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- **Record Growth**: Q1 sales up 22% YoY, AI revenue exceeds prior guidance by $200M, driven by hyperscale customers.
- **Margin Expansion**: 22% operating margin, 33% EPS growth, with 30%+ incremental margins on sales growth.
- **Cash Dominance**: $608M free cash flow, 100% returned to shareholders, supporting M&A and CapEx for AI expansion.
- **Strategic Focus**: Localization, AI investments, and power connectivity drive FY26 growth above 6-8% target, despite auto seasonality risks.

**【CEO Opening Remarks】**
- **Revenue Growth**: Q1 sales of $4.7B (+22% YoY, +15% organic), driven by both Industrial (+38%) and Transportation (+10%) segments. AI revenue exceeded expectations, with a $200M+ increase in FY26 guidance.
- **Order Momentum**: Record $5.1B orders (+$1B YoY), with double-digit growth across all regions. Industrial orders up 40% YoY, Transportation up 11% YoY.
- **Margin Expansion**: Adjusted operating margin of 22% (+180bps YoY), EPS of $2.72 (+33% YoY). FY26 guidance for $4.7B Q2 sales and $2.65 EPS.
- **Strategic Focus**: AI, power connectivity, and localization driving growth. FY26 growth expected to exceed 6-8% long-term target.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $963M, non-GAAP EPS $2.72. Free cash flow $608M, 100% returned to shareholders via buybacks and dividends.
- **Cost Management**: Operating expenses controlled, with restructuring charges expected $100M FY26. CapEx increased to ~6% of sales to support AI growth.
- **Cash Generation**: Strong cash flow model with >100% free cash flow conversion. Tax rate ~23%, stable with prior year.

**【Q&A Key Highlights】**
- **AI Growth**: AI revenue to grow across all hyperscale customers, with new program wins ramping in H2. CapEx investments to support 30%+ incremental margins.
- **Supply Chain**: Metal inflation impacting costs, but pricing actions underway. Localization strategy mitigates auto production seasonality.
- **Segment Performance**: Industrial Solutions margins expanded 500bps to 23%, driven by digital data networks and energy growth. Transportation offset auto declines with commercial trucking recovery.
- **Risk Management**: Auto production expected 88M units FY26, down 3MQ1-Q2. ACL recovery in factory automation offsetting residential softness.

TE Connectivity plc (TEL) Q1 2026 Earnings Call Transcript

- **Revenue Records**: Q4 2025 sales of $4.75B (+17% YoY), full-year $17.3B (+9% YoY), with AI revenue tripling to $900M.
- **Profit Growth**: Adjusted EPS $2.44 (+25% YoY), free cash flow $3.2B (+14% YoY), 100%+ conversion to net income.
- **AI Expansion**: FY26 AI revenue to grow ~$600M, non-AI cloud business doubles to $500M, supported by $200M+ capex.
- **Margin Momentum**: 20% adjusted operating margin for FY25, 30%+ EPS flow-through on organic growth, Q1 2026 guidance of $2.53 EPS (+23% YoY).
- **Strategic Moves**: $2.6B in bolt-on M&A, $2.2B shareholder returns, and localization strategy to drive 4-6% content growth over market in auto.

**【CEO Summary Section】**
- **Record Financial Performance**: Q4 2025 revenue reached $4.75 billion (17% YoY growth), with full-year sales of $17.3 billion (9% YoY). Adjusted EPS was $2.44, up 25% YoY, and free cash flow hit $3.2 billion (14% YoY growth).
- **AI Growth Momentum**: AI-related revenue tripled to $900 million in FY25, driven by hyperscale platforms. Q1 2026 guidance includes $4.5 billion in sales and $2.53 EPS, reflecting 17% YoY growth.
- **Segment Strength**: Industrial segment grew 34% Q4, led by Digital Data Networks (80% YoY growth). Transportation saw 2% organic growth in auto, with content growth over market expected at 4-6% YoY.

**【CFO Financial Commentary】**
- **Profitability Metrics**: Adjusted operating margin of 20% for FY25, up 80bps YoY. Free cash flow conversion exceeded 100%, with $2.2 billion returned to shareholders via buybacks and dividends.
- **Non-GAAP Changes**: Starting Q1 2026, intangible amortization will be excluded from non-GAAP measures, adding ~$0.15 per quarter to EPS. Full-year tax rate expected at 23%.
- **Capital Deployment**: $2.6 billion in bolt-on acquisitions (e.g., Richards Energy) and $200 million+ in capex for AI/hyperscale growth.

**【Q&A Highlights】**
- **AI Expansion**: CEO projects AI revenue to grow ~$600 million in FY26, with non-AI cloud business doubling to $500 million. Margins in Industrial segment expected to expand due to scale and program wins.
- **EV Impact**: Content growth in Transportation driven by data connectivity and electrification, offsetting Western auto market weakness. Q1 2026 auto production forecast at 87-88 million units.
- **Margin Dynamics**: CFO notes 30%+ EPS flow-through on organic growth, with sequential margin expansion in Q1 2026 driven by Transportation segment.
- **M&A Strategy**: Focus on bolt-on acquisitions (e.g., Harger, Richards) to support secular growth trends in energy, AI, and connectivity.

TE Connectivity plc (TEL) Q4 2025 Earnings Call Transcript

- **Record Growth**: Q3 revenue up 14% YoY to $4.5B, EPS up 19% to $2.27, with AI driving $800M+ in FY25.
- **Margin Breakthrough**: 20% adjusted operating margin (Industrial at 20%), with 400bps expansion in Industrial segment.
- **Cash Power**: $2.1B free cash flow year-to-date, enabling $1.5B shareholder returns and $2.6B acquisitions.
- **AI Leadership**: AI revenue to surpass $1B in FY26, with margins above segment average and scale benefits.
- **FY25 Guidance**: Q4 sales $4.55B (+12% YoY), EPS $2.27 (+16% YoY), setting up for double-digit growth in FY25.

**【CEO Summary Section】**
- **Record Q3 Results**: Revenue of $4.5 billion (+14% YoY), adjusted EPS of $2.27 (+19% YoY), and free cash flow of $1 billion.
- **AI Growth Acceleration**: AI-related revenue expected to exceed $800 million in FY25, up from $300 million in FY24, with plans to surpass $1 billion in FY26.
- **Margin Expansion**: Adjusted operating margin of 20% (up 60bps YoY), with Industrial segment margins expanding 400bps to 20%.
- **Order Momentum**: Sequential orders up 5% to $4.5 billion, driven by AI, energy, and aerospace.
- **FY25 Guidance**: Q4 sales of $4.55 billion (+12% YoY), adjusted EPS of $2.27 (+16% YoY), and double-digit growth for the full year.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $420 million, Non-GAAP EPS $2.27 (vs. $1.94 prior year), and free cash flow $2.1 billion year-to-date.
- **Tax Management**: Adjusted tax rate 24%, with cash tax rate expected to remain below this level.
- **Capital Allocation**: $1.5 billion returned to shareholders and $2.6 billion spent on acquisitions (e.g., Richards in Energy).
- **Tariff Mitigation**: 1.5% YoY sales impact, fully offset by pricing and sourcing strategies.

**【Q&A Key Highlights】**
- **AI Profitability**: AI business margins above Industrial segment average, with scale driving efficiency gains.
- **Margin Sustainability**: Industrial segment margins at 20% due to restructuring and volume leverage, expected to remain robust.
- **Tariff Impact**: No material pull-ahead; demand driven by secular trends in AI, energy, and aerospace.
- **FY26 Outlook**: Strong momentum in AI, energy, and aerospace; double-digit EPS growth achievable with volume-driven margin expansion.
- **Acquisition Pipeline**: Focus on bolt-on deals in fragmented Industrial markets, with Richards as a model for North American utility growth.


TE Connectivity plc (TEL) Q3 2025 Earnings Call Transcript

- **Record Q2 Performance**: $4.1B revenue (+5% organically), $2.10 EPS (vs. $2.00-$2.05 guidance), 19.4% margins.
- **Tariff Resilience**: 3% sales impact mitigated via sourcing (1/3) and pricing (2/3), no material order pull-ahead.
- **AI Growth Engine**: >$700M annualized AI revenue, 150% YoY order growth, targeting >$1B by 2026.
- **Cash Strength**: $1.1B free cash flow YTD, $1B returned to shareholders, Richards acquisition fully funded.
- **Segment Strengths**: Industrial margins +260bps, Transportation EV content up 20%, Medical sequential recovery.


**【CEO Opening Remarks】**
- TE Connectivity reported Q2 revenue of $4.1 billion, up 5% organically YoY, driven by double-digit growth in the Industrial Solutions segment.
- Adjusted EPS reached $2.10, a record high, with operating margins expanding to 19.4%.
- Tariff impact is minimal due to localized manufacturing (70% of production is region-specific), with only 3% of sales affected. Mitigation strategies include sourcing changes and price adjustments, offsetting 2/3 of tariff costs.

**【CFO Financial Details】**
- GAAP net income: $420 million; Non-GAAP EPS: $2.10 (vs. guidance of $2.00-$2.05).
- Free cash flow: $1.1 billion YTD; $1 billion returned to shareholders via dividends and buybacks.
- Richards acquisition ($2.3 billion) adds $70 million in Q3 sales, neutral to EPS.
- Tariff-related cost impact: 3% of sales in Q3, with 2 points of price recovery offsetting 2/3 of costs.

**【Segment Performance】**
- **Industrial Solutions**: +17% YoY, led by AI (now >$700M annualized) and Energy (8% growth). Margins expanded 260bps to 17.9%.
- **Transportation**: Auto flat YoY (Asia +16%, offset by West declines). EV content growth (20% YoY) and sensor tech drive long-term opportunities.
- **Medical**: Sequential +10% recovery from inventory destocking, but Q2 down 14% YoY.

**【Q&A Highlights】**
- **Tariff Mitigation**: 1/3 of tariff impact resolved via sourcing; 2/3 offset by pricing. No material pull-ahead of orders seen.
- **AI Momentum**: Q2 AI revenue up 150% YoY, with hyperscale ramps accelerating. 2026 target: >$1 billion in AI-related sales.
- **Automation**: Europe orders inflecting; U.S. cautious due to policy uncertainty. ACL segment expected flat Q3.
- **Capital Allocation**: $2.3B spent on Richards; balance sheet remains strong for M&A and buybacks.


TE Connectivity plc (TEL) Q2 2025 Earnings Call Transcript

- **Record Q1 Financials**: $1.95 EPS (6% YoY), $674M free cash flow, and $4B orders reflect strong execution. 
- **AI Momentum**: FY25 AI revenue target raised to >$600M, backed by $1.5B+ AI orders over 3Qs. 
- **Industrial Recovery**: Sequential growth expected in Industrial Solutions, with stabilization in factory automation. 
- **FX Risk**: FY25 currency headwinds >$300M, partially offset by operational margin expansion.

**【CEO Opening Remarks】**
- Q1 revenue: $3.84 billion (flat YoY), adjusted EPS: $1.95 (up 6%), free cash flow: $674 million (record). 
- Orders: $4 billion (15% sequential growth in Industrial Solutions), AI-related orders exceed $1.5B over 3Qs.
- Key initiatives: innovation (AI, EV, energy infrastructure), operational margin expansion, global manufacturing localization, capital returns.

**【CFO Financial Details】**
- GAAP net income: $420M; Non-GAAP EPS: $1.95 (vs. $1.85 guidance). 
- Free cash flow: $674M (18% YoY growth). 
- FY25 FX headwinds: >$300M (>$100M/Q). 
- Restructuring costs: ~$100M FY25.

**【Q&A Highlights】**
- **AI Growth**: FY25 AI revenue >$600M (vs. prior $500M target), driven by hyperscale compute programs. 
- **Industrial Markets**: Stabilization in factory automation, strength in Asia-Pacific. 
- **Tariff Strategy**: Playbook from 2017 tariffs includes localization, customer collaboration, and pricing. 
- **M&A Activity**: Active pipeline for bolt-on acquisitions, especially in fragmented markets.

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