TE Connectivity plc 10-Q

ITEM 1. FINANCIAL STATEMENTS TE CONNECTIVITY PLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions, except per share data) ​ Net sales ​ $ 4,744 ​ $ 4,143 ​ $ 9,413 ​ $ 7,979 ​ Cost of sales ​ 2,999 ​ 2,684 ​ 5,929 ​ 5,160 ​ Gross margin ​ 1,745 ​ 1,459 ​ 3,484 ​ 2,819 ​ Selling, general, and administrative expenses ​ 536 ​ ​ 454 ​ 1,074 ​ ​ 881 ​ Research, development, and engineering expenses ​ 237 ​ ​ 203 ​ 462 ​ ​ 391 ​ Acquisition and integration costs ​ 8 ​ ​ 9 ​ 11 ​ ​ 14 ​ Restructuring and other charges, net ​ 10 ​ ​ 45 ​ 20 ​ ​ 95 ​ Operating income ​ ​ 954 ​ ​ 748 ​ ​ 1,917 ​ ​ 1,438 ​ Interest income ​ ​ 21 ​ ​ 22 ​ ​ 46 ​ ​ 45 ​ Interest expense ​ ( 32 ) ​ ​ ( 14 ) ​ ( 62 ) ​ ​ ( 20 ) ​ Other income (expense), net ​ ( 1 ) ​ ​ ( 1 ) ​ 2 ​ ​ ( 2 ) ​ Income from continuing operations before income taxes ​ 942 ​ 755 ​ 1,903 ​ 1,461 ​ Income tax expense ​ ( 87 ) ​ ​ ( 742 ) ​ ( 297 ) ​ ​ ( 920 ) ​ Income from continuing operations ​ 855 ​ 13 ​ 1,606 ​ 541 ​ Loss from discontinued operations, net of income taxes ​ — ​ ​ — ​ ( 1 ) ​ ​ — ​ Net income ​ $ 855 ​ $ 13 ​ $ 1,605 ​ $ 541 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2.92 ​ $ 0.04 ​ $ 5.46 ​ $ 1.81 ​ Loss from discontinued operations ​ — ​ — ​ — ​ — ​ Net income ​ 2.92 ​ 0.04 ​ 5.46 ​ 1.81 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2.90 ​ $ 0.04 ​ $ 5.43 ​ $ 1.80 ​ Loss from discontinued operations ​ — ​ — ​ — ​ — ​ Net income ​ 2.90 ​ 0.04 ​ 5.42 ​ 1.80 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted-average number of shares outstanding: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ 293 ​ ​ 298 ​ 294 ​ ​ 299 ​ Diluted ​ 295 ​ ​ 300 ​ 296 ​ ​ 301 ​ See accompanying Notes to Condensed Consolidated Financial Statements. ​ 1 Table of Contents TE CONNECTIVITY PLC CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ ​ ​ March 28, ​ ​ ​ March 27, ​ ​ ​ March 28, ​ ​ ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Net income ​ $ 855 ​ $ 13 ​ $ 1,605 ​ $ 541 ​ Other comprehensive income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Currency translation ​ 15 ​ ​ 21 ​ ​ 108 ​ ​ ( 145 ) ​ Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes ​ 1 ​ ​ 2 ​ ​ 2 ​ ​ ( 7 ) ​ Gains (losses) on cash flow hedges, net of income taxes ​ ( 73 ) ​ ​ 85 ​ ​ 31 ​ ​ 29 ​ Other comprehensive income (loss) ​ ( 57 ) ​ 108 ​ 141 ​ ( 123 ) ​ Comprehensive income ​ ​ 798 ​ ​ 121 ​ ​ 1,746 ​ ​ 418 ​ Less: comprehensive (income) loss attributable to noncontrolling interests ​ ​ 3 ​ ​ ( 5 ) ​ ​ 2 ​ ​ 4 ​ Comprehensive income attributable to TE Connectivity plc ​ $ 801 ​ $ 116 ​ $ 1,748 ​ $ 422 ​ See accompanying Notes to Condensed Consolidated Financial Statements. ​ 2 Table of Contents TE CONNECTIVITY PLC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 27, ​ September 26, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions, except share ​ ​ ​ data) ​ Assets ​ ​ ​ ​ ​ ​ ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 1,110 ​ $ 1,255 ​ Accounts receivable, net of allowance for doubtful accounts of $ 52 and $ 44 , respectively ​ 3,454 ​ 3,403 ​ Inventories ​ 2,995 ​ 2,699 ​ Prepaid expenses and other current assets ​ 682 ​ 609 ​ Total current assets ​ 8,241 ​ 7,966 ​ Property, plant, and equipment, net ​ 4,473 ​ 4,312 ​ Goodwill ​ 7,437 ​ 7,126 ​ Intangible assets, net ​ 2,145 ​ 2,227 ​ Deferred income taxes ​ 2,337 ​ 2,507 ​ Other assets ​ 1,046 ​ 943 ​ Total assets ​ $ 25,679 ​ $ 25,081 ​ Liabilities, redeemable noncontrolling interests, and shareholders' equity ​ ​ ​ ​ ​ ​ ​ Current liabilities: ​ ​ ​ ​ ​ ​ ​ Short-term debt ​ $ 102 ​ $ 852 ​ Accounts payable ​ 2,224 ​ 2,021 ​ Accrued and other current liabilities ​ 2,039 ​ 2,247 ​ Total current liabilities ​ 4,365 ​ 5,120 ​ Long-term debt ​ 5,553 ​ 4,842 ​ Long-term pension and postretirement liabilities ​ 750 ​ 767 ​ Deferred income taxes ​ 198 ​ 198 ​ Income taxes ​ 306 ​ 414 ​ Other liabilities ​ 1,125 ​ 1,010 ​ Total liabilities ​ 12,297 ​ 12,351 ​ Commitments and contingencies (Note 9) ​ ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interests ​ ​ 148 ​ ​ 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, 295,773,434 and 302,889,075 shares issued, respectively ​ 3 ​ ​ 3 ​ Accumulated earnings ​ 13,900 ​ 13,932 ​ Ordinary shares held in treasury, at cost, 3,632,502 and 8,330,931 shares, respectively ​ ( 818 ) ​ ( 1,356 ) ​ Accumulated other comprehensive income ​ 149 ​ 6 ​ Total shareholders' equity ​ 13,234 ​ 12,585 ​ Total liabilities, redeemable noncontrolling interests, and shareholders' equity ​ $ 25,679 ​ $ 25,081 ​ See accompanying Notes to Condensed Consolidated Financial Statements. ​ ​ 3 Table of Contents TE CONNECTIVITY PLC CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Quarter Ended March 27, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ordinary Shares ​ ​ ​ ​ ​ ​ ​ Other ​ Total ​ ​ ​ Ordinary Shares ​ Held in Treasury ​ Contributed ​ Accumulated ​ Comprehensive ​ Shareholders' ​ ​ ​ ​ Shares ​ ​ Amount ​ ​ Shares ​ ​ Amount ​ ​ Surplus ​ ​ Earnings ​ ​ Income ​ ​ Equity ​ ​ ​ ​ (in millions) ​ Balance at December 26, 2025 304 ​ $ 3 ( 10 ) ​ $ ( 1,762 ) ​ $ — ​ $ 14,543 ​ $ 203 ​ $ 12,987 ​ Net income — ​ — — ​ — ​ — ​ 855 ​ — ​ 855 ​ Other comprehensive loss — ​ — — ​ — ​ — ​ — ​ ( 54 ) ​ ( 54 ) ​ Share-based compensation expense — ​ — — ​ — ​ 42 ​ — ​ — ​ 42 ​ Dividends ($ 0.78 per ordinary share) — ​ — — ​ — ​ — ​ ( 228 ) ​ — ​ ( 228 ) ​ Exercise of share options — ​ — — ​ — ​ 21 ​ — ​ — ​ 21 ​ Restricted share award vestings and other activity — ​ — — ​ — ​ ( 63 ) ​ 86 ​ — ​ 23 ​ Repurchase of ordinary shares — ​ — ( 2 ) ​ ( 412 ) ​ — ​ — ​ — ​ ( 412 ) ​ Cancellation of treasury shares ​ ( 8 ) ​ ​ — ​ 8 ​ ​ 1,356 ​ ​ — ​ ​ ( 1,356 ) ​ ​ — ​ ​ — ​ Balance at March 27, 2026 ​ 296 ​ $ 3 ( 4 ) ​ $ ( 818 ) ​ $ — ​ $ 13,900 ​ $ 149 ​ $ 13,234 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended March 27, 2026 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ordinary Shares ​ ​ ​ ​ ​ ​ ​ Other ​ Total ​ ​ ​ Ordinary Shares ​ Held in Treasury ​ Contributed ​ Accumulated ​ Comprehensive ​ Shareholders' ​ ​ ​ ​ Shares ​ ​ Amount ​ ​ Shares ​ ​ Amount ​ ​ Surplus ​ ​ Earnings ​ ​ Income ​ ​ Equity ​ ​ ​ ​ (in millions) ​ Balance at September 26, 2025 303 ​ $ 3 ( 8 ) ​ $ ( 1,356 ) ​ $ — ​ $ 13,932 ​ $ 6 ​ $ 12,585 ​ Net income — ​ — — ​ — ​ — ​ 1,605 ​ — ​ 1,605 ​ Other comprehensive income — ​ — — ​ — ​ — ​ — ​ 143 ​ 143 ​ Share-based compensation expense — ​ — — ​ — ​ 92 ​ — ​ — ​ 92 ​ Dividends ($ 1.49 per ordinary share) ​ — ​ — — ​ — ​ — ​ ​ ( 436 ) ​ — ​ ( 436 ) ​ Exercise of share options — ​ — — ​ — ​ 65 ​ — ​ — ​ 65 ​ Restricted share award vestings and other activity 1 ​ — — ​ — ​ ( 157 ) ​ 155 ​ — ​ ( 2 ) ​ Repurchase of ordinary shares — ​ — ( 4 ) ​ ( 818 ) ​ — ​ — ​ — ​ ( 818 ) ​ Cancellation of treasury shares ​ ( 8 ) ​ — 8 ​ 1,356 ​ — ​ ( 1,356 ) ​ — ​ — ​ Balance at March 27, 2026 ​ 296 ​ $ 3 ( 4 ) ​ $ ( 818 ) ​ $ — ​ $ 13,900 ​ $ 149 ​ $ 13,234 ​ ​ ​ ​ 4 Table of Contents TE CONNECTIVITY PLC CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED) (Continued) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Quarter Ended March 28, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ordinary Shares ​ ​ ​ ​ ​ ​ ​ Other ​ Total ​ ​ ​ Ordinary Shares ​ Held in Treasury ​ Contributed ​ Accumulated ​ Comprehensive ​ Shareholders' ​ ​ ​ ​ Shares ​ ​ Amount ​ ​ Shares ​ ​ Amount ​ ​ Surplus ​ ​ Earnings ​ ​ Income (Loss) ​ ​ Equity ​ ​ ​ ​ (in millions) ​ Balance at December 27, 2024 301 ​ $ 3 ( 2 ) ​ $ ( 310 ) ​ $ — ​ $ 12,933 ​ $ ( 217 ) ​ $ 12,409 ​ Net income ​ — ​ — — ​ — ​ — ​ 13 ​ — ​ 13 ​ Other comprehensive income — ​ — — ​ — ​ — ​ — ​ 103 ​ 103 ​ Share-based compensation expense — ​ — — ​ — ​ 34 ​ — ​ — ​ 34 ​ Dividends — ​ — — ​ — ​ — ​ ( 209 ) ​ — ​ ( 209 ) ​ Exercise of share options — ​ — — ​ — ​ 25 ​ — ​ — ​ 25 ​ Restricted share award vestings and other activity — ​ — — ​ — ​ ( 59 ) ​ 74 ​ — ​ 15 ​ Repurchase of ordinary shares — ​ — ( 2 ) ​ ( 305 ) ​ — ​ — ​ — ​ ( 305 ) ​ Balance at March 28, 2025 ​ 301 ​ $ 3 ( 4 ) ​ $ ( 615 ) ​ $ — ​ $ 12,811 ​ $ ( 114 ) ​ $ 12,085 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Six Months Ended March 28, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accumulated ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ordinary Shares ​ ​ ​ ​ ​ ​ ​ Other ​ Total ​ ​ ​ Ordinary Shares ​ Held in Treasury ​ Contributed ​ Accumulated ​ Comprehensive ​ Shareholders' ​ ​ ​ ​ Shares ​ ​ Amount ​ ​ Shares ​ ​ Amount ​ ​ Surplus ​ ​ Earnings ​ ​ Income (Loss) ​ ​ Equity ​ ​ ​ ​ (in millions) ​ Balance at September 27, 2024 316 ​ $ 139 ( 17 ) ​ $ ( 2,322 ) ​ $ — ​ $ 14,533 ​ $ 5 ​ $ 12,355 ​ Change in place of incorporation ​ — ​ ​ ( 136 ) ​ — ​ ​ — ​ ​ — ​ ​ 136 ​ ​ — ​ ​ — ​ Cancellation of treasury shares ​ ( 17 ) ​ ​ — ​ 17 ​ ​ 2,322 ​ ​ — ​ ​ ( 2,322 ) ​ ​ — ​ ​ — ​ Net income ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ ​ 541 ​ ​ — ​ ​ 541 ​ Other comprehensive loss — ​ — — ​ — ​ — ​ — ​ ( 119 ) ​ ( 119 ) ​ Share-based compensation expense — ​ — — ​ — ​ 69 ​ — ​ — ​ 69 ​ Dividends — ​ — — ​ — ​ — ​ ( 209 ) ​ — ​ ( 209 ) ​ Exercise of share options 1 ​ — — ​ — ​ 59 ​ — ​ — ​ 59 ​ Restricted share award vestings and other activity 1 ​ — — ​ — ​ ( 128 ) ​ 132 ​ — ​ 4 ​ Repurchase of ordinary shares — ​ — ( 4 ) ​ ( 615 ) ​ — ​ — ​ — ​ ( 615 ) ​ Balance at March 28, 2025 ​ 301 ​ $ 3 ( 4 ) ​ $ ( 615 ) ​ $ — ​ $ 12,811 ​ $ ( 114 ) ​ $ 12,085 ​ See accompanying Notes to Condensed Consolidated Financial Statements. ​ ​ 5 Table of Contents TE CONNECTIVITY PLC CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ ​ ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 1,605 ​ $ 541 ​ Loss from discontinued operations, net of income taxes ​ 1 ​ — ​ Income from continuing operations ​ 1,606 ​ 541 ​ Adjustments to reconcile income from continuing operations to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ 502 ​ 378 ​ Deferred income taxes ​ 159 ​ 701 ​ Non-cash lease cost ​ ​ 78 ​ ​ 69 ​ Provision for losses on accounts receivable and inventories ​ 49 ​ 43 ​ Share-based compensation expense ​ 92 ​ 69 ​ Other ​ ( 25 ) ​ 34 ​ Changes in assets and liabilities, net of the effects of acquisitions and divestitures: ​ ​ ​ ​ ​ ​ ​ Accounts receivable, net ​ ( 59 ) ​ ( 171 ) ​ Inventories ​ ( 331 ) ​ ( 132 ) ​ Prepaid expenses and other current assets ​ ( 14 ) ​ 140 ​ Accounts payable ​ 177 ​ 146 ​ Accrued and other current liabilities ​ ( 264 ) ​ ( 298 ) ​ Income taxes ​ ( 84 ) ​ 55 ​ Other ​ ( 74 ) ​ ( 44 ) ​ Net cash provided by operating activities ​ 1,812 ​ 1,531 ​ Cash flows from investing activities: ​ ​ ​ ​ ​ ​ ​ Capital expenditures ​ ( 528 ) ​ ( 435 ) ​ Proceeds from sale of property, plant, and equipment ​ 4 ​ 2 ​ Acquisition of businesses, net of cash acquired ​ ( 200 ) ​ ( 321 ) ​ Other ​ — ​ ( 7 ) ​ Net cash used in investing activities ​ ( 724 ) ​ ( 761 ) ​ Cash flows from financing activities: ​ ​ ​ ​ ​ ​ ​ Net increase in commercial paper ​ 100 ​ 1,245 ​ Proceeds from issuance of debt ​ 750 ​ 773 ​ Repayment of debt ​ ( 851 ) ​ ( 579 ) ​ Proceeds from exercise of share options ​ 64 ​ 59 ​ Repurchase of ordinary shares ​ ( 819 ) ​ ( 609 ) ​ Payment of ordinary share dividends to shareholders ​ ( 417 ) ​ ( 382 ) ​ Other ​ ( 58 ) ​ ( 33 ) ​ Net cash provided by (used in) financing activities ​ ( 1,231 ) ​ 474 ​ Effect of currency translation on cash ​ ( 2 ) ​ ( 9 ) ​ Net increase (decrease) in cash, cash equivalents, and restricted cash ​ ( 145 ) ​ 1,235 ​ Cash, cash equivalents, and restricted cash at beginning of period ​ 1,255 ​ 1,319 ​ Cash, cash equivalents, and restricted cash at end of period ​ $ 1,110 ​ $ 2,554 ​ See accompanying Notes to Condensed Consolidated Financial Statements. ​ ​ 6 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation The unaudited Condensed Consolidated Financial Statements of TE Connectivity plc (“TE Connectivity” or the “Company,” which may be referred to as “we,” “us,” or “our”) have been prepared in United States (“U.S.”) dollars, in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and the instructions to Form 10-Q under the Securities Exchange Act of 1934. In management’s opinion, the unaudited Condensed Consolidated Financial Statements contain all normal recurring adjustments necessary for a fair presentation of interim results. The results of operations reported for interim periods are not necessarily indicative of the results of operations for the entire fiscal year or any subsequent interim period. The year-end balance sheet data was derived from audited financial statements, but does not include all of the information and disclosures required by GAAP. These financial statements should be read in conjunction with our audited Consolidated Financial Statements contained in our Annual Report on Form 10-K for the fiscal year ended September 26, 2025. Unless otherwise indicated, references in the Condensed Consolidated Financial Statements to fiscal 2026 and fiscal 2025 are to our fiscal years ending September 25, 2026 and ended September 26, 2025, respectively. ​ 2. Restructuring and Other Charges, Net Net restructuring and other charges consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Restructuring charges, net ​ $ 3 ​ $ 44 ​ $ 13 ​ $ 87 ​ Costs related to change in place of incorporation ​ ​ — ​ ​ 1 ​ ​ — ​ ​ 11 ​ Other charges (credits), net ​ 7 ​ — ​ 7 ​ ( 3 ) ​ Restructuring and other charges, net ​ $ 10 ​ $ 45 ​ $ 20 ​ $ 95 ​ ​ Restructuring Charges, Net Net restructuring charges by segment were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Transportation Solutions ​ $ 1 ​ $ 33 ​ $ 5 ​ $ 59 ​ Industrial Solutions ​ 2 ​ 11 ​ 8 ​ 28 ​ Restructuring charges, net ​ $ 3 ​ $ 44 ​ $ 13 ​ $ 87 ​ ​ 7 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Activity in our restructuring reserves was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at ​ ​ ​ September 26, ​ ​ ​ ​ Changes in ​ Cash ​ Non-Cash ​ Currency ​ March 27, ​ ​ ​ ​ ​ 2025 ​ ​ ​ Charges ​ ​ ​ Estimate ​ ​ ​ Payments ​ ​ ​ Items ​ ​ ​ Translation ​ ​ ​ 2026 ​ ​ ​ ​ ​ (in millions) ​ Fiscal 2026 Actions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee severance ​ $ — ​ $ 3 ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 3 ​ Facility and other exit costs ​ ​ — ​ ​ 1 ​ ​ — ​ ​ ( 1 ) ​ ​ — ​ ​ — ​ ​ — ​ Property, plant, and equipment ​ ​ — ​ ​ 2 ​ ​ — ​ ​ — ​ ​ ( 2 ) ​ ​ — ​ ​ — ​ Total ​ ​ — ​ ​ 6 ​ ​ — ​ ​ ( 1 ) ​ ​ ( 2 ) ​ ​ — ​ ​ 3 ​ Fiscal 2025 Actions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee severance ​ ​ 75 ​ ​ — ​ ​ ( 3 ) ​ ​ ( 21 ) ​ ​ — ​ ​ ( 1 ) ​ ​ 50 ​ Total ​ ​ 75 ​ ​ — ​ ​ ( 3 ) ​ ​ ( 21 ) ​ ​ — ​ ​ ( 1 ) ​ ​ 50 ​ Pre-Fiscal 2025 Actions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Employee severance ​ ​ 98 ​ ​ 8 ​ ​ 2 ​ ​ ( 28 ) ​ ​ — ​ ​ ( 1 ) ​ ​ 79 ​ Facility and other exit costs ​ ​ 4 ​ ​ — ​ ​ — ​ ​ ( 3 ) ​ ​ — ​ ​ — ​ ​ 1 ​ Total ​ ​ 102 ​ ​ 8 ​ ​ 2 ​ ​ ( 31 ) ​ ​ — ​ ​ ( 1 ) ​ ​ 80 ​ Total Activity ​ $ 177 ​ $ 14 ​ $ ( 1 ) ​ $ ( 53 ) ​ $ ( 2 ) ​ $ ( 2 ) ​ $ 133 ​ ​ Fiscal 2026 Actions During fiscal 2026, we initiated a restructuring program to optimize our manufacturing footprint and improve the cost structure of our organization. During the six months ended March 27, 2026, we recorded restructuring charges of $ 6 million in connection with this program. We expect to complete all restructuring actions commenced during the six months ended March 27, 2026 by the end of fiscal 2028 and anticipate that additional charges related to actions commenced during the six months ended March 27, 2026 will be insignificant. Fiscal 2025 Actions During fiscal 2025, we initiated a restructuring program associated with footprint consolidation and cost structure improvements in both of our segments. In connection with this program, during the six months ended March 27, 2026 and March 28, 2025, we recorded restructuring credits of $ 3 million and charges of $ 77 million, respectively. We expect to complete all restructuring actions commenced during fiscal 2025 by the end of fiscal 2033 and to incur additional charges of approximately $ 11 million related primarily to facility exit costs in the Industrial Solutions segment. Pre-Fiscal 2025 Actions During both the six months ended March 27, 2026 and March 28, 2025, we recorded net restructuring charges of $ 10 million related to pre-fiscal 2025 actions. We expect that any additional charges related to restructuring actions commenced prior to fiscal 2025 will be insignificant. 8 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Total Restructuring Reserves Restructuring reserves included on the Condensed Consolidated Balance Sheets were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 27, ​ September 26, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Accrued and other current liabilities ​ $ 108 ​ $ 163 ​ Other liabilities ​ 25 ​ 14 ​ Restructuring reserves ​ $ 133 ​ $ 177 ​ ​ ​ ​ 3. Acquisitions During the six months ended March 27, 2026, we acquired one business for a cash purchase price of $ 200 million, net of cash acquired. The acquisition includes certain earn-out provisions based on business performance for which we have estimated the acquisition-date fair value to be approximately $ 150 million. The acquired business has been reported as part of our Industrial Solutions segment from the date of acquisition. During the six months ended March 28, 2025, we acquired two businesses for a combined cash purchase price of $ 321 million, net of cash acquired. The acquired businesses have been reported as part of our Industrial Solutions segment from the date of acquisition. 4. Inventories Inventories consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 27, ​ September 26, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Raw materials ​ $ 464 ​ $ 420 ​ Work in progress ​ 1,151 ​ 1,078 ​ Finished goods ​ 1,380 ​ 1,201 ​ Inventories ​ $ 2,995 ​ $ 2,699 ​ ​ ​ 5. Goodwill The changes in the carrying amount of goodwill by segment were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transportation ​ ​ ​ Industrial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Solutions ​ Solutions ​ Total ​ ​ ​ (in millions) ​ September 26, 2025 (1) ​ $ 1,609 ​ $ 5,517 ​ $ 7,126 ​ Acquisition ​ ​ — ​ ​ 308 ​ ​ 308 ​ Purchase price adjustments ​ ​ — ​ ​ 21 ​ ​ 21 ​ Currency translation ​ ( 4 ) ​ ( 14 ) ​ ( 18 ) ​ March 27, 2026 (1) ​ $ 1,605 ​ $ 5,832 ​ $ 7,437 ​ (1) At March 27, 2026 and September 26, 2025, accumulated impairment losses for the Transportation Solutions and Industrial Solutions segments were $ 3,091 million and $ 1,158 million, respectively. 9 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) During the six months ended March 27, 2026, we recognized goodwill in the Industrial Solutions segment in connection with a recent acquisition. See Note 3 for additional information regarding acquisitions. 6. Intangible Assets, Net Net intangible assets consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 27, 2026 ​ September 26, 2025 ​ ​ ​ ​ ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Net ​ ​ ​ Gross ​ ​ ​ ​ ​ ​ ​ ​ Net ​ ​ ​ Carrying ​ Accumulated ​ Carrying ​ Carrying ​ Accumulated ​ Carrying ​ ​ ​ Amount ​ Amortization ​ Amount ​ Amount ​ Amortization ​ Amount ​ ​ ​ ​ ​ (in millions) ​ Customer relationships ​ $ 3,013 ​ $ ( 1,193 ) ​ $ 1,820 ​ $ 3,033 ​ $ ( 1,118 ) ​ $ 1,915 ​ Intellectual property ​ ​ 725 ​ ​ ( 415 ) ​ ​ 310 ​ ​ 727 ​ ​ ( 430 ) ​ ​ 297 ​ Other ​ 24 ​ ( 9 ) ​ 15 ​ 23 ​ ( 8 ) ​ 15 ​ Total ​ $ 3,762 ​ $ ( 1,617 ) ​ $ 2,145 ​ $ 3,783 ​ $ ( 1,556 ) ​ $ 2,227 ​ ​ Intangible asset amortization expense was $ 57 million and $ 41 million for the quarters ended March 27, 2026 and March 28, 2025, respectively, and $ 114 million and $ 80 million for the six months ended March 27, 2026 and March 28, 2025, respectively. At March 27, 2026, the aggregate amortization expense on intangible assets is expected to be as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ (in millions) ​ Remainder of fiscal 2026 ​ $ 114 ​ Fiscal 2027 ​ ​ 212 ​ Fiscal 2028 ​ 175 ​ Fiscal 2029 ​ 170 ​ Fiscal 2030 ​ 159 ​ Fiscal 2031 ​ 159 ​ Thereafter ​ 1,156 ​ Total ​ $ 2,145 ​ ​ ​ 7. Debt During the quarter ended March 27, 2026, Tyco Electronics Group S.A. (“TEGSA”), our wholly-owned subsidiary, issued $ 200 million aggregate principal amount of 4.50 % senior notes due in February 2031 and $ 550 million aggregate principal amount of 4.875 % senior notes due in February 2036. The February 2031 senior notes represent a further issuance of TEGSA’s outstanding $ 450 million aggregate principal amount of 4.50 % senior notes which were issued in fiscal 2025 and bring the total aggregate principal amount of the 4.50 % senior notes due in February 2031 to $ 650 million. The new notes are TEGSA’s unsecured senior obligations and rank equally in right of payment with all existing and any future senior indebtedness of TEGSA and senior to any subordinated indebtedness that TEGSA may incur. During the quarter ended March 27, 2026, TEGSA repaid, at maturity, $ 500 million of 4.50 % senior notes and $ 350 million of 3.70 % senior notes, both due in February 2026. At March 27, 2026, TEGSA had $ 100 million of commercial paper outstanding at a weighted-average interest rate of 4.0 %. TEGSA had no commercial paper outstanding at September 26, 2025. TEGSA entered into a new five-year unsecured senior revolving credit facility (“Credit Facility”) in February 2026 with aggregate commitments of $ 3.0 billion, which refinanced and replaced in full TEGSA’s existing $ 1.5 billion five-year 10 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) unsecured senior revolving credit facility (the “Replaced Credit Facility”). The Credit Facility matures in February 2031 and contains provisions that allow for incremental commitments of up to $ 1.0 billion, subject to terms and conditions in the Credit Facility. TEGSA had no borrowings under the Credit Facility at March 27, 2026 or the Replaced Credit Facility at September 26, 2025. Borrowings under the Credit Facility bear interest at a rate per annum equal to, at the option of TEGSA, (1) with respect to borrowings in U.S. dollars, (a) the term secured overnight financing rate (“Term SOFR”) (as defined in the Credit Facility) or (b) an alternate base rate equal to the highest of (i) Bank of America , N.A.’s base rate, (ii) the federal funds effective rate plus 1/2 of 1%, (iii) the Term SOFR for a one-month interest period plus 1 %, and (iv) 1 %, (2) with respect to borrowings in euro, the Euro Interbank Offered Rate , (3) with respect to borrowings in sterling, the Sterling Overnight Index Average Reference Rate , and (4) with respect to borrowings in yen, the Tokyo Interbank Offered Rate , plus, in each case, an applicable margin based upon the senior, unsecured, long-term debt rating of TEGSA. TEGSA is required to pay an annual facility fee. Based on the applicable credit ratings of TEGSA, this fee ranges from 5.0 to 12.5 basis points of the lenders’ commitments under the Credit Facility. Payment obligations under TEGSA’s senior notes, commercial paper, and Credit Facility are fully and unconditionally guaranteed on an unsecured basis by TEGSA’s parent, TE Connectivity Switzerland Ltd., and its parent, TE Connectivity plc. The fair value of our debt, based on indicative valuations, was approximately $ 5,568 million and $ 5,725 million at March 27, 2026 and September 26, 2025, respectively. 8. Leases The components of lease cost were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ ​ ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ (in millions) ​ ​ ​ Operating lease cost ​ $ 39 ​ $ 35 ​ $ 78 ​ $ 69 ​ Variable lease cost ​ ​ 14 ​ ​ 14 ​ ​ 26 ​ ​ 29 ​ Total lease cost ​ $ 53 ​ $ 49 ​ $ 104 ​ $ 98 ​ ​ Cash flow information, including significant non-cash transactions, related to leases was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ ​ ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ ​ ​ (in millions) ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Payments for operating leases (1) ​ $ 78 ​ $ 70 ​ ​ ​ ​ ​ ​ ​ ​ ​ Right-of-use assets, including modifications of existing leases, obtained in exchange for operating lease liabilities ​ ​ 117 ​ ​ 77 ​ (1) These payments are included in cash flows from operating activities, primarily in changes in accrued and other current liabilities. 11 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) 9. Commitments and Contingencies Legal Proceedings In the normal course of business, we are subject to various legal proceedings and claims, including patent infringement claims, product liability matters, employment disputes, disputes on agreements, other commercial disputes, environmental matters, antitrust claims, trade compliance matters, and tax matters, including non-income tax matters such as value added tax, sales and use tax, real estate tax, and transfer tax. Although it is not feasible to predict the outcome of these proceedings, based upon our experience, current information, and applicable law, we do not expect that the outcome of these proceedings, either individually or in the aggregate, will have a material effect on our results of operations, financial position, or cash flows. Trade Compliance Matters As part of our ongoing internal compliance activities, we have been investigating compliance with relevant country of origin for import matters and recently made a voluntary disclosure to the U.S. Customs and Border Protection Agency regarding potential Section 301 unpaid duties, fees, and interest for certain imported products into the U.S. We are unable to predict the timing and final outcome of investigation into this matter. An unfavorable outcome may include unpaid duties, fees, interest, and penalties imposed in response to our disclosures. Based on currently available information, we have reserved an aggregate of $ 27 million related to this exposure. The investigation into this matter has yet to be completed and the final outcome of such investigation and related duties, fees, interest, and potential penalties may differ from amounts currently reserved. Environmental Matters We are involved in various stages of investigation and cleanup related to environmental remediation matters at a number of sites. The ultimate cost of site cleanup is difficult to predict given the uncertainties regarding the extent of the required cleanup, the interpretation of applicable laws and regulations, and alternative cleanup methods. As of March 27, 2026, we concluded that we would incur investigation and remediation costs at these sites in the reasonably possible range of $ 20 million to $ 53 million, and we accrued $ 27 million as the probable loss, which was the best estimate within this range. We believe that any potential payment of such estimated amounts will not have a material adverse effect on our results of operations, financial position, or cash flows. Guarantees In disposing of assets or businesses, we often provide representations, warranties, and/or indemnities to cover various risks including unknown damage to assets, environmental risks involved in the sale of real estate, liability for investigation and remediation of environmental contamination at waste disposal sites and manufacturing facilities, and unidentified tax liabilities and legal fees related to periods prior to disposition. We do not expect that these uncertainties will have a material adverse effect on our results of operations, financial position, or cash flows. At March 27, 2026, we had outstanding letters of credit, letters of guarantee, and surety bonds of $ 251 million to support normal business activities. Supply Chain Finance Program We have an agreement with a financial institution that allows participating suppliers the ability to finance payment obligations. The financial institution has separate arrangements with the suppliers and provides them with the option to request early payment for invoices. We do not determine the terms or conditions of the arrangement between the financial institution and suppliers. Our obligation to suppliers, including amounts due and scheduled payment dates, are not impacted 12 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) by the suppliers’ decisions to finance amounts under the arrangement and we are not required to post collateral with the financial institution. The outstanding payment obligations under our supply chain finance program, which are included in accounts payable on our Condensed Consolidated Balance Sheets, were $ 134 million and $ 161 million at March 27, 2026 and September 26, 2025, respectively. 10. Financial Instruments Foreign Currency Exchange Rate Risk As part of managing the exposure to changes in foreign currency exchange rates, we utilize cross-currency swap contracts and foreign currency forward contracts, a portion of which are designated as cash flow hedges. The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in foreign currency exchange rates on intercompany and other cash transactions. We expect that significantly all of the balance in accumulated other comprehensive income (loss) associated with the cash flow hedge-designated instruments addressing foreign exchange risks will be reclassified into the Condensed Consolidated Statement of Operations within the next twelve months. Hedge of Net Investment We hedge our net investment in certain foreign operations using intercompany loans and external borrowings denominated in the same currencies. The aggregate notional value of these hedges was $ 3,370 million and $ 4,212 million at March 27, 2026 and September 26, 2025, respectively. We also use a cross-currency swap program to hedge our net investment in certain foreign operations. The aggregate notional value of the contracts under this program was $ 5,712 million and $ 5,671 million at March 27, 2026 and September 26, 2025, respectively. Under the terms of these contracts, we receive interest in U.S. dollars at a weighted-average rate of 1.9 % per annum and pay no interest. Upon the maturity of these contracts at various dates through fiscal 2031, we will pay the notional value of the contracts in the designated foreign currency and receive U.S. dollars from our counterparties. We are not required to provide collateral for these contracts. These cross-currency swap contracts were recorded on the Condensed Consolidated Balance Sheets as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 27, ​ September 26, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Prepaid expenses and other current assets ​ $ 26 ​ $ 11 ​ Other assets ​ 79 ​ 23 ​ Accrued and other current liabilities ​ ​ 89 ​ ​ 97 ​ Other liabilities ​ ​ 117 ​ ​ 193 ​ ​ 13 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) The impacts of our hedge of net investment programs were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Foreign currency exchange gains (losses) on intercompany loans and external borrowings (1) ​ $ 82 ​ $ ( 103 ) ​ $ 55 ​ $ 39 ​ Gains (losses) on cross-currency swap contracts designated as hedges of net investment (1) ​ 84 ​ ( 164 ) ​ 112 ​ 178 ​ (1) Recorded as currency translation, a component of accumulated other comprehensive income (loss), and offset by changes attributable to the translation of the net investment. Commodity Hedges As part of managing the exposure to certain commodity price fluctuations, we utilize commodity swap contracts. The objective of these contracts is to minimize impacts to cash flows and profitability due to changes in prices of commodities used in production. These contracts had an aggregate notional value of $ 644 million and $ 569 million at March 27, 2026 and September 26, 2025, respectively, and were designated as cash flow hedges. These commodity swap contracts were recorded on the Condensed Consolidated Balance Sheets as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 27, ​ September 26, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Prepaid expenses and other current assets ​ $ 109 ​ $ 73 ​ Other assets ​ 5 ​ 7 ​ Accrued and other current liabilities ​ ​ 12 ​ ​ — ​ Other liabilities ​ ​ 7 ​ ​ — ​ ​ The impacts of our commodity swap contracts were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Gains (losses) recorded in other comprehensive income (loss) ​ $ ( 10 ) ​ $ 98 ​ $ 134 ​ ​ ​ $ 52 ​ Gains reclassified from accumulated other comprehensive income (loss) into cost of sales ​ ​ 73 ​ ​ 8 ​ ​ 102 ​ ​ 22 ​ ​ We expect that significantly all of the balance in accumulated other comprehensive income (loss) associated with commodity hedges will be reclassified into the Condensed Consolidated Statement of Operations within the next twelve months. 14 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) 11. Retirement Plans The net periodic pension benefit cost (credit) for all non-U.S. and U.S. defined benefit pension plans was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-U.S. Plans ​ U.S. Plans ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Quarters Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ 7 ​ $ 8 ​ $ 2 ​ $ 2 ​ Other (income) expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest cost ​ 17 ​ 15 ​ 8 ​ 8 ​ Expected returns on plan assets ​ ( 15 ) ​ ( 15 ) ​ ( 12 ) ​ ( 11 ) ​ Amortization of net actuarial loss ​ 2 ​ 2 ​ 1 ​ 1 ​ Amortization of prior service credit ​ ( 1 ) ​ ( 1 ) ​ — ​ — ​ Net periodic pension benefit cost (credit) ​ $ 10 ​ $ 9 ​ $ ( 1 ) ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-U.S. Plans ​ U.S. Plans ​ ​ ​ For the ​ For the ​ ​ ​ Six Months Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Operating expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Service cost ​ $ 15 ​ $ 16 ​ $ 3 ​ $ 4 ​ Other (income) expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest cost ​ 34 ​ 31 ​ 17 ​ 16 ​ Expected returns on plan assets ​ ( 30 ) ​ ( 30 ) ​ ( 24 ) ​ ( 22 ) ​ Amortization of net actuarial loss ​ 3 ​ 4 ​ 2 ​ 2 ​ Amortization of prior service credit ​ ( 2 ) ​ ( 2 ) ​ — ​ — ​ Net periodic pension benefit cost (credit) ​ $ 20 ​ $ 19 ​ $ ( 2 ) ​ $ — ​ ​ During the six months ended March 27, 2026, we contributed $ 23 million and $ 8 million to our non-U.S. and U.S. pension plans, respectively. 12. Income Taxes We recorded income tax expense of $ 87 million and $ 742 million for the quarters ended March 27, 2026 and March 28, 2025, respectively. The income tax expense for quarter ended March 27, 2026 included a $ 114 million net income tax benefit related primarily to the settlement of prior period tax matters. The income tax expense for the quarter ended March 28, 2025 included $ 574 million of income tax expense 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. We recorded income tax expense of $ 297 million and $ 920 million for the six months ended March 27, 2026 and March 28, 2025, respectively. The income tax expense for the six months ended March 27, 2026 included a $ 114 million net income tax benefit related primarily to the settlement of prior period tax matters. The income tax expense for the six months ended March 28, 2025 included $ 574 million of income tax expense 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. In addition, the 15 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) income tax expense for the six months ended March 28, 2025 included $ 13 million of income tax expense related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. We record accrued interest and penalties related to uncertain tax positions as part of income tax expense (benefit). As of March 27, 2026 and September 26, 2025, we had $ 41 million and $ 89 million, respectively, of accrued interest and penalties related to uncertain tax positions on the Condensed Consolidated Balance Sheets, recorded primarily in income taxes. During the six months ended March 27, 2026, we recognized an income tax benefit of $ 48 million related to interest and penalties on the Condensed Consolidated Statements of Operations. Substantially all of this income tax benefit was recognized as part of the settlement of prior period tax matters discussed above. 13. Earnings Per Share The weighted-average number of shares outstanding used in the computations of basic and diluted earnings per share were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Basic ​ 293 ​ 298 ​ 294 ​ 299 ​ Dilutive impact of share-based compensation arrangements ​ 2 ​ 2 ​ 2 ​ 2 ​ Diluted ​ 295 ​ 300 ​ 296 ​ 301 ​ ​ The following share options were not included in the computation of diluted earnings per share because the instruments’ underlying exercise prices were greater than the average market prices of our ordinary shares and inclusion would be antidilutive: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Antidilutive share options — ​ 1 ​ — ​ 1 ​ ​ ​ 14. Shareholders’ Equity Ordinary Shares Held in Treasury In March 2026, our Board of Directors approved the cancellation of approximately 8.3 million ordinary shares purchased under our share repurchase program during fiscal 2025. The cancellation became effective during the quarter ended March 27, 2026. Dividends We paid cash dividends to shareholders as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ ​ March 27, ​ ​ ​ March 28, ​ ​ ​ March 27, ​ ​ ​ March 28, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ Dividends paid per ordinary share ​ $ 0.71 ​ $ 0.65 ​ $ 1.42 ​ $ 1.30 ​ ​ 16 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) In March 2026 , our Board of Directors declared a regular quarterly cash dividend of $ 0.78 per ordinary share, payable on June 12, 2026 , to shareholders of record on May 22, 2026 . Share Repurchase Program During the quarter ended March 27, 2026, our Board of Directors authorized an increase of $ 3.0 billion in our share repurchase program. Ordinary shares repurchased under the share repurchase program were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ ​ ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Number of ordinary shares repurchased ​ 4 ​ 4 ​ Repurchase value $ 818 $ 615 ​ ​ At March 27, 2026, we had $ 3.6 billion of availability remaining under our share repurchase authorization. ​ 15. Share Plans Share-based compensation expense, which was included in selling, general, and administrative expenses on the Condensed Consolidated Statements of Operations, was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Share-based compensation expense $ 42 $ 34 ​ $ 92 $ 69 ​ ​ As of March 27, 2026, there was $ 193 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 1.5 years. During the quarter ended December 26, 2025, we granted the following share-based awards as part of our annual incentive plan grant: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant-Date ​ ​ ​ ​ ​ Shares ​ ​ ​ Fair Value ​ ​ ​ ​ ​ (in millions) ​ ​ ​ ​ Share options ​ 0.3 ​ $ 67.29 ​ Restricted share awards ​ 0.3 ​ 236.28 ​ Performance share awards ​ 0.1 ​ ​ 236.28 ​ ​ As of March 27, 2026, we had 17 million shares available for issuance under the TE Connectivity plc 2024 Stock and Incentive Plan, amended and restated as of September 30, 2024. 17 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Share-Based Compensation Assumptions The assumptions we used in the Black-Scholes-Merton option pricing model for the options granted as part of our annual incentive plan grant were as follows: ​ ​ ​ ​ ​ ​ Expected share price volatility ​ ​ ​ 27 % ​ ​ ​ Risk-free interest rate ​ 3.9 % ​ Expected annual dividend per share ​ $ 2.84 ​ ​ Expected life of options (in years) ​ 5.5 ​ ​ ​ ​ 16. Segment and Geographic Data Net sales by segment (1) and industry end market were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Transportation Solutions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Automotive ​ $ 1,762 ​ $ 1,735 ​ $ 3,647 ​ $ 3,457 ​ Commercial transportation ​ 433 ​ 357 ​ 803 ​ 669 ​ Sensors ​ 227 ​ 222 ​ 439 ​ 431 ​ Total Transportation Solutions ​ ​ 2,422 ​ ​ 2,314 ​ ​ 4,889 ​ ​ 4,557 ​ Industrial Solutions: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Digital data networks ​ 714 ​ 482 ​ 1,421 ​ 895 ​ Automation and connected living ​ ​ 579 ​ ​ 512 ​ ​ 1,128 ​ ​ 991 ​ Aerospace, defense, and marine ​ ​ 408 ​ ​ 374 ​ ​ 789 ​ ​ 708 ​ Energy ​ 445 ​ 279 ​ 851 ​ 495 ​ Medical ​ ​ 176 ​ ​ 182 ​ ​ 335 ​ ​ 333 ​ Total Industrial Solutions ​ ​ 2,322 ​ ​ 1,829 ​ ​ 4,524 ​ ​ 3,422 ​ Total ​ $ 4,744 ​ $ 4,143 ​ $ 9,413 ​ $ 7,979 ​ (1) Intersegment sales were not material. 18 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Net sales by geographic region (1) and segment were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the ​ For the ​ ​ ​ Quarters Ended ​ Six Months Ended ​ ​ ​ March 27, ​ March 28, ​ March 27, ​ March 28, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Asia–Pacific: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transportation Solutions ​ $ 1,017 ​ $ 997 ​ $ 2,262 ​ $ 2,094 ​ Industrial Solutions ​ 734 ​ 545 ​ 1,495 ​ 1,051 ​ Total Asia–Pacific ​ 1,751 ​ 1,542 ​ 3,757 ​ 3,145 ​ Europe/Middle East/Africa (“EMEA”): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transportation Solutions ​ ​ 919 ​ ​ 819 ​ ​ 1,714 ​ ​ 1,539 ​ Industrial Solutions ​ 692 ​ 594 ​ 1,337 ​ 1,103 ​ Total EMEA ​ 1,611 ​ 1,413 ​ 3,051 ​ 2,642 ​ Americas: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Transportation Solutions ​ ​ 486 ​ ​ 498 ​ ​ 913 ​ ​ 924 ​ Industrial Solutions ​ 896 ​ 690 ​ 1,692 ​ 1,268 ​ Total Americas ​ 1,382 ​ 1,188 ​ 2,605 ​ 2,192 ​ Total ​ $ 4,744 ​ $ 4,143 ​ $ 9,413 ​ $ 7,979 ​ (1) Net sales to external customers are attributed to individual countries based on the legal entity that records the sale. 19 Table of Contents TE CONNECTIVITY PLC NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) The following table presents operating results and other data by reportable segment: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Quarter Ended March 27, 2026 ​ For the Six Months Ended March 27, 2026 ​ ​ ​ Transportation ​ Industrial ​ ​ ​ ​ Transportation ​ Industrial ​ ​ ​ ​ ​ ​ Solutions ​ Solutions ​ Total ​ Solutions ​ Solutions ​ Total ​ ​ ​ (in millions) ​ Net sales ​ $ 2,422 ​ $ 2,322 ​ $ 4,744 ​ $ 4,889 ​ $ 4,524 ​ $ 9,413 ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ ​ 1,550 ​ ​ 1,449 ​ ​ 2,999 ​ ​ 3,126 ​ ​ 2,803 ​ ​ 5,929 ​ Selling, general, and administrative expenses ​ ​ 247 ​ ​ 289 ​ ​ 536 ​ ​ 516 ​ ​ 558 ​ ​ 1,074 ​ Research, development, and engineering expenses ​ ​ 121 ​ ​ 116 ​ ​ 237 ​ ​ 238 ​ ​ 224 ​ ​ 462 ​ Other segment items (1) ​ ​ 1 ​ ​ 17 ​ ​ 18 ​ ​ 5 ​ ​ 26 ​ ​ 31 ​ Operating income ​ $ 503 ​ $ 451 ​ $ 954 ​ $ 1,004 ​ $ 913 ​ $ 1,917 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation ​ $ 106 ​ $ 80 ​ $ 186 ​ $ 231 ​ $ 157 ​ $ 388 ​ Amortization ​ ​ 18 ​ ​ 39 ​ ​ 57 ​ ​ 36 ​ ​ 78 ​ ​ 114 ​ Capital expenditures ​ ​ 75 ​ ​ 195 ​ ​ 270 ​ ​ 179 ​ ​ 349 ​ ​ 528 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Quarter Ended March 28, 2025 ​ For the Six Months Ended March 28, 2025 ​ ​ ​ Transportation ​ Industrial ​ ​ ​ ​ Transportation ​ Industrial ​ ​ ​ ​ ​ ​ Solutions ​ Solutions ​ Total ​ Solutions ​ Solutions ​ Total ​ ​ ​ (in millions) ​ Net sales ​ $ 2,314 ​ $ 1,829 ​ $ 4,143 ​ $ 4,557 ​ $ 3,422 ​ $ 7,979 ​ Less: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cost of sales ​ ​ 1,512 ​ ​ 1,172 ​ ​ 2,684 ​ ​ 2,957 ​ ​ 2,203 ​ ​ 5,160 ​ Selling, general, and administrative expenses ​ ​ 213 ​ ​ 241 ​ ​ 454 ​ ​ 429 ​ ​ 452 ​ ​ 881 ​ Research, development, and engineering expenses ​ ​ 111 ​ ​ 92 ​ ​ 203 ​ ​ 215 ​ ​ 176 ​ ​ 391 ​ Other segment items (1) ​ ​ 33 ​ ​ 21 ​ ​ 54 ​ ​ 65 ​ ​ 44 ​ ​ 109 ​ Operating income ​ $ 445 ​ $ 303 ​ $ 748 ​ $ 891 ​ $ 547 ​ $ 1,438 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation ​ $ 98 ​ $ 53 ​ $ 151 ​ $ 193 ​ $ 105 ​ $ 298 ​ Amortization ​ ​ 17 ​ ​ 24 ​ ​ 41 ​ ​ 34 ​ ​ 46 ​ ​ 80 ​ Capital expenditures ​ ​ 120 ​ ​ 110 ​ ​ 230 ​ ​ 248 ​ ​ 187 ​ ​ 435 ​ (1) Other segment items consist of acquisition and integration costs and net restructuring and other charges. Segment assets and a reconciliation of segment assets to total assets were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 27, ​ September 26, ​ ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ ​ ​ (in millions) ​ Transportation Solutions ​ $ 6,037 ​ $ 5,975 ​ Industrial Solutions ​ 4,885 ​ 4,439 ​ Total segment assets (1) ​ 10,922 ​ 10,414 ​ Other current assets ​ 1,792 ​ 1,864 ​ Other noncurrent assets ​ 12,965 ​ 12,803 ​ Total assets ​ $ 25,679 ​ $ 25,081 ​ (1) Segment assets are composed of accounts receivable, inventories, and net property, plant, and equipment. ​ 20 Table of Contents