TE Connectivity (NYSE:TEL) Issues Quarterly Earnings Results

TE Connectivity (NYSE:TEL) posted its quarterly earnings results on Wednesday. The electronics maker reported $2.73 EPS for the quarter, topping the consensus estimate of $2.70 by $0.03, Zacks reports. TE Connectivity had a net margin of 15.54% and a return on equity of 23.56%. The company had revenue of $4.74 billion during the quarter, compared to analysts’ expectations of $4.72 billion. During the same quarter in the previous year, the business posted $2.10 EPS. The firm’s revenue was up 14.4% on a year-over-year basis. TE Connectivity updated its Q3 2026 guidance to 2.830-2.830 EPS.

Here are the key takeaways from TE Connectivity’s conference call:

• Q2 results beat guidance with $4.7 billion sales (+15% reported, +7% organic), adjusted EPS of $2.73 (+24% y/y), 21.7% adjusted operating margin, record YTD free cash flow of $1.3 billion, and a 10% dividend increase; management guides Q3 sales ~$5.0 billion and EPS ~$2.83.
• Orders hit a record $5.3 billion (book-to-bill 1.12) with Industrial orders +40% and DDN orders ~+60%, and management raised FY26 AI revenue expectations by $150 million (all in H2), taking DDN AI toward ~$2.4 billion.
• TE acquired RAM Photonics to strengthen its passive optical connectivity roadmap and says it will pursue bolt-on M&A opportunistically, positioning the company for a hybrid copper+optical AI market.
• Management flagged rising input-cost inflation (oil-based resins, freight, energy) that could create near-term margin timing noise and reiterated expected restructuring charges of roughly $100 million in FY26.
• Transportation was mixed: segment sales +5% reported (auto +2% reported, -4% organic) but TE expects content growth of ~4–6% for FY26 and reported strong commercial-transportation outperformance (21% reported).

TE Connectivity Price Performance

Shares of NYSE TEL opened at $220.15 on Friday. The stock has a market cap of $64.60 billion, a price-to-earnings ratio of 22.49, a PEG ratio of 1.60 and a beta of 1.26. TE Connectivity has a 52 week low of $137.86 and a 52 week high of $252.56. The company’s 50-day moving average price is $218.46 and its 200 day moving average price is $226.45. The company has a current ratio of 1.89, a quick ratio of 1.07 and a debt-to-equity ratio of 0.42.

TE Connectivity Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 22nd will be paid a dividend of $0.78 per share. This is a boost from TE Connectivity’s previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Friday, May 22nd. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.4%. TE Connectivity’s dividend payout ratio is currently 40.98%.

TE Connectivity announced that its Board of Directors has approved a share buyback plan on Wednesday, March 11th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the electronics maker to repurchase up to 5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Wells Fargo & Company upped their target price on shares of TE Connectivity from $214.00 to $226.00 and gave the company an “equal weight” rating in a report on Thursday. Zacks Research cut shares of TE Connectivity from a “strong-buy” rating to a “hold” rating in a report on Monday, March 23rd. Wall Street Zen upgraded shares of TE Connectivity from a “buy” rating to a “strong-buy” rating in a report on Sunday, January 11th. 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, Truist Financial lowered their target price on shares of TE Connectivity from $244.00 to $240.00 and set a “hold” rating for the company in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $250.80.

Insider Activity at TE Connectivity

In other TE Connectivity news, EVP John S. Jenkins sold 6,155 shares of the firm’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $222.81, for a total transaction of $1,371,395.55. Following the sale, the executive vice president directly owned 21,810 shares of the company’s stock, valued at $4,859,486.10. This trade represents a 22.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Shadrak W. Kroeger sold 9,400 shares of the firm’s stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $223.26, for a total transaction of $2,098,644.00. Following the sale, the insider directly owned 25,976 shares in the company, valued at $5,799,401.76. This represents a 26.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 42,345 shares of company stock valued at $9,627,260. Insiders own 0.60% of the company’s stock.

Institutional Investors Weigh In On TE Connectivity

Several hedge funds have recently modified their holdings of TEL. Brighton Jones LLC purchased a new position in TE Connectivity in the fourth quarter valued at approximately $820,000. Sivia Capital Partners LLC raised its stake in shares of TE Connectivity by 66.7% during the second 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 period. Evolve Private Wealth LLC purchased a new stake in shares of TE Connectivity during the fourth quarter valued at approximately $218,000. nVerses Capital LLC purchased a new stake in shares of TE Connectivity during the fourth quarter valued at approximately $216,000. Finally, DRW Securities LLC purchased a new stake in shares of TE Connectivity during the fourth quarter valued at approximately $213,000. 91.43% of the stock is owned by institutional investors and hedge funds.

TE Connectivity Company Profile

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.