TE CONNECTIVITY (TEL) Earnings Date & Reports

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.
• For more on TE Connectivity, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
• Looking for data-driven trade ideas? Explore Trending AI Robots to see automated strategies in action.

Earnings Context and Why It Matters

TE Connectivity's fiscal fourth quarter closes out a year in which the connector and sensor maker capitalized on surging demand for AI-related data-center and power connectivity. The company reported record full-year sales, orders, adjusted operating margins, EPS, and free cash flow, positioning it as a key beneficiary of hyperscale infrastructure buildouts. For investors, the report matters less for the quarter itself and more for what it signals about momentum heading into fiscal 2027: a record backlog, a book-to-bill ratio above 1.0, and management's expectation of another year of double-digit organic growth make this release a critical read on whether AI-driven demand can sustain its pace.

Reported Results

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, 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. Transportation Solutions revenue grew 8% to $2.6 billion, led by a 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%.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to help identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. If you are looking to streamline your research and surface new opportunities, consider exploring the AI Screener.

Market Reaction and Investor Sentiment

The earnings release offered investors a clean beat-and-raise narrative: sales and EPS both came in ahead of consensus, and management guided first-quarter fiscal 2027 to roughly 15% growth on both lines. A key nuance 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 dominate investor interpretation, with sentiment shaped by whether the AI-driven order momentum in the industrial segment is viewed as durable.

Forward Outlook and Key Factors to Monitor

TE Connectivity enters fiscal 2027 with record backlog and a book-to-bill ratio of 1.14, which management says supports another year of double-digit organic sales growth in line with fiscal 2026's 12% pace. The most important driver to watch 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 monitor 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 a supporting factor, 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, watch the commercial transportation recovery, particularly in North America, and the trajectory of tariff refunds, which will continue to create noise in reported sales in the near term. These items, combined with the pace of AI infrastructure investment among hyperscale customers, will be central to validating the company's double-digit growth outlook.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations