TE Connectivity Q1 Earnings Call Highlights

Core Insights - TE Connectivity reported strong first-quarter fiscal 2026 results, highlighting broad-based demand for data and power connectivity, and raised expectations for AI-related revenue [1] Financial Performance - For the fiscal first quarter, TE Connectivity achieved sales of $4.7 billion, reflecting a 22% year-over-year increase on a reported basis and 15% organic growth [2] - The company delivered record adjusted earnings per share of $2.72, which is over 30% higher than the previous year and above guidance, with an adjusted operating margin of 22%, up 180 basis points year-over-year [3] - TE generated free cash flow of $608 million and returned approximately 100% of free cash flow to shareholders through buybacks and dividends during the quarter [3] Orders and Growth - Orders increased by over $1 billion year-over-year to a record $5.1 billion, resulting in a book-to-bill ratio of 1.1, with double-digit organic order growth across all regions [4] - For the fiscal second quarter, TE expects sales of about $4.7 billion, indicating 13% reported growth year-over-year and 6% organic growth, with adjusted EPS projected at around $2.65, representing approximately 20% growth year-over-year [5] Segment Dynamics - Management anticipates sequential growth in the Industrial Solutions segment, while the Transportation Solutions segment may be impacted by typical global auto seasonality, with a noted decline in global auto production from fiscal Q1 to Q2 [6]