TEL · 10-K · 2026A · Full report

Gross Margin Drivers

TE Connectivity plc · 2026-11-09 · Importance 54 · Surprise 40

Fiscal 2026 gross margin increased to $7,206 million from $6,079 million in fiscal 2025, and gross margin as a share of net sales rose to 36.2% from 35.2%. Cost of sales was $12,679 million, or 63.8% of net sales, compared with $11,183 million, or 64.8%, a year earlier. The gross margin increase primarily reflected higher volume, improved manufacturing productivity, and favorable net pricing actions. Fiscal 2026 cost of sales included $91 million of IEEPA tariff refunds, while gross margin included a net $4 million impact from those refunds.

Key facts

• TE Connectivity plc’s fiscal 2026 gross margin increased by $1,127 million, primarily due to higher volume, improved manufacturing productivity, and positive net pricing actions. source
• TE Connectivity plc received $91 million of tariff refunds during fiscal 2026’s fourth quarter, recorded as a reduction to cost of sales. source
• TE Connectivity plc’s fiscal 2026 gross margin was 36.2% of net sales, compared with 35.2% in fiscal 2025. source
• TE Connectivity plc purchased approximately 194 million pounds of copper, 106,000 troy ounces of gold, 1.8 million troy ounces of silver, and 14,000 troy ounces of palladium in fiscal 2026. source