Core Viewpoint - TE Connectivity Plc (NYSE: TEL) has shown strong financial performance, leading to an increased price target from Truist Financial, reflecting growing confidence in the company's future prospects [1][5]. Financial Performance - TEL reported fourth-quarter adjusted earnings of $2.44 per share, exceeding the expected $2.29 and representing a 25% increase from last year's $1.95 [2][5]. - Revenue for the quarter rose by 17% to $4.75 billion, surpassing the forecast of $4.58 billion, with an 11% organic growth [2][5]. Future Projections - The company anticipates first-quarter adjusted earnings per share of $2.53, a 23% year-over-year increase, which is above analysts' estimates of $2.17 [3]. - TEL expects sales of $4.50 billion for the first quarter, reflecting a 17% increase on a reported basis and 11% organically year over year, exceeding the consensus estimate of $4.34 billion [3]. Market Performance - TEL's stock is currently priced at $244.72, showing an increase of approximately 1.64% or $3.96, with a market capitalization of around $72.31 billion [4].

Core Insights - TE Connectivity Plc reported better-than-expected fourth-quarter results, with adjusted earnings of $2.44 per share, surpassing analysts' estimates of $2.29 and increasing 25% from $1.95 a year earlier [1] - Revenue for the quarter rose 17% to $4.75 billion, exceeding expectations of $4.58 billion and showing an 11% organic growth, driven by strong performance in the Industrial and Transportation segments [1] Financial Outlook - The company anticipates first-quarter adjusted earnings per share of $2.53, a 23% year-over-year increase, which is above analysts' estimates of $2.17 [2] - Forecasted sales for the first quarter are $4.50 billion, reflecting a 17% increase on a reported basis and 11% organically year over year, also above the consensus estimate of $4.34 billion [2] Management Commentary - CEO Terrence Curtin highlighted the strong execution against the business model, resulting in record top-line performance, earnings, and cash flow for 2025, positioning the company well for the new fiscal year [3] - The results demonstrate the strategic positioning of the company's portfolio and the investments made to capitalize on long-term growth trends [3] Stock Performance - Following the earnings announcement, TE Connectivity shares rose 1.4% to trade at $244.23 [3] Analyst Ratings and Price Targets - Truist Securities analyst William Stein maintained a Hold rating and raised the price target from $200 to $255 [6] - Wells Fargo analyst Colin Langan maintained an Equal-Weight rating and increased the price target from $215 to $241 [6] - Evercore ISI Group analyst Amit Daryanani maintained an Outperform rating and raised the price target from $250 to $260 [6]

Core Insights - TE Connectivity (TEL) shares have increased by 8.6% over the past month, reaching a new 52-week high of $246.13, and have gained 68.4% since the beginning of the year, outperforming the Zacks Computer and Technology sector (30.9%) and the Zacks Electronics - Miscellaneous Components industry (53.9%) [1] Financial Performance - TE Connectivity has consistently exceeded earnings expectations, reporting an EPS of $2.44 against a consensus estimate of $2.29 in its latest earnings report on October 29, 2025 [2] - For the current fiscal year, the company is projected to achieve earnings of $9.51 per share on revenues of $18.37 billion, reflecting an 8.56% increase in EPS and a 6.4% increase in revenues. For the next fiscal year, earnings are expected to rise to $10.14 per share on revenues of $19.1 billion, indicating year-over-year changes of 6.71% and 3.99%, respectively [3] Valuation Metrics - TE Connectivity has a Value Score of C, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of A [6] - The stock trades at 25.3 times the current fiscal year EPS estimates, below the peer industry average of 28.1 times. On a trailing cash flow basis, it trades at 20.6 times compared to the peer group's average of 17.6 times, with a PEG ratio of 2.24, indicating it is not among the top value stocks [7] Zacks Rank - TE Connectivity holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend [8] - The stock meets the criteria for selection, as it carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further growth in the upcoming weeks and months [9]

Core Insights - Telenor's annual Nordic security report emphasizes the need for a coordinated regional approach to security amid rising geopolitical tensions and digital threats [1][2] - The report identifies six main security risks that the Nordic region must prepare for, highlighting the interdependence of critical services [3][6] Security Risks - The six main threat categories identified are: 1. Destructive cyberattacks 2. Sabotage of digital and physical infrastructure 3. Foreign influence and disinformation campaigns 4. Intelligence operations targeting critical infrastructure 5. Organised digital financial crime 6. Advanced online fraud [6] Resilience and Preparedness - Telenor stresses that resilience requires long-term investment, preparedness, and coordination between governments and industry [5] - The report calls for predictable funding, aligned frameworks, and operations to ensure effective regional response during crises [5] Hybrid Threats and Critical Infrastructure - Hybrid threats are reshaping the security landscape, with state-backed and criminal actors blurring the lines between different types of attacks [7] - Critical infrastructure, including subsea cables and mobile networks, is identified as a strategic battleground and prime target for attacks [7] Data Sovereignty and Regional Cooperation - Data sovereignty is becoming a crucial issue, prompting investments in sovereign or regionally governed cloud solutions [7] - The report highlights the importance of Nordic alignment, shared situational awareness, and joint exercises to meet NATO's resilience objectives [7] Recommendations for Strengthening Resilience - The report includes recommendations for governments and operators to enhance preparedness and build lasting resilience across the Nordic region [8] - Key recommendations include making resilience a Nordic priority, aligning frameworks across borders, and strengthening information sharing [9]

Core Insights - TE Connectivity Ltd. reported record fourth-quarter results that exceeded expectations, leading to a more than 2% increase in shares during intra-day trading [1] - The company posted adjusted earnings of $2.44 per share, surpassing the analyst estimate of $2.29 [1] - Revenue increased by 17% year-over-year to a record $4.75 billion, beating consensus forecasts of $4.59 billion, driven by strong growth in the Industrial and Transportation divisions [1] Segment Performance - The Industrial Solutions segment was the top performer, with revenue increasing by 34.4% to $2.34 billion, fueled by robust demand from AI and energy customers [2] - Transportation Solutions sales grew by 3.6% to $2.41 billion [2] Future Outlook - For the first quarter of fiscal 2026, TE Connectivity projected revenue of approximately $4.5 billion, representing a 17% increase from the year-ago period and exceeding the $4.34 billion consensus [2] - The company forecast adjusted earnings of $2.53 per share, significantly above analyst estimates of $2.17 [2]

Core Insights - TE Connectivity (TEL) reported adjusted earnings of $2.44 per share for Q4 fiscal 2025, a 25.1% increase year-over-year, surpassing the Zacks Consensus Estimate by 6.55% [1][8] - Net sales reached $4.75 billion, exceeding consensus estimates by 4.28% and reflecting a 17% increase year-over-year, with 11% organic growth [1][8] - The growth was primarily driven by the Industrial and Transportation segments, with orders increasing to $4.7 billion, up 22% year-over-year [2][3] Q4 Financial Performance - The Transportation solutions segment generated revenues of $2.41 billion, accounting for 50.8% of net sales, with a year-over-year increase of 3.6% [3] - Automotive sales rose by 4% year-over-year, supported by strong demand in Asia, while sensor sales declined by 4% [3] - The Industrial Solutions segment reported revenues of $2.33 billion, representing a 34% increase year-over-year [4] Segment Performance - Digital Data Networks, Automation & Connected Living, Aerospace, Defense and Marine, and Energy segments saw significant year-over-year growth of 80%, 15%, 9%, and 83%, respectively [5] - The Medical sector experienced a decline of 16% [5] Operating Metrics - GAAP gross margin expanded by 100 basis points to 35% year-over-year [6] - Selling, general, and administrative expenses decreased to 10.4% of net sales, down 20 basis points [6] - Adjusted operating margin increased by 130 basis points to 19.9% [6] Balance Sheet and Cash Flow - As of September 26, 2025, cash and cash equivalents rose to $1.25 billion from $672 million [7] - Long-term debt slightly decreased to $4.842 billion [7] - Cash generated from operations was $1.4 billion, up from $1.2 billion in the previous quarter [7][9] Q1 Guidance - For Q1 fiscal 2026, TEL expects net sales to increase by 17% year-over-year to $4.5 billion, with adjusted earnings projected at $2.53 per share, indicating a 23% growth [10]

Core Insights - TE Connectivity (TEL) reported a revenue of $4.75 billion for the quarter ended September 2025, marking a year-over-year increase of 16.7% and exceeding the Zacks Consensus Estimate of $4.55 billion by 4.28% [1] - The company's EPS for the same period was $2.44, up from $1.95 a year ago, surpassing the consensus EPS estimate of $2.29 by 6.55% [1] Financial Performance - Net Sales in Industrial Solutions reached $2.34 billion, exceeding the average estimate of $2.17 billion by four analysts, representing a significant year-over-year increase of 98% [4] - Net Sales in Transportation Solutions amounted to $2.41 billion, slightly above the estimated $2.38 billion, reflecting a year-over-year growth of 4.4% [4] - Adjusted Operating Income for Industrial Solutions was reported at $475 million, surpassing the average estimate of $424.51 million [4] - Adjusted Operating Income for Transportation Solutions was $468 million, slightly below the average estimate of $475.69 million [4] Stock Performance - TE Connectivity's shares have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

TE Connectivity (NYSE:TEL) Q4 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsAmit Daryanani - Senior Managing DirectorSujal Shah - VP of Investor RelationsTerrence Curtin - CEOScott Davis - Chairman and CEOHeath Mitts - CFOShreyas Patil - VP Equity ResearchConference Call ParticipantsMichael Elias - Senior Equity Research AnalystGunars Vinkels - Equity Research AnalystSamik Chatterjee - Senior Equity Research AnalystJoe Stadwiecz - Executive Director and Equity Research AnalystAsiya Mer ...

Financial Data and Key Metrics Changes - Fourth quarter sales reached $4.75 billion, growing 17% on a reported basis and 11% organically year over year [6] - Full year sales were a record $17.3 billion, growing 9% on a reported basis and 6% organically [8] - Adjusted earnings per share (EPS) for the fourth quarter was $2.44, increasing 25% versus the prior year [6] - Adjusted operating margins were 20%, increasing 130 basis points year over year [7] - Free cash flow for the fourth quarter was $1.2 billion, contributing to a total of over $3 billion for the full year [9] Business Line Data and Key Metrics Changes - In the industrial segment, reported growth was 24%, with organic growth at 18%, driven by demand for AI and energy infrastructure applications [8] - Transportation orders increased 9% year over year, with auto sales growing 2% organically in the fourth quarter [10][11] - Digital Data & Devices segment grew 80% year over year, reflecting strong demand from hyperscaler platforms [12][13] - Energy business sales grew 83%, with organic growth at 24% driven by investments in grid hardening and renewable applications [15] Market Data and Key Metrics Changes - Orders increased to $4.7 billion, a 22% year-over-year increase [6] - Organic order growth was seen across all regions, with notable increases in automotive and energy sectors [10] - The company expects global auto production to remain stable at 87 to 88 million units in fiscal 2026 [11] Company Strategy and Development Direction - The company aims to continue executing its long-term value creation model, with a focus on growth opportunities in AI and energy sectors [5][9] - A change in non-GAAP reporting will exclude amortization expense on intangible assets, starting in fiscal 2026 [3][21] - The company is committed to returning capital to shareholders while also pursuing bolt-on acquisitions to support growth [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and operational resilience despite an uneven macro environment [5] - The outlook for the first quarter of fiscal 2026 includes expected sales of $4.5 billion, reflecting a 17% year-over-year increase [9] - Management noted that order levels support a positive outlook for double-digit growth in the first quarter [9] Other Important Information - The company will hold an Investor Day event on November 20, where further details on growth opportunities will be shared [4][22] - Adjusted effective tax rate for the first quarter of fiscal 2026 is expected to be approximately 22% [19] Q&A Session Summary Question: AI revenue growth and future expectations - The company generated over $900 million in AI sales in 2025, tripling revenue from the previous year, with expectations for continued growth in 2026 [26][27] Question: Capital expenditures for 2026 - Capital expenditures are expected to increase slightly, supporting AI and cloud programs, with a focus on maintaining a growth rate in line with historical averages [36] Question: Trends by end market and demand changes - The company noted stability in transportation orders and consistent growth in energy, with some challenges in North America [40][43] Question: Gross margin potential and accounting changes - The company is targeting continued margin expansion, with expectations for adjusted operating margins to remain strong [52][55] Question: Market share dynamics in AI - The company aims to compete effectively in a concentrated market, focusing on technology and customer collaboration to gain market share [93]

TE Connectivity Fourth Quarter 2025 Earnings October 29, 2025 EVERY CONNECTION COUNTS Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial conditio ...