TE Connectivity plc (NYSE:TEL) reported second-quarter results that exceeded analyst expectations, though shares declined over 5% in pre-market trading following the announcement.
The company posted adjusted earnings per share of $2.73, beating the consensus estimate of $2.68. Revenue reached $4.74 billion, slightly above the $4.73 billion estimate and increasing 15% from $4.14 billion in the prior-year period.
Adjusted operating margin expanded 130 basis points year-over-year to 22%, reflecting strong execution across both Industrial and Transportation segments.
CEO Terrence Curtin attributed performance to the company’s positioning in key growth areas such as artificial intelligence, next-generation transportation, and grid modernization. The company reported record orders of $5.3 billion, up 25% year-over-year.
For the third quarter of fiscal 2026, TE Connectivity projected revenue of approximately $5 billion, representing 10% reported growth and 9% organic growth. Adjusted EPS guidance of $2.83 implied 17% growth from $2.41 in the prior-year period, while GAAP EPS was expected to be approximately $2.44.
The Transportation Solutions segment generated $2.42 billion in revenue with a 21.6% adjusted operating margin, while Industrial Solutions reported $2.32 billion in revenue with a 21.8% margin. Free cash flow for the first half of fiscal 2026 totaled $1.3 billion, increasing 17% year-over-year.
