TE Connectivity (NYSE:TEL) Announces Quarterly Earnings Results, Beats Expectations By $0.17 EPS

TE Connectivity (NYSE:TEL) posted its quarterly earnings results on Wednesday. The electronics maker reported $2.72 earnings per share for the quarter, beating analysts’ consensus estimates of $2.55 by $0.17, Zacks reports. TE Connectivity had a return on equity of 21.18% and a net margin of 10.67%.The firm had revenue of $4.67 billion during the quarter, compared to the consensus estimate of $4.52 billion. During the same period last year, the company earned $1.95 earnings per share. The business’s revenue was up 21.7% compared to the same quarter last year. TE Connectivity updated its Q2 2026 guidance to 2.650-2.650 EPS.

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

• TE delivered a strong start to FY26 with Q1 sales of $4.7 billion (up 22% reported, 15% organic) and record adjusted EPS of $2.72, exceeding guidance.
• Orders hit a record $5.1 billion (book-to-bill 1.1), with double-digit organic order growth across regions and major strength in Industrial/Digital Data Networks.
• Management raised its AI revenue outlook by $200 million for FY26, expects multi-hundred‑million growth across hyperscalers, and is increasing CapEx to support ramps (now targeting ~6% of sales).
• Q2 guide shows sales roughly flat at $4.7 billion and EPS ≈ $2.65; sequential industrial growth is expected to be partially offset by Transportation auto seasonality (a ~3 million unit global production decline into Q2).
• Margins and cash remain strong—adjusted operating margin expanded ~180 bps to ~22%, incremental flow‑through targeted at 30%+, free cash flow >$600 million in Q1 with management returning ~100% of FCF and expecting at least 100% FCF conversion for FY26.

TE Connectivity Stock Down 0.9%

TEL stock opened at $231.11 on Thursday. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.56 and a quick ratio of 1.03. The business’s fifty day moving average price is $231.25 and its two-hundred day moving average price is $218.72. TE Connectivity has a fifty-two week low of $116.30 and a fifty-two week high of $250.67. The stock has a market capitalization of $67.84 billion, a price-to-earnings ratio of 37.58, a PEG ratio of 1.83 and a beta of 1.24.

TE Connectivity Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 20th will be issued a $0.71 dividend. This represents a $2.84 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, February 20th. TE Connectivity’s dividend payout ratio is currently 46.18%.

Insider Transactions at TE Connectivity

In other TE Connectivity news, CFO Heath A. Mitts sold 82,300 shares of the stock in a transaction that occurred on Monday, November 3rd. The shares were sold at an average price of $247.15, for a total transaction of $20,340,445.00. Following the transaction, the chief financial officer owned 45,503 shares in the company, valued at $11,246,066.45. This represents a 64.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP John S. Jenkins sold 25,021 shares of the firm’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $247.73, for a total transaction of $6,198,452.33. Following the transaction, the executive vice president directly owned 20,903 shares in the company, valued at $5,178,300.19. This represents a 54.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.60% of the company’s stock.

Institutional Trading of TE Connectivity

Several large investors have recently modified their holdings of TEL. Geneos Wealth Management Inc. increased its holdings in TE Connectivity by 189.6% in the 2nd quarter. Geneos Wealth Management Inc. now owns 194 shares of the electronics maker’s stock valued at $33,000 after buying an additional 127 shares during the period. Measured Wealth Private Client Group LLC bought a new stake in TE Connectivity during the third quarter worth $78,000. Larson Financial Group LLC increased its stake in shares of TE Connectivity by 30.6% in the 3rd quarter. Larson Financial Group LLC now owns 555 shares of the electronics maker’s stock valued at $122,000 after purchasing an additional 130 shares during the last quarter. MUFG Securities EMEA plc acquired a new position in shares of TE Connectivity during the 2nd quarter worth $148,000. Finally, Transamerica Financial Advisors LLC lifted its position in shares of TE Connectivity by 23,275.0% during the 2nd quarter. Transamerica Financial Advisors LLC now owns 935 shares of the electronics maker’s stock worth $158,000 after buying an additional 931 shares during the last quarter. 91.43% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Zacks Research downgraded shares of TE Connectivity from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. TD Cowen reissued a “buy” rating on shares of TE Connectivity in a research report on Monday, November 17th. Weiss Ratings raised shares of TE Connectivity from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, January 8th. Citigroup raised their target price on shares of TE Connectivity from $250.00 to $290.00 and gave the company a “buy” rating in a research note on Thursday, October 30th. Finally, Wells Fargo & Company set a $249.00 price objective on TE Connectivity in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, TE Connectivity presently has an average rating of “Moderate Buy” and an average target price of $248.69.

Key Stories Impacting TE Connectivity

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

• Positive Sentiment: Q1 beat — TEL posted $2.72 EPS vs. $2.54 expected and revenue of ~$4.67B (up ~22% Y/Y), showing broad strength across Industrial and Transportation segments. Read More.
• Positive Sentiment: Upbeat Q2 guidance — management set Q2 EPS at $2.65 (above consensus ~$2.59) and reiterated roughly $4.7B revenue guidance, signaling confidence in demand. Read More.
• Positive Sentiment: AI demand and orders — the earnings call highlighted strong, AI-driven demand for connectors and tools and referenced record orders/robust backlog that support near-term growth. Read More.
• Positive Sentiment: Capital returns and income appeal — analysts noted buybacks/dividend support that can boost shareholder returns and attract income-oriented investors. Read More.
• Neutral Sentiment: Healthy margins and profitability — TE reported a net margin ~10.7% and ROE ~21%, reinforcing the quality of results but already reflected to some degree in the stock’s valuation. Read More.
• Negative Sentiment: Shares dipped on mixed market reaction — despite beats and guidance, investors trimmed positions (profit-taking) and questioned near-term upside versus the stock’s elevated valuation, leading to selling pressure. Read More.
• Negative Sentiment: Guidance nuance — management issued a single-point EPS target for Q2 (2.65), which some investors may view as conservative or insufficiently flexible versus expectations, tempering excitement. Read More.

TE Connectivity Company Profile

TE Connectivity (NYSE: TEL) is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.

The company’s products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.