TE Connectivity plc stock research
FY2026 Q2
TE Connectivity (TEL) Gross Margin — Quarter Ended Mar 27, 2026
Revenue was stable versus the prior quarter and higher versus the same quarter a year ago. Gross profit improved compared with the prior year, while cost of revenue increased slightly from the prior quarter and rose from the prior year, resulting in a gross margin that weakened sequentially but improved compared with the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 27, 2026 · FY2026 Q2
Revenue was stable versus the prior quarter and higher versus the same quarter a year ago. Gross profit improved compared with the prior year, while cost of revenue increased slightly from the prior quarter and rose from the prior year, resulting in a gross margin that weakened sequentially but improved compared with the same quarter one year earlier.
- The gross margin strengthened compared with the year-ago period, reflecting a larger proportion of revenue flowing to gross profit relative to cost of revenue. The sequential weakening was driven by a slightly higher cost of revenue relative to revenue.
- Compared with the immediately preceding quarter, the gross margin was slightly lower as cost of revenue increased while revenue held steady. Versus the same quarter one year earlier, the gross margin was higher, supported by a larger increase in gross profit than in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.8%
Gross profit
$1.7B
Revenue
$4.7B
Cost of revenue
$3.0B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 27, 2025 | $4.5B | $1.6B | $2.9B | 35.3% |
| Sep 26, 2025 | $4.7B | $1.7B | $3.1B | 35.0% |
| Dec 26, 2025 | $4.7B | $1.7B | $2.9B | 37.2% |
| Mar 27, 2026 | $4.7B | $1.7B | $3.0B | 36.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 26, 2025
-0.5 pts
Year-over-year change
Mar 28, 2025
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened compared with the year-ago period, reflecting a larger proportion of revenue flowing to gross profit relative to cost of revenue. The sequential weakening was driven by a slightly higher cost of revenue relative to revenue.
Compared with the immediately preceding quarter, the gross margin was slightly lower as cost of revenue increased while revenue held steady. Versus the same quarter one year earlier, the gross margin was higher, supported by a larger increase in gross profit than in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as a smaller increase in cost of revenue versus revenue supported the year-over-year margin improvement.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| TE Connectivity plc (TEL) | 36.8% |