GET DAILY SIGNALSTE Connectivity (TE) Reports Record Q4 Sales Up +12% with Strong Orders and AI Momentum
Key Takeaways
- TE Connectivity reported record fourth-quarter net sales of $5.312 billion, up 12% year over year, with 13% organic growth.
- Adjusted earnings per share (EPS) rose 21% to $3.14, beating the consensus estimate of $3.07, while revenue also topped expectations of about $5.29 billion.
- Orders climbed 29% year over year to $6.1 billion, with a book-to-bill ratio of 1.14 and a record backlog of roughly $8 billion.
- For the full fiscal year 2026, sales reached nearly $20 billion (up 15%), and adjusted EPS grew 24% to $11.52.
- Management guided first-quarter fiscal 2027 sales to $5.35 billion and adjusted EPS of about $3.30, both up roughly 21% from the prior year.
- For more detail on the company's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated TE pages.
- Discover actionable ideas from Trending AI Robots to complement your own research.
Why These Results Matter
TE Connectivity's fiscal fourth quarter wraps up the company's full fiscal year, which ends in late September, and often shapes expectations for the period ahead. As a major provider of connectors and sensors, the company's performance offers insight into demand trends across automotive, industrial, and expanding data-center markets. A significant portion of recent growth has stemmed from digital data networks supporting artificial intelligence infrastructure. With orders hitting new highs and backlog expanding, the report provided a useful signal on the durability of that momentum and its implications for both the company and broader investment cycles in electrification and AI.
The Quarter's Financial Details
For the period ended September 25, 2026, TE Connectivity recorded net sales of $5.312 billion, reflecting a 12% reported increase and 13% organic growth compared with the prior year. Adjusted EPS reached $3.14, marking a 21% year-over-year rise and surpassing the $3.07 consensus estimate, while revenue exceeded the roughly $5.29 billion analyst forecast. On a GAAP basis, diluted EPS stood at $3.10, up 39% from $2.23 a year earlier. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted operating margin widened by 100 basis points to 22.1%, and free cash flow for the quarter came in near $1.2 billion. Orders stood out, climbing 29% year over year to $6.1 billion and producing a book-to-bill ratio of 1.14, which lifted backlog to a record level near $8 billion, up about 30% from the previous year. Over the full fiscal year, sales advanced 15% to $19.885 billion, adjusted EPS increased 24% to $11.52, and free cash flow totaled $3.412 billion.
Initial Market Response
Even with results that exceeded expectations, shares of TE initially declined about 1.8% after the release. Some market participants linked the reaction to already elevated expectations following the stock's prior gains. The measured response underscores how demanding the bar had become, especially given the company's ties to AI-related data-center demand. Overall sentiment stayed constructive, with the earnings call described in positive terms, though investors weighed near-term pressures such as a modestly softer global vehicle production outlook, softness in the North American automotive segment, and some foreign-exchange headwinds against the backdrop of robust orders and backlog.
Guidance and Areas Worth Watching
Management's outlook points to ongoing strength. For the first quarter of fiscal 2027, the company anticipates sales of $5.35 billion, up roughly 15% year over year on both reported and organic bases, alongside adjusted EPS of about $3.30, up 21%. For the full year, it expects another period of double-digit organic growth comparable to the 12% achieved in fiscal 2026.
One area to follow closely is digital data networks, where management projects more than $1 billion in added revenue during fiscal 2027, with most of it linked to AI applications. More than half of that increase is anticipated in the second half of the year, which could lead to uneven quarterly comparisons. Order conversion and backlog trends also merit attention given the book-to-bill ratio above 1.0 and the elevated backlog level.
Additional factors include global vehicle production trends, which management sees declining slightly, and the company's ability to maintain its "growth over market" performance of roughly 4% to 6% in automotive. Currency effects, input-cost pressures, and any tariff-related developments could also affect margins. These points are best considered alongside official filings rather than as guaranteed outcomes.
Refining Research with AI Tools
When evaluating results like these, I often rely on Tickeron’s AI Screener to quickly scan for comparable companies and surface ideas based on fundamentals, technical patterns, and sector trends. It provides a practical way to cross-check performance metrics and identify potential peers or opportunities without manual effort, helping keep research focused and efficient.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
TE in +16.26% Uptrend, growing for three consecutive days on October 29, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where TE advanced for three days, in 214 of 255 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where TE's RSI Oscillator exited the oversold zone, 20 of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 80%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for TE just turned positive on October 28, 2026. Looking at past instances where TE's MACD turned positive, the stock continued to rise in 35 of 46 cases over the following month. The odds of a continued upward trend are 76%.
TE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TE as a result. In 76 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 89%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
The Aroon Indicator for TE entered a downward trend on November 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 8 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 36 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 40 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.444) is normal, around the industry mean (2.765). P/E Ratio (-1.118) is within average values for comparable stocks, (13.467). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.910). Dividend Yield (0.000) settles around the average of (0.091) among similar stocks. P/S Ratio (0.965) is also within normal values, averaging (9.055).
The Tickeron Price Growth Rating for this company is 90 (best 1 - 100 worst), indicating slightly worse than average price growth. TE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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