TE Connectivity Ltd. Earnings Recaps
The stock fell 4.9% after earnings as investors appeared concerned by the cautious Q4 sales and EPS guidance, which suggests a deceleration compared to the strong Q3 performance and prior outlook. Despite solid order growth and margin expansion, the more moderate outlook weighed on sentiment.
Key takeaways
- Q3 sales grew 14% year-over-year to $5.2 billion, driven by strong demand across multiple segments, particularly Industrial Solutions with 22% sales growth.
- Orders reached a record $5.7 billion, up 27% year-over-year and showing broad-based strength, notably over 70% growth year-to-date in the Digital Data Networks business.
- Adjusted EPS increased 22% to $2.94, with margins expanding 90 basis points, reflecting operational execution and pricing discipline.
- Fiscal Q4 guidance calls for approximately 11% sales growth and adjusted EPS of about $3.05, indicating a meaningful slowdown in growth trajectory compared to Q3.
- Management highlighted a recently announced bolt-on acquisition (Astrodyne TDI) to expand Industrial segment offerings, supporting longer-term growth opportunities.
TE Connectivity delivered robust Q2 results with 15% sales growth and 24% EPS increase, supported by strong order momentum and diversified end-market strength, positioning the company for continued expansion into FY 2026.
Key takeaways
- Q2 sales surpassed $4.7 billion, up 15% YoY, with record orders of over $5 billion reflecting broad-based demand.
- Adjusted EPS grew 24% to $2.73, with operating margins expanding 130 basis points to 22%.
- Major order drivers include Industrial (+40%), digital data networks (+60%), and aerospace/defense, underpinning sustainable backlog into 2027.
- The company projects Q3 sales around $5 billion (+10%) and EPS approximately $2.83 (+17%), with continued organic growth in all segments.
- Focus on AI, energy, and automotive markets, complemented by strategic acquisitions, reinforces long-term growth and technological leadership.
TE Connectivity reported robust first-quarter results for fiscal 2026, achieving over 20% sales growth driven by record orders and strong operational execution, positioning the company for sustained future growth.
Key takeaways
- First-quarter sales reached $4.7 billion, a 22% increase year-over-year, with both segments contributing to growth.
- Achieved record adjusted earnings per share of $2.72, reflecting over 30% year-over-year growth, and improved adjusted operating margins to 22%.
- Record orders exceeded $5 billion, growing by more than $1 billion year-over-year, confirming strong demand across all business segments.
- Free cash flow exceeded $600 million, with 100% returned to shareholders while supporting growth investments.
- Optimistic outlook for the second quarter, anticipating $4.7 billion in sales and $2.65 adjusted earnings per share, signaling continued momentum despite seasonal variations.
TE Connectivity reported record sales and earnings for fiscal 2025, highlighting strong operational execution and robust order growth amid a challenging macro environment.
Key takeaways
- Fourth quarter sales reached $4.75 billion, up 17% year-over-year, exceeding guidance; full year sales totaled $17.3 billion, a 9% increase.
- Adjusted EPS for Q4 was $2.44, a 25% increase from the previous year, while full year adjusted EPS grew to $8.76.
- Free cash flow in Q4 hit $1.2 billion, contributing to over $3 billion in cash flow for the year, supporting extensive capital returns and acquisitions.
- Anticipating Q1 fiscal 2026 sales of $4.5 billion, reflective of 17% year-over-year growth, with adjusted EPS expected to rise to $2.53.
- Strong order growth observed across all segments, with a 22% increase year-over-year in total orders, especially in the Industrial and Transportation segments.