TE Connectivity Q1 Earnings Call Highlights

2 days ago 2

MarketBeat

Wed, January 21, 2026 astatine 11:14 AM CST 7 min read

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TE reported a bushed successful fiscal Q1 with $4.7 billion successful income (up 22% reported, 15% organic), grounds adjusted EPS of $2.72 (up >30% YoY), grounds orders of $5.1 billion (book-to-bill 1.1), and $608 million escaped currency travel portion returning astir 100% of FCF to shareholders.
AI momentum drove Digital Data Networks maturation of 70% YoY and TE raised its fiscal 2026 AI gross outlook by astir $200 million, prompting absorption to summation planned CapEx to astir 6% of income to enactment lawsuit programme ramps.
For Q2 TE expects income of ~$4.7 billion and adjusted EPS astir $2.65 (~20% YoY), with the 4th shaped by stronger Industrial Solutions, emblematic planetary car seasonality (a ~3 million portion accumulation decline), and ongoing metallic ostentation being managed via pricing portion maintaining an expected ≥100% FCF conversion for FY26.
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TE Connectivity (NYSE:TEL) reported first-quarter fiscal 2026 results that absorption said reinforced the semipermanent strategy and maturation model it outlined astatine its Investor Day past quarter, pointing to broad-based request tied to rising needs for information and powerfulness connectivity. The institution posted double-digit maturation successful some operating segments, grounds quarterly orders, and grounds adjusted profitability, portion raising its expectations for artificial intelligence-related gross and expanding planned superior spending to enactment lawsuit programme ramps.

For the fiscal archetypal quarter, TE reported income of $4.7 billion, up 22% year-over-year connected a reported ground and 15% organically. Chief Executive Officer Terrence Curtin said some segments exceeded interior expectations and contributed to income coming successful supra guidance.

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The institution delivered record adjusted net per stock of $2.72, which Curtin said roseate much than 30% from the anterior twelvemonth and was supra guidance. Adjusted operating borderline was 22%, up 180 ground points from the year-ago period. TE besides generated free currency travel of $608 million (with $865 million of currency from operations) and returned astir 100% of escaped currency travel to shareholders done buybacks and dividends during the quarter.

Orders accrued by much than $1 billion year-over-year to a grounds $5.1 billion, producing a 1.1 book-to-bill ratio. Curtin said bid maturation was broad-based, with double-digit integrated bid maturation successful each regions.