024
TE Connectivity reported quarterly net sales of $3,831 million (down $10 million vs $3,841 million a year ago) and GAAP diluted EPS of $5.76 (versus $1.25 a year ago). Operating income improved to $698 million (from…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.