TE Connectivity Is Riding the Grid Modernization Boom—And the Utility Cycle Looks Powerful!

TE Connectivity reported a strong start to fiscal 2026, with first-quarter sales of $4.7 billion rising 22% year over year on a reported basis and 15% organically, supported by growth in both Industrial Solutions and Transportation Solutions. The company pointed to record orders of roughly $5.1 billion, up more than $1 billion versus the prior year, with a book-to-bill of 1.1. Management emphasized that momentum was broad-based across geographies and product lines, helped by customer program wins that are extending backlog into the second half of the year and into 2027. Adjusted operating margin reached about 22% and adjusted earnings per share were $2.72, up more than 30% year over year, reflecting volume leverage, operational execution, and continued benefits from supply chain localization. Free cash flow was over $600 million, and TE Connectivity returned 100% of that to shareholders during the quarter while maintaining investment levels to support future growth.