TE Connectivity Q1 EPS Jumps 39.5% on $4.67B Sales, Guides 13% Q2 Growth
TE Connectivity reported Q1 fiscal 2026 adjusted EPS of $2.72, up 39.5% year over year and beating estimates by 7.1%, on net sales of $4.67 billion, which rose 22% reported and 15% organically. It guided Q2 revenues up 13% to $4.7 billion and EPS to $2.65, a 20% rise.
1. Q1 Earnings and Revenue Performance
TE Connectivity reported Q1 fiscal 2026 adjusted earnings of $2.72 per share, a 39.5% year-over-year increase that topped estimates by 7.1%, on net sales of $4.67 billion, up 22% reported and 15% organically. Orders climbed 28% year over year to $5.1 billion, lifting the book-to-bill ratio to 1.1.
2. Segment Breakdown
The Transportation solutions segment generated $2.47 billion in revenue, rising 10% reported and 7% organically, driven by automotive and commercial transportation gains in Asia and Europe. Industrial solutions contributed $2.20 billion, up 38% reported and 26% organically, led by 71% growth in digital data networks, 88% in energy and double-digit increases in automation, aerospace and defense.
3. Margin Expansion, Cash Flow and Guidance
GAAP gross margin expanded 180 basis points to 37.2% while adjusted operating margin increased 180 basis points to 22.2%. Cash from operations reached $865 million with free cash flow at $608 million. Management expects Q2 net sales of $4.7 billion, up 13% year over year, and adjusted EPS of $2.65, a 20% increase.