TE Connectivity announces first quarter results for fiscal year 2026

Core Insights - TE Connectivity plc reported a strong fiscal first quarter for 2026, exceeding guidance with a 22% increase in sales and over 30% growth in earnings per share (EPS) year over year [1][2] - The company's growth was driven by investments in data and power connectivity, particularly in applications such as AI, energy grid hardening, and next-generation vehicles [2] - Record quarterly orders exceeded $5 billion, indicating a robust demand across both Industrial and Transportation segments [2] Financial Performance - Net sales reached $4.7 billion, a 22% increase year over year, with organic growth of 15% [5][12] - GAAP diluted EPS from continuing operations was $2.53, reflecting a 45% increase year over year, while adjusted EPS was $2.72, up 33% [5][12] - The GAAP operating margin improved to 20.6%, a rise of 260 basis points year over year, and the adjusted operating margin expanded to 22.2% [5][12] Second Quarter Outlook - For the second quarter of fiscal 2026, the company anticipates sales of approximately $4.7 billion, representing a 13% increase on a reported basis and 6% organically year over year [3] - Adjusted EPS is expected to be around $2.65, marking a 20% increase year over year, while GAAP EPS is projected at approximately $2.26 [3] Segment Performance - The Transportation Solutions segment generated net sales of $2.467 billion, while the Industrial Solutions segment reported $2.202 billion [16] - Operating income for Transportation Solutions was $501 million with a margin of 20.3%, and for Industrial Solutions, it was $462 million with a margin of 21.0% [16] Cash Flow and Shareholder Returns - Cash flow from operating activities was $865 million, with free cash flow amounting to $608 million [5][15] - The company returned $615 million to shareholders during the quarter [5]