TE Connectivity 8-K
PositiveEarningsNew guidance
Digital data networks and energy drove Industrial growth; TE agreed to buy Astrodyne TDI to expand its Industrial power portfolio.
Filed 2026-07-22 06:40 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q3 FY2026 results with Q4 and full-year outlook, alongside an agreement to acquire Astrodyne TDI. TE reported record sales and orders, with growth in both segments; it said industrial growth was driven by digital data networks and energy, while Transportation benefited from content growth. The acquisition is expected to add more than $250M in annual sales and expand the Industrial power portfolio.
Key Figures
| Metric | Q3 2026 | Q3 2025 | Y/Y |
|---|---|---|---|
| Revenue | $5.16B | $4.53B | 14% |
| Operating income | $981M | $857M | 14% |
| Net income | $748M | $638M | 17% |
| Diluted EPS from continuing operations, GAAP | $2.55 | $2.14 | 19% |
| Adjusted diluted EPS, non-GAAP | $2.94 | $2.41 | 22% |
| Operating cash flow | $1.19B | $1.19B | -0.2% |
| Free cash flow, non-GAAP | $883M | $962M | -8.2% |
| Orders | $5.69B | $4.47B | 27% |
- Industrial Solutions sales rose 22% reported and 21% organically; Transportation Solutions sales rose 7% reported and 5% organically. GAAP operating margin increased 10 bp to 19.0%; adjusted operating margin expanded 90 bp to 21.9%.
- Q3 share repurchases were $529M vs $301M a year earlier; diluted weighted-average shares fell to 293M from 298M. YTD, TE generated $3.00B in operating cash flow and $2.17B in free cash flow, and returned $2.0B to shareholders. Cash was $1.24B and total debt $5.63B at quarter-end.
- Astrodyne TDI purchase price is approximately $1.4B; it is expected to contribute annual sales of more than $250M and close by year-end 2026, subject to customary regulatory approvals and closing conditions.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net sales | Q4 FY2026 | ≈$5.25B; reported growth 10.6%, organic growth 10.8% Y/Y | — | — |
| Diluted EPS from continuing operations, GAAP | Q4 FY2026 | ≈$2.84; growth 27% Y/Y | — | — |
| Adjusted diluted EPS, non-GAAP | Q4 FY2026 | ≈$3.05; growth 18% Y/Y | — | — |
| Net sales growth | FY2026 | 14.8% reported; 11.2% organic Y/Y | — | — |
| Diluted EPS from continuing operations, GAAP | FY2026 | $10.82 | — | — |
| Adjusted diluted EPS, non-GAAP | FY2026 | $11.43 | — | — |
| Effective tax rate, GAAP | Q4 FY2026 | 22.7% | — | — |
| Adjusted effective tax rate, non-GAAP | Q4 FY2026 | 22.5% | — | — |
| Effective tax rate, GAAP | FY2026 | 19.3% | — | — |
| Adjusted effective tax rate, non-GAAP | FY2026 | 22.1% | — | — |
Investor Takeaways
- Q4 results against the guided sales and EPS figures will test whether double-digit growth continues.
- Order momentum—including 27% Y/Y growth and a 1.1 book-to-bill ratio—will indicate whether demand sustains the sales outlook.
- Watch for Astrodyne TDI’s expected year-end closing.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3