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Operating cash flow surged to $1.5B in 2026Q3 (2.02x net income), with free cash flow margin at 23.3%, though capital returns of $755M exceeded FCF, and a $2.3B acquisition outflow in 2025Q3 may distort comparisons.
TE Connectivity plc (TEL) cash flow statement — 23-year operating, investing & financing cash flows
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 |
|---|
| Cash from Operations | 4.74B | 4.14B | 3.48B | 3.13B | 2.47B | 2.68B | 1.99B | 2.42B | 2.45B | 2.32B | 1.92B | 1.91B | 2.08B | 2.05B | 1.95B | 1.78B | 1.68B | 1.33B | 989M | 1.52B | 1.67B | 1.14B | 762M | -228M |
| Operating CF Margin % | - | 24.22% | 21.94% | 19.53% | 15.16% | 17.93% | 16.37% | 18.01% | 17.52% | 17.7% | 15.71% | 15.64% | 14.97% | 15.41% | 14.66% | 12.43% | 13.91% | 12.96% | 6.67% | 11.28% | 13.03% | 10.47% | 7.56% | -2.47% |
| Operating CF Growth % | 106.96% | 19.04% | 11.02% | 26.9% | -7.77% | 34.34% | -17.75% | -1.18% | 5.6% | 20.76% | 0.47% | -8.16% | 1.81% | 5.08% | 9.44% | 5.96% | 26.34% | 34.38% | -34.85% | -9.1% | 45.98% | 50.13% | 434.21% | - |
| Net Income | 3.02B | 1.84B | 3.19B | 1.9B | 2.43B | 2.25B | -259M | 1.95B | 2.58B | 1.67B | 1.94B | 1.24B | 1.79B | 1.28B | 1.17B | 1.25B | 1.06B | -3.1B | 1.78B | -554M | 1.16B | 1.14B | 762M | -228M |
| Depreciation & Amortization | 1B | 838M | 826M | 794M | 785M | 769M | 711M | 690M | 667M | 635M | 585M | 616M | 617M | 607M | 609M | 574M | 520M | 515M | 559M | 535M | 531M | 0 | 0 | 0 |
| Stock-Based Compensation | 174M | 149M | 127M | 123M | 119M | 94M | 74M | 75M | 95M | 99M | 91M | 89M | 84M | 78M | 68M | 73M | 63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 427M | 938M | -789M | -77M | -147M | -354M | 535M | -218M | -791M | -67M | 810M | 92M | -299M | 211M | -48M | 109M | 35M | -583M | 174M | 162M | -62M | 0 | 0 | 0 |
| Other Non-Cash Items | 78M | 284M | 262M | 380M | 224M | 105M | 1.08B | 62M | 185M | 28M | -122M | 456M | 108M | 197M | 129M | -10M | -95M | 244M | -1.28B | 1.23B | 398M | -1.14B | -762M | 228M |
| Working Capital Changes | 44M | 88M | -143M | 8M | -940M | -193M | -146M | -133M | -289M | -47M | -1.38B | -578M | -216M | -324M | 23M | -220M | 91M | 755M | -78M | -213M | -360M | 0 | 0 | 0 |
| Change in Receivables | 125M | -341M | -134M | -146M | 200M | -518M | -63M | 31M | -269M | -253M | 116M | -210M | -205M | -81M | 17M | 34M | -323M | 651M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -226M | -160M | -30M | -45M | -41M | -556M | -89M | 64M | -247M | -211M | 16M | -220M | -62M | -43M | 123M | -209M | -177M | 634M | -280M | -124M | -353M | 0 | 0 | 0 |
| Change in Payables | 425M | 290M | 159M | -1M | -396M | 560M | -80M | -178M | 201M | 308M | -100M | -22M | 52M | 167M | -189M | -48M | 317M | -420M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.3B | -3.57B | -950M | -768M | -878M | -1.04B | -865M | -692M | -1.09B | -932M | -1.58B | 636M | -1.07B | -545M | -1.51B | -1.04B | -442M | 391M | 895M | -1.53B | -548M | -467M | -384M | -439M |
| Capital Expenditures | -1.1B | -936M | -680M | -732M | -768M | -690M | -560M | -749M | -935M | -702M | -628M | -600M | -673M | -615M | -533M | -581M | -385M | -328M | -619M | -892M | -560M | -467M | -384M | -439M |
| CapEx % of Revenue | 5.76% | 5.48% | 4.29% | 4.57% | 4.72% | 4.62% | 4.6% | 5.57% | 6.68% | 5.35% | 5.13% | 4.9% | 4.84% | 4.63% | 4.01% | 4.06% | 3.19% | 3.2% | 4.17% | 6.63% | 4.37% | 4.28% | 3.81% | 4.76% |
| Acquisitions | -192M | -2.63B | -280M | -62M | -220M | -423M | -339M | -283M | -153M | -246M | -1B | -1.73B | -528M | -6M | -1.38B | -746M | -78M | 17M | -3M | 227M | -23M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -7M | -4M | 10M | 26M | 110M | 76M | 34M | 340M | -6M | 16M | 50M | 2.96B | 126M | 76M | 407M | 129M | 21M | 702M | 1.52B | -863M | 35M | 467M | 384M | 439M |
| Cash from Financing | -2.55B | -629M | -2.87B | -1.79B | -1.68B | -1.39B | -1.1B | -1.64B | -1.72B | -814M | -3.03B | -1.61B | 65M | -1.68B | -65M | -1.51B | -779M | -1.25B | -1.74B | 431M | -935M | 0 | 0 | 0 |
| Debt Issued (Net) | -1.4B | 1.4B | -79M | -132M | 400M | -47M | 22M | 4M | -319M | 259M | 181M | -184M | 939M | -664M | 406M | -416M | 0 | -803M | -221M | -522M | -113M | 0 | 0 | 0 |
| Equity Issued (Net) | -1.63B | -1.17B | -1.97B | -902M | -1.41B | -664M | -468M | -1.01B | -879M | -614M | -2.79B | -1.02B | -578M | -630M | -185M | -785M | -488M | -152M | -1.24B | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -852M | -803M | -760M | -725M | -685M | -647M | -625M | -608M | -588M | -546M | -509M | -502M | -443M | -384M | -332M | -296M | -289M | -294M | -271M | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.78B | -1.35B | -2.06B | -945M | -1.41B | -831M | -523M | -1.09B | -879M | -614M | -2.79B | -1.02B | -578M | -844M | -185M | -865M | -488M | -152M | -1.24B | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.33B | -57M | -57M | -34M | 13M | -28M | -34M | -33M | 64M | 87M | 60M | 103M | 147M | 0 | 46M | -15M | -2M | -5M | -5M | 953M | -822M | 0 | 0 | 0 |
| Net Change in Cash | 890M | -64M | -342M | 573M | -115M | 258M | 18M | 79M | -370M | 571M | -2.68B | 872M | 1.05B | -186M | 371M | -771M | 469M | 431M | 144M | 467M | 186M | 677M | 378M | -667M |
| Free Cash Flow | 3.64B | 3.2B | 2.8B | 2.4B | 1.7B | 1.99B | 1.43B | 1.67B | 1.52B | 1.62B | 1.29B | 1.31B | 1.41B | 1.43B | 1.41B | 1.2B | 1.29B | 1B | 370M | 626M | 1.11B | 677M | 378M | -667M |
| FCF Margin % | 19% | 18.74% | 17.65% | 14.97% | 10.44% | 13.31% | 11.76% | 12.44% | 10.84% | 12.35% | 10.57% | 10.73% | 10.14% | 10.78% | 10.65% | 8.37% | 10.72% | 9.76% | 2.49% | 4.65% | 8.66% | 6.2% | 3.75% | -7.24% |
| FCF Growth % | 26.23% | 14.52% | 16.54% | 41.18% | -14.4% | 38.69% | -14.41% | 10.36% | -6.36% | 25.12% | -1.45% | -6.88% | -1.47% | 1.2% | 18.03% | -7.42% | 29.27% | 170.54% | -40.89% | -43.6% | 63.96% | 79.1% | 156.67% | - |
| FCF per Share | 12.42 | 10.71 | 9.05 | 7.57 | 5.23 | 5.96 | 4.31 | 4.92 | 4.29 | 4.52 | 3.51 | 3.19 | 3.38 | 3.38 | 3.29 | 2.70 | 2.83 | 2.18 | 0.76 | 1.26 | 2.23 | 1.36 | 0.76 | -1.35 |
| FCF Conversion (FCF/Net Income) | 1.21x | 2.25x | 1.09x | 1.64x | 1.02x | 1.18x | -8.27x | 1.25x | 0.95x | 1.38x | 0.97x | 1.45x | 1.17x | 1.60x | 1.76x | 1.43x | 1.52x | -0.40x | 0.65x | -2.53x | 1.47x | 1.01x | 0.96x | 1.00x |
| Interest Paid | 0 | 34M | 64M | 75M | 58M | 0 | 50M | 75M | 127M | 128M | 117M | 128M | 118M | 151M | 181M | 162M | 149M | 163M | 100M | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 135M | 276M | 475M | 425M | 421M | 371M | 257M | 338M | 393M | 323M | 806M | 350M | 259M | 299M | 290M | 299M | 156M | 121M | 359M | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying TEL stock.
TE Connectivity plc (TEL) generated $4.14B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TE Connectivity plc (TEL) generated $3.20B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
TE Connectivity plc (TEL) spent $936.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, TE Connectivity plc (TEL) returned $803.0M to shareholders via cash dividends and spent $1.35B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
China auto cyclicality
Metrics are mathematically derived from official filings.
Cash Conversion Surges on Working Capital
Operating cash flow reached $1.5B in 2026Q3, 2.02 times net income, according to the latest quarterly report, driven by a $323M working capital inflow, suggesting high earnings quality.
The OCF/NI ratio of 2.02 in 2026Q3 is a standout, far exceeding the 1.11 in the prior quarter. This spike appears driven by favorable working capital dynamics, as evidenced by the $323M positive WC change, which may reflect efficient collections or inventory management. Investors should monitor whether this is sustainable or a one-off timing benefit.
Free Cash Flow Momentum Accelerates
Free cash flow jumped to $1.2B in 2026Q3, a 23.3% margin, up from $677M in 2026Q2, as per the cash flow statement, indicating robust cash generation that outpaces net income growth.
The FCF margin of 23.3% in 2026Q3 is the highest in the ten-quarter window, reflecting strong operational performance and disciplined capex. This trajectory suggests the company is converting revenue growth into cash effectively, which may support continued capital returns. However, the sequential volatility in FCF margins (ranging from 10.2% to 25.1%) warrants attention to underlying drivers.
Capital Spending Scales with Growth
Capex rose to $304M in 2026Q3, representing 5.9% of revenue, according to the cash flow data, up from 4.2% in 2024Q2, indicating increased investment to support expansion.
The capex-to-revenue ratio has trended upward from 3.7% in 2024Q3 to 5.9% in 2026Q3, suggesting management is investing in capacity to meet demand in EV and data center markets. This appears to be growth-oriented capex rather than maintenance, given the company's strong FCF generation. The increase aligns with the revenue acceleration, but investors should monitor whether this investment yields expected returns.
Working Capital Swings Drive Cash Flow
Working capital changes swung from -$291M in 2026Q2 to +$323M in 2026Q3, as reported in the cash flow statement, highlighting significant quarter-to-quarter volatility in cash conversion.
The large positive working capital change in 2026Q3 was a primary driver of the elevated OCF, while the negative changes in prior quarters (e.g., -$291M in 2026Q2) suppressed cash flow. This pattern suggests that TEL's cash flow is sensitive to timing of receivables, payables, and inventory. Analysts should look beyond quarterly noise to assess the underlying efficiency of the company's working capital management.
Capital Returns Remain Aggressive
Dividends and buybacks totaled $755M in 2026Q3, exceeding free cash flow of $1.2B, according to the cash flow statement, reflecting a strong commitment to shareholder returns.
In 2026Q3, TEL paid $226M in dividends and repurchased $529M of shares, totaling $755M, which is 63% of FCF. This is consistent with the company's historical pattern of returning excess cash to shareholders. The buyback pace has increased from $301M in 2025Q3 to $529M in 2026Q3, suggesting management's confidence in the business outlook. However, the large acquisition outflow of -$2.3B in 2025Q3 indicates that M&A can occasionally disrupt this pattern.
Cash Flow Obscures Acquisition Impact
The cash flow statement shows a $2.3B acquisition outflow in 2025Q3, as per the reported data, which may mask underlying operational cash generation and distort period-over-period comparisons.
The significant acquisition spending in 2025Q3, likely related to bolt-on deals in sensors or medical, is a non-operating use of cash that can obscure the company's true cash-generating ability. While the cash flow statement separates this, investors should adjust for such items to assess normalized FCF. Additionally, the low debt-to-equity ratio of 0.51% may not fully reflect off-balance-sheet obligations, such as operating leases, which are not detailed in the provided data.