TE Connectivity Plc (NYSE:TEL) stock fell Wednesday after the company reported its first-quarter fiscal 2026 results.

The company reported quarterly adjusted earnings of $2.72 per share, up 33% year over year, beating analysts' estimates of $2.55.

Revenue rose 22% to $4.67 billion, exceeding expectations of $4.53 billion and increasing 15% organically, supported by strong performance across the Industrial and Transportation segments.

Adjusted operating margin improved to 22.2%, compared with 20.4% a year earlier.

TE reported record quarterly orders of $5.1 billion, up 28% year over year and 9% sequentially.

The company generated $865 million in operating cash flow and $608 million in free cash flow during the quarter. TE said it returned $615 million to shareholders.

The company ended the quarter with $1.25 billion in cash and cash equivalents.

Segment Performance

Transportation Solutions sales were $2.47 billion, while Industrial Solutions sales totaled $2.20 billion in the quarter.

Adjusted operating margins stood at 21.2% for Transportation Solutions and 23.3% for Industrial Solutions.

Industrial segment sales surged 38.2%, while the Transportation segment sales rose 10.0%.

CEO Terrence Curtin said the company's teams executed its strategy effectively, delivering first-quarter earnings growth of more than 30% and sales growth exceeding 20%, both above guidance and supported by gains across both business segments.

He said continued investment in data and power connectivity is broadening growth in key areas such as AI, energy grid hardening, and next-generation vehicles, helping drive automotive content growth above the broader market.

Curtin added that strong positioning and execution led to record quarterly orders of more than $5 billion.

Looking ahead, Curtin expects double-digit year-over-year increases in both sales and EPS for the second quarter of fiscal 2026.

Outlook

The company expects its second-quarter adjusted earnings per share to $2.65, up 20% Y/Y, above the analysts' estimates of $2.63.

The company forecast sales of $4.70 billion, up 13% on a reported basis and 6% organically Y/Y, versus the consensus estimate of $4.72 billion.

Beginning in fiscal 2026, the company is excluding amortization expense on intangible assets and, if applicable, the related tax effects from its calculation of certain adjusted measures.

TEL Price Action: TE Connectivity shares were down 5.26% at $221.00 during premarket trading on Wednesday, according to Benzinga Pro data.

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