TE Connectivity plc
For the period ended Sep 25, 2026. Filed Nov 9, 2026.
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FY2026 · Filed Nov 9, 2026
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Reports of Independent Registered Public Accounting Firm
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of TE Connectivity plc
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of TE Connectivity plc and subsidiaries (the "Company") as of September 25, 2026 and September 26, 2025, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows, for each of the three years in the period ended September 25, 2026, and the related notes and the schedule listed in the Index at Item 15(a)2 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 25, 2026 and September 26, 2025, and the results of its operations and its cash flows for each of the three years in the period ended September 25, 2026, in conformity with accounting principles generally accepted in the United States of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of September 25, 2026, based on criteria established inInternal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 9, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Income Taxes — Realizability of Deferred Tax Assets — Refer to Notes 2 and 15 to the financial statements
Critical Audit Matter Description
The Company recognizes deferred income taxes for temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Future realization of deferred tax assets depends on the existence of sufficient taxable income of the appropriate character prior to expiration. Sources of taxable income include future reversals of deferred tax assets and liabilities, expected future taxable income, taxable income in prior carryback years if permitted under the tax law, and tax planning strategies. Management has determined that it is more likely than not that sufficient taxable income will be generated in the future to
realize a portion of its deferred tax assets, and therefore, a valuation allowance of $9.3 billion has been recorded to offset the Company’s gross deferred tax assets as of September 25, 2026 of $12.2 billion.
We identified the realizability of certain deferred tax assets as a critical audit matter because of the Company’s tax structure and the significant judgments and estimates made by management to determine that sufficient taxable income will be generated in the future prior to expiration to realize a portion of its deferred tax assets. This required a high degree of auditor judgment and an increased extent of effort, including the need to involve our income tax specialists, when performing audit procedures to evaluate the appropriateness of qualifying tax planning strategies and the reasonableness of management’s estimates of taxable income prior to expiration.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the determination that it is more likely than not that sufficient taxable income will be generated in the future to realize certain deferred tax assets included the following, among others:
| • | We tested the effectiveness of controls over management’s estimates of the realization of the deferred tax assets, including those over the estimates of taxable income, the approval of tax planning strategies and the determination of whether it is more likely than not that the deferred tax assets will be realized prior to expiration. |
| • | We evaluated the reasonableness of management’s assessment of the significance and weighting of negative evidence and positive evidence that is objectively verifiable. |
| • | We evaluated management’s ability to accurately estimate taxable income by comparing actual results to management’s historical estimates and evaluating whether there have been any changes that would impact management’s ability to continue accurately estimating taxable income. |
| • | We tested the reasonableness of management’s estimates of taxable income by comparing the estimates to: |
| – | Historical taxable income. |
| – | Internal communications to management and the board of directors. |
| – | Management’s history of carrying out its stated plans and its ability to carry out its plans considering contractual commitments, available financing, or debt covenants. |
| • | We evaluated whether the estimates of future taxable income were consistent with evidence obtained in other areas of the audit. |
| • | We evaluated whether the taxable income in prior carryback years was of the appropriate character and available under the tax law. |
| • | With the assistance of our income tax specialists, we evaluated (1) the appropriateness of qualifying tax planning strategies, including that they were prudent, feasible and would more likely than not result in the realization of deferred tax assets and (2) management’s assessment that sufficient taxable income will be generated in the future to realize a portion of the deferred tax assets prior to expiration. |
/s/Deloitte & Touche LLP
Philadelphia, Pennsylvania
November 9, 2026
We have served as the Company’s auditor since 2007.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the shareholders and the Board of Directors of TE Connectivity plc
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of TE Connectivity plc and subsidiaries (the “Company”) as of September 25, 2026, based on criteria established inInternal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 25, 2026, based on criteria established inInternal Control—Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the fiscal year ended September 25, 2026 of the Company and our report dated November 9, 2026, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte & Touche LLP
Philadelphia, Pennsylvania
November 9, 2026
CONSOLIDATED STATEMENTS OF OPERATIONS
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| · · Fiscal · | ||||||||||
| · · 2026 · · 2025 · · 2024 · | ||||||||||
| · · (in millions, except per share data) · | ||||||||||
| Net sales | | $19,885 | | $17,262 | | $15,845 | | |||
| Cost of sales | | 12,679 | | 11,183 | | 10,389 | | |||
| Gross margin | | 7,206 | | 6,079 | | 5,456 | | |||
| Selling, general, and administrative expenses | | | 2,124 | | | 1,866 | | | 1,732 | |
| Research, development, and engineering expenses | | | 942 | | | 829 | | | 741 | |
| Acquisition and integration costs | | | 32 | | | 47 | | | 21 | |
| Restructuring and other charges, net | | | 117 | | | 126 | | | 166 | |
| Operating income | | | 3,991 | | | 3,211 | | | 2,796 | |
| Interest income | | | 90 | | | 83 | | | 87 | |
| Interest expense | | | (124) | | | (77) | | | (70) | |
| Other expense, net | | | (7) | | | (13) | | | (16) | |
| Income from continuing operations before income taxes | | 3,950 | | 3,204 | | 2,797 | | |||
| Income tax (expense) benefit | | | (695) | | | (1,361) | | | 397 | |
| Income from continuing operations | | 3,255 | | 1,843 | | 3,194 | | |||
| Loss from discontinued operations, net of income taxes | | | (2) | | | (1) | | | (1) | |
| Net income | | $3,253 | | $1,842 | | $3,193 | | |||
| | | | | | | | | | | |
| Basic earnings per share: | | | | | | | | | | |
| Income from continuing operations | | $11.15 | | $6.21 | | $10.40 | | |||
| Loss from discontinued operations | | (0.01) | | — | | — | | |||
| Net income | | 11.14 | | 6.20 | | 10.40 | | |||
| | | | | | | | | | | |
| Diluted earnings per share: | | | | | | | | | | |
| Income from continuing operations | | $11.07 | | $6.16 | | $10.34 | | |||
| Loss from discontinued operations | | (0.01) | | — | | — | | |||
| Net income | | 11.06 | | 6.16 | | 10.33 | | |||
| | | | | | | | | | | |
| Weighted-average number of shares outstanding: | | | | | | | | | | |
| Basic | | | 292 | | | 297 | | | 307 | |
| Diluted | | | 294 | | | 299 | | | 309 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| · · Fiscal · | ||||||||||
| · · 2026 · · 2025 · · 2024 · | ||||||||||
| · · (in millions) · | ||||||||||
| Net income | | $3,253 | | $1,842 | | $3,193 | | |||
| Other comprehensive income: | | | | | | | | | | |
| Currency translation | | 95 | | (46) | | 131 | | |||
| Adjustments to unrecognized pension and postretirement benefit costs, net of income taxes | | 128 | | 33 | | (37) | | |||
| Gains (losses) on cash flow hedges, net of income taxes | | (15) | | 21 | | 76 | | |||
| Other comprehensive income | | 208 | | 8 | | 170 | | |||
| Comprehensive income | | | 3,461 | | | 1,850 | | | 3,363 | |
| Less: comprehensive (income) loss attributable to noncontrolling interests | | | 4 | | | (7) | | | (7) | |
| Comprehensive income attributable to TE Connectivity plc | | $3,465 | | $1,843 | | $3,356 | | |||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.