TE Connectivity (NYSE:TEL) Announces Earnings Results

TE Connectivity (NYSE:TEL) issued its quarterly earnings results on Wednesday. The electronics maker reported $2.73 EPS for the quarter, topping analysts’ consensus estimates of $2.70 by $0.03, Zacks reports. TE Connectivity had a net margin of 11.41% and a return on equity of 22.72%. The firm had revenue of $4.74 billion for the quarter, compared to analyst estimates of $4.72 billion. During the same quarter in the prior year, the firm earned $2.10 EPS. The business’s revenue for the quarter was up 14.4% compared to the same quarter last year. TE Connectivity updated its Q3 2026 guidance to 2.830-2.830 EPS.

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

• Q2 results beat guidance with $4.7 billion sales (+15% reported, +7% organic), adjusted EPS of $2.73 (+24% y/y), 21.7% adjusted operating margin, record YTD free cash flow of $1.3 billion, and a 10% dividend increase; management guides Q3 sales ~$5.0 billion and EPS ~$2.83.
• Orders hit a record $5.3 billion (book-to-bill 1.12) with Industrial orders +40% and DDN orders ~+60%, and management raised FY26 AI revenue expectations by $150 million (all in H2), taking DDN AI toward ~$2.4 billion.
• TE acquired RAM Photonics to strengthen its passive optical connectivity roadmap and says it will pursue bolt-on M&A opportunistically, positioning the company for a hybrid copper+optical AI market.
• Management flagged rising input-cost inflation (oil-based resins, freight, energy) that could create near-term margin timing noise and reiterated expected restructuring charges of roughly $100 million in FY26.
• Transportation was mixed: segment sales +5% reported (auto +2% reported, -4% organic) but TE expects content growth of ~4–6% for FY26 and reported strong commercial-transportation outperformance (21% reported).

TE Connectivity Trading Down 1.6%

TE Connectivity stock traded down $3.49 during mid-day trading on Thursday, reaching $217.55. 243,012 shares of the company traded hands, compared to its average volume of 2,248,546. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.65 and a quick ratio of 1.07. The firm’s 50 day moving average price is $218.61 and its 200 day moving average price is $226.51. The firm has a market capitalization of $63.84 billion, a price-to-earnings ratio of 31.44, a P/E/G ratio of 1.76 and a beta of 1.26. TE Connectivity has a 52-week low of $137.86 and a 52-week high of $252.56.

TE Connectivity Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be paid a $0.78 dividend. The ex-dividend date of this dividend is Friday, May 22nd. This is a positive change from TE Connectivity’s previous quarterly dividend of $0.71. This represents a $3.12 annualized dividend and a dividend yield of 1.4%. TE Connectivity’s payout ratio is presently 45.02%.

TE Connectivity News Roundup

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

• Positive Sentiment: Q2 earnings beat and solid fundamentals: TE reported $2.73 EPS vs. consensus ~$2.70, revenue ~$4.74B (up ~14–15% YoY) and margin gains — the core beat is driving upside. TE Connectivity Ltd. (NYSE:TEL) Q2 2026 Earnings Call Transcript
• Positive Sentiment: Record orders and segment strength: Orders hit a record ~$5.3B, with broad-based growth in Industrial and Transportation — supports revenue visibility and backlog. TEL Q2 Earnings Beat Estimates on Record Orders & Margin Gains
• Positive Sentiment: Raised/firm guidance for Q3: Management set FYQ3 EPS at $2.83 and ~$5.0B revenue (above consensus), signaling continued double?digit growth in sales and EPS into the next quarter. TE Connectivity delivers results above guidance
• Positive Sentiment: AI and secular demand cited as tailwinds: Company commentary and analyst notes point to AI-related data center and automation demand contributing to a “record” quarter and upward momentum. TE Connectivity Rides AI Wave to Record Quarter
• Neutral Sentiment: Stock at/near all?time highs raises valuation questions: TEL recently hit a 52?week/all?time high, prompting discussion about whether forward multiple and 30x+ P/E leave upside limited absent continued execution. Te Connectivity stock hits all-time high
• Negative Sentiment: Geopolitical risk and potential price actions: Management flagged geopolitical uncertainty (Iran war) that could force price increases or disrupt supply chains — a source of near?term uncertainty for margins and demand. TE Connectivity Weighs Geopolitical Risks And Pricing Power After Earnings Beat
• Negative Sentiment: Mixed market reaction / analyst takeaways: Some outlets note revenue/metric nuances and some traders sold into the news, producing a short-term pullback after the print despite the beat. TE Connectivity sinks after mixed Q2 results
• Negative Sentiment: Media report of flagged revenue miss & price hikes: At least one outlet emphasized concerns that revenue metrics missed certain estimates and that price increases may be needed, adding short?term headline risk. TE misses quarterly revenue estimates, flags price hikes due to Iran war

TE Connectivity declared that its Board of Directors has initiated a share buyback plan on Wednesday, March 11th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the electronics maker to purchase up to 5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. HSBC downgraded shares of TE Connectivity from a “buy” rating to a “hold” rating and set a $234.00 price objective for the company. in a report on Thursday. Wall Street Zen raised shares of TE Connectivity from a “buy” rating to a “strong-buy” rating in a report on Sunday, January 11th. The Goldman Sachs Group set a $286.00 price objective on shares of TE Connectivity in a report on Wednesday. Weiss Ratings raised shares of TE Connectivity from a “hold (c+)” rating to a “buy (b)” rating in a report on Friday, February 6th. Finally, Oppenheimer lifted their price target on shares of TE Connectivity from $270.00 to $285.00 and gave the stock an “outperform” rating in a research note on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, TE Connectivity presently has an average rating of “Moderate Buy” and a consensus target price of $252.13.

Insider Buying and Selling at TE Connectivity

In other news, SVP Reuben M. Shaffer sold 1,425 shares of the company’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $234.23, for a total value of $333,777.75. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP John S. Jenkins sold 6,155 shares of the company’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $222.81, for a total transaction of $1,371,395.55. Following the completion of the sale, the executive vice president directly owned 21,810 shares in the company, valued at $4,859,486.10. This represents a 22.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 42,345 shares of company stock valued at $9,627,260. 0.60% of the stock is currently owned by company insiders.

Institutional Trading of TE Connectivity

Hedge funds and other institutional investors have recently modified their holdings of the business. Geneos Wealth Management Inc. boosted its stake in TE Connectivity by 189.6% in the 2nd quarter. Geneos Wealth Management Inc. now owns 194 shares of the electronics maker’s stock worth $33,000 after purchasing an additional 127 shares in the last quarter. Acumen Wealth Advisors LLC bought a new position in TE Connectivity during the 4th quarter valued at about $49,000. Resources Management Corp CT ADV bought a new position in shares of TE Connectivity in the 4th quarter worth approximately $66,000. Greenline Wealth Management LLC bought a new position in shares of TE Connectivity in the 4th quarter worth approximately $75,000. Finally, Measured Wealth Private Client Group LLC bought a new position in shares of TE Connectivity in the 3rd quarter worth approximately $78,000. 91.43% of the stock is owned by hedge funds and other institutional investors.

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.