TEL

A month has gone by since the last earnings report for TE Connectivity (TEL). Shares have added about 0.9% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is TE Connectivity due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. TE Connectivity reported third-quarter fiscal 2026 adjusted earnings of $2.94 per share, up 22% year over year. The figure beat the Zacks Consensus Estimate of $2.85 by 3.2%.Net sales increased 14% year over year to $5.16 billion and surpassed the Zacks Consensus estimate by 3.14%. Growth across both the Industrial and Transportation segments supported performance. Orders reached a record $5.7 billion, rising 27% year over year. Transportation Solutions generated revenues of $2.58 billion, accounting for half of total sales. Segment revenues increased 7% on a reported basis and 5% organically from the year-ago quarter.Industrial Solutions also recorded revenues of $2.58 billion, representing the remaining half of sales. The figure climbed 22% year over year on a reported basis and 21% organically, reflecting broad-based demand across most of its businesses. Within Transportation Solutions, Automotive sales rose 5% to $1.91 billion, including 3% organic growth, supported by content outperformance in Asia and Europe. Commercial Transportation revenues advanced 20% to $434 million and increased 18% organically on strong content growth across all regions.Sensor’s revenues declined 1% to $233 million and fell 3% organically. The segment's adjusted operating income increased to $541 million from $486 million, while adjusted operating margin expanded 90 basis points to 21%. Digital Data Networks revenues surged 34% to $813 million on both a reported and organic basis, aided by continued momentum in artificial intelligence applications. Management indicated that orders support another strong sequential sales increase for the business in the fourth quarter.Energy sales increased 34% to $516 million, including 33% organic growth, driven by grid-hardening activity and data-center construction. Automation and Connected Living revenues rose 16% to $664 million, while Aerospace, Defense and Marine sales advanced 12% to $419 million. Medical revenues decreased 7% to $168 million. The segment's adjusted operating income increased to $588 million from $467 million, while adjusted operating margin expanded 70 basis points to 22.8%. In third-quarter fiscal 2026, GAAP gross margin expanded 26 basis points (bps) year over year to 35.6%.Selling, general and administrative expenses increased to $532 million from $491 million. Research, development and engineering expenses rose to $230 million from $211 million. GAAP operating income increased to $981 million from $857 million. Operating margin edged up 10 bps to 19%. Adjusted operating income rose to $1.13 billion from $953 million, while adjusted operating margin expanded 90 bps to 21.9%. As of June 26, 2026, cash and cash equivalents totaled $1.24 billion. Total debt was $5.63 billion. TE Connectivity generated $1.19 billion in cash from operating activities during the quarter, nearly unchanged from the prior-year period. Free cash flow declined to $883 million from $962 million.TEL repurchased $529 million of shares and paid $226 million in dividends during the quarter. For the fourth quarter of fiscal 2026, TE Connectivity expects sales of approximately $5.25 billion, indicating 11% growth on both a reported and organic basis. Adjusted earnings are projected to be approximately $3.05 per share, representing an 18% year-over-year increase.TEL also agreed to acquire Astrodyne TDI for approximately $1.4 billion. The business is expected to contribute annual sales of more than $250 million and expand the company's power-management portfolio within Industrial Solutions. In the past month, investors have witnessed a upward trend in estimates review. Currently, TE Connectivity has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TE Connectivity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TE Connectivity Ltd. (TEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TTM Technologies TTMI is scheduled to report second-quarter 2026 results after the market closes on Aug. 5.For the second quarter of 2026, TTMI expects net sales of $930-$970 million. The Zacks Consensus Estimate for revenues is pegged at $964.55 million, indicating a 32.02% increase from the year-ago quarter’s reported figure.TTM Technologies expects non-GAAP earnings between 82 cents and 88 cents per share. The consensus mark for earnings is pegged at 92 cents per share, down by 5 cents over the past 30 days. However, this marks strong year-over-year growth of 58.62%. Image Source: Zacks Investment Research The company’s earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 9.49%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for TTM Technologies this time around. According to 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. However, this is not the case here, as you can see below.TTMI has an Earnings ESP of -3.83% at present and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. TTMI continues to expand manufacturing capacity and invest aggressively to support AI and defense opportunities, requiring meaningful capital deployment across its global footprint. Despite reporting record first-quarter revenues, operating cash flow was only $21.7 million, reflecting the impact of higher working-capital requirements and ongoing growth investments. As these expansion initiatives continue, elevated capital spending is likely to have weighed on free cash flow and near-term financial flexibility during the second quarter of 2026.TTM Technologies' automotive business remained a notable weak spot heading into the second quarter of 2026. Management said it continues to be highly selective in the automotive market, prioritizing higher-value, higher-margin products while reducing exposure to less attractive business. Although the company is supporting Tier 1 customers as they transition advanced technologies to adjacent markets, automotive revenues are still expected to account for only about 8% of second-quarter sales, with the earnings presentation also pointing to further rationalization in the segment. This ongoing weakness is expected to have partially offset stronger performance in other end markets and likely to have weighed on the quarter under review.TTM Technologies' growing reliance on AI-driven markets may have increased near-term execution risk despite fueling revenue growth. Management noted that approximately 80% of net sales are tied to the AI and defense megatrends, while data center and networking revenues are expected to rise from 36% of first-quarter sales to 42% in the second quarter as customers continue building AI infrastructure. This increasing concentration makes quarterly performance more dependent on sustained AI spending and customer deployment schedules, which is expected to have heightened the company's exposure to execution and demand risks in the quarter to be reported.However, TTM Technologies entered the second quarter with solid momentum in its aerospace and defense business, supported by strong bookings for key programs, including the LTAMDS Air Defense Radar, APS-153 maritime surveillance radar, ballistic missile detection and tracking systems, and its first confirmed booking supporting Golden Dome. The segment also delivered a book-to-bill ratio of 1.1 and maintained a program backlog of approximately $1.6 billion during the first quarter. With aerospace and defense expected to contribute 36% of second-quarter sales while delivering both sequential and year-over-year growth, this robust order pipeline is expected to have boosted the company's performance in the quarter under review. Over the past three months, TTM Technologies stock has declined 26.7% compared with the industry’s 6.8% drop. It has also underperformed peers like OSI Systems OSIS, TE Connectivity TEL and nVent Electri NVT. During the same timeframe, OSI Systems and nVent Electri fell 21.8% and 5.5%, respectively, while TE Connectivity inched up 0.2%, highlighting TTMI's relatively weaker share price performance. Image Source: Zacks Investment Research From a valuation perspective, TTMI appears overvalued, as suggested by the Value Score of D. It trades at a trailing 12-month price-to-earnings ratio of 51.08X, significantly above the industry’s average of 20.98X. In comparison, peers trade at more moderate multiples, with OSI Systems (22.5X), TE Connectivity (18.99X) and nVent Electric (35.36X). Image Source: Zacks Investment Research TTM Technologies' near-term outlook is clouded by several risks despite upbeat guidance. Aggressive investment in manufacturing capacity has pushed first-quarter free cash flow to negative $85 million, while foreign-exchange volatility and projected interest expense of about $10.6 million threaten earnings growth. The company's growing reliance on AI data center programs heightens concentration risk, and ongoing weakness in automotive, pricing pressure, elevated capital expenditures and fierce competition could constrain long-term returns. Even so, expanding AI data center deployments and a solid defense backlog could help offset these headwinds and support earnings growth over the longer term. TTM Technologies is trading at a premium valuation, and investors may be better off waiting for a more attractive entry point. Elevated capital spending, weak free cash flow, automotive softness and increasing dependence on AI-driven demand add to near-term execution risks. Coupled with a negative Zacks Earnings ESP, the stock appears less attractive ahead of the second-quarter earnings release.However, TTM Technologies remains well positioned to benefit from long-term investments in AI infrastructure and aerospace & defense. Expanding manufacturing capacity, a strong defense backlog and sustained demand for advanced interconnect and integrated electronics solutions are expected to support revenue growth and margin expansion over time.You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report TE Connectivity Ltd. (TEL) : Free Stock Analysis Report OSI Systems, Inc. (OSIS) : Free Stock Analysis Report nVent Electric PLC (NVT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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nVent Electric NVT is scheduled to release second-quarter 2026 results on July 31. For the second quarter of 2026, NVT expects sales to grow 28% to 30%, with an acquisition contribution of up to 5 points to sales. NVT’s organic sales growth is expected to be up 23% to 25%. The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.25 billion, indicating a year-over-year increase of 30.2%. Adjusted EPS is expected to be between $1.12 and $1.15, which at the midpoint implies approximately a 30% increase from last year. The consensus mark for earnings is pegged at $1.16, up by a penny over the past 30 days, indicating 34.9% year-over-year growth. Image Source: Zacks Investment Research nVent Electric’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 4.96%. nVent Electric PLC price-eps-surprise | nVent Electric PLC Quote Our proven model conclusively predicts an earnings beat for nVent Electric this season. The combination of a positive Earnings ESP and Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That’s the exact case here. NVT currently has an Earnings ESP of +1.94% and sports a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. nVent Electric’s second-quarter performance is expected to have benefited from strong momentum in its infrastructure segment, particularly driven by growth in data centers and power utilities. nVent Electric is seeing very strong demand from data center customers, driven mainly by the growth in AI workloads. In the first quarter of 2026, organic orders rose around 40%, and management said most of this increase came from large liquid cooling orders for hyperscaler programs. The company ended the first quarter of 2026 with a record backlog of $2.6 billion, rising in the low double digits sequentially. Power utilities are becoming an important and steady source of growth for nVent Electric. NVT’s power utility vertical includes customers across both of its major segments, Systems Protection and Electrical Connections. Here, customers are upgrading equipment as electricity demand increases, especially with more data centers coming online. This creates steady demand for nVent Electric’s enclosures, power distribution products and related electrical equipment, all of which are expected to have contributed positively to the company’s first-quarter performance. NVT’s acquisitions of Trachte and Electrical Products Group (“EPG”) are expected to have contributed significantly to its first-quarter 2026 performance. The company sees both the acquired businesses performing better than expected, while finding new applications, including work tied to data center projects, which is expected to have driven revenue growth in the to-be-reported quarter. However, nVent Electric is dealing with higher costs from tariffs and inflation. In the first quarter of 2026, inflation impact totaled $60 million, which included around $40 million from tariffs. For 2026, nVent Electric forecasts approximately $80 million of incremental tariff-related costs, with most of the impact expected in the first half of 2026. This shows that tariffs remain a significant headwind, due to which margins could come under pressure during the first quarter of 2026. nVent Electric shares have surged 46.5% year to date, outperforming the Zacks Electronics - Miscellaneous Components industry’s decline of 17.7%. The stock also outperformed its industry peers, including Fabrinet FN, TE Connectivity TEL and OSI Systems OSIS. Year to date, shares of Fabrinet have gained 3.4%, while TE Connectivity and OSI Systems shares have lost 8.8% and 14.8%, respectively. Image Source: Zacks Investment Research nVent Electric is currently trading at a higher price-to-sales (P/S) multiple compared with the industry. NVT’s forward 12-month P/S ratio sits at 4.53X, higher than the industry’s forward 12-month P/S ratio of 3.76X. Image Source: Zacks Investment Research NVT stock also trades at a higher P/S multiple compared with other industry peers, including OSI Systems, Fabrinet and TE Connectivity. At present, OSI Systems, Fabrinet and TE Connectivity have P/S multiples of 1.84X, 2.89X and 2.79X, respectively. NVT’s rally reflects investor excitement about AI-related data center demand, putting it above industry and peers in terms of valuation, reflecting the high growth expectations of the company in the long term. nVent Electric is well-positioned to benefit from the rapid expansion of AI data centers and increasing investments in power infrastructure. The company continues to see strong demand across both gray space and white space data center applications, including liquid cooling, power distribution, cable management and engineered building solutions. As more AI data centers are built, demand for these products is expected to remain strong. nVent Electric is also benefiting from higher investments in power utilities as electric grids are upgraded to support rising electricity demand. At the same time, the company is expanding its manufacturing capacity and strengthening its data center business through acquisitions such as Trachte and EPG. These acquisitions have expanded nVent Electric's presence in modular data centers and engineered building solutions. Backed by a record backlog of $2.6 billion, along with strong order growth, nVent Electric remains well-positioned to benefit from long-term growth in AI infrastructure and grid modernization. nVent Electric is seeing steady demand from data centers and power utilities, which is helping drive strong orders and a growing backlog. Further, the stock’s valuation reflects high growth expectations from the company, which is set to benefit from strong long-term demand from AI-related data center projects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report nVent Electric PLC (NVT) : Free Stock Analysis Report TE Connectivity Ltd. (TEL) : Free Stock Analysis Report OSI Systems, Inc. (OSIS) : Free Stock Analysis Report Fabrinet (FN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Amphenol APH is set to report its second-quarter 2026 results on July 29.The company expects second-quarter 2026 earnings between $1.14 per share and $1.16 per share, indicating growth between 43% and 45% year over year. The Zacks Consensus Estimate for second-quarter 2026 earnings has increased 2.6% to $1.19 per share over the past 30 days, suggesting 46.91% growth from the figure reported in the year-ago quarter.Amphenol expects second-quarter 2026 revenues between $8.1 billion and $8.2 billion, suggesting year-over-year growth in the 41-43% range. The Zacks Consensus Estimate for second-quarter revenues is pegged at $8.30 billion, indicating an increase of 46.92% from the figure reported in the year-ago quarter. Image Source: Zacks Investment Research Amphenol’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 14.08%. Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote Let’s see how things have shaped up for the upcoming announcement. Amphenol’s second-quarter 2026 results are likely to have been driven by continued strength in the IT datacom business, supported by accelerating investments in AI infrastructure. The company projected a sequential increase in IT datacom sales in the low-teens percentage range as hyperscale and enterprise customers continued expanding AI data center deployments. IT datacom represented more than 40% of APH’s revenues in the first quarter of 2026, while sales jumped 99% year over year (81% organically) and 27% sequentially (16% organically).APH has noted exceptionally strong demand for its high-speed copper, power and fiber-optic interconnect solutions, while the CommScope acquisition significantly broadened its portfolio across these technologies, strengthening its competitive position in next-generation AI architectures. Record first-quarter bookings and a 1.24 book-to-bill ratio had also provided healthy demand visibility entering the second quarter.The to-be-reported quarter is also likely to have benefited from sustained momentum across Amphenol’s diversified end markets. The company expected high-single-digit sequential growth in both the industrial and defense businesses, supported by increasing defense spending, industrial automation, building connectivity and broad-based demand across geographies. Automotive revenues were projected to rise modestly sequentially as electronic content per vehicle continued increasing despite uneven vehicle production, while communications networks revenues were expected to remain stable with support from the CommScope integration. These diversified growth drivers reduce reliance on any single market and should have supported overall revenue growth.Amphenol’s disciplined operating model is likely to have remained another positive driver during the to-be-reported quarter. In the first quarter, adjusted operating margin reached 27.3%, expanding 380 basis points (bps) year over year, despite the temporary dilution from the CommScope acquisition, reflecting robust operating leverage on higher volumes. Management also expressed confidence that CommScope's performance would continue improving under Amphenol’s operating model. Healthy cash generation, strong order activity and continued integration of acquired businesses are likely to have supported margins and earnings growth in the second quarter of 2026.However, acquisition-related amortization, integration expenses and backlog adjustments are expected to have continued weighing on reported profitability. Operating margin in the first quarter of 2026 contracted 20 bps due to the dilutive impact of the CommScope acquisition. In addition, higher debt used to finance the CommScope acquisition has increased quarterly interest expense, which Amphenol expects to remain around $200 million through the remainder of 2026. This is expected to have hurt earnings in the to-be-reported quarter. Amphenol shares have appreciated 13% year to date (YTD), outperforming the Zacks Computer and Technology sector’s return of 9.7%. APH has outperformed TE Connectivity TEL and Belden BDC but lagged Corning GLW YTD. While Corning shares have returned 67.5%, TE Connectivity and Belden shares have dropped 10.8% and 11.8%, respectively, over the same time frame. Image Source: Zacks Investment Research APH stock is trading at a premium, as suggested by the Value Score of D. In terms of the forward 12-month price/earnings, APH is trading at 28.22X, higher than the broader sector’s 22.92X, TE Connectivity’s 18.76X and Belden’s 15.61X. However, Amphenol is trading below Corning’s multiple of 30.53. Image Source: Zacks Investment Research The rapid expansion of AI computing infrastructure remains Amphenol’s largest long-term growth catalyst. The company believes the AI revolution is creating a unique opportunity because next-generation AI systems require significantly greater high-speed, power and fiber interconnect content. Following the CommScope acquisition, Amphenol now offers one of the industry's broadest portfolios of high-speed copper, fiber-optic and power interconnect products, positioning it to capture increasing content across AI clusters and future computing architectures.Apart from AI, Amphenol continues to benefit from long-term structural growth across defense, aerospace, industrial automation, communications infrastructure and automotive electronics. Increasing defense modernization programs, rising electronic content in vehicles, aircraft production recovery, factory automation, electrification and building connectivity are major durable demand drivers. Amphenol’s acquisition strategy that expands the company’s technology portfolio, deepens customer relationships and creates cross-selling opportunities is a key catalyst. Amphenol appears well positioned heading into its second-quarter 2026 results, backed by strong AI-driven demand, healthy order trends and solid execution across its diversified end markets. While acquisition-related costs and higher interest expenses may continue to weigh on reported profitability in the near term, the company’s expanding AI interconnect portfolio, disciplined operating model and proven acquisition strategy provide a strong foundation for sustained growth. These factors justify the current premium valuation. APH currently sports a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Corning Incorporated (GLW) : Free Stock Analysis Report Belden Inc (BDC) : Free Stock Analysis Report TE Connectivity Ltd. (TEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. TE Connectivity stock has delivered a 52.9% return over the past five years, yet current checks suggest it now trades close to its intrinsic value based on a Discounted Cash Flow (DCF) estimate, while market multiples still lean on the cheap side. A 52.9% gain over five years points to a stock that has already rewarded patient shareholders, so new buyers may be weighing how much upside is left from here. Recent earnings momentum and expectations for higher demand for AI related products can support earnings power, while the integration and execution risk around the planned Astrodyne acquisition may weigh on how generously the market prices TE Connectivity. With a high valuation score of 5 out of 6, the broader checks lean toward TE Connectivity looking attractively priced rather than stretched. The issue now is whether TE Connectivity's current price, sitting near the Discounted Cash Flow (DCF) intrinsic value yet still screening as undervalued on multiples, leaves enough margin of safety for investors given the recent track record. Find out why TE Connectivity's 0.5% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model values TE Connectivity by projecting its future cash flows and discounting them back to today. For TE Connectivity, the model uses latest twelve month free cash flow of about $3.4b as a starting point and assumes that cash flows continue to grow rather than shrink over time. On these assumptions, the DCF output points to an intrinsic value of about $207 per share, which sits only around 3.2% above the current share price, so the stock screens as roughly fairly valued rather than meaningfully cheap or expensive. Because TE Connectivity recently reported strong Q3 results and announced the planned $1.4b Astrodyne acquisition, the small discount to the DCF value may reflect investors already pricing in both the growth opportunity and the associated integration risk. Overall, the DCF work suggests TE Connectivity stock currently looks about fairly valued on a cash flow basis. TE Connectivity is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for TE Connectivity. The P/E ratio is a useful way to think about what you are paying for each dollar of TE Connectivity earnings. TE Connectivity currently trades on about 19.4x earnings, which sits below the Electronic industry average of roughly 29.4x and the broader peer group near 53.1x. On Simply Wall St’s more tailored fair P/E of 30.9x, which factors in TE Connectivity's size, sector, profitability and risks, the current multiple implies a sizable discount rather than a premium. That gap suggests the market is pricing TE Connectivity more cautiously than both its industry and the fair multiple would indicate, even after its recent earnings update and the planned Astrodyne acquisition. On the P/E multiple, TE Connectivity stock appears undervalued relative to both its sector and an adjusted fair value benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the TE Connectivity valuation puzzle leaves off. They spell out what would need to happen to TE Connectivity's growth, margins and earnings for the stock to be worth significantly more or less than today. Each Narrative treats its view of fair value as a hypothesis about how the business could develop over time, so you can see clearly how that thesis holds up as new information arrives on the Community page. One of the top community narratives on TE Connectivity: 9% undervalued Read one of the top narratives on TE Connectivity Do you think there's more to the story for TE Connectivity? Head over to our Community to see what others are saying! TE Connectivity looks close to intrinsic value on a Discounted Cash Flow (DCF) view, while the P/E comparison still points to the stock as undervalued versus peers. Taken together, the high valuation score suggests the overall checks are more supportive than cautious, but not a clear-cut bargain. From here, the key question is whether TE Connectivity can turn expected demand for its products into sustained earnings power without stumbling on the Astrodyne integration. This would help determine if the current discount on multiples is an opportunity or a warning. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TEL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: $5.2 billion in Q3, a 14% increase on a reported basis and 12% organically year-over-year. Order Levels: Record orders of $5.7 billion, a 27% increase year-over-year and 7% sequentially. Adjusted Earnings Per Share (EPS): $2.94, a 22% increase year-over-year. Adjusted Operating Margins: 21.9%, expanding 90 basis points year-over-year. Free Cash Flow: Approximately $2.2 billion year-to-date. Industrial Segment Sales Growth: 22% reported and 21% organically year-over-year. Transportation Solutions Segment Sales Growth: 7% reported and 5% organically year-over-year. Digital Data Networks Sales Growth: 34% year-over-year. Energy Business Sales Growth: 33% organically year-over-year. Commercial Transportation Sales Growth: 20% reported and 18% organically year-over-year. Astrodyne TDI Acquisition: Expected to generate over $250 million in annual sales with a purchase price of approximately $1.4 billion. Full Year Sales Growth Expectation: 15% increase, representing more than $2.5 billion of incremental revenue. Full Year Adjusted EPS Growth Expectation: 23% year-over-year. Warning! GuruFocus has detected 8 Warning Signs with TRST. Is TEL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TE Connectivity PLC (NYSE:TEL) reported a 14% increase in sales for the third quarter, reaching $5.2 billion. The company achieved a record order level of $5.7 billion, marking a 27% year-over-year growth. Adjusted earnings per share grew by 22% to $2.94, with adjusted margins expanding by 90 basis points. TE Connectivity PLC (NYSE:TEL) expects full fiscal year sales growth of approximately 15% and adjusted EPS growth of 23%. The acquisition of Astrodyne TDI is expected to enhance the company's power and filter product portfolio, contributing to the Industrial segment's growth. Global vehicle production is expected to be slightly down, which could impact the Transportation Solutions segment. Concerns about the China domestic market persist, although exports are offsetting some of the local market weakness. The company faces ongoing inflationary pressures, which require careful management through pricing and cost actions. The transition to higher-voltage architectures in data centers may introduce new competitive dynamics. TE Connectivity PLC (NYSE:TEL) continues to incur restructuring charges, with expectations of approximately $100 million for fiscal 2026. Q: Can you talk about the ramp you expect in your FAU optical business and its importance in the copper versus optical debate? A: Terrence Curtin, CEO, explained that both copper and optical are important, with copper being the heavy workload within the rack. The RAM Photonics acquisition has opened up incremental market access for optics, which will be more significant in 2028 and beyond. The company is investing in scaling manufacturing and engineering to meet customer expectations. Q: How are record orders and backlog setting the company up for revenue growth in 2027, especially in the DDN segment? A: Terrence Curtin, CEO, noted that orders increased by $1.2 billion, with significant growth in the Industrial segment, particularly in DDN due to AI trends. The momentum is expected to deliver more into next year, with DDN orders up 70% year-to-date. The strong backlog and order growth in other segments like Energy and AD&M also support continued growth into 2027. Q: How do you see the China domestic market evolving versus the export market in the transportation segment? A: Terrence Curtin, CEO, stated that while China auto production is down, exports are offsetting the weak domestic market. TE Connectivity's strong position in Asia led to 8 points of outperformance over production. Exports to regions like Southeast Asia, Central and South America, and Europe are driving growth, and the company expects continued content outperformance. Q: Can you provide more details on the acquisition of Astrodyne TDI and its strategic importance? A: Terrence Curtin, CEO, highlighted that Astrodyne TDI strengthens TE's position in power filters and custom power supplies, complementing existing capabilities. The acquisition, valued at $1.4 billion, is expected to close by the end of the calendar year and will be accretive to growth rates and margins. Heath Mitts, CFO, added that the acquisition will enhance operational synergies and support strategic growth. Q: What is the updated guidance for AI revenues, and how do AI-linked revenues impact the Energy segment and the Astrodyne acquisition? A: Terrence Curtin, CEO, confirmed that DDN is on track to meet previous expectations, with AI revenues continuing to increase as a percentage of DDN. About 20% of the Energy segment benefits from data center build-outs, and the Astrodyne acquisition will further support growth in semiconductor equipment markets driven by AI. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. TE Connectivity (TEL) is back in focus after reporting third quarter fiscal 2026 results, with higher sales, earnings and updated guidance that, together with the Astrodyne TDI acquisition, sharpen the picture for investors. See our latest analysis for TE Connectivity. TE Connectivity's share price has been under pressure in recent months, with a 30 day share price return of a 4% decline and a year to date share price return of a 10.38% decline, even as the 1 year total shareholder return of 17.42% and 5 year total shareholder return of 64.56% point to stronger long term momentum around the business and its dividends. If TE Connectivity's latest earnings and acquisition have you thinking about where else growth and electrification might show up, it could be worth scanning 35 power grid technology and infrastructure stocks TE Connectivity is trading below the average analyst price target and close to an internal fair value estimate, which highlights a clear gap between recent share price weakness and valuation models. How wide is that gap once the latest quarter and Astrodyne TDI are fully priced in? TE Connectivity's most followed valuation narrative points to a fair value of $257.40 versus a last close of $209.01, framing the current price as a clear discount before factoring in the latest orders, margins and Astrodyne TDI. Read the complete narrative. Want to see what is baked into that $257.40 fair value for TE Connectivity? Revenue, margins and earnings are all pushed harder than recent history. The valuation hinges on faster compounding and a richer future earnings multiple. Curious how those moving parts fit together into a single price target? The full narrative lays out the numbers behind that call in plain sight. Result: Fair Value of $257.40 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, TE Connectivity's reliance on AI, energy and Asian transportation demand, along with integration and regulatory risks around acquisitions, could challenge the view that the stock is currently undervalued. Find out about the key risks to this TE Connectivity narrative. While the TE Connectivity narrative leans on discounted cash flows and long term forecasts, the current P/E ratio of 21x tells a different story. It sits well below both peers at 53.7x and a fair ratio estimate of 31.4x. This points to a wide valuation gap that investors need to interpret as either a potential cushion or a possible warning. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out TE Connectivity for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With all this in mind about TE Connectivity, do you see a cautious opportunity or a value trap taking shape, and how quickly do you want to firm up your own view? To weigh the upside that some investors are optimistic about against the risks, start by reviewing the 6 key rewards. If TE Connectivity has sharpened your thinking, do not stop here. Broader context across other stocks can help you stress test your own convictions and timing. Use these focused stock ideas to see where your next opportunity might come from while others are still hesitating. Spot potential high quality bargains early by scanning 50 high quality undervalued stocks before pricing fully reflects stronger fundamentals. Strengthen your income watchlist by reviewing 9 dividend fortresses built around companies with meaningful yields. Prioritize resilience and sleep better at night by checking 81 resilient stocks with low risk scores filtered for stocks with lower risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TEL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

TE Connectivity TEL reported third-quarter fiscal 2026 adjusted earnings of $2.94 per share, up 22% year over year. The figure beat the Zacks Consensus Estimate of $2.85 by 3.2%.Net sales increased 14% year over year to $5.16 billion and surpassed the Zacks Consensus estimate by 3.14%. Growth across both the Industrial and Transportation segments supported performance. Orders reached a record $5.7 billion, rising 27% year over year. Transportation Solutions generated revenues of $2.58 billion, accounting for half of total sales. Segment revenues increased 7% on a reported basis and 5% organically from the year-ago quarter.Industrial Solutions also recorded revenues of $2.58 billion, representing the remaining half of sales. The figure climbed 22% year over year on a reported basis and 21% organically, reflecting broad-based demand across most of its businesses. TE Connectivity Ltd. price-consensus-eps-surprise-chart | TE Connectivity Ltd. Quote Within Transportation Solutions, Automotive sales rose 5% to $1.91 billion, including 3% organic growth, supported by content outperformance in Asia and Europe. Commercial Transportation revenues advanced 20% to $434 million and increased 18% organically on strong content growth across all regions.Sensor’s revenues declined 1% to $233 million and fell 3% organically. The segment's adjusted operating income increased to $541 million from $486 million, while adjusted operating margin expanded 90 basis points to 21%. Digital Data Networks revenues surged 34% to $813 million on both a reported and organic basis, aided by continued momentum in artificial intelligence applications. Management indicated that orders support another strong sequential sales increase for the business in the fourth quarter.Energy sales increased 34% to $516 million, including 33% organic growth, driven by grid-hardening activity and data-center construction. Automation and Connected Living revenues rose 16% to $664 million, while Aerospace, Defense and Marine sales advanced 12% to $419 million. Medical revenues decreased 7% to $168 million. The segment's adjusted operating income increased to $588 million from $467 million, while adjusted operating margin expanded 70 basis points to 22.8%. In third-quarter fiscal 2026, GAAP gross margin expanded 26 basis points (bps) year over year to 35.6%.Selling, general and administrative expenses increased to $532 million from $491 million. Research, development and engineering expenses rose to $230 million from $211 million. GAAP operating income increased to $981 million from $857 million. Operating margin edged up 10 bps to 19%. Adjusted operating income rose to $1.13 billion from $953 million, while adjusted operating margin expanded 90 bps to 21.9%. As of June 26, 2026, cash and cash equivalents totaled $1.24 billion. Total debt was $5.63 billion. TE Connectivity generated $1.19 billion in cash from operating activities during the quarter, nearly unchanged from the prior-year period. Free cash flow declined to $883 million from $962 million.TEL repurchased $529 million of shares and paid $226 million in dividends during the quarter. For the fourth quarter of fiscal 2026, TE Connectivity expects sales of approximately $5.25 billion, indicating 11% growth on both a reported and organic basis. Adjusted earnings are projected to be approximately $3.05 per share, representing an 18% year-over-year increase.TEL also agreed to acquire Astrodyne TDI for approximately $1.4 billion. The business is expected to contribute annual sales of more than $250 million and expand the company's power-management portfolio within Industrial Solutions. Currently, TE Connectivity has a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Bandwidth BAND, Amphenol APH, and Amkor Technology AMKR. While Bandwidth and Amphenol sport a Zacks Rank #1 (Strong Buy), Amkor Technology carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Bandwidth is set to report second-quarter 2026 results on July 29. Bandwidth shares have appreciated 355.4% year to date.Amphenol is slated to report second-quarter 2026 results on July 29. Amphenol shares have gained 16.8% year to date.Amkor Technology is set to report second-quarter 2026 results on July 29. Amkor Technology shares have surged 69% year to date. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TE Connectivity Ltd. (TEL) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report Bandwidth Inc. (BAND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earlier this month, TE Connectivity reported quarterly earnings and revenue that both came in ahead of Wall Street expectations, continuing its record of outperforming consensus estimates over the past year. This ongoing pattern of earnings and revenue surprises reinforces analyst expectations for strength in key segments such as Industrial Solutions, where demand and profitability have been focal points. We’ll now examine how TE Connectivity’s latest earnings and revenue beat, and continued outperformance versus estimates, may influence its investment narrative. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. To own TE Connectivity, you need to believe its core role in AI data centers, electrification, and industrial solutions will keep supporting resilient earnings and cash generation. The latest quarter’s earnings and revenue beat supports the near term catalyst of continued strength in Industrial Solutions, but does not materially change the central risk that demand in AI, energy, and Asian transportation could cool or become more volatile. Among recent announcements, the company’s 10% dividend increase to US$0.78 per share stands out alongside the earnings beat. For many shareholders, that higher cash return can reinforce confidence that current profitability and free cash flow support the investment case, even as they weigh the ongoing risks around geographic concentration, restructuring execution, and shifting electronics architectures that could affect growth in key segments. Yet, investors should be aware that if AI or Asian transportation demand slows faster than expected, especially alongside any reversal in Industrial Solutions strength, then ... Read the full narrative on TE Connectivity (it's free!) TE Connectivity's narrative projects $23.5 billion revenue and $4.1 billion earnings by 2029. This requires 8.0% yearly revenue growth and a $1.2 billion earnings increase from $2.9 billion today. Uncover how TE Connectivity's forecasts yield a $257.40 fair value, a 23% upside to its current price. Some of the lowest ranked analysts were projecting TE’s revenue at about US$22.5 billion and earnings near US$4.1 billion by 2029, yet your view on risks like accelerating technological disruption could differ sharply from theirs, especially after a fresh earnings beat that might prompt both the optimistic and more cautious camps to revisit their assumptions. Explore 6 other fair value estimates on TE Connectivity - why the stock might be worth 15% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your TE Connectivity research is our analysis highlighting 6 key rewards that could impact your investment decision. Our free TE Connectivity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TE Connectivity's overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: Find 50 companies with promising cash flow potential yet trading below their fair value. Capitalize on the AI infrastructure supercycle with our selection of the 54 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. The latest GPUs need a type of rare earth metal called Neodymium and there are only 29 companies in the world exploring or producing it. Find the list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TEL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in TE Connectivity Ltd.? Here are five stocks we like better. TE Connectivity posted record third-quarter results, with sales of $5.2 billion, adjusted EPS of $2.94, and record orders of $5.7 billion. Management said demand from AI infrastructure, electrification, automation, and power investment is driving the outperformance. Industrial strength was led by AI-related data and power demand, especially in the Digital Data Networks and energy businesses. Executives said copper and optical connectivity both have roles in AI systems, while rising power needs are creating additional growth opportunities. The company raised its full-year outlook and added to growth via acquisition, now expecting fiscal 2026 sales to grow about 15% and adjusted EPS to rise 23% year over year. TE also announced a $1.4 billion deal to acquire Astrodyne TDI, which is expected to add more than $250 million in annual sales. 3 Stocks Quietly Leveraging AI While Everyone Chases NVIDIA TE 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. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks 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. → 3 Photonics Companies Making Quantum Tech Possible This mid-cap tech stock just jumped 30%...and is still cheap TE’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. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In 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. 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%. 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. 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. 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. 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]. The article "TE Connectivity Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.