TEL — Q3 2026 Financial Report Analysis
Q3 · Fiscal year 2026 · Published by Pham Hop · AI-drafted from the SEC filing
TE Connectivity's fiscal Q3 sales rose 13.8% to a record $5.16B and GAAP EPS rose 19% to $2.55, led by 34% organic growth in AI data-center connectors and 33% in energy, while automotive grew under 3% organically.
- Revenue
- $5.2B
- +13.8% YoY
- Net income
- $748M
- +17.2% YoY
- Diluted EPS
- $2.55
- +19.2% YoY
- Operating margin
- 19.0%
AI data-center connectors and grid equipment lift TE Connectivity to a record quarter, while car-parts growth stays slow
TE Connectivity makes connectors (the plugs and sockets that carry power and data between parts of a machine) and sensors, sold into cars, trucks, factories, aircraft, power grids and data centers. In its fiscal third quarter, the three months ended June 26, 2026, sales rose 13.8% to a record $5,160 million from $4,534 million a year earlier. GAAP diluted earnings per share (EPS, profit divided by the number of shares) rose 19% to $2.55 from $2.14.
Stripping out currency movements and acquisitions, organic growth (the like-for-like measure of how much more the existing business sold) was 12.2%. A stronger set of foreign currencies against the dollar added another 1.6 points. The 10-Q gives the reason for most of the growth in one line: organic sales in digital data networks, the business selling high-speed connectors and cables into data centers, rose 34.0% "due primarily to growth in artificial intelligence applications."
Growth is now split sharply between TE's two segments. Industrial Solutions grew 21.9% and, for the first time, matched Transportation Solutions in size, at $2,580 million each. A year ago Transportation was 53% of sales. Transportation grew 6.7% as reported but only 4.5% organically.
Key figures
| Metric | Q3 FY2026 | Q3 FY2025 | YoY Change |
|---|---|---|---|
| Net sales | $5,160M | $4,534M | +13.8% (organic +12.2%) |
| Gross margin | 35.6% | 35.3% |
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