GET DAILY SIGNALSTE Connectivity (TEL) Delivers +12% Sales Growth in Q4 with Record Orders and AI Momentum
Key Takeaways
- TE Connectivity reported fiscal fourth-quarter 2026 net sales of $5.31 billion, up 12% year over year on a reported basis and 13% organically.
- Adjusted earnings per share (EPS) came in at $3.14, up 21% year over year and above the consensus estimate by roughly 2%.
- Fourth-quarter orders reached a record $6.1 billion, up 29% year over year, driving a book-to-bill ratio of 1.14 and a record backlog entering fiscal 2027.
- Digital Data Networks (DDN) remained the standout, with sales surging 34% to $949 million on continued AI infrastructure demand.
- Management guided first-quarter fiscal 2027 sales to approximately $5.35 billion and adjusted EPS to about $3.30, both implying roughly 15% growth.
- Full-year fiscal 2026 adjusted EPS rose 24% to $11.52, with free cash flow of $3.4 billion and about $2.8 billion returned to shareholders.
Why This Report Matters for Investors
TE Connectivity's fiscal fourth quarter caps a year where the connector and sensor maker benefited from strong demand for AI-related data-center and power connectivity. The company posted record full-year sales, orders, adjusted operating margins, EPS, and free cash flow, underscoring its role as a key player in hyperscale infrastructure buildouts. For investors, the results matter less for the quarter alone and more for the signals they send about momentum into fiscal 2027. A record backlog, a book-to-bill ratio above 1.0, and management's outlook for another year of double-digit organic growth make this a key update on whether AI-driven demand can hold its pace. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Breaking Down the Quarter's Numbers
For the fiscal fourth quarter ended September 25, 2026, TE Connectivity reported net sales of $5.31 billion, up 12% year over year and 13% organically, which came in ahead of its own guidance. Adjusted EPS of $3.14 rose 21% year over year and beat the consensus estimate by about 2%. Under generally accepted accounting principles (GAAP), diluted EPS from continuing operations was $3.10.
Both segments contributed to the results. Transportation Solutions revenue grew 8% to $2.6 billion, led by an 18% increase in commercial transportation and 7% growth in automotive. Industrial Solutions revenue rose 20% to $2.8 billion, driven by a 34% jump in Digital Data Networks (DDN) to $949 million on AI applications, plus double-digit gains in automation, energy, and aerospace and defense. Adjusted operating margin expanded 100 basis points to 22.1%.
Market Reaction and Investor Sentiment
The earnings release presented a clean beat-and-raise story: sales and EPS both exceeded consensus, and management guided first-quarter fiscal 2027 to roughly 15% growth on both lines. One detail worth noting is that fourth-quarter sales included $87 million of tariff refund reductions, with an additional $50 million expected in the first quarter. While these items modestly reduce reported sales, they are already reflected in guidance. The record order book and management's confirmation of double-digit organic growth expectations for fiscal 2027 are likely to shape investor views, particularly around the durability of AI-driven order momentum in the industrial segment.
What to Watch in the Year Ahead
TE Connectivity enters fiscal 2027 with record backlog and a book-to-bill ratio of 1.14, which management indicates supports another year of double-digit organic sales growth in line with fiscal 2026's 12% pace. The most important driver to monitor is the Digital Data Networks business, where the company expects to add more than $1 billion of incremental revenue, with the majority tied to AI applications and weighted toward the second half of the fiscal year.
Investors should also track margin progression. Management guided to an adjusted effective tax rate of 22% for fiscal 2027, similar to the prior year, and expects restructuring charges to fall below $100 million. Capital allocation remains supportive, with the company having returned about $2.8 billion to shareholders in fiscal 2026 and the pending Astrodyne TDI acquisition expected to close by the end of the fiscal first quarter.
Finally, keep an eye on the commercial transportation recovery, especially in North America, and the path of tariff refunds, which will continue to affect reported sales in the near term. These factors, along with the pace of AI infrastructure investment among hyperscale customers, will be central to validating the company's double-digit growth outlook. From what I see, the AI-related trends remain the key variable to follow closely.
Using Data-Driven Tools in My Research
In my analysis of names like TEL, I often rely on Tickeron’s AI Screener to quickly scan for technical patterns, fundamentals, and industry trends. It helps surface relevant comparables and signals without spending hours on manual work, which keeps the research process efficient while I evaluate growth stories tied to AI infrastructure.
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.
Momentum Indicator for TEL turns positive, indicating new upward trend
TEL saw its Momentum Indicator move above the 0 level on October 27, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 100 similar instances where the indicator turned positive. In 68 of the 100 cases, the stock moved higher in the following days. The odds of a move higher are at 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 34 of 58 cases where TEL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 59%.
The Moving Average Convergence Divergence (MACD) for TEL just turned positive on October 27, 2026. Looking at past instances where TEL's MACD turned positive, the stock continued to rise in 30 of 48 cases over the following month. The odds of a continued upward trend are 62%.
TEL moved above its 50-day moving average on October 26, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TEL crossed bullishly above the 50-day moving average on September 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 40%.
Following a +8.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEL advanced for three days, in 204 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 61%.
The Aroon Indicator entered an Uptrend today. In 122 of 210 cases where TEL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEL 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 53%.
TEL broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 23 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.
The Tickeron SMR rating for this company is 41 (best 1 - 100 worst), indicating strong sales and a profitable 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 Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating steady price growth. TEL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 59 (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 (4.925) is normal, around the industry mean (4.491). P/E Ratio (21.943) is within average values for comparable stocks, (5.137). Projected Growth (PEG Ratio) (0.919) is also within normal values, averaging (1.658). Dividend Yield (0.014) settles around the average of (0.019) among similar stocks. P/S Ratio (3.089) is also within normal values, averaging (4.796).
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average 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.
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an electronic components manufacturer
Industry ElectronicComponents
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