TE Connectivity plc (NYSE: TEL) shares closed lower on Wednesday after the industrial technology company reported first-quarter fiscal 2026 results. The stock closed at $229.82, down about 3.1% on the day at the New York Stock Exchange, extending a decline from Tuesday’s session.
Market Capitalization
At Wednesday’s close, TE Connectivity’s market capitalization stood around $68.5 billion.
Quarterly Results
For the quarter ended December 26, 2025, TE Connectivity reported the following consolidated results:
Consolidated results (Q1 FY2026 vs. Q1 FY2025):
- Revenue: $4.67 billion vs. $3.84 billion last year (up 22%)
- Net income: $750 million vs. $528 million last year (up 42%)
Segment net sales:
- Transportation Solutions: $2,467 million vs. $2,243 million last year
- Industrial Solutions: $2,202 million vs. $1,593 million last year
Segment operating income:
- Transportation Solutions: $501 million vs. $446 million last year
- Industrial Solutions: $462 million vs. $244 million last year
Margins and orders:
- GAAP operating margin: 20.6%, up from 18.0% last year
- Record quarterly orders of $5.1 billion, up 28% year-over-year.
Full-Year Results Context
In the fiscal year ended 2025, TE Connectivity reported revenue of about $17.26 billion, up compared with the prior year. Net income for FY2025 was approximately $1.84 billion.
Business & Operations Update
The company noted growth across its two core segments. Transportation Solutions benefited from increased content in automotive and commercial transport markets. Industrial Solutions saw gains in digital data networks, automation, aerospace, and energy applications. Free cash flow for the quarter was reported at $608 million, and cash flow from operations was $865 million.
TE Connectivity’s order backlog reached record levels, with management highlighting broad demand in connectivity and sensor applications across data center, automotive, energy grid, and industrial automation markets.
Equity Analyst Commentary
Institutional analyst activity ahead of the earnings release included reaffirmations of coverage and interest in long-term demand drivers. Coverage consensus data showed multiple brokerages maintained positive views on sector growth prospects for the company’s connectivity solutions.
Guidance & Outlook
TE Connectivity provided an outlook for the second quarter of fiscal 2026:
- Expected sales of about $4.7 billion, up 13% year-over-year.
- Adjusted diluted EPS of approximately $2.65.
- GAAP EPS is expected to be around $2.26.
Investors are watching execution on backlog conversion and demand in AI-related industrial applications as drivers for near-term performance.
Performance Summary
TE Connectivity shares declined at Wednesday’s close. The company reported year-over-year revenue growth and net income growth in Q1. Both the Transportation and Industrial Solutions segments posted higher sales and operating income. Investors are focused on quarterly guidance and segment demand trends for the remainder of fiscal 2026.
