TE Connectivity (NYSE:TEL) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• TE Connectivity reported Q2 EPS of $2.73, beating estimates by $0.03, with revenue of $4.74 billion (up 14.4% year-over-year), and updated Q3 2026 guidance to $2.83 EPS.
• The board authorized a $3.0 billion share buyback (up to ~5% of outstanding shares) and raised the quarterly dividend to $0.78 (annualized $3.12), implying a payout ratio around 41% and a 1.4% yield.
• Despite the beat, shares fell about $24.85 intraday to $218.33; insiders have sold ~42,345 shares (~$9.6M) in the last 90 days, while analysts hold a consensus "Moderate Buy" with a $246.33 price target.

TE Connectivity (NYSE:TEL - Get Free Report) issued 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 11.41% and a return on equity of 22.72%. The business had revenue of $4.74 billion for the quarter, compared to analysts' expectations of $4.72 billion. During the same quarter last year, the company posted $2.10 earnings per share. The company's quarterly revenue was up 14.4% compared to the same quarter last year. TE Connectivity updated its Q3 2026 guidance to 2.830-2.830 EPS.

TE Connectivity Stock Performance

Shares of TEL traded down $24.85 during mid-day trading on Wednesday, reaching $218.33. 1,712,445 shares of the company's stock traded hands, compared to its average volume of 2,178,764. The business's 50-day moving average price is $218.75 and its 200-day moving average price is $226.54. The stock has a market capitalization of $64.06 billion, a P/E ratio of 31.56, a price-to-earnings-growth ratio of 1.79 and a beta of 1.26. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.07 and a current ratio of 1.65. TE Connectivity has a 12 month low of $135.54 and a 12 month high of $252.56.

TE Connectivity Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 22nd will be issued a dividend of $0.78 per share. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.4%. 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. TE Connectivity's dividend payout ratio is presently 40.98%.

Insider Activity

In other news, EVP John S. Jenkins sold 6,155 shares of TE Connectivity stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $222.81, for a total transaction of $1,371,395.55. Following the sale, the executive vice president owned 21,810 shares of the company's stock, valued at approximately $4,859,486.10. The trade was a 22.01% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Reuben M. Shaffer sold 1,425 shares of TE Connectivity stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $234.23, for a total value of $333,777.75. The SEC filing for this sale provides additional information. Over the last 90 days, 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

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC bought a new stake in TE Connectivity during the fourth quarter worth approximately $820,000. Sivia Capital Partners LLC raised its holdings in TE Connectivity by 66.7% during the second quarter. Sivia Capital Partners LLC now owns 2,517 shares of the electronics maker's stock worth $425,000 after purchasing an additional 1,007 shares in the last quarter. Miller Capital Partners Inc. bought a new stake in TE Connectivity during the fourth quarter worth approximately $210,000. Wealth Architects LLC bought a new stake in TE Connectivity during the fourth quarter worth approximately $204,000. Finally, Parkside Financial Bank & Trust raised its holdings in TE Connectivity by 28.7% during the fourth quarter. Parkside Financial Bank & Trust now owns 892 shares of the electronics maker's stock worth $203,000 after purchasing an additional 199 shares in the last quarter. Institutional investors own 91.43% of the company's stock.

TE Connectivity announced that its board has authorized a share buyback plan on Wednesday, March 11th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the electronics maker to reacquire up to 5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts have issued reports on TEL shares. Truist Financial raised their target price on shares of TE Connectivity from $240.00 to $244.00 and gave the stock a "hold" rating in a report on Thursday, January 22nd. Weiss Ratings raised shares of TE Connectivity from a "hold (c+)" rating to a "buy (b)" rating in a report on Friday, February 6th. UBS Group set a $272.00 target price on shares of TE Connectivity in a report on Tuesday, April 14th. Oppenheimer raised their target price on shares of TE Connectivity from $270.00 to $285.00 and gave the stock an "outperform" rating in a report on Friday, February 13th. Finally, Wells Fargo & Company cut their target price on shares of TE Connectivity from $249.00 to $214.00 and set an "equal weight" rating on the stock in a report on Tuesday, March 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, TE Connectivity presently has a consensus rating of "Moderate Buy" and a consensus price target of $246.33.

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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