TE Connectivity plc reported fiscal second‑quarter 2026 results that exceeded its own guidance, with net sales of $4.744 billion—up 15% on a reported basis and 7% organically year‑over‑year. Adjusted earnings per share rose to $2.73, a 24% increase from the prior year, while the adjusted operating margin expanded to 22% from 20.4% in the same quarter last year.
Record order levels of $5.3 billion, a 25% year‑over‑year increase, and a book‑to‑bill ratio of 1.12 underscored robust demand across the company’s Industrial and Transportation segments. Industrial Solutions grew 27% YoY and 17% organically, driven by high‑margin AI and energy‑infrastructure revenue, whereas Transportation Solutions showed mixed results, with Automotive organic sales declining 4%.
"Our teams delivered another quarter of results above guidance, including double‑digit sales growth and record adjusted EPS," stated CEO Terrence Curtin. "This performance and our record orders were driven by our strategic positioning in key trends including AI, next‑generation transportation and electric grid modernization, along with the broadening of growth across our portfolio. We're well positioned to capitalize on the proliferation of data and power to provide our customers with leading interconnect technologies. Our strong margin performance reflects the resilience we've built to mitigate the dynamic environment we continue to operate in around the world."
Management highlighted that margin gains were supported by a 70% localization strategy that helped mitigate tariff impacts, and that the company’s focus on higher‑margin AI and energy‑infrastructure contracts contributed to the operating‑margin expansion. The company also raised its quarterly cash dividend by 10%, signaling confidence in its cash‑flow generation and ongoing investment in AI capacity.
Looking ahead, TE Connectivity guided for third‑quarter sales of approximately $5.0 billion—an increase of 10% on a reported basis—and adjusted earnings per share of $2.83, a 17% year‑over‑year rise. "Looking ahead to the third quarter, our ongoing orders momentum across all businesses positions us to deliver double‑digit sales growth to $5 billion, with continued strong operational performance to drive a double‑digit increase in EPS. We continue to invest in innovative products and technologies that support our global customers and fuel our future growth," the CEO added.
Investors reacted with caution, citing a slight revenue miss versus analyst consensus estimates of $4.76 billion and weaker organic trends in the Automotive and Medical sub‑segments. The market’s tempered response reflects a sell‑the‑news sentiment after a recent run‑up and a focus on valuation relative to the company’s forward guidance.
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