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Wall Street analysts expect TE Connectivity (TEL - Free Report) to post quarterly earnings of $3.08 per share in its upcoming report, which indicates a year-over-year increase of 26.2%. Revenues are expected to be $5.26 billion, up 10.8% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

In light of this perspective, let's dive into the average estimates of certain TE Connectivity metrics that are commonly tracked and forecasted by Wall Street analysts.

The average prediction of analysts places 'Net Sales- Industrial Solutions' at $2.76 billion. The estimate points to a change of +18% from the year-ago quarter.

Analysts forecast 'Net Sales- Transportation Solutions' to reach $2.51 billion. The estimate points to a change of +3.8% from the year-ago quarter.

It is projected by analysts that the 'Adjusted Operating Income- Transportation Solutions' will reach $528.57 million. The estimate compares to the year-ago value of $468.00 million.

Analysts' assessment points toward 'Adjusted Operating Income- Industrial Solutions' reaching $632.01 million. Compared to the current estimate, the company reported $475.00 million in the same quarter of the previous year.

View all Key Company Metrics for TE Connectivity here>>>

Shares of TE Connectivity have demonstrated returns of -2.5% over the past month compared to the Zacks S&P 500 composite's -1.2% change. With a Zacks Rank #2 (Buy), TEL is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Wall Street expects a year-over-year increase in earnings on higher revenues when TE Connectivity (TEL - Free Report) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis electronics maker is expected to post quarterly earnings of $3.08 per share in its upcoming report, which represents a year-over-year change of +26.2%.

Revenues are expected to be $5.26 billion, up 10.8% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for TE Connectivity?For TE Connectivity, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.16%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that TE Connectivity will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that TE Connectivity would post earnings of $2.85 per share when it actually produced earnings of $2.94, delivering a surprise of +3.16%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

TE Connectivity appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

TE Connectivity (NYSE:TEL – Get Free Report) and Insight Enterprises (NASDAQ:NSIT – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership 91.4% of TE Connectivity shares are held by institutional investors. 0.6% of TE Connectivity shares are held by company insiders. Comparatively, 1.2% of Insight Enterprises shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations This is a breakdown of current recommendations and price targets for TE Connectivity and Insight Enterprises, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score TE Connectivity 1 4 11 0 2.62 Insight Enterprises 0 4 3 0 2.43 TE Connectivity presently has a consensus price target of $258.07, suggesting a potential upside of 20.91%. Insight Enterprises has a consensus price target of $147.50, suggesting a potential downside of 10.23%. Given TE Connectivity’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TE Connectivity is more favorable than Insight Enterprises. Risk and Volatility TE Connectivity has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Insight Enterprises has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Valuation and Earnings This table compares TE Connectivity and Insight Enterprises”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio TE Connectivity $19.32 billion 3.20 $1.84 billion $10.20 20.93 Insight Enterprises $8.25 billion 0.58 $157.35 million $6.83 24.06 TE Connectivity has higher revenue and earnings than Insight Enterprises. TE Connectivity is trading at a lower price-to-earnings ratio than Insight Enterprises, indicating that it is currently the more affordable of the two stocks.

Profitability This table compares TE Connectivity and Insight Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets TE Connectivity 15.61% 24.59% 12.50% Insight Enterprises 2.45% 22.70% 3.71% Summary TE Connectivity beats Insight Enterprises on 12 of the 14 factors compared between the two stocks.

(Get Free Report)

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and interventional medical components, relays, heat shrink tubing, and wires and cables for industrial equipment, aerospace, defense, marine, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. The company sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was founded in 1941 and is based in Schaffhausen, Switzerland.

About Insight Enterprises (Get Free Report)

Insight Enterprises, Inc., together with its subsidiaries, provides information technology, hardware, software, and services in the United States and internationally. The company offers modern platforms/infrastructure that manages and supports cloud and data platforms, modern networks, and edge technologies; cybersecurity solutions automates and connects modern platform securely; data and artificial intelligence modernizes data platforms and architectures, and build data analytics and AI solutions; modern workplace and apps; and intelligent edge solutions that gathers and utilizes data for real-time decision making. It also provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services contracts; and cloud/software-as-a-service subscription products. In addition, the company designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. It serves construction, esports, financial services, health care and life sciences, manufacturing, retail and restaurant, service providers, small to medium business, and travel and tourism industries. Insight Enterprises, Inc., was founded in 1988 and is headquartered in Chandler, Arizona.

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GALWAY, Ireland, Oct. 7, 2026 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) will report financial results for the fourth quarter and full year of fiscal 2026 before trading begins on October 28, 2026. The company will hold a conference call for investors at 8:30 a.m.

The broader equity markets witnessed an erratic pattern over the past few trading days, rising sharply with plummeting oil prices early this week and declining the following day on surging Treasury yields. With Iran offering to open the Strait of Hormuz in about a week amid political dialogues with the U.S. delegation, crude oil prices went downhill, driving stocks higher. However, the uptrend was punctured by soaring bond yields as investors feared that more interest rate hikes from the Federal Reserve were just around the corner.

  Stable economic growth and solid labor market conditions have led to broad-based concerns that the Fed might resort to further rate hikes to tame inflationary pressures. Consequently, market uncertainty remained elevated and volatility became the order of the day. As investors employ a wait-and-see approach in a classic example of “backing and filling” in the market, they can benefit from “cash cow” stocks that garner higher returns. However, identifying cash-rich stocks alone does not make for a solid investment proposition unless it is backed by attractive efficiency ratios, such as return on equity (ROE). A high ROE ensures that the company is reinvesting cash at a high rate of return. TE Connectivity plc (TEL - Free Report) , Arista Networks, Inc. (ANET - Free Report) , Ross Stores, Inc. (ROST - Free Report) , Gartner, Inc. (IT - Free Report) and PACCAR Inc. (PCAR - Free Report) are some of the stocks with high ROE to profit from.

In order to shortlist stocks that are cash-rich with high ROE, we have added Cash Flow greater than $1 billion and ROE greater than X-Industry as our primary screening parameters. In addition, we have taken a few other criteria into consideration to arrive at a winning strategy.

Price/Cash Flow less than X-Industry: This metric measures how much investors pay for $1 of free cash flow. A lower ratio indicates that investors need to pay less for a better cash flow-generating stock.

Return on Assets (ROA) greater than X-Industry: This metric determines how much profit a company earns for every dollar of assets, which includes cash, accounts receivable, property, equipment, inventory and furniture. The higher the ROA, the better it is for the company.

5-Year EPS Historical Growth greater than X-Industry: This criterion indicates that continued earnings momentum has translated into solid cash strength.

Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Here are five of the 13 stocks that qualified the screening:

TE Connectivity: Based in Galway, Ireland, TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy and medical. With operations in more than 130 countries, TE Connectivity focuses on emerging technologies such as 5G, electric vehicles, industrial automation and smart cities to position itself at the forefront of connectivity advancements.

The company has a long-term earnings growth expectation of 13%. It delivered a trailing four-quarter earnings surprise of 4.5%, on average. TE Connectivity carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista: Santa Clara, CA-based Arista is engaged in providing cloud networking solutions for data centers and cloud computing environments. The company holds a leadership position in 100-gigabit Ethernet switching for the high-speed datacenter segment. It is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in the data-driven cloud networking business with proactive platforms and predictive operations.

The company has a long-term earnings growth expectation of 22.7%. It delivered a trailing four-quarter earnings surprise of 8.9%, on average. Arista sports a Zacks Rank #1.

  Ross: Based in Dublin, CA, Ross is an off-price retailer of apparel and home accessories, offering in-season, branded and designer apparel, footwear, accessories and other home-related merchandise. Operating primarily in the United States, it targets middle-income households, keeping prices generally 20% to 60% below the regular prices of most department and specialty stores.

The company has a long-term earnings growth expectation of 14.6% and delivered a trailing four-quarter earnings surprise of 11.2%, on average. Ross carries a Zacks Rank #2 at present.

  Gartner: Headquartered in Stamford, CT, Gartner is reportedly the world's leading information technology research and advisory firm. The company offers rich domain expertise and technology-related insight necessary for an informed decision-making process.

Gartner has a long-term earnings growth expectation of 18.5% and delivered a trailing four-quarter earnings surprise of 13.5%, on average. Gartner sports a Zacks Rank #1. It has a VGM Score of B.

 PACCAR: Headquartered in Bellevue, WA, PACCAR is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. It also designs and manufactures diesel engines and other powertrain components for use in its products and sale to third-party manufacturers of trucks and buses. In addition to supplying aftermarket parts, PACCAR offers finance and leasing services.

The company has a long-term earnings growth expectation of 14.8% and delivered a trailing four-quarter earnings surprise of 2.3%, on average. PACCAR carries a Zacks Rank #2 at present. It has a VGM Score of B.

Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with TE Connectivity (TEL - Free Report) and Weg SA (WEGZY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

TE Connectivity has a Zacks Rank of #2 (Buy), while Weg SA has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TEL likely has seen a stronger improvement to its earnings outlook than WEGZY has recently. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

TEL currently has a forward P/E ratio of 17.54, while WEGZY has a forward P/E of 31.98. We also note that TEL has a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WEGZY currently has a PEG ratio of 2.54.

Another notable valuation metric for TEL is its P/B ratio of 4.42. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WEGZY has a P/B of 10.58.

Based on these metrics and many more, TEL holds a Value grade of B, while WEGZY has a Value grade of F.

TEL sticks out from WEGZY in both our Zacks Rank and Style Scores models, so value investors will likely feel that TEL is the better option right now.

Bank of America Corp DE trimmed its position in shares of TE Connectivity Ltd. (NYSE:TEL – Free Report) by 6.0% during the 2nd quarter, according to its most recent 13F filing with the SEC. The fund owned 5,593,891 shares of the electronics maker’s stock after selling 359,855 shares during the quarter. Bank of America Corp DE owned about 1.93% of TE Connectivity worth $1,127,784,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently made changes to their positions in TEL. Hsbc Holdings PLC grew its holdings in shares of TE Connectivity by 11.1% in the fourth quarter. Hsbc Holdings PLC now owns 230,034 shares of the electronics maker’s stock worth $52,506,000 after acquiring an additional 23,074 shares during the period. Man Group plc lifted its holdings in TE Connectivity by 259.9% in the fourth quarter. Man Group plc now owns 1,252,434 shares of the electronics maker’s stock valued at $284,941,000 after acquiring an additional 904,468 shares during the period. Swedbank AB boosted its position in TE Connectivity by 8.1% in the fourth quarter. Swedbank AB now owns 84,831 shares of the electronics maker’s stock worth $19,300,000 after purchasing an additional 6,385 shares during the last quarter. Jefferies Financial Group Inc. grew its stake in shares of TE Connectivity by 575.9% during the 4th quarter. Jefferies Financial Group Inc. now owns 36,496 shares of the electronics maker’s stock valued at $8,303,000 after purchasing an additional 31,096 shares during the period. Finally, Northwestern Mutual Wealth Management Co. increased its holdings in TE Connectivity by 2,766.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 277,270 shares of the electronics maker’s stock valued at $63,082,000 after buying an additional 267,598 shares during the last quarter. Institutional investors own 91.43% of the company’s stock.

TE Connectivity Price Performance Shares of TE Connectivity stock opened at $203.21 on Tuesday. The stock has a 50 day moving average of $206.43 and a 200 day moving average of $209.44. TE Connectivity Ltd. has a 12 month low of $190.27 and a 12 month high of $252.56. The firm has a market cap of $58.83 billion, a PE ratio of 19.92, a PEG ratio of 1.42 and a beta of 1.16. The company has a current ratio of 1.88, a quick ratio of 1.23 and a debt-to-equity ratio of 0.42.

TE Connectivity (NYSE:TEL – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The electronics maker reported $2.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.85 by $0.09. The business had revenue of $5.16 billion for the quarter, compared to the consensus estimate of $5.01 billion. TE Connectivity had a return on equity of 24.59% and a net margin of 15.61%.The company’s revenue was up 13.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.27 EPS. TE Connectivity has set its Q4 2026 guidance at 3.050-3.050 EPS. On average, research analysts expect that TE Connectivity Ltd. will post 11.48 EPS for the current fiscal year. Wall Street Analysts Forecast Growth Several analysts have issued reports on TEL shares. UBS Group reissued a “buy” rating and set a $241.00 price target on shares of TE Connectivity in a report on Thursday, July 23rd. Zacks Research downgraded TE Connectivity from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 8th. Barclays increased their target price on shares of TE Connectivity from $297.00 to $300.00 and gave the stock an “overweight” rating in a report on Monday, June 15th. Wells Fargo & Company raised their target price on shares of TE Connectivity from $209.00 to $220.00 and gave the stock a “cautious” rating in a research note on Friday. Finally, Citigroup lowered their price target on shares of TE Connectivity from $250.00 to $230.00 and set a “buy” rating on the stock in a report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, TE Connectivity currently has an average rating of “Moderate Buy” and a consensus target price of $252.00.

Check Out Our Latest Research Report on TE Connectivity

TE Connectivity Company Profile (Free Report)

TE Connectivity Ltd. (NYSE: TEL) designs and manufactures connectivity and sensor products used in transportation, industrial equipment, communications systems, data centers, aerospace and defense, medical technology, energy infrastructure, and consumer applications. Its products help transmit power, data and signals between components and systems.

The company’s product portfolio includes connectors, terminals, relays, sensors, antennas, cable assemblies, circuit-protection devices, heat-shrink products and other components for electronic and electrical systems.

See Also Five stocks we like better than TE Connectivity Analysts Are Punting Their Calls Into the Next Quarter After Adobe’s Mixed Earnings Institutional Money Is Pouring Into These 2 Altcoin ETFs The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares 3 Dividend Kings to Buy While They’re Still Beaten Down Want to see what other hedge funds are holding TEL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for TE Connectivity Ltd. (NYSE:TEL – Free Report).

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TE Connectivity plc (TEL) Presents at Jefferies Global Industrials Conference 2026 Transcript

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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

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Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: TE Connectivity (TEL - Free Report) TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy, and medical. With operations in over 130 countries, the company provides innovative products that enable connectivity across diverse sectors.

TEL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.85; value investors should take notice.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.17 to $11.48 per share. TEL boasts an average earnings surprise of +4.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, TEL should be on investors' short list.

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Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

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Stock to Watch: TE Connectivity (TEL - Free Report) TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy, and medical. With operations in over 130 countries, the company provides innovative products that enable connectivity across diverse sectors.

TEL is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. TEL has a Growth Style Score of B, forecasting year-over-year earnings growth of 31.1% for the current fiscal year.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.17 to $11.48 per share. TEL boasts an average earnings surprise of +4.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TEL should be on investors' short list.

Investors might want to bet on TE Connectivity (TEL - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for TE Connectivity basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for TE Connectivity imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for TE ConnectivityFor the fiscal year ending September 2026, this electronics maker is expected to earn $11.48 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for TE Connectivity. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.6%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of TE Connectivity to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

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Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

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How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: TE Connectivity (TEL - Free Report) TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy, and medical. With operations in over 130 countries, the company provides innovative products that enable connectivity across diverse sectors.

TEL is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. TEL has a Growth Style Score of B, forecasting year-over-year earnings growth of 31.1% for the current fiscal year.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $11.48 per share. TEL boasts an average earnings surprise of +4.5%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TEL should be on investors' short list.

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends TE Connectivity (TEL - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this electronics maker a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for TE Connectivity is 8.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 30.7% this year, crushing the industry average, which calls for EPS growth of 22.3%.

Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, TE Connectivity has an S/TA ratio of 0.75, which means that the company gets $0.75 in sales for each dollar in assets. Comparing this to the industry average of 0.7, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And TE Connectivity looks attractive from a sales growth perspective as well. The company's sales are expected to grow 14.4% this year versus the industry average of 2.7%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for TE Connectivity have been revising upward. The Zacks Consensus Estimate for the current year has surged 1.3% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made TE Connectivity a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions TE Connectivity well for outperformance, so growth investors may want to bet on it.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

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Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

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Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: TE Connectivity (TEL - Free Report) TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy, and medical. With operations in over 130 countries, the company provides innovative products that enable connectivity across diverse sectors.

TEL is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Computer and Technology stock. TEL has a Momentum Style Score of A, and shares are up 0.9% over the past four weeks.

One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $11.31 per share. TEL boasts an average earnings surprise of +4.5%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TEL should be on investors' short list.

Posted by Defense World Staff on Jul 23rd, 2026

ABN Amro Investment Solutions bought a new position in TE Connectivity Ltd. (NYSE:TEL – Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The fund bought 28,404 shares of the electronics maker’s stock, valued at approximately $5,937,000.

Other hedge funds have also recently made changes to their positions in the company. Brighton Jones LLC bought a new stake in shares of TE Connectivity in the 4th quarter valued at approximately $820,000. Sivia Capital Partners LLC increased its position in shares of TE Connectivity by 66.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,517 shares of the electronics maker’s stock valued at $425,000 after purchasing an additional 1,007 shares during the last quarter. Walleye Capital LLC raised its holdings in TE Connectivity by 14.6% during the 2nd quarter. Walleye Capital LLC now owns 2,688 shares of the electronics maker’s stock valued at $453,000 after buying an additional 343 shares during the period. Squarepoint Ops LLC raised its holdings in TE Connectivity by 1,214.0% during the 2nd quarter. Squarepoint Ops LLC now owns 105,267 shares of the electronics maker’s stock valued at $17,755,000 after buying an additional 97,256 shares during the period. Finally, Ieq Capital LLC lifted its position in TE Connectivity by 75.0% in the second quarter. Ieq Capital LLC now owns 23,284 shares of the electronics maker’s stock worth $3,927,000 after buying an additional 9,980 shares during the last quarter. 91.43% of the stock is currently owned by hedge funds and other institutional investors.

TE Connectivity Price Performance Shares of TEL stock opened at $200.16 on Thursday. The company has a market capitalization of $58.43 billion, a P/E ratio of 20.45, a P/E/G ratio of 1.47 and a beta of 1.17. The company’s 50-day simple moving average is $205.57 and its two-hundred day simple moving average is $215.33. TE Connectivity Ltd. has a one year low of $187.00 and a one year high of $252.56. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.89 and a quick ratio of 1.20.

TE Connectivity (NYSE:TEL – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The electronics maker reported $2.94 earnings per share for the quarter, beating the consensus estimate of $2.85 by $0.09. The firm had revenue of $5.16 billion during the quarter, compared to the consensus estimate of $5.01 billion. TE Connectivity had a net margin of 15.54% and a return on equity of 23.56%. The company’s revenue was up 13.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.27 earnings per share. TE Connectivity has set its Q4 2026 guidance at 3.050-3.050 EPS. As a group, equities analysts anticipate that TE Connectivity Ltd. will post 11.31 EPS for the current year.

TE Connectivity Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 21st will be issued a $0.78 dividend. This represents a $3.12 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, August 21st. TE Connectivity’s dividend payout ratio is currently 31.87%.

Insider Activity In other news, insider Shadrak W. Kroeger sold 9,400 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $215.00, for a total transaction of $2,021,000.00. Following the transaction, the insider owned 25,976 shares of the company’s stock, valued at approximately $5,584,840. This represents a 26.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.60% of the company’s stock.

Trending Headlines about TE Connectivity Here are the key news stories impacting TE Connectivity this week:

Positive Sentiment: TE Connectivity posted Q3 EPS of $2.94, topping estimates, with revenue up 13.8% year over year and record sales of $5.16 billion, showing solid demand across its businesses. PRNewswire earnings release Positive Sentiment: The company issued fourth-quarter guidance above consensus, calling for EPS of $3.05 and revenue of about $5.3 billion, signaling continued momentum into the next quarter. Reuters outlook article Positive Sentiment: Management pointed to strong AI-related and industrial demand as key drivers, suggesting the company is benefiting from secular growth trends rather than a one-quarter rebound. TipRanks earnings call summary Neutral Sentiment: Investors also noted unusual call-option activity ahead of the results, which may reflect rising speculation around the earnings release rather than a fundamental change. U.S. News stock page Analysts Set New Price Targets A number of research firms have weighed in on TEL. Truist Financial cut their price objective on shares of TE Connectivity from $244.00 to $240.00 and set a “hold” rating on the stock in a research report on Thursday, April 23rd. Wells Fargo & Company raised their target price on shares of TE Connectivity from $226.00 to $230.00 and gave the stock an “equal weight” rating in a report on Thursday, June 25th. HSBC cut shares of TE Connectivity from a “buy” rating to a “hold” rating and set a $234.00 price target for the company. in a research note on Thursday, April 23rd. Jefferies Financial Group upgraded shares of TE Connectivity from a “hold” rating to a “strong-buy” rating in a report on Wednesday, April 15th. Finally, Barclays increased their price objective on shares of TE Connectivity from $297.00 to $300.00 and gave the stock an “overweight” rating in a research report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $255.31.

Check Out Our Latest Stock Analysis on TE Connectivity

About TE Connectivity (Free Report)

TE Connectivity (NYSE: TEL) is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.

The company’s products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.

Recommended Stories Five stocks we like better than TE Connectivity Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding TEL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for TE Connectivity Ltd. (NYSE:TEL – Free Report).

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3 Stocks Quietly Leveraging AI While Everyone Chases NVIDIATE Connectivity NYSE: TEL reported record adjusted earnings per share and record orders in its fiscal 2026 third quarter, with executives pointing to accelerating demand tied to artificial intelligence infrastructure, power investment, electrification and automation.

Chief Executive Officer Terrence Curtin said the company’s “strategic positioning around the accelerating data and power trend continues to drive broad-based outperformance,” adding that TE is participating in what he described as one of the largest global technology and infrastructure investment cycles. The company now expects full-year fiscal 2026 sales to grow approximately 15%, representing more than $2.5 billion of incremental revenue, while adjusted earnings per share are expected to rise 23% year over year.

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Insiders Sold Big at These 3 Stocks—Should You Worry?For the third quarter, TE Connectivity reported sales of $5.2 billion, up 14% on a reported basis and 12% organically from the prior year. Orders rose 27% year over year to a record $5.7 billion and increased 7% sequentially. The company said it ran a book-to-bill ratio of 1.1 both in the quarter and year to date.

Adjusted earnings per share increased 22% year over year to a record $2.94. Adjusted operating margin expanded 90 basis points to 21.9%. GAAP operating income was $981 million, while GAAP EPS was $2.55, including restructuring, acquisition and other charges as well as amortization expense.

AI and Power Demand Drive Industrial Segment Growth This mid-cap tech stock just jumped 30%...and is still cheapTE’s Industrial Solutions segment posted third-quarter sales growth of 22% on a reported basis and 21% organically. Curtin said the segment benefited from growth across the portfolio, led by more than 30% organic growth in both the Digital Data Networks, or DDN, business and the energy business.

In DDN, sales increased 34% year over year and were up $100 million sequentially. Curtin said the company continues to see demand tied to AI architectures, including increasing deployment of CPUs and networking that expands the market for high-speed copper connectivity. He also said TE sees longer-term opportunities in optical connectivity following its RAM Photonics acquisition, though meaningful revenue from fiber-attached unit technology is not expected until 2028 and beyond.

Responding to analyst questions about copper versus optical connectivity in AI infrastructure, Curtin said TE views the opportunity as “copper and optical,” rather than one replacing the other. He said copper is expected to remain important within racks and scale-up architectures, while optical is already prevalent in scale-out applications. He also noted that rising power requirements in AI systems are creating additional opportunities for TE’s power connectivity products.

Energy sales grew 33% organically in the quarter. Curtin said the business is benefiting from utility grid hardening, aging infrastructure replacement and data center build-outs. He estimated that about one-third of the energy market growth where TE is positioned is driven by data center build-outs, and said the company views the energy business as more of a “mid-teens” grower for the year and into next year.

Automation and Connected Living sales rose 16%, or 14% organically, with growth across every region. Aerospace and defense sales increased 12%, supported by strength in commercial aerospace and defense markets. Curtin said defense is seeing a stronger inflection, particularly in Europe and the U.S., with backlog building as program velocity increases.

Transportation Segment Outperforms Vehicle Production TE’s Transportation Solutions segment grew 7% on a reported basis and 5% organically. Automotive sales increased 5% reported and 3% organically, despite what management described as a decline in vehicle production. Curtin said the company continues to benefit from higher content per vehicle, including data connectivity, electrification of the powertrain and software-defined vehicle architectures.

Curtin said TE expects automotive content outperformance in the range of four to six percentage points for fiscal 2026 and over the longer term. In China, he said TE’s business grew 6% against a 2% decline in production, reflecting eight points of outperformance. He added that exports by Chinese original equipment manufacturers are helping offset a weaker domestic market.

Commercial Transportation sales increased 20% on a reported basis and 18% organically. Curtin cited improving cycle trends across regions and market verticals, new program wins and further electrification of trucks in Asia. Transportation segment adjusted operating margin was 21%.

Record Orders Build Visibility Into Fiscal 2027 Management emphasized that order strength was broad-based. Industrial segment orders increased 36% from the prior year, while Transportation orders rose 19%. Curtin said every business across both segments delivered double-digit order growth.

Within Industrial, year-to-date DDN orders were up more than 70% versus last year, while energy, aerospace and defense, and Automation and Connected Living each posted 20% year-to-date order growth. Curtin said roughly half of the year-over-year Industrial order increase came from DDN, with AI program ramps contributing to backlog that is expected to support fiscal 2027 growth.

Chief Financial Officer Heath Mitts said the company will exit fiscal 2026 with a strong backlog position in both Industrial and Transportation. He said order momentum and backlog growth give management confidence that TE’s performance will continue into next year.

Cash Flow, Capital Returns and Astrodyne TDI Acquisition TE generated $1.2 billion of cash from operations and $883 million of free cash flow in the quarter. Year to date, free cash flow was approximately $2.2 billion. Mitts said TE has returned about $2 billion to shareholders through dividends and share repurchases so far this year and continues to expect free cash flow conversion of roughly 100% for fiscal 2026.

The company also announced an agreement to acquire Astrodyne TDI, a bolt-on acquisition expected to add more than $250 million in annual sales. TE said the purchase price is approximately $1.4 billion and the transaction is expected to close by the end of the calendar year, subject to customary closing conditions.

Curtin said Astrodyne TDI expands TE’s portfolio of power filters and custom power supplies for mission-critical applications, including semiconductor equipment, defense and medical markets. Mitts said the acquisition will be funded with cash and is expected to be accretive to TE’s growth rates and margins at both the company level and within the Industrial segment.

Fourth-Quarter Outlook For the fiscal fourth quarter, TE expects sales of approximately $5.25 billion, up 11% from the prior year, and adjusted EPS of about $3.05. Mitts said the adjusted effective tax rate is expected to be between 22% and 23% in the fourth quarter, while cash taxes are expected to remain well below the adjusted effective rate.

Management said the company continues to manage inflationary pressures through pricing and cost actions while investing in engineering and manufacturing capacity to support future growth.

About TE Connectivity (NYSE:TEL)TE Connectivity NYSE: TEL is a global industrial technology company that designs and manufactures connectivity and sensor solutions used to enable the flow of power and data in a wide range of applications. Its product portfolio includes electrical connectors, cable and wire harness assemblies, sensors, relays and switches, fiber-optic and coaxial interconnects, and other passive and active components that provide mechanical and electrical connections in complex systems.

The company's products and engineered solutions serve diverse end markets such as automotive and transportation, industrial equipment, data communications and networks, aerospace and defense, medical devices, and energy.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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For the quarter ended June 2026, TE Connectivity (TEL - Free Report) reported revenue of $5.16 billion, up 13.8% over the same period last year. EPS came in at $2.94, compared to $2.27 in the year-ago quarter.

The reported revenue represents a surprise of +3.14% over the Zacks Consensus Estimate of $5 billion. With the consensus EPS estimate being $2.85, the EPS surprise was +3.16%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how TE Connectivity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Industrial Solutions: $2.58 billion versus $2.5 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.9% change.Net Sales- Transportation Solutions: $2.58 billion versus $2.5 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.7% change.Adjusted Operating Income- Transportation Solutions: $541 million versus $539.85 million estimated by two analysts on average.Adjusted Operating Income- Industrial Solutions: $588 million versus the two-analyst average estimate of $554.46 million.View all Key Company Metrics for TE Connectivity here>>>

Shares of TE Connectivity have returned +2.9% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

TE Connectivity reported better-than-expected quarterly earnings and gave solid guidance for the coming quarter.

Fourth quarter guidance reflects another quarter of double-digit sales and EPS growth

, /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal third quarter ended June 26, 2026.

Third Quarter Highlights

TE Connectivity (NYSE: TEL) highlights for the third quarter of fiscal 2026. Net sales were a record $5.16 billion, an increase of 14% on a reported basis and 12% organically year over year, driven by growth in both the Industrial and Transportation segments. GAAP diluted earnings per share (EPS) from continuing operations was $2.55, an increase of 19% year over year. Adjusted EPS was a record $2.94, an increase of 22% year over year. GAAP operating margin was 19%, an increase of 10 basis points year over year. Adjusted operating margin expanded by 90 basis points year over year to 22%, driven by strong operational performance. Record orders in both segments totaling $5.7 billion, an increase of 27% year over year with double-digit order growth in all businesses. Cash flow from operating activities was $1.2 billion for the quarter and $3.0 billion year to date. Free cash flow was $883 million for the quarter and $2.2 billion year to date. Returned $2.0 billion to shareholders year to date. Entered agreement to acquire Astrodyne TDI, expanding TE's power portfolio in the Industrial segment. "Our teams delivered record third quarter results above guidance, with strong growth performance in both segments, as we continued to capitalize on customer demand for our innovative interconnect technologies," said CEO Terrence Curtin. "Our Industrial team delivered sales growth of over 20 percent, while Transportation increased sales by five percent organically by growing content with customers and outperforming end markets. Orders in the third quarter increased by more than $1 billion year over year to $5.7 billion, reinforcing broad growth across the portfolio and increased momentum in AI in both the data center and across the broader energy infrastructure. Our strong margin performance continues to reflect our resiliency while also investing for growth. We also continue to deliver on our cash generation model, with strong capital returns for shareholders.

"We are significantly outperforming our business model outlined during our Investor Day, setting us up for double-digit increases in sales and EPS for fiscal 2026 as well as strong growth and operating momentum as we head towards 2027."

Fourth Quarter FY26 Outlook

For the fourth quarter of fiscal 2026, the company expects sales of approximately $5.25 billion, an increase of 11% year over year on both a reported and organic basis. Adjusted EPS is expected to be approximately $3.05, an increase of 18% year over year. GAAP EPS from continuing operations is expected to be approximately $2.84, an increase of 27% year over year.

Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

TE Connectivity to Acquire Astrodyne TDI

TE also announced today it has entered into a definitive agreement to acquire Astrodyne TDI, a leading provider of advanced power management and filtering solutions for mission critical industrial applications, from Tinicum L.P. The acquired company is expected to contribute annual sales of more than $250 million and will be reported as part of the Industrial Solutions segment. The transaction, at an approximate purchase price of $1.4 billion, is subject to customary regulatory approvals and closing conditions and is expected to close by the end of this calendar year.

Conference Call and Webcast

The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:

At TE Connectivity's website: investors.te.com By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (833) 461-5787 and for international callers, the dial-in number is (585) 542-9983; meeting ID: 628904516. A replay of the conference call will be available on TE Connectivity's investor website at investors.te.com at 11:30 a.m. ET on July 22. About TE Connectivity

TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram. 

Non-GAAP Financial Measures

We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management's control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.
  Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.
  Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any.
  Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.
  Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.
  Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management's and the Board of Directors' discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc's Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

TE CONNECTIVITY PLC

 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 26,

June 27,

June 26,

June 27,

2026

2025

2026

2025

(in millions, except per share data)

Net sales

$

5,160

$

4,534

$

14,573

$

12,513

Cost of sales 

3,325

2,934

9,254

8,094

Gross margin

1,835

1,600

5,319

4,419

Selling, general, and administrative expenses

532

491

1,606

1,372

Research, development, and engineering expenses

230

211

692

602

Acquisition and integration costs

9

27

20

41

Restructuring and other charges, net

83

14

103

109

Operating income

981

857

2,898

2,295

Interest income

21

17

67

62

Interest expense

(31)

(28)

(93)

(48)

Other income (expense), net

—

—

2

(2)

Income from continuing operations before income taxes

971

846

2,874

2,307

Income tax expense

(223)

(208)

(520)

(1,128)

Income from continuing operations

748

638

2,354

1,179

Loss from discontinued operations, net of income taxes

—

—

(1)

—

Net income

$

748

$

638

$

2,353

$

1,179

Basic earnings per share:

Income from continuing operations

$

2.57

$

2.16

$

8.03

$

3.96

Loss from discontinued operations

—

—

—

—

Net income

2.57

2.16

8.03

3.96

Diluted earnings per share:

Income from continuing operations

$

2.55

$

2.14

$

7.98

$

3.93

Loss from discontinued operations

—

—

—

—

Net income

2.55

2.14

7.98

3.93

Weighted-average number of shares outstanding: 

Basic

291

296

293

298

Diluted

293

298

295

300

TE CONNECTIVITY PLC

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 26,

September 26,

2026

2025

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

$

1,239

$

1,255

Accounts receivable, net of allowance for doubtful accounts of $51 and $44, respectively

3,749

3,403

Inventories

3,027

2,699

Prepaid expenses and other current assets

728

609

Total current assets

8,743

7,966

Property, plant, and equipment, net

4,529

4,312

Goodwill

7,403

7,126

Intangible assets, net

2,081

2,227

Deferred income taxes

2,233

2,507

Other assets

1,081

943

Total assets

$

26,070

$

25,081

Liabilities, redeemable noncontrolling interests, and shareholders' equity

Current liabilities:

Short-term debt

$

102

$

852

Accounts payable

2,409

2,021

Accrued and other current liabilities

2,149

2,247

Total current liabilities

4,660

5,120

Long-term debt

5,530

4,842

Long-term pension and postretirement liabilities

737

767

Deferred income taxes

176

198

Income taxes

320

414

Other liabilities

1,254

1,010

Total liabilities

12,677

12,351

Commitments and contingencies

Redeemable noncontrolling interests

147

145

Shareholders' equity:

Preferred shares, $1.00 par value, 2 shares authorized, none outstanding

—

—

Ordinary class A shares,  €1.00 par value, 25,000 shares authorized, none outstanding

—

—

Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 296,097,014 and 302,889,075
shares issued, respectively

3

3

Accumulated earnings 

14,500

13,932

Ordinary shares held in treasury, at cost, 6,156,342 and 8,330,931 shares, respectively

(1,350)

(1,356)

Accumulated other comprehensive income

93

6

Total shareholders' equity

13,246

12,585

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

$

26,070

$

25,081

TE CONNECTIVITY PLC

 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 26,

June 27,

June 26,

June 27,

2026

2025

2026

2025

(in millions)

Cash flows from operating activities:

Net income

$

748

$

638

$

2,353

$

1,179

Loss from discontinued operations, net of income taxes

—

—

1

—

Income from continuing operations

748

638

2,354

1,179

Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:

Depreciation and amortization

256

216

758

594

Deferred income taxes

102

71

261

772

Non-cash lease cost

40

37

118

106

Provision for losses on accounts receivable and inventories

12

19

61

62

Share-based compensation expense

38

36

130

105

Other 

(26)

26

(51)

60

Changes in assets and liabilities, net of the effects of acquisitions and
divestitures:

Accounts receivable, net

(296)

(220)

(355)

(391)

Inventories

(34)

(167)

(365)

(299)

Prepaid expenses and other current assets

52

(109)

38

31

Accounts payable

256

152

433

298

Accrued and other current liabilities

24

222

(240)

(76)

Income taxes

(10)

117

(94)

172

Other

23

149

(51)

105

Net cash provided by operating activities

1,185

1,187

2,997

2,718

Cash flows from investing activities:

Capital expenditures

(304)

(230)

(832)

(665)

Proceeds from sale of property, plant, and equipment

2

5

6

7

Acquisition of businesses, net of cash acquired

—

(2,307)

(200)

(2,628)

Other

(6)

(5)

(6)

(12)

Net cash used in investing activities

(308)

(2,537)

(1,032)

(3,298)

Cash flows from financing activities:

Net increase (decrease) in commercial paper

—

(1,500)

100

(255)

Proceeds from issuance of debt

—

1,458

750

2,231

Repayment of debt

—

(1)

(851)

(580)

Proceeds from exercise of share options

15

42

79

101

Repurchase of ordinary shares

(529)

(301)

(1,348)

(910)

Payment of ordinary share dividends to shareholders

(226)

(212)

(643)

(594)

Other

(9)

(23)

(67)

(56)

Net cash used in financing activities

(749)

(537)

(1,980)

(63)

Effect of currency translation on cash

1

5

(1)

(4)

Net increase (decrease) in cash, cash equivalents, and restricted cash

129

(1,882)

(16)

(647)

Cash, cash equivalents, and restricted cash at beginning of period

1,110

2,554

1,255

1,319

Cash, cash equivalents, and restricted cash at end of period

$

1,239

$

672

$

1,239

$

672

Supplemental cash flow information:

Income taxes paid, net of refunds

$

130

$

20

$

353

$

184

TE CONNECTIVITY PLC

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 26,

June 27,

June 26,

June 27,

2026

2025

2026

2025

(in millions)

Net cash provided by operating activities

$

1,185

$

1,187

$

2,997

$

2,718

Capital expenditures, net

(302)

(225)

(826)

(658)

Free cash flow (1)

$

883

$

962

$

2,171

$

2,060

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

SEGMENT DATA (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 26,

June 27,

June 26,

June 27,

2026

2025

2026

2025

($ in millions)

Net Sales

Net Sales

Net Sales

Net Sales

Transportation Solutions

$

2,580

$

2,418

$

7,469

$

6,975

Industrial Solutions

2,580

2,116

7,104

5,538

Total

$

5,160

$

4,534

$

14,573

$

12,513

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Income

Margin

Income

Margin

Income

Margin

Income

Margin

Transportation Solutions

$

444

17.2

%

$

462

19.1

%

$

1,448

19.4

%

$

1,353

19.4

%

Industrial Solutions

537

20.8

395

18.7

1,450

20.4

942

17.0

Total

$

981

19.0

%

$

857

18.9

%

$

2,898

19.9

%

$

2,295

18.3

%

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

$

541

21.0

%

$

486

20.1

%

$

1,586

21.2

%

$

1,476

21.2

%

Industrial Solutions

588

22.8

467

22.1

1,608

22.6

1,107

20.0

Total

$

1,129

21.9

%

$

953

21.0

%

$

3,194

21.9

%

$

2,583

20.6

%

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)

Change in Net Sales for the Quarter Ended June 26, 2026

versus Net Sales for the Quarter Ended June 27, 2025

Net Sales

Organic Net Sales

Growth (Decline)

Growth (Decline) (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions:

Automotive

$

94

5.2

%

$

53

2.9

%

$

41

$

—

Commercial transportation

71

19.6

63

17.8

8

—

Sensors

(3)

(1.3)

(6)

(2.8)

3

—

Total Transportation Solutions

162

6.7

110

4.5

52

—

Industrial Solutions:

Digital data networks

207

34.2

205

34.0

2

—

Automation and connected living

93

16.3

83

14.3

10

—

Aerospace, defense, and marine

45

12.0

43

11.5

2

—

Energy

132

34.4

126

32.7

6

—

Medical

(13)

(7.2)

(13)

(7.2)

—

—

Total Industrial Solutions

464

21.9

444

21.0

20

—

Total 

$

626

13.8

%

$

554

12.2

%

$

72

$

—

Change in Net Sales for the Nine Months Ended June 26, 2026

versus Net Sales for the Nine Months Ended June 27, 2025

Net Sales

Organic Net Sales

Growth (Decline)

Growth (Decline) (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions:

Automotive

$

290

5.5

%

$

105

2.0

%

$

185

$

—

Commercial transportation

199

19.7

169

16.9

30

—

Sensors

5

0.7

(18)

(2.7)

23

—

Total Transportation Solutions

494

7.1

256

3.7

238

—

Industrial Solutions:

Digital data networks

733

48.8

715

47.7

18

—

Automation and connected living

230

14.7

180

11.5

49

1

Aerospace, defense, and marine

126

11.6

100

9.2

26

—

Energy

488

55.5

189

21.5

28

271

Medical

(11)

(2.1)

(12)

(2.3)

1

—

Total Industrial Solutions

1,566

28.3

1,172

21.2

122

272

Total 

$

2,060

16.5

%

$

1,428

11.4

%

$

360

$

272

(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended June 26, 2026

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

444

$

1

$

79

$

17

$

541

Industrial Solutions

537

8

4

39

588

Total 

$

981

$

9

$

83

$

56

$

1,129

Operating margin

19.0

%

21.9

%

Income tax expense 

$

(223)

$

(2)

$

(22)

$

(11)

$

(258)

Effective tax rate

23.0

%

23.1

%

Income from continuing operations

$

748

$

7

$

61

$

45

$

861

Diluted earnings per share from
continuing operations

$

2.55

$

0.02

$

0.21

$

0.15

$

2.94

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in
effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended June 27, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

462

$

—

$

7

$

17

$

486

Industrial Solutions

395

30

7

35

467

Total 

$

857

$

30

$

14

$

52

$

953

Operating margin

18.9

%

21.0

%

Income tax expense 

$

(208)

$

(7)

$

1

$

(11)

$

(225)

Effective tax rate

24.6

%

23.9

%

Income from continuing operations

$

638

$

23

$

15

$

41

$

717

Diluted earnings per share from
continuing operations

$

2.14

$

0.08

$

0.05

$

0.14

$

2.41

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in
effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Nine Months Ended June 26, 2026

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

1,448

$

1

$

84

$

53

$

—

$

1,586

Industrial Solutions

1,450

22

19

117

—

1,608

Total 

$

2,898

$

23

$

103

$

170

$

—

$

3,194

Operating margin

19.9

%

21.9

%

Income tax expense

$

(520)

$

(5)

$

(23)

$

(34)

$

(114)

$

(696)

Effective tax rate

18.1

%

22.0

%

Income from continuing operations

$

2,354

$

18

$

80

$

136

$

(114)

$

2,474

Diluted earnings per share from
continuing operations

$

7.98

$

0.06

$

0.27

$

0.46

$

(0.39)

$

8.39

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for
each such jurisdiction.

(2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Nine Months Ended June 27, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

1,353

$

—

$

72

$

51

$

—

$

1,476

Industrial Solutions

942

47

37

81

—

1,107

Total 

$

2,295

$

47

$

109

$

132

$

—

$

2,583

Operating margin

18.3

%

20.6

%

Income tax expense

$

(1,128)

$

(10)

$

(19)

$

(26)

$

587

$

(596)

Effective tax rate

48.9

%

23.0

%

Income from continuing operations

$

1,179

$

37

$

90

$

106

$

587

$

1,999

Diluted earnings per share from
continuing operations

$

3.93

$

0.12

$

0.30

$

0.35

$

1.96

$

6.66

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for
each such jurisdiction.

(2) Includes income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax
credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a
decrease in the corporate tax rate in a non-U.S. jurisdiction.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended September 26, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

465

$

—

$

3

$

19

$

—

$

487

Industrial Solutions

451

10

14

39

—

514

Total 

$

916

$

10

$

17

$

58

$

—

$

1,001

Operating margin

19.3

%

21.1

%

Income tax expense 

$

(233)

$

(2)

$

6

$

(11)

$

31

$

(209)

Effective tax rate

26.0

%

21.3

%

Income from continuing operations

$

664

$

8

$

23

$

47

$

31

$

773

Diluted earnings per share from
continuing operations

$

2.23

$

0.03

$

0.08

$

0.16

$

0.10

$

2.59

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for
each such jurisdiction.

(2) Represents income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards and an income
tax benefit of $13 million related to the revaluation of deferred tax liabilities as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 26, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Amortization

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Expense (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

1,818

$

—

$

75

$

70

$

—

$

1,963

Industrial Solutions

1,393

57

51

120

—

1,621

Total 

$

3,211

$

57

$

126

$

190

$

—

$

3,584

Operating margin

18.6

%

20.8

%

Income tax expense

$

(1,361)

$

(12)

$

(13)

$

(37)

$

618

$

(805)

Effective tax rate

42.5

%

22.5

%

Income from continuing operations

$

1,843

$

45

$

113

$

153

$

618

$

2,772

Diluted earnings per share from
continuing operations

$

6.16

$

0.15

$

0.38

$

0.51

$

2.07

$

9.27

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for
each such jurisdiction.

(2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax
credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S.
tax loss and credit carryforwards.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of July 22, 2026

(UNAUDITED)

Outlook for

Quarter Ending

September 25,

2026

Diluted earnings per share from continuing operations

$

2.84

Acquisition-related charges

0.02

Restructuring and other charges, net

0.04

Amortization expense

0.15

Adjusted diluted earnings per share from continuing operations (1)

$

3.05

Net sales growth

10.6

%

Translation

0.2

(Acquisitions) divestitures, net

—

Organic net sales growth (1)

10.8

%

(1) See description of non-GAAP financial measures.

SOURCE TE Connectivity plc

Key Takeaways TE Connectivity is set to report fiscal Q3 2026 results on July 22, with expected sales of nearly $5 billion. TEL's order momentum, AI-driven demand and Industrial Solutions strength are expected to support results. TEL faces pricing pressure, auto production variability, inflation, currency moves, and debt headwinds. TE Connectivity (TEL - Free Report) is scheduled to report its third-quarter fiscal 2026 results on July 22.

For the third quarter of fiscal 2026, adjusted earnings are projected to be approximately $2.83 per share, which indicates 17% year-over-year growth. The Zacks Consensus Estimate for earnings is pegged at $2.85 per share, which has increased by a penny over the past 30 days. This indicates 25.55% growth from the figure reported in the year-ago quarter.

TE Connectivity expects third-quarter fiscal 2026 sales of approximately $5 billion, implying 10% reported growth and 9% organic growth year over year. The Zacks Consensus Estimate for the to-be-reported quarter sales is pegged at $4.95 billion, suggesting 9.15% growth from the figure reported in the year-ago quarter.

TE Connectivity beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 5.97%.

Let’s see how things have shaped up for the upcoming announcement:

Factors to NoteTE Connectivity’s third-quarter fiscal 2026 performance is expected to have benefited from strong order momentum and backlog growth across all business segments. The company reported record orders of $5.3 billion in the fiscal second quarter, with a book-to-bill ratio of 1.12, indicating strong demand that is expected to carry into the fiscal third quarter.

Strong growth in its Industrial Solutions segment, particularly in digital data networks (DDN), energy, aerospace and defense, and factory automation, remains noteworthy. The DDN business, driven by AI-related demand, is projected to see an additional $150 million in revenues in the second half of the year, reflecting increased momentum and program ramps. The company’s recent acquisition of a leading passive optical connectivity technology further strengthens its position in both copper and optical solutions, supporting future growth in AI and data center applications.

The Industrial segment is also poised to benefit from secular growth trends in energy, aerospace and defense, and factory automation. In the fiscal second quarter, energy sales grew 60% (including acquisitions) and 11% organically, driven by investments in grid hardening, data center power infrastructure, and clean energy applications. This trend is expected to have continued in the to-be-reported quarter.

In the Transportation segment, TEL is leveraging its global leadership and co-creation model to outperform the market, particularly in commercial transportation and automotive. Commercial transportation sales grew 21% (17% organically) in the second quarter of fiscal 2026, with continued improvement in demand across all regions and increasing content per vehicle. Automotive content growth is expected to remain in the 4% to 6% range for fiscal 2026, driven by electrification, data connectivity, and electronification trends. Despite a flattish global auto production environment, TEL's strong order book and content gains are expected to have supported sequential and year-over-year growth in the to-be-reported quarter.

However, competitive pricing, auto production variability, input cost inflation, currency moves and a debt load that can constrain flexibility remain a headwind.

What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.

TE Connectivity currently has an Earnings ESP of +0.18% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Amphenol (APH - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Amphenol shares have gained 11.9% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29.

ASE Technology (ASX - Free Report) has an Earnings ESP of +23.53% and a Zacks Rank #1.

ASE Technology shares have surged 138.6% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30.

Fortive (FTV - Free Report) has an Earnings ESP of +2.82% and a Zacks Rank #2 at present.

Fortive shares have gained 11.9% in the year-to-date period. Fortive is set to report second-quarter 2026 results on July 29.

TE Connectivity (TEL - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis electronics maker is expected to post quarterly earnings of $2.85 per share in its upcoming report, which represents a year-over-year change of +25.6%.

Revenues are expected to be $4.95 billion, up 9.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for TE Connectivity?For TE Connectivity, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.18%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that TE Connectivity will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that TE Connectivity would post earnings of $2.7 per share when it actually produced earnings of $2.73, delivering a surprise of +1.11%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

TE Connectivity appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerVicor (VICR - Free Report) , another stock in the Zacks Electronics - Miscellaneous Components industry, is expected to report earnings per share of $0.62 for the quarter ended June 2026. This estimate points to a year-over-year change of -31.9%. Revenues for the quarter are expected to be $138.7 million, down 1.7% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Vicor has been revised 4.2% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), makes it difficult to conclusively predict that Vicor will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.

In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.

However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.

TE Connectivity (TEL - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this electronics maker a great growth pick right now.

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for TE Connectivity is 7.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 29.1% this year, crushing the industry average, which calls for EPS growth of 23.1%.

Impressive Asset Utilization RatioGrowth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric shows how efficiently a firm is utilizing its assets to generate sales.

Right now, TE Connectivity has an S/TA ratio of 0.74, which means that the company gets $0.74 in sales for each dollar in assets. Comparing this to the industry average of 0.7, it can be said that the company is more efficient.

While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And TE Connectivity is well positioned from a sales growth perspective too. The company's sales are expected to grow 13.1% this year versus the industry average of 2.7%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

There have been upward revisions in current-year earnings estimates for TE Connectivity. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made TE Connectivity a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions TE Connectivity well for outperformance, so growth investors may want to bet on it.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) will report financial results for the third quarter of fiscal 2026 before trading begins on July 22, 2026. The company will hold a conference call for investors at 8:30 a.m. ET. The conference call may be accessed in the following ways:

At TE Connectivity's website: investors.te.com By telephone: For both "listen-only" participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (833) 461-5787 and for international callers, the dial-in number is (585) 542-9983; meeting ID: 628904516. A replay of the conference call will be available on TE Connectivity's investor website at investors.te.com at 11:30 a.m. ET on July 22, 2026. About TE Connectivity 
TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram.

SOURCE TE Connectivity plc

Also from this source

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#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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Stock to Watch: TE Connectivity (TEL - Free Report) TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, including automotive, aerospace, defense, energy, and medical. With operations in over 130 countries, the company provides innovative products that enable connectivity across diverse sectors.

TEL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. TEL has a Growth Style Score of A, forecasting year-over-year earnings growth of 28.8% for the current fiscal year.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.20 to $11.28 per share. TEL also boasts an average earnings surprise of +6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TEL should be on investors' short list.

GALWAY, Ireland, May 4, 2026 /PRNewswire/ -- TE Connectivity, a world leader in connectors and sensors, has been named to the Dow Jones Best-In-Class Index for the 14th consecutive year. Previously known as the Dow Jones Sustainability Indices, the Best-In-Class Indices are designed for investors seeking a global index of companies that prioritize sustainability and good governance.