Financial Analysis

3. Acquisitions Fiscal 2026 Acquisition During the nine months ended June 26, 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. Fiscal 2025 Acquisitions Richards Manufacturing Co. On April 1, 2025, we acquired 100% of Richards Manufacturing Co. (Richards Manufacturing), a U.S.-based producer of overhead and underground electrical and gas distribution products, for cash of approximately $2.3 billion, net of cash acquired. The acquired business has been reported as part of the energy business within our Industrial Solutions segment from the date of acquisition. The Richards Manufacturing acquisition was accounted for under the provisions of Accounting Standards Codification 805, Business Combinations . We allocated the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. During the quarter ended June 26, 2026, we finalized the valuation of identifiable intangible assets, fixed assets, and pre-acquisition contingencies. Adjustments to the estimated fair values of the assets acquired and liabilities assumed presented at September 26, 2025 were not material. Pro Forma Fin …

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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 previously reported, as part of our ongoing internal compliance activities, we conducted an investigation related to country of origin for import matters. During the quarter ended June 26, 2026, we filed a perfected prior disclosure to the U.S. Customs and Border Protection Agency (CBP) regarding Section 301 unpaid duties, fees, and interest for certain imported products into the U.S. and paid $14 million to CBP to resolve this matter. Although CBP has not yet completed its review of the disclosure, we do not expect that the outcome of the review will have a material effect on our results of operations, financial position, or cash flows. Environmental Matters …

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7. Debt During the nine months ended June 26, 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 TEGSAs 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 TEGSAs 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 nine months ended June 26, 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 June 26, 2026, TEGSA had $100 million of commercial paper outstanding at a weighted-average interest rate of 3.95%. 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 TEGSAs existing $1.5 billion five-year unsecured senior revolving credit facility (the Replaced Credit Facility). The Credit Facility matures in …

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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 Nine Months Ended June 26, June 27, June 26, June 27, 2026 2025 2026 2025 (in millions) Share-based compensation expense $ 38 $ 36 $ 130 $ 105 As of June 26, 2026, there was $166 million of unrecognized compensation expense related to share-based awards, which is expected to be recognized over a weighted-average period of 1.4 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 June 26, 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. 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 during the quarter ended December 26, 2025 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 …

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12. Income Taxes We recorded income tax expense of $223 million and $208 million for the quarters ended June 26, 2026 and June 27, 2025, respectively. We recorded income tax expense of $520 million and $1,128 million for the nine months ended June 26, 2026 and June 27, 2025, respectively. The income tax expense for the nine months ended June 26, 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 nine months ended June 27, 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 income tax expense for the nine months ended June 27, 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 June 26, 2026 and September 26, 2025, we had $44 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 nine months ended June 26, 2026, we recognized an income tax benefit of $45 million related to interest and penalties on the Condensed C …

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8. Leases The components of lease cost were as follows: For the For the Quarters Ended Nine Months Ended June 26, June 27, June 26, June 27, 2026 2025 2026 2025 (in millions) Operating lease cost $ 40 $ 37 $ 118 $ 106 Variable lease cost 15 14 41 43 Total lease cost $ 55 $ 51 $ 159 $ 149 Cash flow information, including significant non-cash transactions, related to leases was as follows: For the Nine Months Ended June 26, June 27, 2026 2025 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Payments for operating leases (1) $ 116 $ 108 Right-of-use assets, including modifications of existing leases, obtained in exchange for operating lease liabilities 180 125 (1) These payments are included in cash flows from operating activities, primarily in changes in accrued and other current liabilities. …

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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 June 26, June 27, June 26, June 27, 2026 2025 2026 2025 (in millions) Operating expense: Service cost $ 8 $ 7 $ 1 $ 1 Other (income) expense: Interest cost 17 16 8 9 Expected returns on plan assets (15) (14) (11) (11) Amortization of net actuarial loss 2 2 1 1 Amortization of prior service credit (1) (1) Net periodic pension benefit cost (credit) $ 11 $ 10 $ (1) $ Non-U.S. Plans U.S. Plans For the For the Nine Months Ended Nine Months Ended June 26, June 27, June 26, June 27, 2026 2025 2026 2025 (in millions) Operating expense: Service cost $ 23 $ 23 $ 4 $ 5 Other (income) expense: Interest cost 51 47 25 25 Expected returns on plan assets (45) (44) (35) (33) Amortization of net actuarial loss 5 6 3 3 Amortization of prior service credit (3) (3) Net periodic pension benefit cost (credit) $ 31 $ 29 $ (3) $ During the nine months ended June 26, 2026, we contributed $35 million and $14 million to our non-U.S. and U.S. pension plans, respectively. …

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16. Segment and Geographic Data Effective at the beginning of the third quarter of fiscal 2026, we realigned a product line within the Transportation Solutions segment. The realignment did not result in any changes at the segment level. The following information reflects our current reporting structure. Prior period results have been recast to conform to the current reporting structure. As a result of the realignment, which was not significant, $30 million and $38 million of net sales were transferred from the commercial transportation business to the automotive business within the Transportation Solutions segment for the six months ended March 27, 2026 and nine months ended June 27, 2025, respectively. Net sales by segment (1) and industry end market were as follows: For the For the Quarters Ended Nine Months Ended June 26, June 27, June 26, June 27, 2026 2025 2026 2025 (in millions) Transportation Solutions: Automotive $ 1,913 $ 1,819 $ 5,590 $ 5,300 Commercial transportation 434 363 1,207 1,008 Sensors 233 236 672 667 Total Transportation Solutions 2,580 2,418 7,469 6,975 Industrial Solutions: Digital data networks 813 606 2,234 1,501 Automation and connected living 664 571 1,792 1,562 Aerospace, defense, and marine 419 374 1,208 1,082 Energy 516 384 1,367 879 Medical 168 181 503 514 Total Industrial Solutions 2,580 2,116 7,104 5,538 Total $ 5,160 $ 4,534 $ 14,573 $ 12,513 (1) Intersegment sales were not material. Net sales by geographic region (1) and segment were as foll …

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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 Nine Months Ended June 26, June 27, June 26, June 27, 2026 2025 2026 2025 Dividends paid per ordinary share $ 0.78 $ 0.71 $ 2.20 $ 2.01 In June 2026 , our Board of Directors approved an interim cash dividend of $0.78 per ordinary share, payable on September 11, 2026, to shareholders of record on August 21, 2026. Share Repurchase Program During the nine months ended June 26, 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 Nine Months Ended June 26, June 27, 2026 2025 (in millions) Number of ordinary shares repurchased 6 6 Repurchase value $ 1,350 $ 916 At June 26, 2026, we had $3.0 billion of availability remaining under our share repurchase authorization. …

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17. Subsequent Event On July 22, 2026, we entered into a definitive agreement to acquire Astrodyne TDI, a leading manufacturer of power and filter solutions, for approximately $1.4 billion in cash. The transaction, which is expected to close by the end of calendar year 2026, is subject to customary regulatory approvals and other closing conditions. The business will be reported as part of our Industrial Solutions segment.

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