TE Connectivity (TEL) AI Stock Analysis

• Market Cap: $59.55B
• Dividend Yield: 1.21%
• Average Volume (3M): 2.41M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.30
• Revenue Growth: 8.94%
• EPS Growth: -39.90%
• Country: US
• Employees: 85,000
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.72
• Shares Outstanding: 293,434,270
• 10 Day Avg. Volume: 2,768,589
• 30 Day Avg. Volume: 2,409,152
• PEG Ratio: -0.87
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 3.77
• P/FCF Ratio: 20.13
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.61
• Enterprise Value/Gross Profit: 10.33
• Enterprise Value/Ebitda: 14.46
• 1Y Price Target: $281.70
• Price Target Upside: 38.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 11.03
• Revenue Forecast (FY): $19.39B

• Rating: 72 Outperform
• Price Target: $228.00 ▲(12.34% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by strong underlying financial quality (profitability and robust free cash flow) and a very constructive earnings outlook with raised AI expectations and record orders. These positives are tempered by weak technical momentum (below major moving averages with negative MACD) and a valuation that is not especially cheap, with a modest dividend yield.

Positive Factors

Free cash flow generation

Consistent, large operating cash flow and high free cash flow conversion provide durable financial flexibility. Strong FCF funds buybacks, debt reduction, reinvestment in tooling/CapEx and supports capital returns through cycles, reducing reliance on volatile external financing.

AI / Digital Data Networks demand

Escalating demand from hyperscalers and AI infrastructure is a structural growth driver that increases content per system. A raised near-term AI outlook and a multiyear ~$3B target imply durable TAM expansion for TE's connectivity products and multi-year design-in opportunities.

Design-in model and diversified end markets

TE's engineered components and design‑in sales model create high switching costs and repeat revenue over program lifecycles. Broad end‑market exposure (auto, industrial, comms, AD&M, energy, medical) reduces single‑market dependency and smooths long‑term cash flows.

Negative Factors

Stepped-up leverage

Higher leverage versus recent years narrows the firm's financial cushion against downturns. With elevated indebtedness, interest and covenant sensitivity rise, potentially restricting M&A optionality or forcing more conservative capital allocation if cyclicality depresses EBITDA.

Metals / input-cost inflation

Persistent metals inflation directly pressures gross margins because copper and other metals are core inputs. Even with pass-through pricing, timing lags and customer contract structures can compress incremental margins and reduce long‑term margin sustainability during prolonged commodity cycles.

Automotive seasonality and cyclicality

Significant exposure to automotive production creates recurrent revenue volatility. Even with content gains, unit production swings and segment softness (commercial trucks, appliances) can delay program ramps and make earnings and cashflows sensitive to cyclical industry downturns.

TE Connectivity Business Overview & Revenue Model

Company Description

TE Connectivity Ltd., together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the Asia Pacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. The Transportation Solutions segment provides terminals and connector systems and components, sensors, relays, antennas, heat shrink tubing, and application tooling products for use in the automotive, commercial transportation, and sensor markets. The Industrial Solutions segment offers terminals and connector systems and components; and heat shrink tubing, interventional medical components, relays, and wires and cables for aerospace, defense, oil and gas, industrial equipment, medical, and energy markets. The Communications Solutions segment supplies electronic components, such as terminals and connector systems and components, relays, heat shrink tubing, and antennas for the data and devices, and appliances markets. TE Connectivity Ltd. sells its products to approximately 140 countries primarily through direct sales to manufacturers, as well as through third-party distributors. The company was formerly known as Tyco Electronics Ltd. and changed its name to TE Connectivity Ltd. in March 2011. TE Connectivity Ltd. was incorporated in 2000 and is based in Schaffhausen, Switzerland.

How the Company Makes Money

TE Connectivity primarily makes money by selling engineered electronic components—most notably connectors/interconnects and sensors—into multiple end markets through a design-in, high-volume manufacturing model. Revenue is generated when OEMs and tier suppliers (e.g., automotive manufacturers and their suppliers, industrial equipment makers, data/telecom infrastructure providers, aerospace/defense contractors, and medical device companies) purchase TE parts for incorporation into finished products; once designed into a platform, parts can generate repeat sales over the life of that customer program. Key revenue streams include: (1) Connectivity/Interconnect products (connectors, terminals, cable assemblies, and related hardware) sold across automotive and industrial and other applications, often tailored to a specific customer architecture and compliance/harsh-environment requirements; (2) Sensors and sensing-related products used for measuring variables such as pressure, temperature, position, and other parameters in vehicles, industrial systems, and medical/other equipment; and (3) Value-added assemblies and application-specific solutions where TE supplies higher-content subassemblies rather than discrete components. Earnings are supported by scale manufacturing, a broad catalog combined with custom engineering, and long-term customer relationships that reduce switching once a component is qualified. Significant factors that influence revenue and margins include demand cycles in automotive production and industrial/communications capital spending, the pace of electrification and electronics content growth (especially in vehicles), pricing and raw-material costs, and TE’s ability to win design-ins on new platforms; specific partnership details are null.

TE Connectivity Financial Statement Overview

Summary

Strong profitability and resilient margins with TTM revenue growth turning positive. Free cash flow generation is a clear strength, though net margin has normalized versus an unusually strong FY2024 and leverage has stepped up versus FY2022–FY2024.

Income Statement

TEL’s TTM (Trailing-Twelve-Months) results show solid profitability with healthy gross profit and operating margins, supporting strong earnings power for an industrial/hardware profile. Revenue growth is positive in TTM (Trailing-Twelve-Months) after prior annual periods that were slightly down, indicating a return to growth. A key watch item is the notable drop in net margin versus FY2024 (which appears unusually high), bringing profitability back to a more normal range and suggesting less benefit from one-time items or mix/tailwinds than the prior year.

Balance Sheet

Leverage is moderate with debt at roughly mid-range relative to equity (debt-to-equity around the mid-0.4x area in the latest periods), which provides balance-sheet flexibility without looking overly aggressive. Equity and assets have trended higher over time, and returns on equity are attractive in the mid-teens on the most recent periods, though below the exceptionally strong FY2024 level. The main risk is that leverage has stepped up versus FY2022–FY2024 levels, reducing some cushion if industry conditions soften.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are large in absolute terms, with free cash flow running at a strong proportion of earnings (roughly three-quarters+ in recent periods), supporting buybacks, debt paydown, or reinvestment. That said, TTM (Trailing-Twelve-Months) free cash flow is slightly down versus the prior annual period, and cash conversion is good but not perfect (operating cash flow is below net income), implying some working-capital or timing headwinds that can create quarter-to-quarter volatility.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	17.92B	17.09B	15.85B	16.03B	16.28B	14.92B
Gross Profit	6.26B	5.91B	5.46B	4.98B	5.13B	4.73B
EBITDA	4.47B	4.12B	3.69B	3.14B	3.58B	3.20B
Net Income	2.06B	1.84B	3.19B	1.91B	2.43B	2.26B
Balance Sheet
Total Assets	25.55B	25.08B	22.85B	21.71B	20.78B	21.46B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.25B	1.32B	1.66B	1.09B	1.20B
Total Debt	5.71B	6.55B	4.96B	4.89B	4.95B	4.88B
Total Liabilities	12.42B	12.35B	10.37B	10.06B	9.88B	10.71B
Stockholders Equity	12.99B	12.59B	12.36B	11.55B	10.80B	10.63B
Cash Flow
Free Cash Flow	3.14B	3.20B	2.80B	2.40B	1.70B	1.99B
Operating Cash Flow	4.13B	4.14B	3.48B	3.13B	2.47B	2.68B
Investing Cash Flow	-3.29B	-3.57B	-950.00M	-768.00M	-878.00M	-1.04B
Financing Cash Flow	-850.00M	-629.00M	-2.87B	-1.79B	-1.68B	-1.39B

TE Connectivity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 202.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEL, the sentiment is Negative. The current price of 202.95 is below the 20-day moving average (MA) of 224.08, below the 50-day MA of 226.54, and below the 200-day MA of 210.35, indicating a bearish trend. The MACD of -6.06 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 14.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEL.

TE Connectivity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APH	76 Outperform	$168.08B	38.55	35.77%	0.54%	47.37%	72.30%
JBL	73 Outperform	$26.52B	38.47	51.13%	0.14%	13.18%	-38.37%
KEYS	73 Outperform	$48.97B	33.10	16.50%	―	7.95%	39.54%
TEL	72 Outperform	$59.55B	22.78	16.50%	1.21%	8.94%	-39.90%
FLEX	72 Outperform	$22.40B	23.76	16.83%	―	0.77%	0.51%
GLW	66 Neutral	$116.87B	47.18	14.13%	1.25%	18.27%	771.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

TE Connectivity Corporate Events

TE Connectivity Shareholders Back Board and Governance Proposals

At its Annual General Meeting on March 11, 2026, TE Connectivity secured strong shareholder backing for all agenda items, with a quorum of more than 90% of eligible shares present by proxy. All 13 director nominees were elected with comfortable margins, though a few, including Heath Mitts and Abhijit Talwalkar, drew comparatively higher levels of opposition, offering some insight into evolving investor sentiment on specific board members.

Shareholders also decisively ratified Deloitte & Touche LLP and Deloitte Ireland LLP as auditors, approved executive compensation in an advisory vote, and authorized both market purchases of company shares and the price range for re-allotting treasury shares. The breadth of approvals underscores continued investor support for TE Connectivity’s governance, capital allocation flexibility and leadership, reinforcing the company’s stability as it executes its strategy in its core connectivity markets.

The most recent analyst rating on (TEL) stock is a Hold with a $230.00 price target. To see the full list of analyst forecasts on TE Connectivity stock, see the TEL Stock Forecast page.

TE Connectivity Expands Liquidity with New $3B Credit Facility

On February 13, 2026, TE Connectivity plc entered into a new five-year senior revolving credit facility of $3 billion through its subsidiary Tyco Electronics Group S.A., replacing an existing $1.5 billion unsecured facility that was concurrently terminated without penalty ahead of its April 2029 expiry. The new facility, which backs the company’s commercial paper program, matures on February 13, 2031 with options for up to two one-year extensions and an accordion feature of up to $1 billion.

Borrowings can be made in U.S. dollars, euro, sterling and yen at benchmark-based floating rates plus a margin tied to TEGSA’s long-term unsecured credit rating, and TE must pay an annual facility fee ranging from 5.0 to 12.5 basis points on lender commitments. The agreement includes a leverage covenant capping consolidated total debt to EBITDA at 3.75x, or 4.25x following qualifying acquisitions, underscoring lender discipline while significantly enhancing TE Connectivity’s committed liquidity and financial flexibility.

The most recent analyst rating on (TEL) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on TE Connectivity stock, see the TEL Stock Forecast page.

TE Connectivity Subsidiary Issues New Senior Notes Offering

On February 9, 2026, Tyco Electronics Group S.A., a wholly owned subsidiary of TE Connectivity, issued $200 million of additional 4.500% senior notes due 2031 and $550 million of 4.875% senior notes due 2036 under an existing shelf registration. The new 2031 tranche is fully fungible with the company’s existing 2031 notes, bringing that series to $650 million outstanding and maintaining an unsecured senior ranking guaranteed by TE Connectivity and TE Connectivity Switzerland.

The offering generated approximately $745.5 million in net proceeds, which TE Connectivity is using to repay outstanding debt, including its 3.700% and 4.500% senior notes due 2026, and for general corporate purposes. By extending its debt maturity profile and locking in fixed-rate funding, the company is refining its capital structure and potentially lowering refinancing risk, while major global banks acted as joint bookrunners in the transaction.

The most recent analyst rating on (TEL) stock is a Buy with a $270.00 price target. To see the full list of analyst forecasts on TE Connectivity stock, see the TEL Stock Forecast page.

TE Connectivity Posts Strong Fiscal Q1 2026 Results

On January 21, 2026, TE Connectivity reported that fiscal first-quarter 2026 results for the period ended December 26, 2025 exceeded guidance, with net sales rising 22% year over year to $4.7 billion, including 15% organic growth, driven by strength in both its Industrial and Transportation segments. GAAP diluted EPS from continuing operations climbed 45% to $2.53 and adjusted EPS increased 33% to $2.72, while GAAP operating margin improved 260 basis points to 20.6% and adjusted operating margin expanded to 22.2% on strong operational execution, supported by record quarterly orders of $5.1 billion, robust cash generation and significant capital returns to shareholders. Management highlighted growing demand from data and power connectivity applications in AI, grid hardening and next-generation vehicles, and projected continued momentum with double-digit sales and adjusted earnings growth expected in the second quarter of fiscal 2026, alongside a shift in non-GAAP reporting to exclude amortization of intangible assets.

The most recent analyst rating on (TEL) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on TE Connectivity stock, see the TEL Stock Forecast page.