Te Connectivity Ltd (TEL)
NYSE:TEL
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Earnings Data
Report Date
Jul 29, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
2.84Last Year’s EPS
2.27Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong overall momentum: robust top-line growth (15% reported, 7% organic), record orders ($5.3B) with DDN and Industrial leading the expansion, double-digit earnings growth (+24% adjusted EPS) and meaningful margin expansion (adjusted margins +130 bps). Free cash flow generation and shareholder returns (10% dividend increase) were highlights. Headwinds cited were manageable near-term inflationary pressures (resins, freight, metals), expected restructuring charges (~$100M), some automotive and sensor organic softness and program timing/lumpiness in DDN revenue. On balance the positive operational and financial metrics, significant order/backlog strength, targeted capital investment for AI ramps, and an active M&A pipeline outweigh the transitory cost and timing challenges.Company Guidance
Strong Revenue and Organic Growth
Q2 sales of $4.7 billion, up 15% reported and 7% organically year-over-year; Q3 sales guide of $5.0 billion (+10% YoY) and expectation that company will deliver well over $2.0 billion of growth in fiscal 2026.
Record Orders and Book-to-Bill Strength
Record orders of $5.3 billion in Q2 with a book-to-bill of 1.12; orders grew across every business and region, with Industrial accounting for over 70% of order growth and Industrial orders +40% YoY.
Accelerating AI / Digital Data Networks Momentum
Digital Data Networks (DDN) sales nearly +50% YoY; DDN orders up ~60% YoY in the quarter; company raised expected AI revenue for fiscal 2026 by ~$150 million (all in H2), moving DDN AI run-rate toward ~$2.4 billion.
Earnings, Margins and Operating Income Expansion
Adjusted EPS of $2.73 in Q2, up 24% YoY (record adjusted EPS); adjusted operating income >$1.0 billion and adjusted operating margins of 21.7%, expanding ~130 basis points YoY; Industrial segment adjusted operating margins expanded ~260 basis points to nearly 22%.
Strong Free Cash Flow and Capital Allocation
Free cash flow of $680 million in Q2 and a record $1.3 billion YTD; management expects 100% free cash flow conversion for the year and returned nearly 100% of YTD free cash flow to shareholders; Board approved a 10% increase to the quarterly cash dividend.
Segment-Level Outperformance — Commercial Transportation
Commercial Transportation sales +21% reported and +17% organically YoY, driven by global recovery, program wins and increasing content per vehicle; Transportation segment delivered adjusted operating margins near 22%.
Strategic Technology and M&A Activity
Acquisition of RampPhotonics (passive optical connectivity technology) to strengthen optical roadmap and position for hybrid copper/optical architectures; management reports an active M&A pipeline and selective bolt-on acquisition strategy.
CapEx Targeted to Support AI Ramps
CapEx guidance increased to ~6% of revenue for the year, driven primarily by program-specific investments to ramp AI-related DDN programs — investments tied to awarded customer programs (protecting visibility).
TEL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TEL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 22, 2026 | $243.18 | $221.04 | -9.10% |
Jan 21, 2026 | $232.56 | $230.29 | -0.97% |
Oct 29, 2025 | $235.04 | $239.23 | +1.78% |
Jul 23, 2025 | $178.69 | $200.04 | +11.95% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Te Connectivity Ltd (TEL) report earnings?
Te Connectivity Ltd (TEL) is schdueled to report earning on Jul 29, 2026, Before Open (Confirmed).
What is Te Connectivity Ltd (TEL) earnings time?
Te Connectivity Ltd (TEL) earnings time is at Jul 29, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TEL EPS forecast?
TEL EPS forecast for the fiscal quarter 2026 (Q3) is 2.84.