TE Connectivity (TEL) reported third-quarter adjusted earnings of $2.94 per share on Wednesday, topping analyst estimates of $2.84. The stock opened at $209.02 but had fallen more than 5% in premarket trade.
Revenue for the quarter ended June 26 came in at $5.16 billion, up 14% year over year. Analysts had expected $5 billion. Growth was driven by the industrial and transportation segments.
TE CONNECTIVITY $TEL Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $5.16B (Est. $5.01B) 🟢; +14% YoY
🔹 Adj. EPS: $2.94 (Est. $2.85) 🟢; +22% YoY
🔹 Orders: $5.7B; +27% YoY
🔹 Adjusted Operating Margin: 22%; +90 bps YoYQ4 Guide:
🔹 Revenue: ~$5.25B (Est. $5.15B) 🟢; +11% YoY
🔹 Adj.… pic.twitter.com/Gm9Qw4sW4H— Wall St Engine (@wallstengine) July 22, 2026
For Q4, TE guided for adjusted EPS of $3.05, ahead of the $2.96 consensus. Revenue guidance of approximately $5.25 billion also cleared the $5.16 billion Wall Street estimate.
CEO Terrence Curtin said orders are up 70% so far this year, building a strong backlog heading into 2026.
Along with earnings, TE announced it will acquire power management and filtering solutions maker Astrodyne TDI for $1.4 billion. The deal is expected to close by the end of 2026.
The acquisition adds to TE’s push in power management, an area seeing growing demand tied to data center buildouts driven by AI workloads.
TE produces electrical connector systems used in data centers. Demand for AI-related tools has boosted investments in network equipment globally, which has benefited the company.
Curtin addressed the tariff situation directly. He said TE has applied for refunds under President Trump’s tariff program but has not received significant amounts back yet.
He added that any refunds received would be returned to customers rather than used for broad price cuts across the board.
On raw material costs, Curtin said TE would continue passing higher costs through price increases to protect margins. Oil-based products like resins remain elevated due to renewed tensions between the U.S. and Iran.
The company has a debt-to-equity ratio of 0.42, a current ratio of 1.89, and a 52-week range of $177.21 to $252.56.
TE also declared a quarterly dividend of $0.78 per share, payable September 11, with a record date of August 21. That works out to $3.12 annualized, or a yield of approximately 1.5%.
On the analyst side, Barclays carries a $300 price target with an overweight rating. Citigroup has a buy rating with a $230 target. The average price target across analysts sits at $255.31, with a consensus rating of Moderate Buy.
Institutional ownership stands at 91.43%. Mediolanum International Funds recently initiated a position valued at approximately $2.7 million.
Insider Shadrak W. Kroeger sold 9,400 shares on June 1 at $215.00 per share, reducing his position by 26.57% under a pre-arranged 10b5-1 plan.
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