Strong earnings quality is supported by a 1.11x operating cash flow to net income ratio in 2026Q2, enabling a consistent 14.3% free cash flow margin.
| 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 | 4.42B | 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 % | 97.91% | 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 | 2.91B | 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 | 962M | 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 | 172M | 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 | 396M | 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 | 119M | 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 | -135M | 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 | -107M | -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 | -359M | -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 | 321M | 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 | -3.53B | -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 | -1.03B | -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 | 5.56% | 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 | -2.5B | -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 | 0 | -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 | -2.33B | -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) | -1.44B | 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) | -1.37B | -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 | -838M | -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 | -1.56B | -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 | 1.31B | -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 | -1.44B | -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 | 3.39B | 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 % | 18.31% | 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 % | 21.89% | 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 | 11.49 | 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) | 1.17x | 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 |
Cyclical Automotive Demand Sensitivity
As reported in recent financial filings, TE Connectivity consistently demonstrates strong cash conversion, with operating cash flow exceeding net income in nine of the last ten quarters, including a notable 1.11x ratio in 2026Q2, suggesting that reported earnings are well-supported by actual cash generation.
The persistent gap where operating cash flow outpaces net income indicates that non-cash charges and working capital management are effectively bolstering the company's liquidity profile. Investors should monitor whether this trend continues as the company scales, as it suggests a high quality of earnings that is not overly reliant on accounting accruals.
Based on the provided cash flow data, TEL has maintained a resilient free cash flow trajectory, with margins reaching 14.3% in 2026Q2, reflecting the company's ability to convert its high-margin industrial and transportation revenue into significant discretionary cash flow despite ongoing capital investment requirements.
The stability of these margins suggests that the company's operational efficiency is successfully offsetting the cyclical pressures inherent in the automotive and industrial sectors. This consistent cash generation provides the firm with significant flexibility to fund its dividend and share repurchase programs without relying on external financing.
According to historical cash flow statements, TEL maintains a disciplined capital expenditure profile, with CapEx as a percentage of revenue averaging approximately 5% over the last ten quarters, which appears sufficient to support both maintenance and growth initiatives within its global manufacturing footprint.
The consistent level of investment suggests that management is prioritizing the modernization of its production facilities to maintain its competitive edge in harsh-environment connectivity. Analysts should evaluate whether this level of spending remains adequate to support the transition toward higher-complexity EV and medical component manufacturing.
As evidenced by recent quarterly data, TEL utilizes its robust free cash flow to fund a balanced capital allocation strategy, consistently returning over $600 million per quarter to shareholders through dividends and buybacks while simultaneously pursuing strategic acquisitions to diversify its high-margin product portfolio.
This approach suggests a management team focused on long-term shareholder value, though the reliance on acquisitions to drive growth warrants careful scrutiny regarding integration risks. The ability to sustain these payouts while investing in the business underscores the company's strong underlying cash-generating capacity.
Quick answers to the most common questions about buying TEL stock.
TE Connectivity Ltd. (TEL) generated $4.14B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
TE Connectivity Ltd. (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 Ltd. (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 Ltd. (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.