TE Connectivity (NYSE:TEL) Releases Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• TE Connectivity beat earnings expectations, reporting adjusted EPS of $2.94 versus the $2.84 consensus. The company also posted a 14% year-over-year sales increase to a record $5.16 billion.
• Management issued upbeat guidance for Q4 2026, calling for EPS of $3.05 and revenue of about $5.3 billion, both above Wall Street expectations. The company said demand tied to AI-related tools is helping support growth.
• The stock moved higher after the report, rising about 2.9% in trading. TE Connectivity also continues to return capital to shareholders with a quarterly dividend of $0.78 per share.

TE Connectivity (NYSE:TEL - Get Free Report) issued its quarterly earnings results on Wednesday. The electronics maker reported $2.94 EPS for the quarter, beating analysts' consensus estimates of $2.84 by $0.10, FiscalAI reports. TE Connectivity had a return on equity of 23.56% and a net margin of 15.54%. TE Connectivity updated its Q4 2026 guidance to 3.050-3.050 EPS.

TE Connectivity Trading Up 2.9%

NYSE TEL opened at $209.02 on Wednesday. TE Connectivity has a 12 month low of $177.21 and a 12 month high of $252.56. The company has a current ratio of 1.89, a quick ratio of 1.20 and a debt-to-equity ratio of 0.42. The stock has a 50 day moving average of $205.72 and a 200-day moving average of $215.53. The company has a market cap of $61.01 billion, a PE ratio of 21.35, a PEG ratio of 1.42 and a beta of 1.17.

TE Connectivity Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Stockholders 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 1.5%. The ex-dividend date of this dividend is Friday, August 21st. TE Connectivity's dividend payout ratio is presently 31.87%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on TEL shares. Jefferies Financial Group upgraded TE Connectivity from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, April 15th. Zacks Research downgraded shares of TE Connectivity from a "strong-buy" rating to a "hold" rating in a report on Monday, June 8th. Citigroup cut their price objective on shares of TE Connectivity from $250.00 to $230.00 and set a "buy" rating on the stock in a research report on Monday, July 13th. Truist Financial reduced 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, April 23rd. Finally, Weiss Ratings upgraded shares of TE Connectivity from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, TE Connectivity has a consensus rating of "Moderate Buy" and an average target price of $255.31.

Key Stories Impacting TE Connectivity

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

• Positive Sentiment: TE Connectivity posted Q3 adjusted EPS of $2.94, ahead of estimates, while sales rose 14% year over year to a record $5.16 billion, signaling solid demand across its Industrial and Transportation businesses. Article Title
• Positive Sentiment: The company guided fourth-quarter EPS to $3.05, above consensus, and revenue to about $5.3 billion, also above expectations, which suggests momentum is continuing into the next quarter. Article Title
• Positive Sentiment: Management said demand for AI-related tools and products is helping support results, giving investors another growth driver to focus on beyond the core industrial and auto markets. Article Title
• Neutral Sentiment: Unusually heavy call-option activity appeared ahead of earnings, suggesting traders were positioned for a positive report, but it does not change the underlying fundamentals.

Insiders Place Their Bets

In other TE Connectivity news, insider Shadrak W. Kroeger sold 9,400 shares of the company's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $215.00, for a total transaction of $2,021,000.00. Following the sale, the insider directly owned 25,976 shares of the company's stock, valued at approximately $5,584,840. This represents a 26.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.60% of the company's stock.

Institutional Investors Weigh In On TE Connectivity

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

About TE Connectivity

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.

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