TE Connectivity survey: Return on investment becomes top priority as AI age evolves Accessibility StatementSkip Navigation Annual Industrial Technology Index reveals companies are now more focused on AI's bottom-line impact than innovation goals GALWAY, Ireland, March 23, 2026 /PRNewswire/ -- Adoption rates of artificial intelligence tools at industrial technology companies have exceeded 80%, according to a new global survey from TE Connectivity, a world leader in connectors and sensors. And now, the survey ...

Global Research ab 15 March 2026 Road & Spak Everything In The Right Place? As we had documented in this weekly space, we grew more cautious particularly on suppliers as the group had rallied through 4Q25 earnings season. Our thinking was that most of the gains had been driven by multiple expansion, multiples looked stretched, and we saw a low probability that positive earnings revisions could backfill multiples. This meant that continued outperformance had to be driven by further multiple expansion – histo ...

Core Insights - TE Connectivity has been recognized as one of the World's Most Ethical Companies for the 12th consecutive year by Ethisphere, highlighting its commitment to ethical business practices [1][2][3] Company Recognition - TE Connectivity is one of only five companies in the electronics and components industry to receive this recognition [2] - The company has maintained this honor for 12 years, showcasing its consistent ethical standards [3] Governance and Ethics - TE Connectivity emphasizes high ethical standards, with 90,000 employees dedicated to maintaining its reputation as a trusted partner [4] - The company conducted over 142,000 ethics and compliance training sessions in the past year, with more than 99% of employees completing the global Guide to Ethical Conduct training [5] - TE has enhanced its ethics and compliance program to align with leading practices, integrating emerging technologies into risk management [5] Assessment Criteria - The assessment for the World's Most Ethical Companies is based on Ethisphere's Ethics Quotient, which requires over 240 documented proof points on various ethical practices [6] Industry Impact - Ethisphere's chief strategy officer noted that companies with strong ethics and governance programs are positioned for better long-term performance [7] Company Overview - TE Connectivity plc is a global leader in industrial technology, focusing on creating a safer, sustainable, productive, and connected future through its connectivity and sensor solutions [8]

Core Insights - Data centers and defense are currently two of the most lucrative industries, with three key companies recently increasing their dividends, benefiting from strong market demand [2][6] - The dividend increases are supported by robust business fundamentals rather than financial engineering, indicating sustainable growth potential [3] Company Summaries - TE Connectivity (TEL) has a market capitalization of nearly $58 billion and is a leader in providing solutions for transportation, industrial, and data center markets [3] - TEL's digital data networks business experienced a 70% year-over-year growth last quarter, driven by the AI data center boom, and expects AI revenues in fiscal 2026 to exceed previous forecasts by a couple of hundred million dollars [4] - TEL recently raised its dividend by 10%, increasing the quarterly payout to 78 cents per share, resulting in an indicated dividend yield of approximately 1.6%, which is above the S&P 500 Index yield of about 1.1% [5] Industry Trends - The demand for data centers and defense is expected to continue growing, with companies like TEL, General Dynamics, and Rheinmetall benefiting from this trend [6] - Rheinmetall's proposed dividend increase is notable, reflecting the long-term growth potential in Europe's defense sector [6]

Core Insights - Microchip Technology is experiencing a recovery with a sequential revenue increase for three consecutive quarters, while TE Connectivity is achieving record orders and significant growth across its segments [1] Group 1: Microchip Technology (MCHP) - Revenue for Q3 FY26 reached $1.186 billion, reflecting a 4% sequential increase and a 15.6% year-over-year growth [2] - Non-GAAP gross margins improved to 60.5%, up from 52% a year ago, indicating effective management strategies [2] - The CEO has implemented a nine-point recovery plan focusing on closing underperforming fabs, normalizing inventory, and rebuilding customer relationships [2] - Guidance for the March quarter anticipates net sales of $1.260 billion, suggesting nearly 30% year-over-year growth [6] - The forward P/E ratio is approximately 24x, with a dividend yield of 2.9%, although the stock has seen a 23% decline over the past month [8] Group 2: TE Connectivity (TEL) - Q1 FY2026 revenue reached $4.67 billion, a 22% increase year-over-year, with record orders of $5.1 billion, up 28% [3] - The Industrial Solutions segment grew by 38% year-over-year, driven by AI data center connectivity and grid hardening [3] - The CEO highlighted strong performance against strategic goals, resulting in over 30% earnings growth and more than 20% sales growth, both exceeding guidance [3] - TE's AI data center revenue tripled from $300 million in FY2024 to over $900 million in FY2025, with expectations of 20% growth in hyperscaler capex for FY2026 [5] - The forward P/E ratio is closer to 18x, indicating a business with more near-term earnings visibility [9] Group 3: Comparative Analysis - Microchip is in a turnaround phase, while TE is already in growth mode, capturing current AI infrastructure spending [9] - Analysts suggest that TE's near-term earnings visibility may be worth examining alongside Microchip's ongoing margin recovery story [9]

Core Viewpoint - TE Connectivity plc has announced a 10% increase in its quarterly cash dividend to $0.78 per ordinary share and authorized a $3.0 billion increase in its share repurchase program [1][1][1] Dividend Announcement - The board of directors declared a regular quarterly cash dividend of $0.78 per ordinary share, payable on June 12, 2026, to shareholders of record at the close of business on May 22, 2026 [1][1] - This payment represents a 10% increase from the previous quarterly dividend of $0.71 per ordinary share, which is set to be paid on March 13, 2026 [1][1] Share Repurchase Program - The company's board of directors has authorized a $3.0 billion increase in its share repurchase program [1][1] Annual General Meeting - During the 2026 annual general meeting of shareholders held on March 11, 2026, shareholders voted in favor of all agenda items, including the reelection of all 13 members to the board of directors [1][1] Company Overview - TE Connectivity plc is a global industrial technology leader focused on creating a safer, sustainable, productive, and connected future [1][1] - The company offers a broad range of connectivity and sensor solutions that enable the distribution of power, signal, and data across various sectors, including transportation, energy networks, and data centers [1][1] - TE Connectivity employs over 90,000 individuals, including 10,000 engineers, and operates in approximately 130 countries [1][1]

Core Insights - TE Connectivity has exceeded several of its 2025 corporate responsibility goals, demonstrating significant progress in sustainability, safety, and inclusivity [1] Sustainability Achievements - The company has surpassed its goal of sourcing 80% of its electricity from renewable sources by achieving 87% [1] - A solar energy system in Lamphun, Thailand, generates 1.2 million kWh annually, accounting for approximately 15% of the site's energy use and reducing emissions by about 520 tons per year [1] - TE has reduced water withdrawal for targeted water-stressed sites by 22%, exceeding its goal of 15% [1] - The amount of hazardous waste disposed has been reduced by 66%, surpassing the goal of 15% [1] Safety Improvements - TE Connectivity has improved worker safety, achieving a Total Reportable Incident Rate of 0.06, which is better than the goal of 0.12 [1] Future Goals - The company aims to reduce Scope 3 greenhouse gas emissions by 30% by 2032, having already achieved a 17% reduction since 2022 [1] - TE has doubled the number of zero waste to landfill sites to 56 and has diverted 93% of its waste from landfills and incinerators, approaching its goal of 98% [1]

Domestic News - Shenzhen has issued the "2026 Automobile Replacement and Update Subsidy Implementation Guidelines," providing a one-time subsidy of up to 15,000 yuan for consumers who purchase new energy vehicles or fuel vehicles with an engine size of 2.0 liters or less after selling their old cars [6] - Hainan Province and Baidu have signed a strategic cooperation agreement to establish a smart connected vehicle industry ecosystem, focusing on cross-border data flow and the construction of an international autonomous driving center [7] - Jiangxi Province has upgraded its automobile replacement subsidy, allowing consumers to receive up to 20,000 yuan for purchasing new energy vehicles after scrapping old cars, with subsidies based on a percentage of the new car's price [8][9] - Horizon Robotics has showcased its new production model, iCAR V27, featuring advanced driving assistance capabilities powered by its Horizon SuperDrive technology [10][11] - NIO's founder announced plans for the "Firefly" brand, including the deployment of fifth-generation battery swap stations and expansion into global markets [12] - Avita has commenced the first delivery of its Avita 07 model in Thailand, marking the brand's global expansion [13] - Zeekr has officially entered the Italian market, signing a dealership agreement and planning further European expansion [15][16] - The world's first "robot + car" 4S store has opened in Beijing, integrating robotics into the automotive service experience [17] International News - Renault Group will unveil its new "futuREady" strategy on March 10, aiming to shift from creating individual success stories to building a sustainable success system [18] - Skoda has invested 205 million euros to establish a battery assembly plant in the Czech Republic, becoming the largest electric vehicle battery system producer within the Volkswagen Group [19] - General Motors plans to expand its used car business through its online platform CarBravo, discontinuing a long-standing warranty program for used cars sold by dealers [20] - TE Connectivity has acquired the electric vehicle charging interface business from Phoenix Contact E-Mobility, enhancing its service capabilities for major automotive clients [21] Commercial Vehicles - Proton Automotive has completed a multi-hundred million yuan Series B financing round to accelerate its development in the new energy commercial vehicle sector [23] - Joyson Electronics is set to launch its L4 autonomous driving domain controller in low-speed unmanned logistics vehicles, marking a significant step in domestic L4 applications [24] - Changan Automobile has initiated a "Changan Pickup Entrepreneurial Season" campaign, offering various financial incentives to support small business owners [25] - Jiangling Motors' representative has proposed lifting the mandatory scrappage age limit for non-operating pickups, suggesting policy adjustments to align with trends in the pickup market [26][27]

Core Viewpoint - TE Connectivity PLC (NYSE:TEL) has faced significant stock price declines amid geopolitical tensions and market uncertainty, with a notable drop of 7.89% in a single day [1]. Financial Performance - In the first quarter of fiscal year 2026, TE Connectivity reported a net income increase of 42% to $750 million, up from $528 million year-on-year [3]. - Net sales for the same period rose by 21.7% to $4.669 billion, compared to $3.836 billion in the previous year, driven by growth in industrial and transportation segments [3]. Future Projections - For the second quarter, TE Connectivity aims to achieve $4.7 billion in sales, indicating an implied growth of 13% on a reported basis and 6% organic growth [4]. - The company projects adjusted earnings per share of $2.65, reflecting a 20% increase year-on-year [4]. Market Context - TE Connectivity is indirectly affected by global supply disruptions and rising shipping costs due to increased oil prices, with Brent and WTI oil benchmarks rising by 7.67% and 6.68%, respectively [2].

Core Viewpoint - Oppenheimer analysts highlight bullish momentum across multiple sectors as March unfolds, indicating potential trading opportunities, especially when the S&P 500 index remains above its 200-day moving average [1][3] Group 1: Market Performance - Historical data shows that March market returns typically outperform February, with the S&P 500 index averaging a 1.2% increase since 1950 under the current technical conditions, achieving a 66% probability of rising [3] - The S&P 500 index is currently above the support level of 6520 points, maintaining an upward trend, with the past four months of consolidation alleviating previous overbought pressures [3] Group 2: Sector Focus - Analysts suggest shifting focus from mega-cap stocks to broader market opportunities, emphasizing the importance of embracing market breadth rather than fixating on market capitalization strength [3] - Despite the "seven giants" dragging down the S&P 500 since last October, momentum factors remain resilient, with a strong emphasis on avoiding weak sectors while capturing strong stocks [3] Group 3: Technology Sector Insights - Within the technology sector, a clear divergence is observed between software stocks and equal-weighted tech stocks, with software stocks negatively impacting overall tech performance since a downgrade in mid-January [3] - Excluding software stocks, the overall momentum score for the tech sector improved significantly from -4% to +6% [3] Group 4: Recommended Stocks - Oppenheimer recommends "buy" ratings for several stocks in the technology sector, including Apple (AAPL.US), TE Connectivity (TEL.US), Jabil (JBL.US), and MongoDB (MDB.US) [4] - In the biotech sector, Oppenheimer identifies a potential turning point after a "lost decade," with biotech equal-weight ETFs recovering their four-year moving average for the first time since June 2021 [4] - The metals and mining sector has completed a decade-long bottoming and breakout pattern, with recommended stocks including Alcoa (AA.US), Freeport-McMoRan (FCX.US), MP Materials (MP.US), and Century Aluminum (CENX.US) [4] Group 5: Energy Sector Analysis - The energy sector has shown notable performance, with momentum scores rising from 0% to +4%, marking one of the largest monthly increases [4] - The SPDR ETF for the energy sector has broken through a technical resistance level that has persisted since 2014, indicating a long-term bottom is being established [4] - Recommended energy stocks include Baker Hughes (BKR.US), TechnipFMC (FTI.US), Targa Resources (TRGP.US), and Valero Energy (VLO.US) [5]