TEL|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q4'26 | $3.07 | - | - |
| Q3'26 | $2.87 | $2.94 | +2.4% |
| Q2'26 | $2.79 | $2.73 | -2.3% |
| Q3'25 | $2.29 | $2.44 | +6.6% |
| Q2'25 | $2.08 | $2.27 | +9.2% |
| Q1'25 | $1.96 | $2.10 | +6.9% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q4'26 | $5.3B | - | - |
| Q3'26 | $5.1B | $5.2B | +2.1% |
| Q2'26 | $4.9B | $4.7B | -4.2% |
| Q3'25 | - | $4.7B | - |
| Q2'25 | - | $4.5B | - |
| Q1'25 | - | $4.1B | - |
Market Data
TEL Stock Snapshot
TEL is currently trading at $216.33, giving TE Connectivity plc a market cap of 62.41B and a P/E ratio of 20.7. Today's range spans $213.76–$219.38, with shares opening at $214.68 and moving up $0.01 (0.0%) from the prior close. DailyIQ's technical score sits at 73/100 (BUY) with a news sentiment reading of 84/100.
Over the past year TEL has traded between $190.27 and $252.56 - the current price is +13.7% off the 52-week low and -14.3% from the high. 27 analysts cover the stock with a Buy consensus and a mean 12-month target of $246.79 (range $209.00–$306.00), implying upside of +14.1%.
Dividend-paying Technology stocks at the large-cap level tend to attract a different buyer mix than pure growth names - and TEL (62.41B market cap) with a BUY read (73/100) and bullish sentiment (84/100) benefits from both income-oriented and growth-oriented flows. The current P/E ratio stands at 20.7. Price: $216.33 (in the lower half of its 52-week range in $190.27–$252.56). When technical momentum aligns with that dual-buyer base, the price path tends to be more durable than single-buyer-type momentum trades.
What makes TEL's BUY setup (73/100) particularly actionable at 62.41B in Technology capitalization is the scale-to-move ratio: large enough to feature on institutional mandates but not so large that the percentage upside is already compressed by index inertia. At $216.33 (in the lower half of its 52-week range in $190.27–$252.56), with sentiment running bullish at 84/100, the setup rewards conviction-sized positioning more than it does speculative small bets.
Company Insights: TE Connectivity plc (TEL)
TE Connectivity (TEL) is a global technology leader specializing in the design and manufacture of connectivity and sensor solutions. Its products are integral to critical functions across diverse industries, including automotive, aerospace, data centers, and medical technology. The company's core value proposition centers on enabling reliable data and power transmission in demanding environments.
The company's operational performance has demonstrated consistent positive momentum, evidenced by sequential increases in both Earnings Per Share (EPS) and revenue over the last four reported quarters. TEL has also consistently surpassed analyst EPS estimates, indicating a trend of exceeding market expectations. This sustained growth trajectory suggests effective operational execution and strong demand for its specialized components.
Recent performance highlights include a significant surge in AI-related revenue, with the Digital Data Networks business experiencing a remarkable 70% year-over-year increase. This growth is a key indicator of TEL's ability to capitalize on emerging technological trends. Furthermore, analyst sentiment remains positive, with Oppenheimer maintaining an 'Outperform' rating and raising its price target, underscoring confidence in the company's future prospects.
Revenue Momentum
TEL has reported consistent year-over-year growth in both EPS and revenue over the past two fiscal periods.
The company has a track record of exceeding analyst EPS estimates, demonstrating operational strength.
Recent AI-driven demand has fueled a 70% year-over-year increase in the Digital Data Networks segment.
Sector Diversification
TE Connectivity serves critical sectors including automotive, aerospace, data centers, and medical technology.
Its solutions are essential for enabling data and power transmission in a wide array of applications.
This broad industry exposure mitigates risks associated with cyclicality in any single market.
Analyst Confidence
Oppenheimer maintains an 'Outperform' rating on TE Connectivity stock.
The firm recently raised its price target for TEL, signaling positive future expectations.
This analyst endorsement reflects confidence in the company's strategic direction and growth potential.
Financial Prudence
TE Connectivity has initiated a $750 million senior notes offering.
This offering is intended to address upcoming debt maturities, specifically those due in 2026.
Proactive debt management enhances financial stability and reduces future interest rate risk.
Positioning TEL
Investors seeking exposure to the critical infrastructure of data and power transmission should consider TE Connectivity. Adding to positions may be warranted on continued evidence of AI-related revenue acceleration and sustained growth across its key industrial and transportation segments. Reducing exposure could be considered if there are significant signs of deceleration in its core end markets or a failure to maintain its EPS beat streak.
Analyst Price Targets for TEL
Wall Street's current consensus view on TE Connectivity plc (TEL), based on the most recently tracked analyst coverage.
Reflects the most recently tracked analyst ratings for TEL and may lag real-time updates. Not a recommendation to buy or sell.
TEL Recent Earnings History
- Q3 2025
EPS: $2.44 actual vs $2.29 estimate (beat) · Revenue: $4,749M actual
- Q2 2025
EPS: $2.27 actual vs $2.08 estimate (beat) · Revenue: $4,534M actual
- Q1 2025
EPS: $2.1 actual vs $1.96 estimate (beat) · Revenue: $4,143M actual
- Q4 2024
EPS: $1.95 actual vs $1.89 estimate (beat) · Revenue: $3,836M actual
Key Metrics for TEL
TE Connectivity's performance hinges on demand across its key end markets and its ability to innovate in high-growth areas like AI. Investors should monitor these metrics to gauge the company's operational strength and future prospects.
Segment Revenue Growth: Measures the year-over-year increase in sales for TE Connectivity's Transportation and Industrial Solutions segments. Strong growth indicates robust demand and market share gains; declining growth suggests market headwinds or competitive pressures. This is crucial for TEL as it reflects the health of its core businesses and its ability to capture market opportunities.
Gross Margin Trend: Tracks the profitability of TE Connectivity's core operations after accounting for the cost of goods sold. Expanding gross margins signal efficient production and pricing power; contracting margins may indicate rising input costs or pricing pressure. This metric is vital for TEL's ability to fund R&D and reinvest in growth initiatives.
AI-Related Revenue: Specifically tracks the revenue generated from products and solutions catering to the Artificial Intelligence market, such as data center connectivity. Accelerating AI revenue is a strong positive for TE Connectivity; stagnation or decline could signal missed opportunities. Given recent reports of significant AI-driven growth, this is a key indicator of TEL's future growth trajectory.
Free Cash Flow: Represents the cash TE Connectivity generates after accounting for capital expenditures. Consistent and growing free cash flow allows for debt reduction, share buybacks, and dividends, which are positive for shareholders. This metric is important for TEL's financial flexibility and its capacity to return value to investors.
New Product Pipeline: Assesses the company's investment in and success of developing new connectivity and sensor solutions. A robust pipeline suggests future revenue streams and innovation leadership; a weak pipeline indicates potential future stagnation. For TE Connectivity, this is critical to maintaining its competitive edge in rapidly evolving industries.
What Moves TEL Stock?
TE Connectivity's stock performance is primarily driven by demand for its connectivity and sensor solutions across key industrial sectors, particularly automotive and data centers. Growth in these end markets, especially those tied to technological advancements like AI, directly impacts the company's revenue and profitability.
AI Data Center Demand
TE Connectivity's Digital Data Networks business is experiencing significant growth, with recent reports indicating a 70% year-over-year increase in AI-related revenue. This surge is fueled by the increasing need for high-speed, reliable data transmission infrastructure within data centers to support AI workloads.
This strong performance in a high-growth segment translates directly to revenue expansion and improved profitability for TE Connectivity. Continued demand in this area is a key catalyst for stock appreciation, as it highlights the company's strategic positioning in a critical technology trend.
Automotive Sector Growth
The automotive industry is a major end market for TE Connectivity, with its components essential for electric vehicles (EVs), advanced driver-assistance systems (ADAS), and in-car electronics. The increasing complexity and connectivity of modern vehicles drive demand for sophisticated sensors and connectors.
Robust sales in the automotive sector contribute significantly to TE Connectivity's top-line growth and market share. Positive trends in vehicle production and the adoption of new automotive technologies are therefore direct drivers of the stock's valuation.
Earnings Beat Momentum
TE Connectivity has a consistent track record of exceeding analyst expectations for both earnings per share (EPS) and revenue. This pattern of outperformance demonstrates the company's operational efficiency and its ability to navigate market dynamics effectively.
Each earnings beat reinforces investor confidence and can lead to upward revisions in price targets, as seen with Oppenheimer's recent upgrade. Sustained financial performance above estimates is a critical factor supporting the stock's upward trajectory.
Key insight: TE Connectivity's stock is propelled by its integral role in high-growth sectors like AI data centers and the evolving automotive market. Consistent financial outperformance further solidifies its position, making these fundamental drivers key to future stock performance.
Risk Factors
TE Connectivity's risks stem from its reliance on key industries and the cyclical nature of its end markets. Investors should monitor shifts in demand within its core sectors and its ability to innovate.
- Auto Demand
A significant portion of TE Connectivity's revenue comes from the automotive sector. A slowdown in global auto production or a shift away from internal combustion engines could materially impact sales. This risk would materialize if major automakers significantly cut production or accelerate EV transitions faster than TE can adapt its product mix.
- Data Center Cycles
The company's exposure to data center build-outs, while currently a growth driver, is subject to cyclical investment patterns. A slowdown in hyperscale cloud provider capital expenditures would directly reduce demand for TE's high-speed connectivity solutions. This risk would manifest during periods of reduced IT spending or overcapacity in cloud infrastructure.
- Supply Chain Disruptions
As a manufacturer of electronic components, TE Connectivity is vulnerable to disruptions in its global supply chain for raw materials and components. Such disruptions can lead to production delays and increased costs, impacting profitability. Geopolitical events or natural disasters could trigger these issues.
- Product Innovation
The technology landscape evolves rapidly, requiring continuous innovation in connectivity and sensor solutions. Failure to keep pace with new technological demands, particularly in areas like AI and advanced automotive systems, could lead to market share erosion. This risk becomes critical if competitors introduce superior or more cost-effective solutions.
- Currency Fluctuations
Operating globally exposes TE Connectivity to foreign currency exchange rate fluctuations. Adverse movements in major currencies could negatively affect reported earnings and the competitive pricing of its products in international markets. This risk is ongoing due to the company's extensive international operations.
TEL Competitive Positioning
TE Connectivity plc (TEL) is tracked alongside these names in Electronic Components on DailyIQ.
Frequently Asked Questions About TEL
Is TE Connectivity (TEL) stock a good investment?
The investment thesis for TE Connectivity (TEL) centers on its critical role in enabling data and power transmission across essential industries like automotive and data centers. Its diversified product portfolio and global reach position it to benefit from secular growth trends in areas such as electric vehicles and 5G infrastructure. Investors may consider TEL's ability to innovate and maintain strong customer relationships as key indicators of future performance.
What drives TE Connectivity (TEL) stock price?
TE Connectivity's stock price is primarily influenced by demand in its key end markets, particularly automotive and industrial solutions, which are sensitive to global economic conditions. Growth in AI-related revenue and data center expansion also plays a significant role, as highlighted by recent performance. Additionally, factors like supply chain dynamics, raw material costs, and the company's ability to execute on its strategic initiatives can impact share price.
Does TE Connectivity (TEL) pay a dividend?
Yes, TE Connectivity (TEL) does pay a dividend, and it has been recognized as a top-tier dividend stock. The company has a history of returning capital to shareholders through regular dividend payments. Investors interested in income generation may find TEL's dividend policy attractive, though dividend amounts and sustainability depend on the company's financial performance and future capital allocation decisions.
What are the risks of investing in TE Connectivity (TEL)?
Risks associated with TE Connectivity (TEL) include cyclicality in its major end markets, particularly the automotive sector, which can lead to demand volatility. Intense competition within the electronic components industry and potential supply chain disruptions pose further challenges. Geopolitical risks and fluctuations in currency exchange rates, given its global operations, also warrant consideration.
How is TE Connectivity's (TEL) valuation assessed?
Valuation for TE Connectivity (TEL) is often assessed using metrics like the price-to-earnings (P/E) ratio, which currently stands around 29.08. Comparisons with industry peers and historical valuation multiples provide context. Analysts also consider the company's revenue and earnings growth prospects, especially in high-growth areas like AI, and its free cash flow generation when determining fair value.
What is TE Connectivity's (TEL) exposure to the AI market?
TE Connectivity (TEL) is experiencing significant growth in AI-related revenue, particularly within its Digital Data Networks business, which saw a 70% year-over-year increase. This segment's expansion is driven by the demand for high-speed data transmission and advanced connectivity solutions required for AI infrastructure, including data centers and networking equipment. Continued investment and innovation in this area could be a key growth driver for the company.
How does TE Connectivity (TEL) manage its debt?
TE Connectivity (TEL) actively manages its debt obligations, as evidenced by its recent $750 million senior notes offering aimed at addressing 2026 debt maturities. This proactive approach suggests a focus on maintaining a healthy balance sheet and ensuring financial flexibility. Investors should monitor the company's debt levels and its strategy for managing upcoming maturities.
What are TE Connectivity's (TEL) key growth segments?
TE Connectivity's (TEL) growth is propelled by its Transportation Solutions and Industrial Solutions segments. Within these, the automotive sector, especially electric vehicles, and data center connectivity are significant contributors. The increasing demand for advanced sensors and high-speed data transmission solutions in these areas underpins the company's growth trajectory.
What is TE Connectivity's (TEL) competitive landscape?
TE Connectivity (TEL) operates in a competitive landscape with players like Amphenol and other global electronic component manufacturers. Its competitive advantage stems from its broad product portfolio, strong engineering capabilities, and long-standing customer relationships across diverse industries. The company's ability to innovate and adapt to evolving technological demands is crucial for maintaining its market position.
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