TE Connectivity (NYSE:TEL) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

TE Connectivity (NYSE:TEL) issued its quarterly earnings results on Wednesday. The electronics maker reported $3.14 earnings per share (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 analyst estimates of $5.29 billion. The firm’s quarterly revenue was up 11.9% on a year-over-year basis. During the same period in the previous year, the business posted $2.44 earnings per share.

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 Stock Performance

NYSE:TEL traded down $4.46 on Wednesday, hitting $220.89. 1,478,472 shares of the stock were exchanged, compared to its average volume of 2,338,445. The stock has a fifty day moving average of $210.07 and a 200-day moving average of $213.31. TE Connectivity has a fifty-two week low of $190.27 and a fifty-two week high of $252.56.

TE Connectivity Announces Dividend

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

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. cut their price objective on shares of TE Connectivity from $260.00 to $235.00 and set a “neutral” rating on the stock in a report on Thursday, July 16th. Robert W. Baird boosted their target price on shares of TE Connectivity from $225.00 to $250.00 and gave the company an “outperform” rating in a report on Tuesday, October 6th. Wells Fargo & Company boosted their target price on shares of TE Connectivity from $209.00 to $220.00 and gave the company a “cautious” rating in a report on Friday, September 11th. The Goldman Sachs Group upped their price target on shares of TE Connectivity from $284.00 to $288.00 and gave the stock a “buy” rating in a research report on Tuesday, October 6th. Finally, Wall Street Zen raised shares of TE Connectivity from a “hold” rating to a “buy” rating in a research note on Sunday, October 18th. Eleven equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $258.07.

Key Headlines Impacting TE Connectivity

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

About TE Connectivity

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.