TE Connectivity (NYSE:TEL) Posts Earnings Results, Beats Estimates By $0.17 EPS

TE Connectivity (NYSE:TEL) issued its quarterly earnings results on Wednesday. The electronics maker reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.55 by $0.17, Zacks reports. TE Connectivity had a net margin of 11.41% and a return on equity of 22.72%. The business had revenue of $4.67 billion for the quarter, compared to the consensus estimate of $4.52 billion. During the same quarter in the prior year, the company earned $1.95 EPS. The firm’s quarterly revenue was up 21.7% on a year-over-year basis. 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 Up 0.2%

Shares of TE Connectivity stock opened at $231.43 on Friday. The company has a market capitalization of $67.93 billion, a P/E ratio of 33.40, a price-to-earnings-growth ratio of 1.80 and a beta of 1.24. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.65 and a quick ratio of 1.03. The business has a 50-day moving average of $231.16 and a two-hundred day moving average of $218.81. TE Connectivity has a 1 year low of $116.30 and a 1 year high of $250.67.

TE Connectivity Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 20th will be paid 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 payout ratio is presently 46.18%.

Insider Activity

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

Hedge Funds Weigh In On TE Connectivity

Large investors have recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. lifted its holdings in shares of TE Connectivity by 189.6% in the second quarter. Geneos Wealth Management Inc. now owns 194 shares of the electronics maker’s stock valued at $33,000 after purchasing an additional 127 shares in the last quarter. Measured Wealth Private Client Group LLC bought a new stake in TE Connectivity in the 3rd quarter valued at approximately $78,000. Larson Financial Group LLC boosted its position in TE Connectivity by 30.6% during the 3rd quarter. Larson Financial Group LLC now owns 555 shares of the electronics maker’s stock worth $122,000 after acquiring an additional 130 shares during the last quarter. MUFG Securities EMEA plc bought a new position in shares of TE Connectivity during the 2nd quarter worth approximately $148,000. Finally, Transamerica Financial Advisors LLC raised its holdings in shares of TE Connectivity by 23,275.0% in the second quarter. Transamerica Financial Advisors LLC now owns 935 shares of the electronics maker’s stock valued at $158,000 after purchasing an additional 931 shares during the last quarter. Institutional investors own 91.43% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on TEL. Weiss Ratings upgraded shares of TE Connectivity from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, January 8th. Barclays reiterated an “overweight” rating on shares of TE Connectivity in a research report on Friday. JPMorgan Chase & Co. raised their price target on TE Connectivity from $204.00 to $260.00 and gave the company a “neutral” rating in a report on Thursday, October 30th. Truist Financial boosted their price target on shares of TE Connectivity from $240.00 to $244.00 and gave the stock a “hold” rating in a research note on Thursday. Finally, Wall Street Zen upgraded shares of TE Connectivity from a “buy” rating to a “strong-buy” rating in a research report on Sunday, January 11th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued 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 price target of $249.00.

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.