TE Connectivity 8-K
PositiveEarningsNew guidance
AI demand lifts Digital Data Networks as orders and backlog hit records; Q1 sales guided to ≈$5.35B.
Filed 2026-10-28 06:19 ET
- 2.02 Results of Operations
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2026 results with Q1 and FY2027 outlook. TE Connectivity reported record sales and orders, with growth led by Industrial Solutions and supported by demand for data and power connectivity. It expects Q1 FY2027 sales of approximately $5.35B and says FY2027 organic sales growth should be similar to FY2026’s strong performance.
Key Figures
| Metric | Q4 FY2026 | FY2026 |
|---|---|---|
| Revenue | $5.31B, +12% Y/Y | $19.9B, +15% Y/Y |
| Gross margin | 35.5%, vs 35.0% | 36.2%, vs 35.2% |
| Operating income | $1.09B, +19% Y/Y | $3.99B, +24% Y/Y |
| Operating margin | 20.6%, vs 19.3% | 20.1%, vs 18.6% |
| Adjusted operating margin, non-GAAP | 22.1%, vs 21.1% | 22.0%, vs 20.8% |
| Net income | $900M, +36% Y/Y | $3.25B, +77% Y/Y |
| Diluted EPS from continuing operations, GAAP | $3.10, +39% Y/Y | $11.07, +80% Y/Y |
| Adjusted diluted EPS, non-GAAP | $3.14, +21% Y/Y | $11.52, +24% Y/Y |
| Cash flow from operating activities | $1.53B, +8% Y/Y | $4.53B, +9% Y/Y |
| Free cash flow, non-GAAP | $1.24B, +8% Y/Y | $3.41B, +6% Y/Y |
- Industrial Solutions sales grew 20% organically in Q4, led by Digital Data Networks sales growth of 34% as AI-related demand continued; energy sales also grew 12%, supported by grid upgrades and data-center construction. Transportation Solutions sales grew 7% organically, with strength in automotive and commercial transportation.
- Orders were $6.1B in Q4, up 29% Y/Y and 6% sequentially; FY orders reached a record $22.2B, up 27%, with record backlog entering FY2027. Digital Data Networks orders increased approximately 70% for the year.
- FY2026 shareholder returns were approximately $2.8B, including $1.89B of share repurchases and $869M of dividends. Year-end ordinary shares outstanding, calculated as issued shares less treasury shares, declined 7.06M to 287.5M. Cash was $1.70B and total debt was $5.64B, versus $5.69B a year earlier. Reported Q4 and FY sales include an $87M reduction for IEEPA tariff refunds expected to be returned to customers.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Net sales growth / organic net sales growth | Q4 FY2026 | 10.6% / 10.8%; sales ≈$5.25B | $5.31B | beat |
| Diluted EPS from continuing operations, GAAP | Q4 FY2026 | $2.84 | $3.10 | beat |
| Adjusted diluted EPS, non-GAAP | Q4 FY2026 | $3.05 | $3.14 | beat |
| Net sales growth / organic net sales growth | FY2026 | 14.8% / 11.2% | $19.9B | beat |
| Diluted EPS from continuing operations, GAAP | FY2026 | $10.82 | $11.07 | beat |
| Adjusted diluted EPS, non-GAAP | FY2026 | $11.43 | $11.52 | beat |
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Sales | Q1 FY2027 | ≈$5.35B; reported growth 14.6% Y/Y, organic growth 15.3% Y/Y | — | — |
| Diluted EPS from continuing operations, GAAP | Q1 FY2027 | $3.04; +20% Y/Y | — | — |
| Adjusted diluted EPS, non-GAAP | Q1 FY2027 | $3.30; +21% Y/Y | — | — |
| Organic sales growth | FY2027 | Similar to FY2026’s strong performance | — | — |
| Effective tax rate, GAAP | FY2027 | 22.0% | — | — |
| Adjusted effective tax rate, non-GAAP | FY2027 | 22.0% | — | — |
Q1 sales guidance includes approximately $50M of IEEPA tariff refunds expected to be returned to customers, with no EPS impact.
Investor Takeaways
- Q1 sales and EPS versus guidance will test whether the strong order momentum is translating into continued growth.
- FY2027 organic sales growth and backlog conversion will test the outlook; Digital Data Networks growth, which was 34% in Q4 and supported by AI applications, is a key indicator of continued data-center demand.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-28 14:39:41Z