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

TE Connectivity (NYSE:TEL) posted its quarterly earnings results on Wednesday. The electronics maker reported $3.14 earnings per share for the quarter, beating analysts’ consensus estimates of $3.07 by $0.07, FiscalAI reports. TE Connectivity had a return on equity of 25.55% and a net margin of 16.36%. The firm had revenue of $5.31 billion for the quarter, compared to the consensus estimate of $5.29 billion. During the same period in the previous year, the business earned $2.44 earnings per share. The company’s revenue for the quarter was up 11.9% compared to the same quarter last year.

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 $9.01 during midday trading on Friday, hitting $213.75. The company had a trading volume of 428,915 shares, compared to its average volume of 2,341,997. TE Connectivity has a fifty-two week low of $190.27 and a fifty-two week high of $252.56. The stock has a market cap of $61.88 billion, a price-to-earnings ratio of 19.31, a P/E/G ratio of 1.29 and a beta of 1.14. The firm has a fifty day simple moving average of $210.78 and a two-hundred day simple moving average of $213.24. The company has a quick ratio of 1.23, a current ratio of 1.73 and a debt-to-equity ratio of 0.38.

TE Connectivity Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 20th will be given a $0.78 dividend. This represents a $3.12 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, November 20th. TE Connectivity’s dividend payout ratio is currently 28.18%.

Analysts Set New Price Targets

A number of brokerages recently issued reports on TEL. Jefferies Financial Group decreased their target price on shares of TE Connectivity from $265.00 to $235.00 and set a “buy” rating on the stock in a research report on Thursday, July 23rd. Wells Fargo & Company raised their target price on TE Connectivity from $209.00 to $220.00 and gave the company a “cautious” rating in a research note on Friday, September 11th. Weiss Ratings reissued a “buy (b)” rating on shares of TE Connectivity in a report on Thursday, October 22nd. UBS Group raised their price target on shares of TE Connectivity from $253.00 to $263.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, HSBC dropped their price objective on shares of TE Connectivity from $234.00 to $216.00 and set a “hold” rating on the stock in a report on Thursday, July 23rd. Eleven investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $258.43.

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.