TE Connectivity Ltd. Q3 2026 Earnings Recap

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.