Earnings release
Page 1
NEWS RELEASE TE Connectivity delivers 12% sales increase and over 20% EPS growth in scal fourth quarter 2026-10-28 Delivered strong full-year performance with sales growth of 15% and more than 20% EPS growth Expects double digit sales growth in scal 2027 GALWAY, Ireland, Oct. 28, 2026 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the scal fourth quarter and scal year ended September 25, 2026. Fourth Quarter Highlights Net sales were a record $5.3 billion, an increase of 12% on a reported basis and 13% organically year over year, driven by strong growth in both the Industrial and Transportation segments. Orders of $6.1 billion, an increase of 29% year over year and 6% sequentially. GAAP diluted earnings per share (EPS) from continuing operations was $3.10, up 39% year over year. Adjusted EPS was $3.14, an increase of 21% year over year. GAAP Operating margin was 21% and adjusted operating margin was 22%, driven by strong operational performance across both segments. Cash ow from operating activities was $1.5 billion and free cash ow was $1.2 billion, with approximately $800 million returned to shareholders. Full Year Highlights 1
Page 2
Company delivered full-year records for sales, orders, operating margin, EPS and cash generation. Net sales were $19.9 billion, up 15% on a reported basis and 12% organically, with broad growth across the portfolio due to customer needs for increased data and power connectivity. Orders of $22.2 billion, up 27%, supporting expected double-digit sales growth in scal 2027. GAAP operating margin was 20% and adjusted operating margin was 22%, driven by strong operational performance. GAAP EPS was $11.07, an increase of 80%, and adjusted EPS was $11.52, up 24% Cash ow from operating activities was $4.5 billion and free cash ow was $3.4 billion. Returned approximately $2.8 billion to shareholders and committed $1.6 billion for bolt-on acquisitions in the Industrial segment to broaden the optics and power ltering portfolios. "Our teams delivered a strong fourth quarter to nish a year in which we set records in sales, earnings and cash generation," said CEO Terrence Curtin. "Our growth is supported by our strategic positioning of TE around accelerating data and power trends that are driving customer demand for connectivity innovations that are essential to next generation architectures. In our Industrial Solutions segment, which grew 26% in 2026, we continue to bene t from our customers' AI investments, which create opportunities extending from inside the rack in the data center to the networking edge all the way to the energy grid. "Entering scal 2027, we expect that the strong momentum from 2026 will continue as we are well positioned to keep capitalizing on growth drivers and deliver value for our shareholders. With strong orders across our businesses, we expect rst quarter sales to be up mid-teens and to deliver more than 20 percent EPS growth year over year. For the full scal year, we expect to deliver organic sales growth that is similar to our strong performance in scal 2026." First Quarter FY27 Outlook For the rst quarter of scal 2027, the company expects sales of approximately $5.35 billion, up 15% on a reported and organic basis year over year. GAAP EPS from continuing operations is expected to be approximately $3.04, an increase of 20% year over year, with adjusted EPS of approximately $3.30, up 21% year over year. Information about TE Connectivity's use of non-GAAP nancial measures is provided below. For reconciliations of these non-GAAP nancial measures, see the attached tables. Conference Call and Webcast The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways: At TE Connectivity's website: investors.te.com 2
Page 3
By telephone: For both "listen-only" participants and those participants who wish to take part in the question- and-answer portion of the call, the dial-in number in the United States is (833) 461-5787 and for international callers, the dial-in number is (585) 542-9983; meeting ID: 968971220. A replay of the conference call will be available on TE Connectivity's investor website at investors.te.com at 11:30 a.m. ET on October 28. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling arti cial intelligence, and more. Our more than 100,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram. Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted nancial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP nancial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP nancial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors bene t from having access to the same nancial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the nancial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP nancial measures in combination with the most directly comparable GAAP nancial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP nancial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP nancial measures: Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP nancial measure) excluding the impact of foreign currency exchange rates and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management's control, such as 3
Page 4
the impact of changes in foreign currency exchange rates, and items that do not re ect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a signi cant component in our incentive compensation plans. Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP nancial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a signi cant component in our incentive compensation plans. Adjusted Income Tax (Expense) Bene t and Adjusted E ective Tax Rate – represent income tax (expense) bene t and e ective tax rate, respectively, (the most comparable GAAP nancial measures) after adjusting for the tax e ect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain signi cant tax items, if any. Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP nancial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain signi cant tax items, if any, and, if applicable, the related tax e ects. Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP nancial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain signi cant tax items, if any, and, if applicable, the related tax e ects. This measure is a signi cant component in our incentive compensation plans. Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The di erence between net cash provided by operating activities (the most comparable GAAP nancial measure) and Free Cash Flow consists mainly of signi cant cash out ows and in ows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash ow metric used by management to monitor and evaluate cash ows generated from our operations. Free Cash Flow is de ned as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the 4
Page 5
GAAP nancial measure because this activity is driven by economic nancing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management's and the Board of Directors' discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP nancial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our de nition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, nancial condition or achievements to di er materially from anticipated results, performance, nancial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future nancial condition and operating results. Examples of factors that could cause actual results to di er materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively a ecting our business operations; business, economic, competitive and regulatory risks, such as conditions a ecting demand for products in the automotive and other industries we serve; competition and pricing pressure; uctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military con ict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible e ects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc's Annual Report on Form 10-K for the scal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports led by us with the U.S. Securities and Exchange Commission. 5
Page 6
TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended For the Years Ended September 25, September 26, September 25, September 26, 2026 2025 2026 2025 (in millions, except per share data) Net sales $ 5,312 $ 4,749 $ 19,885 $ 17,262 Cost of sales 3,425 3,089 12,679 11,183 Gross margin 1,887 1,660 7,206 6,079 Selling, general, and administrative expenses 518 494 2,124 1,866 Research, development, and engineering expenses 250 227 942 829 Acquisition and integration costs 12 6 32 47 Restructuring and other charges, net 14 17 117 126 Operating income 1,093 916 3,991 3,211 Interest income 23 21 90 83 Interest expense (31) (29) (124) (77) Other expense, net (9) (11) (7) (13) Income from continuing operations before income taxes 1,076 897 3,950 3,204 Income tax expense (175) (233) (695) (1,361) Income from continuing operations 901 664 3,255 1,843 Loss from discontinued operations, net of income taxes (1) (1) (2) (1) Net income $ 900 $ 663 $ 3,253 $ 1,842 Basic earnings per share: Income from continuing operations $ 3.12 $ 2.25 $ 11.15 $ 6.21 Loss from discontinued operations — — (0.01) — Net income 3.11 2.25 11.14 6.20 Diluted earnings per share: Income from continuing operations $ 3.10 $ 2.23 $ 11.07 $ 6.16 Loss from discontinued operations — — (0.01) — Net income 3.09 2.22 11.06 6.16 Weighted-average number of shares outstanding: Basic 289 295 292 297 Diluted 291 298 294 299 6
Page 7
TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 25, September 26, 2026 2025 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 1,697 $ 1,255 Accounts receivable, net of allowance for doubtful accounts of $55 and $44, respectively 3,839 3,403 Inventories 2,962 2,699 Prepaid expenses and other current assets 785 609 Total current assets 9,283 7,966 Property, plant, and equipment, net 4,637 4,312 Goodwill 7,420 7,126 Intangible assets, net 2,031 2,227 Deferred income taxes 2,128 2,507 Other assets 1,173 943 Total assets $ 26,672 $ 25,081 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 502 $ 852 Accounts payable 2,455 2,021 Accrued and other current liabilities 2,407 2,247 Total current liabilities 5,364 5,120 Long-term debt 5,137 4,842 Long-term pension and postretirement liabilities 625 767 Deferred income taxes 246 198 Income taxes 346 414 Other liabilities 1,231 1,010 Total liabilities 12,949 12,351 Commitments and contingencies Redeemable noncontrolling interests 150 145 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 296,288,773 and 302,889,075 shares issued, respectively 3 3 Accumulated earnings 15,244 13,932 Ordinary shares held in treasury, at cost, 8,788,224 and 8,330,931 shares, respectively (1,892) (1,356) Accumulated other comprehensive income 218 6 Total shareholders' equity 13,573 12,585 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 26,672 $ 25,081 7
Page 8
TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended For the Years Ended September 25, September 26, September 25, September 26, 2026 2025 2026 2025 (in millions) Cash flows from operating activities: Net income $ 900 $ 663 $ 3,253 $ 1,842 Loss from discontinued operations, net of income taxes 1 1 2 1 Income from continuing operations 901 664 3,255 1,843 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 275 244 1,033 838 Deferred income taxes 60 166 321 938 Non-cash lease cost 41 39 159 145 Provision for losses on accounts receivable and inventories 10 (4) 71 58 Share-based compensation expense 38 44 168 149 Other 14 20 (37) 80 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net (227) 50 (582) (341) Inventories 49 139 (316) (160) Prepaid expenses and other current assets 54 60 92 91 Accounts payable 162 (8) 595 290 Accrued and other current liabilities 132 41 (108) (35) Income taxes 14 (25) (80) 147 Other 5 (9) (46) 96 Net cash provided by operating activities 1,528 1,421 4,525 4,139 Cash flows from investing activities: Capital expenditures (290) (271) (1,122) (936) Proceeds from sale of property, plant, and equipment 3 4 9 11 Acquisition of businesses, net of cash acquired (12) — (212) (2,628) Other (3) (3) (9) (15) Net cash used in investing activities (302) (270) (1,334) (3,568) Cash flows from financing activities: Net increase (decrease) in commercial paper — — 100 (255) Proceeds from issuance of debt — — 750 2,231 Repayment of debt (1) — (852) (580) Proceeds from exercise of share options 3 81 82 182 Repurchase of ordinary shares (544) (437) (1,892) (1,347) Payment of ordinary share dividends to shareholders (226) (209) (869) (803) Other (1) (1) (68) (57) Net cash used in financing activities (769) (566) (2,749) (629) Effect of currency translation on cash 1 (2) — (6) Net increase (decrease) in cash, cash equivalents, and restricted cash 458 583 442 (64) Cash, cash equivalents, and restricted cash at beginning of period 1,239 672 1,255 1,319 Cash, cash equivalents, and restricted cash at end of period $ 1,697 $ 1,255 $ 1,697 $ 1,255 Supplemental cash flow information: Interest paid on debt, net $ 28 $ 21 $ 110 $ 34 Income taxes paid, net of refunds 101 92 454 276 8
Page 9
TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended For the Years Ended September 25, September 26, September 25, September 26, 2026 2025 2026 2025 (in millions) Net cash provided by operating activities $ 1,528 $ 1,421 $ 4,525 $ 4,139 Capital expenditures, net (287) (267) (1,113) (925) Free cash flow(1) $ 1,241 $ 1,154 $ 3,412 $ 3,214 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. 9
Page 10
TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended For the Years Ended September 25, September 26, September 25, September 26, 2026 2025 2026 2025 ($ in millions) Net Sales Net Sales Net Sales Net Sales Transportation Solutions $ 2,600 $ 2,413 $ 10,069 $ 9,388 Industrial Solutions 2,799 2,336 9,903 7,874 Reconciling item(1) (87) — (87) — Total $ 5,312 $ 4,749 $ 19,885 $ 17,262 Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 521 20.0 % $ 465 19.3 % $ 1,969 19.6 % $ 1,818 19.4 % Industrial Solutions 568 20.3 451 19.3 2,018 20.4 1,393 17.7 Reconciling item(2) 4 — 4 — Total $ 1,093 20.6 % $ 916 19.3 % $ 3,991 20.1 % $ 3,211 18.6 % Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Operating Operating Operating Operating Income(3) Margin(3) Income(3) Margin(3) Income(3) Margin(3) Income(3) Margin(3) Transportation Solutions $ 545 21.0 % $ 487 20.2 % $ 2,131 21.2 % $ 1,963 20.9 % Industrial Solutions 627 22.4 514 22.0 2,235 22.6 1,621 20.6 Reconciling item(2) 4 — 4 — Total $ 1,176 22.1 % $ 1,001 21.1 % $ 4,370 22.0 % $ 3,584 20.8 % (1) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers. (2) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. (3) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. 10
Page 11
TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended September 25, 2026 versus Net Sales for the Quarter Ended September 26, 2025 Net Sales Organic Net Sales Translation Growth (Decline) Growth (Decline)(1) and Other(2) Acquisitions ($ in millions) Transportation Solutions: Automotive $ 127 7.0 % $ 107 5.9 % $ 20 $ — Commercial transportation 65 17.9 64 17.8 1 — Sensors (5) (2.0) (4) (1.7) (1) — Total Transportation Solutions 187 7.7 167 6.9 20 — Industrial Solutions: Digital data networks 242 34.2 246 34.4 (4) — Automation and connected living 103 17.6 101 17.6 2 — Energy 55 11.8 54 11.7 1 — Aerospace, defense, and marine 61 15.2 63 16.0 (2) — Medical 2 1.1 3 1.3 (1) — Total Industrial Solutions 463 19.8 467 20.0 (4) — Reconciling item(3) (87) — (87) — Total $ 563 11.9 % $ 634 13.4 % $ (71) $ — Change in Net Sales for the Year Ended September 25, 2026 versus Net Sales for the Year Ended September 26, 2025 Net Sales Organic Net Sales Translation Growth (Decline) Growth (Decline)(1) and Other(2) Acquisitions ($ in millions) Transportation Solutions: Automotive $ 417 5.9 % $ 212 3.0 % $ 205 $ — Commercial transportation 264 19.3 233 17.1 31 — Sensors — — (22) (2.4) 22 — Total Transportation Solutions 681 7.3 423 4.5 258 — Industrial Solutions: Digital data networks 975 44.2 961 43.5 14 — Automation and connected living 333 15.5 281 13.1 51 1 Energy 543 40.4 243 18.1 29 271 Aerospace, defense, and marine 187 12.6 163 11.0 24 — Medical (9) (1.3) (9) (1.3) — — Total Industrial Solutions 2,029 25.8 1,639 20.8 118 272 Reconciling item(3) (87) — (87) — Total $ 2,623 15.2 % $ 2,062 11.9 % $ 289 $ 272 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates and IEEPA tariff refunds. (3) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers. 11
Page 12
TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 25, 2026 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP Charges(1) Charges, Net (1) Expense(1) Tax Items (2) (Non-GAAP)(3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 521 $ 1 $ 5 $ 18 $ — $ 545 Industrial Solutions 568 11 9 39 — 627 Reconciling item(4) 4 — — — — 4 Total $ 1,093 $ 12 $ 14 $ 57 $ — $ 1,176 Operating margin 20.6 % 22.1 % Income tax expense $ (175) $ (2) $ 2 $ (11) $ (59) $ (245) Effective tax rate 16.3 % 21.1 % Income from continuing operations $ 901 $ 10 $ 16 $ 46 $ (59) $ 914 Diluted earnings per share from continuing operations $ 3.10 $ 0.03 $ 0.05 $ 0.16 $ (0.20) $ 3.14 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. (4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. 12
Page 13
TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP Charges (1) Charges, Net (1) Expense (1) Tax Items (2) (Non-GAAP)(3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 465 $ — $ 3 $ 19 $ — $ 487 Industrial Solutions 451 10 14 39 — 514 Total $ 916 $ 10 $ 17 $ 58 $ — $ 1,001 Operating margin 19.3 % 21.1 % Income tax expense $ (233) $ (2) $ 6 $ (11) $ 31 $ (209) Effective tax rate 26.0 % 21.3 % Income from continuing operations $ 664 $ 8 $ 23 $ 47 $ 31 $ 773 Diluted earnings per share from continuing operations $ 2.23 $ 0.03 $ 0.08 $ 0.16 $ 0.10 $ 2.59 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards and an income tax benefit of $13 million related to the revaluation of deferred tax liabilities as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. 13
Page 14
TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 25, 2026 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP Charges(1) Charges, Net (1) Expense (1) Tax Items (2) (Non-GAAP)(3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,969 $ 2 $ 89 $ 71 $ — $ 2,131 Industrial Solutions 2,018 33 28 156 — 2,235 Reconciling item(4) 4 — — — — 4 Total $ 3,991 $ 35 $ 117 $ 227 $ — $ 4,370 Operating margin 20.1 % 22.0 % Income tax expense $ (695) $ (7) $ (21) $ (45) $ (173) $ (941) Effective tax rate 17.6 % 21.7 % Income from continuing operations $ 3,255 $ 28 $ 96 $ 182 $ (173) $ 3,388 Diluted earnings per share from continuing operations $ 11.07 $ 0.10 $ 0.33 $ 0.62 $ (0.59) $ 11.52 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents a $114 million net income tax benefit related primarily to the settlement of prior period tax matters and a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. (4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. 14
Page 15
TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP Charges (1) Charges, Net (1) Expense (1) Tax Items (2) (Non-GAAP)(3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,818 $ — $ 75 $ 70 $ — $ 1,963 Industrial Solutions 1,393 57 51 120 — 1,621 Total $ 3,211 $ 57 $ 126 $ 190 $ — $ 3,584 Operating margin 18.6 % 20.8 % Income tax expense $ (1,361) $ (12) $ (13) $ (37) $ 618 $ (805) Effective tax rate 42.5 % 22.5 % Income from continuing operations $ 1,843 $ 45 $ 113 $ 153 $ 618 $ 2,772 Diluted earnings per share from continuing operations $ 6.16 $ 0.15 $ 0.38 $ 0.51 $ 2.07 $ 9.27 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. 15
Page 16
TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP Charges (1) Charges, Net (1) Expense (1) (Non-GAAP)(2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 501 $ — $ 4 $ 18 $ 523 Industrial Solutions 462 6 6 39 513 Total $ 963 $ 6 $ 10 $ 57 $ 1,036 Operating margin 20.6 % 22.2 % Income tax expense $ (210) $ (1) $ (3) $ (11) $ (225) Effective tax rate 21.9 % 21.8 % Income from continuing operations $ 751 $ 5 $ 7 $ 46 $ 809 Diluted earnings per share from continuing operations $ 2.53 $ 0.02 $ 0.02 $ 0.15 $ 2.72 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. 16
Page 17
TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of October 28, 2026 (UNAUDITED) Outlook for Quarter Ending December 25, 2026 Diluted earnings per share from continuing operations $ 3.04 Acquisition-related charges 0.06 Restructuring and other charges, net 0.05 Amortization expense 0.15 Adjusted diluted earnings per share from continuing operations(1) $ 3.30 Net sales growth 14.6 % Translation and other(2) 0.7 (Acquisitions) divestitures, net — Organic net sales growth(1) 15.3 % (1) See description of non-GAAP financial measures. (2) Includes IEEPA tariff refunds expected to be received in fiscal 2027 and returned to customers. View original content to download multimedia:https://www.prnewswire.com/news-releases/te-connectivity- delivers-12-sales-increase-and-over-20-eps-growth-in- scal-fourth-quarter-302921354.html SOURCE TE Connectivity plc 17