TE Connectivity (NYSE:TEL) Posts Earnings Results

TE Connectivity (NYSE:TEL) issued its quarterly earnings data on Wednesday. The electronics maker reported $3.14 EPS for the quarter, topping analysts’ consensus estimates of $3.07 by $0.07, FiscalAI reports. The business had revenue of $5.31 billion during the quarter, compared to analysts’ expectations of $5.29 billion. During the same period in the previous year, the business earned $2.44 earnings per share. The business’s quarterly revenue was up 11.9% on a year-over-year basis.

Here are the key takeaways from TE Connectivity’s conference call:

• Record fiscal 2026 results: Sales reached nearly $20 billion, up 15% reported and 12% organically, while adjusted EPS rose 24% to $11.52 and adjusted operating margins expanded to 22%.
• Strong outlook supported by orders and backlog: Fourth-quarter orders increased 29% year over year to $6.1 billion, book-to-bill was 1.14, and backlog grew approximately 30% to about $8 billion. Management expects another year of roughly 12% double-digit organic sales growth in fiscal 2027.
• Digital Data Networks is the primary growth engine: DDN orders rose about 70% for fiscal 2026, and management expects more than $1 billion of additional DDN revenue in fiscal 2027, predominantly from AI applications, with growth weighted toward the second half.
• Growth remains broad but carries execution and market risks: Energy, automation, aerospace and defense, commercial transportation, and automotive all contributed, while global vehicle production is expected to decline slightly. Persistent inflation in resins, metals and freight may pressure margins, although productivity and pricing actions are expected to offset much of the impact.

TE Connectivity Trading Down 2.2%

TEL traded down $4.91 during trading on Wednesday, hitting $220.44. 1,579,686 shares of the stock were exchanged, compared to its average volume of 2,339,345. The firm has a 50 day simple moving average of $210.07 and a 200 day simple moving average of $213.31. TE Connectivity has a 1 year low of $190.27 and a 1 year high of $252.56.

TE Connectivity Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 11th. Shareholders of record on Friday, November 20th will be paid a $0.78 dividend. This represents a $3.12 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Friday, November 20th.

TE Connectivity News Summary

Here are the key news stories impacting TE Connectivity this week:

• Positive Sentiment: Fiscal Q4 earnings were $3.14 per share, above estimates of roughly $3.07–$3.08 and up from $2.44 a year earlier. Revenue reached a record $5.31 billion, edging past the $5.29 billion consensus and increasing 11.9% year over year. TE Connectivity Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management highlighted 12% reported sales growth and 13% organic growth, driven by strong performance in both the Industrial and Transportation segments. Full-year sales rose 15%, while EPS increased more than 20%, indicating broad operating momentum. TE Connectivity Delivers 12% Sales Increase and Over 20% EPS Growth
• Positive Sentiment: The company expects double-digit sales growth in fiscal 2027. Continued demand tied to AI infrastructure, data-center investment and energy markets could support the outlook and help offset cyclical weaknesses. TEL Gears Up to Report Q4 Earnings
• Neutral Sentiment: Key operating metrics generally exceeded Wall Street expectations, reinforcing the positive earnings surprise, although investors may have already anticipated a strong quarter based on TE Connectivity’s prior earnings track record. Key Metrics for TE Connectivity Q4 Earnings
• Negative Sentiment: Automotive market headwinds remain a risk, potentially limiting growth in TE Connectivity’s Transportation business and tempering the market’s reaction to the otherwise strong results. TEL Q4 Earnings Preview

Wall Street Analysts Forecast Growth

TEL has been the subject of a number of recent research reports. Jefferies Financial Group dropped their target price on TE Connectivity from $265.00 to $235.00 and set a “buy” rating for the company in a report on Thursday, July 23rd. JPMorgan Chase & Co. lowered their price target on TE Connectivity from $260.00 to $235.00 and set a “neutral” rating for the company in a research report on Thursday, July 16th. Wells Fargo & Company lifted their price objective on shares of TE Connectivity from $209.00 to $220.00 and gave the stock a “cautious” rating in a research note on Friday, September 11th. Sanford C. Bernstein started coverage on shares of TE Connectivity in a report on Wednesday, September 23rd. They issued an “outperform” rating and a $243.00 target price for the company. Finally, Wall Street Zen upgraded shares of TE Connectivity from a “hold” rating to a “buy” rating in a report on Sunday, October 18th. Eleven equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $258.07.

TE Connectivity Company Profile

TE Connectivity Ltd. (NYSE: TEL) is a global technology and manufacturing company that designs and produces connectivity and sensor solutions. Its products help transmit power, data and signals across a range of applications, including vehicles, industrial equipment, communications networks, aerospace systems, medical devices and consumer electronics.

The company’s product portfolio includes connectors, terminals, relays, sensors, antennas, circuit-protection products, wire and cable assemblies, and related application tooling.