TE Connectivity (NYSE: TEL) books 27% order growth and expects double-digit sales rise

What happened

TE Connectivity plc (NYSE: TEL) reported record fiscal 2026 sales, orders and cash generation. It expects double-digit sales growth in fiscal 2027.

For the year ended Sept. 25, net sales were $19.9 billion, up 15% reported and 12% organically. Orders were $22.2 billion, up 27%. The company says that supports its growth outlook for fiscal 2027.

In the fourth quarter, net sales were a record $5.3 billion, up 12% reported and 13% organically. Orders were $6.1 billion, up 29% from a year earlier and 6% from the prior quarter. GAAP diluted EPS from continuing operations was $3.10, up 39%. Adjusted EPS was $3.14, up 21%.

Key numbers

Metric	Latest	Change	Source
Fiscal 2026 net sales	$19.9 billion	from $17.3 billion, +15.2%	Calculated from SEC 8-K
Fiscal 2026 orders	$22.2 billion	+27%	SEC 8-K Exhibit 99.1
Fiscal 2026 adjusted EPS	$11.52	from $9.27, +24%	SEC 8-K Exhibit 99.1
Fiscal 2026 adjusted operating margin	22.0%	from 20.8%, +1.2 percentage points	Calculated from SEC 8-K
Fiscal 2026 free cash flow	$3.4 billion	from $3.2 billion, +6.2%	Calculated from SEC 8-K
First quarter fiscal 2027 sales guidance	$5.35 billion	+15%	SEC 8-K Exhibit 99.1

Read more: TE Connectivity (TEL) company research

Where the growth came from

Industrial Solutions grew fastest. Its fourth-quarter sales rose 20% to $2.80 billion from $2.34 billion a year earlier. Digital data networks were up 34%. The earnings presentation ties that growth to AI applications. CEO Terrence Curtin said the segment, which grew 26% for the full year, benefits from customers' AI investments.

Transportation Solutions sales rose 8% to $2.60 billion, or 7% organically. Automotive was up 7% and commercial transportation up 18%. Sensors slipped 2%. The presentation credits content outperformance in Asia and Europe for the automotive growth.

Orders point the same way. Industrial orders rose 47% in the quarter and Transportation orders rose 13%. The book-to-bill ratio was 1.14, according to the earnings presentation.

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Why it matters

OptimistFi has argued that TE works if its connectivity position keeps capturing more electronic content in industrial and transportation markets. The case also needs margins and cash conversion to stay closer to recent highs than to the older, depressed baseline. The year strengthens that view on growth and margins. Adjusted operating margin was 22.0% for the year against 20.8% in fiscal 2025. In the fourth quarter it was 22.1% against 21.1% a year earlier.

Cash grew more slowly than sales. OptimistFi calculates that free cash flow rose 6.2%, from $3.21 billion in fiscal 2025 to $3.41 billion. Sales grew more than twice as fast. Operating cash flow was $4.5 billion.

The company returned about $2.8 billion to shareholders. It also committed $1.6 billion to bolt-on acquisitions in Industrial, aimed at broadening its optics and power filtering portfolios.

What the tax and tariff items do to EPS

Tax items sit on both sides of the EPS comparison. Full-year GAAP diluted EPS from continuing operations was $11.07, up 80%. Adjusted EPS was $11.52, up 24%. The prior year carried $574 million of tax expense tied to a valuation allowance on deferred tax assets linked to a ten-year Swiss tax credit.

Fiscal 2026 included a $114 million net tax benefit, mainly from settling prior period tax matters. It also included a $59 million benefit booked in the fourth quarter from a lower valuation allowance.

The 24% adjusted figure is the cleaner guide to the run-rate. Tariff refunds add a second adjustment. The release deducts $87 million from net sales for IEEPA tariff refunds received in fiscal 2026 that the company expects to return to customers. The net effect on operating income is $4 million.

What's next

For the fiscal first quarter ending Dec. 25, 2026, TE expects sales of $5.35 billion, up 15% on a reported and organic basis. It guided to adjusted EPS of $3.30, up 21%. GAAP EPS is expected at $3.04, up 20%. For the full year, it expects organic sales growth similar to fiscal 2026.

A first-quarter report that meets those marks would show orders turning into sales with margins holding near 22%. Adjusted EPS below $3.30, or free cash flow that again trails sales growth, would weaken the case.

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