AI Takeaway
TE Connectivity delivered double-digit revenue and earnings growth in Q3 FY2026, led by 21.9% growth in Industrial Solutions (fueled by AI-driven digital data network demand and energy end markets), while maintaining margin expansion and raising Q4 FY2026 guidance to approximately $5.25 billion in net sales and $2.84 diluted EPS.
Revenue
$5.16B
++13.81% YoY
EPS (Basic)
$2.57
++18.98% YoY
Gross Margin
35.6%
++0.27% YoY
Operating Income
$981M
++14.47% YoY
Filed · Source: SEC EDGAR 10-Q filing
TE Connectivity (TEL) reported Q3 FY2026 revenue of $5.16B, up 13.8% year over year. The company posted net income of $748M, up 17.2% from a year earlier, with diluted EPS of $2.55. Gross margin was 35.6%.
Industrial Solutions net sales grew 21.9% to $2,580 million in Q3 FY2026, with organic growth of 21.0%. Digital data networks sales rose 34.2% ($207M increase) to $813 million driven primarily by growth in artificial intelligence applications, while Energy sales grew 34.4% ($132M increase) to $516 million on strength in grid hardening and data center applications.
Source: 10-Q Item 2 MD&A
Transportation Solutions net sales increased 6.7% to $2,580 million, with organic growth of 4.5%. Automotive organic sales grew 2.9% driven by 5.6% growth in Asia Pacific and 2.6% in EMEA, partially offset by a 3.8% decline in the Americas, while Commercial transportation organic sales grew 17.8% across all regions.
Source: 10-Q Item 2 MD&A
Management expects Q4 FY2026 net sales of approximately $5.25 billion (versus $4.75 billion in Q4 FY2025) and diluted EPS of approximately $2.84, driven by growth in both segments; this outlook excludes the pending Astrodyne TDI acquisition and reflects an estimated $10 million negative FX impact.
Source: 10-Q Item 2 MD&A
On July 22, 2026, TE Connectivity entered a definitive agreement to acquire Astrodyne TDI, a power and filter solutions manufacturer, for approximately $1.4 billion in cash, expected to close by end of calendar 2026 and be reported within the Industrial Solutions segment.
Source: 10-Q Item 2 MD&A
The company incurred $83 million in restructuring and other charges in Q3 FY2026 (up from $14 million a year ago) as part of a fiscal 2026 manufacturing footprint optimization program expected to deliver ~$58 million in annualized cost savings by fiscal 2029. The effective tax rate for the first nine months fell to 18.1% from 48.9% a year earlier, though the quarterly rate was 23.0% versus 24.6% in the prior-year quarter.
Source: 10-Q Item 2 MD&A
TE Connectivity is exposed to volatility in copper, gold, silver, and palladium prices, which rose significantly year-over-year (e.g., gold averaged $3,682/oz in Q3 FY2026 vs. $2,715/oz a year earlier, up ~36%; silver rose from $29.80 to $50.46/oz). The company expects to purchase approximately 195 million pounds of copper and 105,000 troy ounces of gold in fiscal 2026, creating ongoing margin pressure risk if prices continue rising.
Source: 10-Q Item 2 MD&A
The company initiated a new fiscal 2026 restructuring program to optimize its manufacturing footprint, incurring $83 million in restructuring and other charges in Q3 FY2026 alone (versus $14 million in the prior-year quarter), with total fiscal 2026 charges expected around $100 million and cash spend of approximately $110 million.
Source: 10-Q Item 2 MD&A
The Medical end market within Industrial Solutions declined 7.2% in Q3 FY2026 and 2.3% for the first nine months, driven by supply chain dynamics and a strategic product line exit, indicating uneven demand across the Industrial Solutions portfolio despite overall segment strength.
Source: 10-Q Item 2 MD&A
The pending $1.4 billion cash acquisition of Astrodyne TDI, expected to close by end of calendar 2026, is subject to customary regulatory approvals and closing conditions, and management intends to fund it via available cash, commercial paper, and potentially new debt financing, which could increase leverage.
Source: 10-Q Item 2 MD&A
Approximately 60% of net sales were invoiced in currencies other than the U.S. dollar in the first nine months of fiscal 2026, exposing results to FX translation swings; additionally, interest expense rose $45 million in the first nine months due to higher average debt levels and cost of debt, including new senior notes issued at 4.50%-4.875% rates.
Source: 10-Q Item 2 MD&A
Reported EPS of $2.94 versus the $2.87 analyst consensus — a +2.4% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.16B | $4.53B | +13.81% |
Cost of Revenue | $3.33B | $2.93B | +13.33% |
Gross Profit | $1.83B | $1.6B | +14.69% |
Operating Income | $981M | $857M | +14.47% |
Net Income | $748M | $638M | +17.24% |
EPS (Basic) | $2.57 | $2.16 | +18.98% |
EPS (Diluted) | $2.55 | $2.14 | +19.16% |
SG&A Expense | $532M | $491M | +8.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $26.07B | $24.87B | +4.84% |
Current Assets | $8.74B | $7.61B | +14.96% |
Total Liabilities | $12.68B | $12.34B | +2.71% |
Current Liabilities | $4.66B | $4.99B | -6.58% |
Cash & Equivalents | $1.24B | $672M | +84.38% |
Long-Term Debt | $5.53B | $4.85B | +14.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $3B | $2.72B | +10.26% |
Investing Cash FlowYTD | $-1.03B | $-3.3B | +68.71% |
Financing Cash FlowYTD | $-1.98B | $-63M | -3042.86% |
Share BuybacksYTD | $1.35B | $910M | +48.13% |
D&AYTD | $758M | $594M | +27.61% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 35.6% | 35.3% | +0.27% |
Operating Margin | 19.0% | 18.9% | +0.11% |
Net Margin | 14.5% | — | — |
ROA | 2.9% | — | — |
Current Ratio | $1.876 | — | — |
Expected release date, analyst estimates & what to watch
TEL reported strong financial performance in Q2 FY2026 with significant increases in revenue, net income, and EPS, driven by improved operational efficiency and cost management.
TEL delivered strong Q1 FY2026 results with revenue of $4.67B (+21.7% YoY) and net income of $750M (+42.0% YoY), driven by robust margin expansion across gross, operating, and net profit lines.
Other companies in Electronic Manufacturing Services
The filing does not disclose analyst consensus estimates, so a direct beat/miss comparison cannot be confirmed from this 10-Q. However, TE Connectivity reported strong year-over-year growth with revenue up 13.8% to $5,160 million and diluted EPS up 19.2% to $2.55 in Q3 FY2026.
Revenue grew 13.8% to $5,160 million, driven primarily by 21.9% growth in the Industrial Solutions segment, particularly digital data networks (+34.2%) fueled by artificial intelligence applications, and Energy (+34.4%) from grid hardening and data center demand. Transportation Solutions grew a more modest 6.7%, led by commercial transportation (+19.6%).
TE Connectivity expects Q4 FY2026 net sales of approximately $5.25 billion, up from $4.75 billion in Q4 FY2025, and diluted EPS of approximately $2.84. This guidance excludes the pending Astrodyne TDI acquisition and reflects an estimated $10 million negative foreign currency impact.
Key risks include raw material price volatility (gold prices rose ~36% year-over-year to $3,682/troy oz), foreign currency exposure given ~60% of sales are invoiced outside the U.S. dollar, and integration/financing risk from the pending $1.4 billion Astrodyne TDI acquisition. The Medical end market also declined 7.2% in the quarter due to supply chain dynamics.
TE Connectivity shows solid financial health with a current ratio of 1.88, cash and equivalents up 84.4% year-over-year to $1,239 million, and nine-month operating cash flow of $2,997 million. Net income grew 17.2% to $748 million with operating margin expanding to 19.0% from 18.9% a year earlier.