TE Connectivity plc 8-K, filed Oct 28, 2026
TE Connectivity plc (TEL)
About this 8-K
TE Connectivity plc filed this 8-K on October 28, 2026.
TE Connectivity reported fiscal fourth-quarter net sales of $5.3 billion, up 12%, adjusted EPS of $3.14, up 21%, and orders of $6.1 billion; full-year sales rose 15% to $19.9 billion, and management expects double-digit fiscal 2027 sales growth. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| ||
(Jurisdiction of Incorporation) | | (IRS Employer Identification Number) |
(Commission File Number)
(Address of Principal Executive Offices, including Zip Code)
(Registrant’s telephone number, including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | | Trading symbol | | Name of each exchange on which registered |
| | |||
| | |||
| | |||
*Issued by Tyco Electronics Group S.A., an indirect wholly-owned subsidiary of TE Connectivity plc
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On October 28, 2026, TE Connectivity plc (the “Company”) issued a press release reporting the Company’s fourth quarter and full year results for fiscal 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated by reference in this Item 2.02.
Item 7.01. Regulation FD Disclosure
The Company will hold a conference call and webcast on October 28, 2026 (see information in the press release attached hereto as Exhibit 99.1 under “Conference Call and Webcast”). A copy of the slide materials to be discussed at the conference call and webcast is being furnished pursuant to Regulation FD as Exhibit 99.2 and is incorporated herein by reference, and the slide materials also can be accessed at the “Investors” section of the Company’s website (www.te.com).
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit |
| Description |
|
|
|
99.1 |
| |
|
|
|
99.2 |
| Presentation - TE Connectivity Q4 2026 Earnings Call (October 28, 2026) |
| ||
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 28, 2026 | TE CONNECTIVITY PLC | |
| | |
| By: | /s/ Heath A. Mitts Heath A. Mitts |
Exhibit 99.1
NEWS RELEASE | te.com |
TE Connectivity delivers 12% sales increase and over 20% EPS growth in fiscal fourth quarter
Delivered strong full-year performance with sales growth of 15% and more than 20% EPS growth
Expects double digit sales growth in fiscal 2027
GALWAY, Ireland – Oct. 28, 2026 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal fourth quarter and fiscal year ended September 25, 2026.
Full Year Highlights
"Our teams delivered a strong fourth quarter to finish 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 benefit 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 fiscal 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 first quarter sales to be up mid-teens and to deliver more than 20 percent EPS growth year over year. For the full fiscal year, we expect to deliver organic sales growth that is similar to our strong performance in fiscal 2026.”
First Quarter FY27 Outlook
For the first quarter of fiscal 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 financial measures is provided below. For reconciliations of these non-GAAP financial 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 |
| ● | 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 artificial 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 financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial 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 benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.
The following provides additional information regarding our non-GAAP financial measures:
•Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial 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 the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.
•Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial 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 significant component in our incentive compensation plans.
•Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect 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 significant tax items, if any.
•Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial 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 significant tax items, if any, and, if applicable, the related tax effects.
•Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial 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 significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.
•Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows 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 flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined 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 GAAP financial measure because this activity is driven by economic financing 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 financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition 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, financial condition or achievements to differ materially from anticipated results, performance, financial 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 financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations 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 conflict 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 effects 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 fiscal 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 filed by us with the U.S. Securities and Exchange Commission.
Contacts: | Media Relations: Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com | Investor Relations: Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com |
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 |
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 |
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 |
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. | |||||||||||
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. | | |||||||||||||||||||||||
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. | |||||||||||||||||
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 $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards. | | ||||||||||||||||||
(3) See description of non-GAAP financial measures. | | ||||||||||||||||||
(4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. | | ||||||||||||||||||
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended September 26, 2025
(UNAUDITED)
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ 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 $13 million related to the revaluation of deferred tax liabilities as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. | | ||||||||||||||||||
(3) See description of non-GAAP financial measures. | | ||||||||||||||||||
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 25, 2026
(UNAUDITED)
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ 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 $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards. | | ||||||||||||||||||
(3) See description of non-GAAP financial measures. | | ||||||||||||||||||
(4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. | | ||||||||||||||||||
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 26, 2025
(UNAUDITED)
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ 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 $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. | | ||||||||||||||||||
(3) See description of non-GAAP financial measures. | | ||||||||||||||||||
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended December 26, 2025
(UNAUDITED)
| | | | | Adjustments | | | | | |||||||
| | | | Acquisition- | | Restructuring | | | | | | |||||
| | | | Related | | and Other | | Amortization | | Adjusted | | |||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | (Non-GAAP) (2) | | |||||
| ($ 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. | | |||||||||||||||
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. | | | |
Exhibit 99.2
| EVERY CONNECTION COUNTS TE Connectivity Fourth Quarter 2026 Earnings October 28, 2026 |
| Forward-Looking Statements and Non-GAAP Financial Measures 2 Forward-Looking Statements This presentation 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, financial condition or achievements to differ materially from anticipated results, performance, financial 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 presentation include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations 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 conflict 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 effects 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 fiscal 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 filed by us with the U.S. Securities and Exchange Commission. Non-GAAP Financial Measures Where we have used non-GAAP financial measures, reconciliations to the most comparable GAAP measure are provided, along with a disclosure on the usefulness of the non-GAAP financial measure, in this presentation. |
| Q4 Results - Delivered an Increase of 12% in Sales and 21% in Adjusted EPS ▪ Sales of $5.3B, increased 12% reported and 13% on an organic basis Y/Y ▪ Orders of $6.1B, increased 29% Y/Y and 6% sequentially; book to bill of 1.14 ▪ Adjusted Operating Margins of 22%, expanded 100bps Y/Y; Adjusted EPS of $3.14, increased 21% Y/Y ▪ Free Cash Flow generation of ~$1.2B with ~$800M returned to shareholders Earnings Highlights 3 Organic Net Sales Growth (Decline), Adjusted Operating Margin, Adjusted EPS, Free Cash Flow, and Free Cash Flow Conversion are non-GAAP financial measures; see Appendix for descriptions and reconciliations Q1 FY27 Guidance ▪ Expect Sales of ~$5.35B, increasing 15% on a reported and organic basis Y/Y ▪ Expect Adjusted EPS of ~$3.30, increasing 21% Y/Y ▪ Strong orders and backlog expected to result in FY27 Y/Y organic sales growth consistent with FY26 FY26 - Achieved Full Year Records for Sales, Adjusted Operating Margins & EPS, and Free Cash Flow ▪ Sales of $19.9B, increased 15% reported and 12% on an organic basis Y/Y with broad growth across the portfolio ▪ Record orders of $22.2B supporting another year of strong double-digit growth in FY27 ▪ Adjusted EPS increased 24% Y/Y to $11.52; Adjusted Operating Margins of 22% expanded 120bps Y/Y ▪ Free Cash Flow of ~$3.4B with 100% conversion; ~$2.8B returned to shareholders and committed ~$1.6B for bolt-on acquisitions |
| Reported FY25 Q4 FY26 Q3 FY26 Q4 Q4 Growth Y/Y Q/Q Industrial 2,254 2,933 3,322 47% 13% Transportation 2,428 2,760 2,733 13% (1)% Total TE 4,682 5,693 6,055 29% 6% Book to Bill 0.99 1.10 1.14 Segment Orders Summary ($ in millions) 4 ▪ Industrial segment orders in Q4 reflect double-digit growth across all businesses; DDN orders in FY26 increased ~70% ▪ Transportation segment orders reflect continued content outperformance in Auto and ICT, with end markets improving in commercial transportation Full year orders of $22.2B increased 27% Y/Y; record backlog entering FY27 |
| Industrial Solutions Q4 SALES Reported Up 20% Organic Up 20% Q4 ADJUSTED OPERATING MARGIN Margin expansion of 40bps while increasing growth investments Adjusted EBITDA Margin 25.2% 26.2% 5 Q4 BUSINESS PERFORMANCE Y/Y Growth Rates Reported Organic Digital Data Networks (DDN) $949 34% 34% Automation & Connected Living (ACL) 688 18% 18% Energy 520 12% 12% Aerospace, Defense and Marine (AD&M) 462 15% 16% Medical 180 1% 1% Industrial Solutions $2,799 20% 20% $ in Millions ▪ Digital Data Networks Growth driven by continued momentum in AI applications; full year AI sales as expected ▪ Automation & Connected Living Strong growth across all regions driven by automation applications ▪ Energy Grid hardening and data center build-out continues to drive strong growth ▪ AD&M Performance reflects ongoing strength in commercial air and defense markets ▪ Medical Sales as expected $2,336 $2,799 Q4 2025 Q4 2026 22.0% 22.4% Q4 2025 Q4 2026 Ongoing momentum with broad growth across the segment and strong operational performance Organic Net Sales Growth (Decline), Adjusted Operating Margin, and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations. |
| Transportation Solutions Q4 SALES Reported Up 8% Organic Up 7% Q4 ADJUSTED OPERATING MARGIN Strong margin expansion of 80bps reflects continued execution by our teams Adjusted EBITDA Margin 24.8% 25.3% 6 $2,413 $2,600 Q4 2025 Q4 2026 Q4 BUSINESS PERFORMANCE Y/Y Growth Rates Reported Organic Automotive $1,933 7% 6% Commercial Transportation 428 18% 18% Sensors 239 (2)% (2)% Transportation Solutions $2,600 8% 7% $ in Millions 20.2% 21.0% Q4 2025 Q4 2026 ▪ Automotive Strong growth over market driven by content outperformance in Asia and Europe ▪ Commercial Transportation Strong content growth across all regions along with the benefit of markets improving ▪ Sensors Sales as expected Organic Net Sales Growth (Decline), Adjusted Operating Margin, and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations. Continue to deliver content outperformance versus end markets with strong operational resiliency |
| Q4 Financial Summary 7 ($ in Millions, except per share amounts) Q4 FY25 Q4 FY26 Net Sales $ 4,749 $ 5,312 Operating Income $ 916 $ 1,093 Operating Margin 19.3% 20.6% Acquisition-Related Charges 10 12 Restructuring & Other Charges, Net 17 14 Amortization Expense 58 57 Adjusted Operating Income $ 1,001 $ 1,176 Adjusted Operating Margin 21.1% 22.1% Earnings Per Share* $ 2.23 $ 3.10 Acquisition-Related Charges 0.03 0.03 Restructuring & Other Charges, Net 0.08 0.05 Amortization Expense 0.16 0.16 Tax Items 0.10 (0.20) Adjusted EPS $ 2.59 $ 3.14 Adjusted Effective Tax Rate 21.3% 21.1% Adjusted Operating Income, Adjusted Operating Margin, Adjusted Earnings Per Share, and Adjusted Effective Tax Rate are non-GAAP financial measures; see Appendix for descriptions and reconciliations. *Represents Diluted Earnings Per Share from Continuing Operations |
| Fiscal 2026 Financial Performance 8 20.8% 22.0% FY25 FY26 SALES ADJUSTED OPERATING MARGIN ADJUSTED EPS FREE CASH FLOW Record Full Year Sales, Operating Margin, EPS, and Free Cash Flow $ in Billions $ in Billions 100% free cash flow conversion $3.2 $3.4 FY25 FY26 Up 24% Y/Y $17.3 $19.9 FY25 FY26 120bps of margin expansion Organic Net Sales Growth, Adjusted Operating Margin, Adjusted Earnings Per Share, and Free Cash Flow are non-GAAP financial measures; see Appendix for descriptions and reconciliations. Reported sales up 15% Y/Y $9.27 $11.52 FY25 FY26 Organic sales up 12% Y/Y |
| EVERY CONNECTION COUNTS Additional Information |
| Y/Y Q4 2026 10 Sales (in millions) Adjusted EPS Q4 2025 Results $4,749 $2.59 Operational Performance 547 0.54 FX Impact 16 - Tax Rate Impact - 0.01 Q4 2026 Results1 $5,312 $3.14 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation. 1Q4 includes IEEPA tariff refunds expected to be returned to customers impacting sales by ($87M) and EPS by $0.01 |
| Y/Y FY 2026 11 Sales (in millions) Adjusted EPS 2025 Results $17,262 $9.27 Operational Performance 2,247 2.04 FX Impact 376 0.10 Tax Rate Impact - 0.11 2026 Results1 $19,885 $11.52 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation. 1FY26 includes IEEPA tariff refunds expected to be returned to customers impacting sales by ($87M) and EPS by $0.01 |
| Y/Y Q1 2027 12 Sales (in millions) Adjusted EPS Q1 2026 Results $4,669 $2.72 Operational Performance 664 0.49 FX Impact 17 0.06 Tax Rate Impact - 0.03 Q1 2027 Guidance1 $5,350 $3.30 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation. 1Q1 includes IEEPA tariff refunds expected to be returned to customers impacting sales by approximately ($50M) and no impact to EPS |
| Balance Sheet and Cash Flow Summary 13 ($ in Millions) FY25 FY26 Beginning Cash Balance $1,319 $1,255 Free Cash Flow 3,214 3,412 Dividends (803) (869) Share repurchases (1,347) (1,892) Net increase (decrease) in debt 1,396 (2) Acquisition of businesses, net of cash acquired (2,628) (212) Other 104 5 Ending Cash Balance $1,255 $1,697 Total Debt $5,694 $5,639 A/R $3,403 $3,839 Days Sales Outstanding* 65 65 Inventory $2,699 $2,962 Days on Hand* 78 77 Accounts Payable $2,021 $2,455 Days Outstanding* 59 65 Free Cash Flow and Working Capital Liquidity, Cash and Debt ($ in Millions) FY25 FY26 Cash from Operating Activities $4,139 $4,525 Capital expenditures, net (925) (1,113) Free Cash Flow $3,214 $3,412 Free Cash Flow is a non-GAAP financial measure, see Appendix for description and reconciliation * Calculated on a quarterly basis and adjusted to exclude the impact of acquisitions and divestitures |
| EVERY CONNECTION COUNTS Appendix |
| We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial 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 benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: ▪ Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial 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 the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. ▪ Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial 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 significant component in our incentive compensation plans. ▪ Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect 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 significant tax items, if any. ▪ Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial 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 significant tax items, if any, and, if applicable, the related tax effects. Non-GAAP Financial Measures 15 |
| ▪ Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial 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 significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. ▪ Adjusted EBITDA and Adjusted EBITDA Margin – represent net income and net income as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other income (expense), income (loss) from discontinued operations, and special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. ▪ Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows 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 flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined 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 GAAP financial measure because this activity is driven by economic financing 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 financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition 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. ▪ Free Cash Flow Conversion – represents Free Cash Flow as a percentage of Adjusted Income from Continuing Operations. We use Free Cash Flow Conversion as an indicator of our ability to convert earnings to cash. Non-GAAP Financial Measures (cont.) 16 |
| Segment Summary 17 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 O perating O perating O perating O perating Margin Margin Margin 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 O perating O perating O perating O perating Margin (3) Margin (3) Margin (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 % Net Sales For the Q uarters Ended September 25, September 26, September 25, September 26, For the Years Ended O perating O perating Income 2025 O perating Income O perating Income 2026 (3) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. 2026 2025 ($ in millions) Adjusted O perating Income (3) Adjusted O perating Adjusted O perating Income (3) Net Sales Net Sales Net Sales Income (3) (2) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. (1) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers. Adjusted O perating Income (3) Income |
| Reconciliation of Net Sales Growth 18 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) $ — Net Sales Growth (Decline) O rganic Net Sales Growth (Decline) (1) Change in Net Sales for the Q uarter Ended September 25, 2026 versus Net Sales for the Q uarter Ended September 26, 2025 ($ in millions) Translation and O ther (2) Acquisition 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 Growth (Decline) Growth (Decline) (1) (3) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026 that are expected to be returned to customers. (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. and O ther (2) Acquisitions Change in Net Sales for the Year Ended September 25, 2026 versus Net Sales for the Year Ended September 26, 2025 ($ in millions) Net Sales O rganic Net Sales Translation |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 25, 2026 19 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 (3) See description of non-GAAP financial measures. (4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. Related and O ther Adjusted Acquisition- Restructuring Amortization (2) Represents a $59 million income tax benefit related to a decrease in the valuation allowance for certain tax loss and credit carryforwards. (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. Adjustments U.S. GAAP Charges (1) (Non-GAAP) (3) Charges, Net (1) ($ in millions, except per share data) Expense (1) Tax Items (2) |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended September 26, 2025 20 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 $13 million related to the revaluation of deferred tax liabilities as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. Tax Items (2) Related and O ther Amortization Acquisition- Restructuring U.S. GAAP Charges (1) ($ in millions, except per share data) Charges, Net (1) Expense (1) Adjustments Adjusted (Non-GAAP) (3) |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 25, 2026 21 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 (4) Reconciling item relates to the net impact of IEEPA tariff refunds received in fiscal 2026. ($ in millions, except per share data) (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. Related and O ther Amortization Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3) Expense (1) Adjustments Acquisition- Restructuring |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 26, 2025 22 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 ($ in millions, except per share data) (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. Related and O ther Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3) Amortization Expense (1) Adjustments Acquisition- Restructuring |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 26, 2025 23 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 Related and O ther Amortization U.S. GAAP Charges (1) Charges, Net (1) Expense (1) Acquisition- Restructuring Adjustments Adjusted (Non-GAAP) (3) ($ in millions, except per share data) (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. |
| Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin 24 Net income $ 900 $ 663 Loss from discontinued operations 1 1 Income tax expense 175 233 Other expense, net 9 11 Interest expense 31 29 Interest income (23) (21) Operating income 1,093 916 Acquisition-related charges 12 10 Restructuring and other charges, net 14 17 Amortization expense 57 58 Adjusted operating income (1) 1,176 1,001 Depreciation 218 186 Adjusted EBITDA (1) $ 1,394 $ 1,187 Net sales $ 5,312 $ 4,749 Net income as a percentage of net sales 16.9 % 14.0 % Adjusted EBITDA margin (1) 26.2 % 25.0 % Operating income $ 521 $ 568 $ 4 $ 1,093 $ 465 $ 451 $ 916 Acquisition-related charges 1 11 — 12 — 10 10 Restructuring and other charges, net 5 9 — 14 3 14 17 Amortization expense 18 39 — 57 19 39 58 Adjusted operating income (1) 545 627 4 1,176 487 514 1,001 Depreciation 113 105 — 218 112 74 186 Adjusted EBITDA (1) $ 658 $ 732 $ 4 $ 1,394 $ 599 $ 588 $ 1,187 Net sales $ 2,600 $ 2,799 $ (87) $ 5,312 $ 2,413 $ 2,336 $ 4,749 Operating margin 20.0 % 20.3 % 20.6 % 19.3 % 19.3 % 19.3 % Adjusted operating margin (1) 21.0 % 22.4 % 22.1 % 20.2 % 22.0 % 21.1 % Adjusted EBITDA margin (1) 25.3 % 26.2 % 26.2 % 24.8 % 25.2 % 25.0 % (1) See description of non-GAAP financial measures. (2) Reconciling item relates to IEEPA tariff refunds received in fiscal 2026. ($ in millions) September 25, 2026 September 26, 2025 Transportation Industrial For the Q uarters Ended September 25, 2026 September 26, 2025 For the Q uarters Ended ($ in millions) Transportation Industrial Solutions Solutions Total Solutions Solutions Total Reconciling Item (2) |
| Reconciliation of Free Cash Flow 25 Net cash provided by operating activities $ 1,528 $ 1,421 $ 4,525 $ 4,139 Net cash used in investing activities (302) (270) (1,334) (3,568) 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) 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 For the Q uarters Ended September 25, September 26, September 25, September 26, For the Years Ended (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. 2026 2025 2026 2025 (in millions) |
| Free Cash Flow Conversion 26 Free cash flow (1) $ 1,241 $ 1,154 $ 3,412 $ 3,214 Adjusted income from continuing operations (1) $ 914 $ 773 $ 3,388 $ 2,772 Free cash flow conversion (1) 135.8 % 149.3 % 100.7 % 115.9 % (1) See description of non-GAAP financial measures. ($ in millions) For the Years Ended September 25, September 26, 2026 2025 For the Q uarters Ended September 25, September 26, 2026 2025 |
| Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 27 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 (2) $ 3.30 Net sales growth 14.6 % Translation and other (3) 0.7 (Acquisitions) divestitures, net — Organic net sales growth (2) 15.3 % Effective tax rate 21.1 % 22.0 % Effective tax rate adjustments (4) (0.1) - Adjusted effective tax rate (2) 21.0 % 22.0 % (4) Includes adjustments for special tax items and the tax effect of acquisition-related charges and net restructuring and other charges, calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. Q uarter Ending O utlook for 2026 (1) December 25, O utlook for Fiscal 2027 (1) (3) Includes IEEPA tariff refunds expected to be received in fiscal 2027 and returned to customers. (1) Outlook is as of October 28, 2026. (2) See description of non-GAAP financial measures. |
