TE Connectivity posts record $5.3 billion quarter as AI demand lifts orders 29%

Fourth quarter: records in sales and strong orders

TE Connectivity plc (NYSE: TEL) reported results for the fiscal fourth quarter and fiscal year ended September 25, 2026. Net sales reached a record $5.3 billion, an increase of 12% on a reported basis and 13% organically. The company said growth was strong in both its Industrial and Transportation segments.

Orders came in at $6.1 billion, up 29% year over year and 6% sequentially. GAAP diluted earnings per share (EPS) from continuing operations were $3.10, up 39%, while adjusted EPS was $3.14, an increase of 21%.

GAAP operating margin was 21% and adjusted operating margin was 22%. Cash flow from operating activities was $1.5 billion and free cash flow was $1.2 billion. Approximately $800 million was returned to shareholders in the quarter.

Full-year results and acquisitions

For the full year, TE Connectivity said it set records for sales, orders, operating margin, EPS and cash generation. Net sales were $19.9 billion, up 15% on a reported basis and 12% organically. The company attributed the broad growth across its portfolio to customer needs for increased data and power connectivity.

• Orders of $22.2 billion, up 27%
• GAAP EPS of $11.07, up 80%, and adjusted EPS of $11.52, up 24%
• GAAP operating margin of 20% and adjusted operating margin of 22%
• Operating cash flow of $4.5 billion and free cash flow of $3.4 billion

TE returned approximately $2.8 billion to shareholders during the year. It also committed $1.6 billion to bolt-on acquisitions in the Industrial segment, intended to broaden its optics and power filtering portfolios.

AI investment drives Industrial Solutions

CEO Terrence Curtin said the company finished a year in which it set records in sales, earnings and cash generation. He pointed to the Industrial Solutions segment, which grew 26% in 2026. "We continue to benefit from our customers' AI investments," Curtin said, describing opportunities that extend from inside the rack in the data center to the networking edge and the energy grid.

TE describes itself as a supplier of connectivity and sensor solutions that distribute power, signal and data, including for data centers enabling artificial intelligence. The company has more than 100,000 employees, including 10,000 engineers, and works with customers in approximately 130 countries.

Outlook for fiscal 2027

For the first quarter of fiscal 2027, TE expects sales of approximately $5.35 billion, up 15% on both a reported and organic basis. It forecasts GAAP EPS from continuing operations of approximately $3.04, up 20%, and adjusted EPS of approximately $3.30, up 21%.

For the full fiscal year, Curtin said the company expects organic sales growth similar to its performance in fiscal 2026. The company said the $22.2 billion in full-year orders supports its expectation of double-digit sales growth in fiscal 2027.

TE held an investor conference call at 8:30 a.m. ET on the day of the release, with a replay available on its investor website.

What it means

The results show a connectivity supplier whose order intake is running ahead of sales, with orders up 27% for the year against sales up 15%. According to the company, demand tied to data and power connectivity, including AI infrastructure, underpins its guidance for another year of double-digit growth. The outlook remains the company's own expectation, and the release notes that adjusted figures are non-GAAP measures that should be read alongside GAAP results.