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TE Connectivity
(NYSE:TEL)
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Rating:75Outperform
Price Target:
$249.00
▲(1.16% Upside)
Action:Reiterated
Date:04/23/26
Score is driven primarily by strong financial quality and an upbeat earnings outlook (record orders, raised AI/DDN expectations, and double-digit EPS growth guidance). Offsetting factors are a mixed/neutral technical picture and a valuation that is not cheap, with only a modest dividend yield.
Positive Factors
Free Cash Flow Generation
Sustained high cash generation (TTM OCF ~$4.4B, FCF ~$3.4B) gives TE durable financial flexibility: funds capex for AI/DDN ramps, supports dividends and buybacks, enables debt paydown or bolt‑on M&A, and lowers refinancing risk versus peers over the next several quarters.
Negative Factors
Earnings / Net Margin Volatility
Significant swings in net margin across fiscal periods signal sensitivity to accounting items, timing, and end‑market cycles. This variability complicates multi‑quarter earnings predictability and could pressure leverage ratios or shareholder returns if a downturn reduces operating income.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Sustained high cash generation (TTM OCF ~$4.4B, FCF ~$3.4B) gives TE durable financial flexibility: funds capex for AI/DDN ramps, supports dividends and buybacks, enables debt paydown or bolt‑on M&A, and lowers refinancing risk versus peers over the next several quarters.
Read all positive factors
TE Connectivity Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Shows revenue generated from each business segment, indicating which parts of the company are growing and contributing most to overall sales.
Shows revenue generated from each business segment, indicating which parts of the company are growing and contributing most to overall sales.
Data provided by:
The Fly
The FlyTE Connectivity (TEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$57.63B
Dividend Yield1.21%
Average Volume (3M)2.79M
Price to Earnings (P/E)20.0
Beta (1Y)1.34
Revenue Growth16.66%
EPS Growth114.94%
CountryUS
Employees90,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)9.88
Shares Outstanding291,895,800
10 Day Avg. Volume2,607,450
30 Day Avg. Volume2,786,391
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)5.12
Price to Sales (P/S)3.77
P/FCF Ratio20.13
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue3.59
Enterprise Value/Gross Profit10.15
Enterprise Value/Ebitda14.12
Forecast
1Y Price Target
$261.91Price Target Upside6.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)11.23
Revenue Forecast (FY)$19.59B
TE Connectivity Business Overview & Revenue Model
Company Description
TE Connectivity plc, together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through two reportable segments, Transportat...
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 ...
TE Connectivity Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
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.Positive Updates
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.
Negative Updates
Input Cost Inflation and Margin Noise
Management reported increased inflationary pressures across certain input costs (oil-based resins, freight/logistics, metals) and noted timing noise between cost realization and pricing; this creates potential short-term margin pressure despite mitigation playbook (pricing, productivity, footprint optimization).
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
TE guided third-quarter sales of $5.0 billion (up ~10% YoY) and adjusted EPS of about $2.83 (up ~17% YoY), with a Q3 adjusted effective tax rate around 23% and a full-year adjusted tax rate ~22% (cash tax well below adjusted ETR); they continue to expect >$2 billion of company growth for fiscal 2026. For Q2 they reported sales >$4.7 billion (+15% reported, +7% organic), adjusted EPS $2.73 (+24% YoY), adjusted operating margins 21.7% (expanded ~130 bps YoY) and adjusted operating income >$1.0 billion (GAAP operating income $954M including $8M acquisition, $10M restructuring/other and $57M amortization); orders were a record $5.3 billion (book‑to‑bill 1.12) with Industrial orders +40% and DDN orders >+60%. Management said AI revenue expectations are ~$150M higher versus 90 days ago (all in 2H), DDN AI revenue approaching ~$2.4B, first‑half DDN orders ~$2.0B, YTD free cash flow $1.3B (Q2 FCF $680M; cash from ops $947M) with expected full‑year FCF conversion ~100%, nearly 100% of YTD FCF returned to shareholders, a Board‑approved 10% quarterly dividend increase, FY26 restructuring ~ $100M, CapEx targeted at ~6% of revenue, and a commitment to at least 30% flow‑through of incremental operating income.TE Connectivity Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.52B | 17.09B | 15.85B | 16.03B | 16.28B | 14.92B |
| Gross Profit | 6.55B | 5.91B | 5.46B | 4.98B | 5.13B | 4.73B |
| EBITDA | 4.71B | 4.12B | 3.69B | 3.14B | 3.58B | 3.20B |
| Net Income | 2.91B | 1.84B | 3.19B | 1.91B | 2.43B | 2.26B |
Balance Sheet | ||||||
| Total Assets | 25.68B | 25.08B | 22.85B | 21.71B | 20.78B | 21.46B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.25B | 1.32B | 1.66B | 1.09B | 1.20B |
| Total Debt | 5.66B | 6.55B | 4.96B | 4.89B | 4.95B | 4.88B |
| Total Liabilities | 12.30B | 12.35B | 10.37B | 10.06B | 9.88B | 10.71B |
| Stockholders Equity | 13.23B | 12.59B | 12.36B | 11.55B | 10.80B | 10.63B |
Cash Flow | ||||||
| Free Cash Flow | 3.39B | 3.20B | 2.80B | 2.40B | 1.70B | 1.99B |
| Operating Cash Flow | 4.42B | 4.14B | 3.48B | 3.13B | 2.47B | 2.68B |
| Investing Cash Flow | -3.53B | -3.57B | -950.00M | -768.00M | -878.00M | -1.04B |
| Financing Cash Flow | -2.33B | -629.00M | -2.87B | -1.79B | -1.68B | -1.39B |
TE Connectivity Technical Analysis
Negative
246.14
Price Trends
207.81
Negative
212.88
Negative
219.98
Negative
Market Momentum
-3.07
Positive
41.08
Neutral
23.48
Neutral
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 246.14 is above the 20-day moving average (MA) of 207.20, above the 50-day MA of 207.81, and above the 200-day MA of 219.98, indicating a bearish trend. The MACD of -3.07 indicates Positive momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 23.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEL.
TE Connectivity Risk Analysis
TE Connectivity disclosed 42 risk factors in its most recent earnings report. TE Connectivity reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TE Connectivity Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $202.48B | 44.97 | 34.81% | 0.54% | 54.40% | 68.63% | |
76 Outperform | $53.64B | 51.62 | 17.44% | ― | 19.19% | 42.75% | |
75 Outperform | $57.63B | 19.98 | 22.71% | 1.21% | 16.66% | 114.94% | |
75 Outperform | $50.14B | 58.74 | 17.26% | ― | 8.14% | 10.64% | |
72 Outperform | $35.76B | 42.14 | 62.42% | 0.14% | 17.80% | 55.75% | |
67 Neutral | $169.36B | 93.22 | 15.65% | 1.25% | 20.05% | 298.15% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
TEL
TE Connectivity
197.44
28.64
16.97%
APH
Amphenol
164.59
66.71
68.15%
GLW
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196.79
144.98
279.81%
FLEX
Flex
136.86
85.39
165.94%
JBL
Jabil
341.30
116.18
51.61%
KEYS
Keysight Technologies
313.86
151.41
93.20%
TE Connectivity Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
TE Connectivity Posts Strong Q2 Results, Raises Outlook
Positive
Apr 22, 2026
TE Connectivity reported strong results for its fiscal second quarter ended March 27, 2026, with net sales rising 15% year over year to $4.74 billion, driven by growth in both Industrial and Transportation segments. GAAP diluted EPS from continuin...
Business Operations and StrategyStock BuybackShareholder Meetings
TE Connectivity Shareholders Back Board and Governance Proposals
Positive
Mar 12, 2026
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 ma...
Business Operations and StrategyPrivate Placements and Financing
TE Connectivity Expands Liquidity with New $3B Credit Facility
Positive
Feb 17, 2026
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 t...
Business Operations and StrategyPrivate Placements and Financing
TE Connectivity Subsidiary Issues New Senior Notes Offering
Positive
Feb 9, 2026
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. T...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.