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TE Connectivity Q4 Earnings Beat Estimates, Revenues Increase Y/Y
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Key Takeaways
TEL's Q4 earnings rose 21%, while revenues grew 12%, beating estimates.
AI demand, automation and transportation growth boosted TEL's revenues.
TEL expects Q1 fiscal 2027 sales to rise 15% and adjusted EPS to grow 21%.
TE Connectivity (TEL - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $3.14 per share, up 21% year over year. The figure surpassed the Zacks Consensus Estimate by 1.95%.
Net sales increased 12% year over year and 13% organically year over year to $5.31 billion and beat the Zacks Consensus Estimate by 0.97%. Growth across both Industrial and Transportation Solutions supported performance. Orders reached $6.1 billion, increasing 29% year over year and 6% sequentially.
TEL’s Q4 Top-Line Details
Transportation Solutions generated revenues of $2.6 billion, up 8% year over year on a reported basis and 7% organically. The segment benefited from automotive content outperformance and improving commercial transportation markets.
Industrial Solutions recorded revenues of $2.8 billion, increasing 20% year over year on both a reported and organic basis. Growth was supported by artificial intelligence (AI) applications, automation demand, grid-hardening activities and data-center construction.
TE Connectivity Ltd. Price, Consensus and EPS Surprise
TE Connectivity's Transportation Businesses Expand
Automotive sales increased 7% to $1.93 billion, including 6% organic growth, driven by content outperformance in Asia and Europe. Commercial Transportation revenues advanced 18% to $428 million on both a reported and organic basis, reflecting strong content growth across regions and improving end markets.
Sensors revenues declined 2% to $239 million on both a reported and organic basis. The segment's adjusted operating income increased to $545 million from $487 million, while adjusted operating margin expanded 80 basis points (bps) to 21%. Adjusted EBITDA margin improved to 25.3% from 24.8%.
TEL’s Industrial Businesses Maintain Momentum
Digital Data Networks revenues surged 34% to $949 million on both a reported and organic basis, supported by continued momentum in AI applications. Automation and Connected Living revenues increased 18% to $688 million, reflecting strong demand for automation applications across regions.
Energy sales rose 12% to $520 million, driven by grid-hardening activities and data-center buildouts. Aerospace, Defense and Marine revenues advanced 15% to $462 million, including 16% organic growth, supported by commercial aerospace and defense markets.
Medical revenues increased 1% to $180 million. Industrial Solutions' adjusted operating income climbed to $627 million from $514 million, while adjusted operating margin expanded 40 bps to 22.4%. Adjusted EBITDA margin improved to 26.2% from 25.2%.
TE Connectivity’s Q4 Operating Performance
In the fourth quarter of fiscal 2026, GAAP gross margin expanded approximately 55 bps year over year to 35.5%.
Selling, general and administrative expenses increased to $518 million from $494 million. Research, development and engineering expenses rose to $250 million from $227 million.
GAAP operating income increased to $1.09 billion from $916 million, while operating margin expanded 130 bps to 20.6%. Adjusted operating income rose to $1.18 billion from $1 billion, with adjusted operating margin expanding 100 bps to 22.1%.
TEL’s Cash Flow and Balance Sheet
As of Sept. 25, 2026, cash and cash equivalents totaled $1.7 billion compared with $1.24 billion as of June 26, 2026. Total debt stood at $5.64 billion compared with $5.69 billion a year earlier.
TE Connectivity generated $1.53 billion in cash from operating activities during the quarter, up from $1.42 billion in the year-ago period. Free cash flow increased to $1.24 billion from $1.15 billion.
The company repurchased $544 million worth of shares and paid $226 million in dividends during the quarter.
TE Connectivity’s Positive Fiscal 2027 Outlook
For the first quarter of fiscal 2027, TE Connectivity expects sales of approximately $5.35 billion, indicating 15% growth on both a reported and organic basis.
Adjusted earnings are projected to be approximately $3.30 per share, representing a 21% year-over-year increase.
TEL’s Zacks Rank & Other Stocks to Consider
TE Connectivity currently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
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TE Connectivity Q4 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
TE Connectivity (TEL - Free Report) reported fourth-quarter fiscal 2026 adjusted earnings of $3.14 per share, up 21% year over year. The figure surpassed the Zacks Consensus Estimate by 1.95%.
Net sales increased 12% year over year and 13% organically year over year to $5.31 billion and beat the Zacks Consensus Estimate by 0.97%. Growth across both Industrial and Transportation Solutions supported performance. Orders reached $6.1 billion, increasing 29% year over year and 6% sequentially.
TEL’s Q4 Top-Line Details
Transportation Solutions generated revenues of $2.6 billion, up 8% year over year on a reported basis and 7% organically. The segment benefited from automotive content outperformance and improving commercial transportation markets.
Industrial Solutions recorded revenues of $2.8 billion, increasing 20% year over year on both a reported and organic basis. Growth was supported by artificial intelligence (AI) applications, automation demand, grid-hardening activities and data-center construction.
TE Connectivity Ltd. Price, Consensus and EPS Surprise
TE Connectivity Ltd. price-consensus-eps-surprise-chart | TE Connectivity Ltd. Quote
TE Connectivity's Transportation Businesses Expand
Automotive sales increased 7% to $1.93 billion, including 6% organic growth, driven by content outperformance in Asia and Europe. Commercial Transportation revenues advanced 18% to $428 million on both a reported and organic basis, reflecting strong content growth across regions and improving end markets.
Sensors revenues declined 2% to $239 million on both a reported and organic basis. The segment's adjusted operating income increased to $545 million from $487 million, while adjusted operating margin expanded 80 basis points (bps) to 21%. Adjusted EBITDA margin improved to 25.3% from 24.8%.
TEL’s Industrial Businesses Maintain Momentum
Digital Data Networks revenues surged 34% to $949 million on both a reported and organic basis, supported by continued momentum in AI applications. Automation and Connected Living revenues increased 18% to $688 million, reflecting strong demand for automation applications across regions.
Energy sales rose 12% to $520 million, driven by grid-hardening activities and data-center buildouts. Aerospace, Defense and Marine revenues advanced 15% to $462 million, including 16% organic growth, supported by commercial aerospace and defense markets.
Medical revenues increased 1% to $180 million. Industrial Solutions' adjusted operating income climbed to $627 million from $514 million, while adjusted operating margin expanded 40 bps to 22.4%. Adjusted EBITDA margin improved to 26.2% from 25.2%.
TE Connectivity’s Q4 Operating Performance
In the fourth quarter of fiscal 2026, GAAP gross margin expanded approximately 55 bps year over year to 35.5%.
Selling, general and administrative expenses increased to $518 million from $494 million. Research, development and engineering expenses rose to $250 million from $227 million.
GAAP operating income increased to $1.09 billion from $916 million, while operating margin expanded 130 bps to 20.6%. Adjusted operating income rose to $1.18 billion from $1 billion, with adjusted operating margin expanding 100 bps to 22.1%.
TEL’s Cash Flow and Balance Sheet
As of Sept. 25, 2026, cash and cash equivalents totaled $1.7 billion compared with $1.24 billion as of June 26, 2026. Total debt stood at $5.64 billion compared with $5.69 billion a year earlier.
TE Connectivity generated $1.53 billion in cash from operating activities during the quarter, up from $1.42 billion in the year-ago period. Free cash flow increased to $1.24 billion from $1.15 billion.
The company repurchased $544 million worth of shares and paid $226 million in dividends during the quarter.
TE Connectivity’s Positive Fiscal 2027 Outlook
For the first quarter of fiscal 2027, TE Connectivity expects sales of approximately $5.35 billion, indicating 15% growth on both a reported and organic basis.
Adjusted earnings are projected to be approximately $3.30 per share, representing a 21% year-over-year increase.
TEL’s Zacks Rank & Other Stocks to Consider
TE Connectivity currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector include ACI Worldwide (ACIW - Free Report) , Affirm (AFRM - Free Report) and AMETEK (AME - Free Report) . While AFRM and AME sport a Zacks Rank #1 (Strong Buy), ACI Worldwide carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACI Worldwide shares have gained 14.3% in the year-to-date period. ACI Worldwide is set to report third-quarter 2026 results on Nov. 5.
Shares of Affirm have plunged 2.3% year to date. Affirm is set to report first-quarter fiscal 2027 results on Nov. 5.
Shares of AMETEK have rallied 19.9% year to date. AMETEK is slated to report third-quarter 2026 results on Nov. 3.