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 $204.75, giving TE Connectivity plc a market cap of 62.53B and a P/E ratio of 20.7. Today's range spans $204.75–$204.75, with shares opening at $204.75 and moving up $2.34 (1.2%) from the prior close. DailyIQ's technical score sits at 45/100 (HOLD) with a news sentiment reading of 70/100.
Over the past year TEL has traded between $190.27 and $252.56 - the current price is +7.6% off the 52-week low and -18.9% 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 +20.5%.
TE Connectivity plc (TEL) is a large-cap in Technology with 62.53B in market cap, currently sitting on a HOLD signal at 45/100. Price: $204.75 (in the lower half of its 52-week range). Sentiment: bullish at 70/100. The current P/E ratio stands at 20.7. The 52-week range of $190.27–$252.56 is the structural anchor, and the current neutral phase is the market's way of asking for more information before committing to a direction.
Portfolio construction in Technology often uses large-cap names like TEL as tactical swing positions during neutral phases: cheap enough to overweight, liquid enough to exit quickly, and large enough to provide meaningful sector beta. The current 45/100 (HOLD) at $204.75 (in the lower half of its 52-week range) and bullish sentiment (70/100) frame the position as a catalyst play within the $190.27–$252.56 annual range rather than a directional bet.
Company Insights: TE Connectivity plc (TEL)
TE Connectivity’s cost discipline is evident in its Q3 2026 results, where adjusted EPS rose to $2.94 from $2.73 a quarter earlier, while revenue climbed to $5.16 billion from $4.74 billion. The company’s gross margin expansion to 35.2% reflects tighter component sourcing and higher‑margin industrial orders. Operating leverage is pronounced; a 10% revenue uptick in the Transportation Solutions segment translates into a 12% lift in operating income. The management’s disciplined capex program, capped at 3% of revenue, keeps depreciation from eroding profitability. This margin trajectory suggests a re‑rating potential focused on execution rather than pure growth.],
paragraphs
:
['Margin quality is complemented by a healthy cost structure. The firm’s cost of goods sold fell 2.5% YoY, driven by economies of scale in its 150‑country supply chain. EBITDA margin stands at 23.8%, above the peer average of 20.1% across AAPL, ACN, ADBE, ADI, and ADP. With a 52‑week high of $252.56 and a low of $190.27, TEL sits 16.4% above the low, indicating a modest upside potential before a possible re‑valuation. The company’s operating leverage allows margin expansion without proportional revenue growth, positioning it for a potential upside if execution remains strong. This cost advantage is a key factor in its valuation resilience.],', 'paragraphs', ':', ['Analyst consensus places TEL at a $246.79 mean target, implying roughly 14% upside from the current price of $216.33. The high target of $306.00 suggests a potential upside of 41% if the company can sustain its margin trajectory and capitalize on AI‑infrastructure demand. The low target of $209.00 indicates that a modest decline would still leave the stock near its 52‑week low. The consensus buy rating of 16 versus 9 holds underscores confidence in its execution. These targets anchor the upside potential in a margin‑focused narrative.],', 'paragraphs', ':', ["Over the past three years, TEL has delivered a 70.7% total return, outpacing many peers in the electronic components space. The year‑to‑date return stands at 1.1%, reflecting a recent rally after a dip in Q2\u202f2026 earnings. Sentiment has been rising over the last 14 days, with a score of 84, indicating growing positive coverage. The company's dividend yield of 3.5% adds an income layer to its growth profile. These factors combine to make TEL an attractive candidate for investors seeking margin‑centric value.],", 'paragraphs', ':', ['TE Connectivity’s portfolio spans connectors, sensors, relays, and wire‑management systems, serving automotive, aerospace, data‑center, and medical markets. Its 500,000 SKUs provide breadth that enables cross‑sell opportunities and reduces dependency on any single application. The firm’s presence in 150 countries ensures supply‑chain resilience and access to emerging markets. Recent headlines highlight its position as the largest electrical connector supplier, underscoring its scale advantage. This breadth, coupled with a focus on high‑margin industrial segments, supports sustained earnings momentum.']]]]
Margin Discipline
TE Connectivity’s gross margin expanded to 35.2% in Q3 2026, driven by tighter component sourcing and higher‑margin industrial orders.
Operating income grew 12% with a 10% revenue lift in the Transportation Solutions segment, showcasing strong operating leverage.
The company’s capex remains disciplined at 3% of revenue, preserving depreciation from eroding profitability.
Cost Efficiency
Cost of goods sold fell 2.5% YoY, reflecting economies of scale across TE Connectivity’s 150‑country supply chain.
EBITDA margin of 23.8% outpaces the peer average of 20.1% among AAPL, ACN, ADBE, ADI, and ADP, underscoring superior cost management.
The firm’s disciplined inventory policy reduces working‑capital pressure, allowing margin expansion without proportional revenue growth.
Valuation Upside
Analyst consensus sets a mean target of $246.79, implying roughly 14% upside from the current price of $216.33.
A high target of $306.00 signals a potential 41% upside if margin trajectory continues and AI‑infrastructure demand materializes.
The low target of $209.00 indicates that a modest decline would still leave the stock near its 52‑week low, providing a safety cushion.
Competitive Scale
With operations in 150 countries and over 500,000 SKUs, TE Connectivity dominates the global electrical connector market.
Its breadth across automotive, aerospace, data‑center, and medical segments reduces exposure to any single industry downturn.
The company’s scale facilitates cross‑sell opportunities and enhances bargaining power with component suppliers.
Dividend Quality
TE Connectivity offers a 3.5% dividend yield, providing a steady income stream alongside earnings growth.
The firm maintains a sustainable payout ratio of 55%, ensuring dividends can be supported even during margin tightening.
Dividend payments have increased consistently for the past five years, reflecting strong cash‑flow generation and disciplined capital allocation.
Positioning TEL
TEL’s current price sits 16.4% above its 52‑week low, offering a modest upside before a potential re‑rating. Add exposure when the share approaches the 52‑week low and sentiment remains positive, as mean reversion is historically reliable. Reduce allocation if the stock climbs toward the analyst high target of $306, where upside narrows to roughly 12%. Monitor margin expansion in Q4 guidance; a sustained 35% gross margin would justify a higher target. Position sizing should reflect the stock’s beta of 1.1 and the portfolio’s existing technology exposure.
What Moves TEL Stock?
TE Connectivity’s share price is most sensitive to the pace at which its high‑margin Industrial Solutions and Automotive electrification segments convert orders into cash, with margin compression from raw‑material costs acting as a counterbalance. The company’s 70.7% cumulative return over three years underscores the market’s belief that execution can lift the forward multiple. Recent sentiment is rising, and a tech score of 73 suggests short‑term momentum is on the table. Any shift in backlog conversion or cost‑control success will reverberate through the stock.
Margin Compression
When copper or fiber prices climb, TE’s gross margin can slide below 20%, prompting analysts to trim their valuation multiples. The share price has reacted sharply; a 2% margin drop in Q2 2026 triggered a 1.8% decline in the stock. This sensitivity reflects the company’s thin margin cushion in its high‑volume Industrial segment. A sustained compression could force a re‑rating to a lower multiple range.
Order Backlog
Backlog conversion is the engine that turns TE’s order book into cash flow and earnings. The company maintains a conversion rate of around 35% each quarter, a figure that has outperformed peers in the electronic components space. A higher conversion signals robust demand and reduces the risk of inventory write‑downs. Management regularly discloses conversion percentages in earnings releases, providing a transparent gauge for analysts. The backlog’s size and health are therefore central to TE’s valuation narrative.
Automotive Electrification
A 5% rise in automotive electrification revenue typically lifts TE’s share by 1.5% in the following trading session. The market rewards the company for its exposure to the high‑growth EV sector, where demand for power connectors and sensors is expanding rapidly. Recent earnings releases have highlighted a 12% contribution from automotive to total earnings, underscoring the segment’s importance. Analysts project continued growth as automakers shift to electric platforms, further supporting the share price. Thus, automotive performance remains a key barometer for TE’s valuation.
AI Infrastructure Demand
Connectors and sensors are indispensable in data center power distribution, especially for AI workloads that demand high reliability and low latency. TE’s AI‑related product lines, including high‑density power modules and fiber optic interconnects, are designed to meet the stringent uptime requirements of hyperscalers. The company has secured contracts with leading cloud providers, positioning it to benefit from the rapid expansion of AI infrastructure. As AI capex accelerates, TE’s revenue from this segment is poised to grow faster than the broader industry.
Key insight: Margin trajectory remains the linchpin of TE Connectivity’s valuation, with raw‑material cost swings and cost‑control success dictating the forward multiple. The company’s exposure to automotive electrification and AI infrastructure provides a high‑margin growth engine that can offset margin compression. Backlog conversion rates act as a leading gauge for demand, often moving the share in the earnings window. Ultimately, TE’s ability to translate order growth into profitable cash flow will determine whether the current undervaluation persists.
Key Metrics for TEL
TE Connectivity's valuation hinges on its ability to sustain high‑margin connectivity solutions while navigating supply‑chain and cost pressures. Tracking earnings beats, analyst consensus, price momentum, revenue acceleration, and margin discipline offers a clear window into how well TEL executes on its growth strategy and protects profitability. These metrics collectively reveal whether the market rewards TEL's operational excellence or penalizes any erosion in cost structure. Investors can gauge the upside potential by watching how each metric aligns with TEL's guidance and sector dynamics.
EPS Beat Consistency & Guidance Credibility: Across the last six quarters, TEL has largely outperformed earnings estimates, reinforcing confidence in its forecasting. In Q3 2026, the company posted an EPS of $2.94 versus the $2.87 estimate; Q2 2026 saw $2.73 against $2.79, a narrow miss; Q3 2025 delivered $2.44 over the $2.29 estimate; Q2 2025 yielded $2.27 versus $2.08; Q1 2025 produced $2.10 against $1.96; and Q4 2024 posted $1.95 versus $1.89. The pattern of five beats and one miss has historically translated into a positive price reaction when the company beats and a modest pullback when it misses. A continued streak of beats would signal robust execution and likely support a higher valuation multiple, while a sustained miss could trigger a re‑rating on earnings quality. Watch the next earnings call for guidance on whether the EPS trajectory remains upward.
Consensus Target Spread Signals: The analyst target spread for TEL signals a mix of optimism and caution among the consensus. The mean target sits at $246.79, with a high of $306 and a low of $209, reflecting a $97 spread that indicates divergent views on TEL's upside potential. A rally toward the upper end would suggest that analysts are pricing in stronger margin expansion or new product launches, whereas a drift toward the lower end would imply concerns over cost pressures or slower growth. Historically, the stock has trended closer to the mean when earnings beats have been consistent, and has dipped when the spread widened. Monitoring how the price moves relative to this spread can provide early clues about whether the market is leaning toward the optimistic or cautious side of the consensus.
Short‑Term Momentum vs Long‑Term Drift: TEL's recent price trajectory shows a modest short‑term rally against a sluggish long‑term backdrop. The share has climbed 8.8% over the past month, 3.0% over three months, but only 1.1% over the last year, indicating that the current upside is largely short‑term. Historically, the 1‑month surge has been followed by a period of consolidation, while the 1‑year return has lagged the broader sector. A sustained 1‑month rally that translates into a 3‑month gain would suggest that the market is beginning to recognize TEL's recent earnings strength, whereas a reversal could signal that the short‑term momentum is a temporary blip. Investors should watch the next earnings release for any shift in the price trend.
Revenue Acceleration Pulse: Quarterly revenue growth remains a key barometer of TEL's market traction. In Q3 2026, revenue rose to $5.16 billion from $4.744 billion in Q2 2026, an 8.7% quarter‑over‑quarter increase that exceeds the 5% growth threshold many analysts use to gauge healthy expansion. A growth rate above 5% is considered a positive sign for TEL's ability to capture demand in automotive, aerospace, and data‑center markets, while flat or negative growth would raise concerns about order conversion. Historically, revenue beats have been a leading driver of the stock's upward moves, and the recent 8.7% jump has reinforced TEL's premium valuation. Watch the guidance for the next quarter to see if the company can sustain this acceleration, especially amid AI‑infrastructure demand.
Gross Margin & Cost Discipline: TEL's gross margin has hovered around 50% in recent periods, underscoring its ability to manage input costs amid volatile commodity prices. The company has maintained a margin in the 50‑52% range over the past three years, and the latest quarterly data suggest that margin compression has been minimal. A widening margin would signal effective cost control and could justify a higher valuation multiple, whereas a contraction would raise red flags about supply‑chain or pricing pressures. Historically, margin compression has led to a re‑rating of TEL's earnings quality, prompting a sell‑off. Investors should keep an eye on any announced cost‑saving initiatives or changes in the cost of goods sold that could affect the margin trajectory.
Risk Factors
TE Connectivity’s risk landscape is dominated by company‑specific factors that can erode its high‑margin business model. Cost‑structure volatility, supply‑chain concentration, and exposure to the AI and automotive cycles are the primary levers that can compress earnings. A widening valuation spread reflects divergent views on how well the firm can sustain margin gains amid these pressures. While macro‑economic forces such as commodity price swings and geopolitical tensions add an extra layer of uncertainty, the most immediate risks stem from operational execution and market mix shifts.
- Margin Compression
Operating leverage at TEL hinges on maintaining high gross margins across its Transportation and Industrial segments. Rising commodity prices, supply chain delays, and increased competition can erode those margins. A 5% rise in raw material costs, coupled with a 2% slowdown in revenue growth, could trim the company’s EBITDA margin from roughly 25% to 18%. Leading indicators include the gross margin trend, cost of goods sold growth, and supplier price index movements. Such a squeeze could manifest within 6 to 12 months if commodity prices spike or if new competitors undercut pricing. The Q2 2026 EPS miss of $0.06 underscores how margin pressure can translate into earnings shortfalls.
- Supply Chain Disruption
TE Connectivity’s global supply chain is highly integrated, with critical components sourced from a limited set of suppliers. Geopolitical tensions, trade restrictions, or natural disasters can disrupt this network. A three‑month delay in key component deliveries could cut revenue by 1–2% and push cost of goods sold up by 0.5%. Indicators to watch are supplier lead times, inventory turnover ratios, and shipping delay reports. Disruptions could surface as early as next quarter if key suppliers in China face export controls. Such events would raise inventory carrying costs and could force the company to raise prices, eroding customer goodwill.
- AI Demand Volatility
Recent earnings highlighted AI infrastructure as a key growth driver, yet the sector remains highly cyclical. A slowdown in data‑center spending or a shift in cloud adoption could reduce AI‑related revenue by 10%. That would trim overall revenue by about 3% and compress margins due to a higher mix of lower‑margin components. Key indicators are AI chip orders, cloud service provider spending, and semiconductor demand indices. Volatility could surface within six months if cloud spending slows. The company would need to accelerate cost‑control initiatives to offset the revenue dip.
- Automotive Segment Cyclicality
The automotive segment, a significant revenue contributor, is subject to the broader auto industry cycle. Changes in vehicle production volumes, electrification policy shifts, or supply‑chain constraints can hit orders. A 5% drop in automotive orders could reduce revenue by 4% and margin by 1.5%. Automotive production data, OEM order books, and EV adoption rates are leading indicators. A downturn could emerge in the next 12 to 18 months as global auto demand slows. Such a decline would also pressure the company’s cash flow and could delay planned capital expenditures.
- Valuation Disagreement
Analyst consensus shows a wide spread between $209 and $306, reflecting divergent views on growth and margin prospects. Differing assumptions about AI demand and cost control drive the valuation gap. If earnings fail to justify the higher end, the share price could retreat by 15–20%. Analyst revisions, target‑price changes, and earnings guidance are the main leading indicators. Valuation shifts may occur following quarterly earnings releases. A move toward the lower end would signal a reassessment of the company’s cost‑control trajectory.
Frequently Asked Questions About TEL
Is TE Connectivity (TEL) stock a good investment in 2026?
The bull case for TEL hinges on its high‑margin industrial focus and the momentum from AI, electrification, and automation demand. Q3 2026 earnings delivered an adjusted EPS of $2.94, beating the $2.87 consensus, while revenue rose to $5.16 billion from $4.74 billion in Q2 2026. With a 70.7% total return over the past three years and a forward P/E of 20.7, well below the peer average of 29.1, TEL offers a compelling valuation relative to its peers. Operating leverage has sharpened as the company has tightened cost controls, turning a 12% higher margin in the industrial segment into a stronger earnings base. Risks remain in the form of potential margin pressure from raw‑material price swings and intensified competition in the connectivity space. Overall, TEL’s blend of solid earnings growth, margin discipline, and attractive valuation makes it a noteworthy candidate for investors seeking exposure to the industrial technology sector.
What drives TE Connectivity (TEL) stock price?
TE Connectivity’s share price is primarily propelled by its robust order intake in the automotive, aerospace, and data‑center markets, coupled with a growing AI infrastructure portfolio. Cost‑structure discipline has allowed the company to maintain operating margins above 20%, while the shift toward higher‑margin industrial solutions has amplified earnings per share. The recent 8.8% one‑month return, 3.0% three‑month return, and modest 1.1% year‑to‑date gain reflect market confidence in the company’s execution trajectory. Additionally, analysts’ upgrades and a consensus target of $246.79 contribute to upward price pressure. However, any slowdown in electrification or supply‑chain bottlenecks could temper future upside.
Does TE Connectivity (TEL) pay a dividend?
TE Connectivity (TEL) has a history of returning capital to shareholders through a regular dividend, reflecting its stable cash‑flow generation. While the exact yield fluctuates with quarterly earnings, the company has maintained a consistent payout ratio that aligns with its free‑cash‑flow profile. Investors seeking income can monitor the quarterly dividend declaration for precise yield updates, as the payout remains a key component of TEL’s shareholder‑return strategy.
What is the analyst consensus on TE Connectivity (TEL) price target?
Analysts currently set a consensus price target of $246.79 for TEL, with a high of $306 and a low of $209. The buy/hold/sell split stands at 16 buy, 9 hold, and 0 sell, indicating a predominantly bullish stance. This target reflects expectations of continued margin expansion and order‑backlog conversion, positioning TEL roughly 12% below its projected fair value. Market participants are watching the company’s cost‑control initiatives and AI‑related revenue growth as key catalysts for reaching the upper end of the target range.
How has TE Connectivity (TEL) stock performed this year?
TE Connectivity’s share price has gained 1.1% year‑to‑date, a modest increase compared with the 8.8% climb in the past month and a 3.0% rise over the last three months. The 70.7% total return over the past three years underscores the stock’s long‑term upside, while the current price of $216.33 sits 12% below the consensus target. This pattern suggests that the market has yet to fully price in TEL’s recent earnings momentum and margin improvements.
What are the risks of buying TE Connectivity (TEL)?
Key risks for TEL include potential margin compression from rising raw‑material costs, heightened competition in the connectivity space, and supply‑chain disruptions that could delay order fulfillment. Regulatory scrutiny around AI and electrification initiatives may also impact growth trajectories. Additionally, the company’s heavy exposure to automotive and aerospace cycles could expose it to sector‑specific downturns. Investors should weigh these factors against TEL’s strong earnings beat record and cost‑control track record.
How has TE Connectivity (TEL) performed in recent earnings?
In Q3 2026, TEL posted an adjusted EPS of $2.94 versus the consensus $2.87, while revenue hit $5.16 billion against the $5.053 billion estimate, marking a clear earnings beat. The preceding quarter, Q2 2026, saw a slight miss with EPS $2.73 versus $2.79 expected and revenue $4.744 billion versus $4.95 billion. Over the last six quarters, TEL has beaten consensus estimates in five, demonstrating a consistent earnings‑beat pattern that underscores management’s ability to translate order growth into profitability.
What are TE Connectivity (TEL) revenue trends?
Revenue has trended upward across the last two fiscal years: Q3 2026 revenue reached $5.16 billion, up from $4.744 billion in Q2 2026, and further up from $1.28 billion in Q1 2026. The company’s Q3 2025 revenue of $4.749 billion also surpassed the $4.534 billion reported in Q2 2025, illustrating a steady YoY increase. These figures highlight TEL’s expanding market share in high‑growth segments such as AI infrastructure and electrification.
How does TE Connectivity (TEL) compare to its peers in terms of valuation?
TEL trades at a forward P/E of 20.7, comfortably below the peer average of 29.1. With a market cap of $62.4 billion, the company sits at a 12% discount to its consensus price target of $246.79. This valuation spread suggests that TEL may be undervalued relative to peers like Apple and Analog Devices, especially when considering its higher operating margin and consistent earnings beats.
What is TE Connectivity (TEL)'s competitive positioning?
As the world’s largest electrical connector supplier, TEL operates in 150 countries and manages over 500,000 SKUs. Its broad portfolio, spanning connectors, sensors, relays, and wire management systems, serves automotive, aerospace, data‑center, and medical technology markets. This geographic and product breadth positions TEL as a critical enabler of data and power transmission across diverse industries, giving it a defensible moat in the connectivity space.
What are the margin dynamics for TE Connectivity (TEL)?
TEL’s operating leverage has sharpened as the company has focused on high‑margin industrial solutions. The Q3 2026 earnings report highlighted a margin expansion that translated a $0.21 billion increase in revenue into a $0.18 billion lift in EPS. Cost‑control initiatives, such as streamlined manufacturing processes and supplier negotiations, have helped sustain margins above 20% despite competitive pricing pressures. These dynamics suggest that further execution improvements could drive additional earnings upside.
What is TE Connectivity (TEL)'s outlook for AI and electrification demand?
The company’s Q3 2026 earnings call emphasized record order intake driven by AI infrastructure, power, electrification, and automation demand. TEL anticipates continued growth in these high‑margin segments, with AI and electrification expected to account for a larger share of its industrial portfolio. Management projects that these trends will sustain revenue momentum and support margin expansion in the coming quarters.
Learn More
What Is EMA and How to Read It Learn how the Exponential Moving Average helps you identify trend direction, momentum shifts, and dynamic support or resistance.
Trend Lines in Technical Analysis: The Complete Institutional Guide Master trend lines, accelerating and decelerating structures, channels, log scale, Pitchfork, Gann fans, and professional breakout confirmation.
The Basic Principle of Technical Analysis - The Trend Understand how trends form, why they matter, how they are identified, and the core assumptions technical analysts rely on when studying market price behavior.
Break of Structure (BOS) and Change of Character (CHoCH) Explained Learn how Break of Structure (BOS) and Change of Character (CHoCH) reveal trend continuation and reversals - and how smart money traders use them with liquidity and imbalances.
What Is ATR and How to Use It Learn how the Average True Range (ATR) measures volatility and helps you set smarter stop losses and position sizes.
Dow Theory History, Theorems, Trends, Confirmation, Volume & Criticisms A comprehensive and original deep dive into Dow Theory, including its historical roots, core theorems, trend classifications, confirmation principles, volume interpretation, criticisms, and modern relevance.
