Core Insights - TE Connectivity plc (TEL) is a global leader in connectors, sensors, and electronic components with a market cap of $69.8 billion, serving high-growth industries such as automotive, aerospace, and medical devices [1] Performance Summary - TEL shares have increased by 54.9% over the past 52 weeks, significantly outperforming the S&P 500 Index, which rose by 13.2% during the same period [2] - Year-to-date, TEL stock is up nearly 66%, compared to a 14.5% gain for the S&P 500 [2] - The stock has also outperformed the Technology Select Sector SPDR Fund (XLK), which returned 22.9% over the past 52 weeks [3] Financial Highlights - For Q4, TE Connectivity reported revenue of $4.75 billion, a 17% increase year-over-year, with 11% organic growth [4] - Adjusted EPS reached a record $2.44, up 25% from the previous year [4] - Orders rose by 22% to $4.7 billion, indicating strong demand [4] - The company generated $1.4 billion in operating cash flow and $1.2 billion in free cash flow, returning approximately $650 million to shareholders [4] Future Outlook - Analysts project TEL's adjusted EPS to grow by 16.6% year-over-year to $10.21 for the fiscal year ending in September 2026 [5] - The consensus rating among 18 analysts is a "Strong Buy," with 13 "Strong Buy" ratings and five "Holds" [5] - Barclays analyst Guy Hardwick raised the price target for TEL to $277 from $249, indicating sustained confidence in the company's outlook [6]

Core Insights - Allworth Financial LP increased its holdings in TE Connectivity by 68.1% in Q2, owning 2,422 shares valued at $409,000 [2] - TE Connectivity reported Q3 earnings of $2.44 EPS, exceeding estimates of $2.29, with revenue of $4.75 billion, up 16.7% year-over-year [5] - The company declared a quarterly dividend of $0.71, representing an annualized yield of 1.2% [6] Institutional Holdings - Nordea Investment Management AB raised its stake in TE Connectivity by 54.4%, now owning 1,605,782 shares valued at $269.72 million [3] - 91.43% of TE Connectivity's stock is owned by institutional investors and hedge funds [3] - KLP Kapitalforvaltning AS increased its holdings by 3.5%, now owning 110,533 shares valued at $18.69 million [3] Stock Performance - TE Connectivity shares opened at $237.14, with a market capitalization of $69.76 billion and a PE ratio of 38.56 [4] - The stock has a one-year low of $116.30 and a high of $250.67 [4] - The company has a debt-to-equity ratio of 0.38 and a current ratio of 1.56 [4] Insider Activity - EVP John S. Jenkins sold 25,021 shares at an average price of $247.73, representing a 54.48% decrease in ownership [7] - In the last ninety days, insiders sold 131,171 shares worth $31.38 million [7] - Insiders currently own 0.90% of the company's stock [7] Analyst Ratings - Evercore ISI raised its price target for TE Connectivity from $250.00 to $260.00, maintaining an "outperform" rating [8] - JPMorgan Chase & Co. increased its target price from $204.00 to $260.00, giving a "neutral" rating [9] - The average rating for TE Connectivity is "Moderate Buy" with a consensus target price of $241.58 [9] Company Overview - TE Connectivity manufactures and sells connectivity and sensor solutions across various regions, operating through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions [10]

Core Insights - Shanghai remains a top destination for foreign investment, with 265 foreign-invested enterprises making it to the 2024 Shanghai Foreign Investment Enterprises Top 100 list, an increase from 258 in the previous year [2][3] Group 1: Contribution of Foreign Enterprises - The top 100 foreign-invested enterprises account for 31.16% of the total operating revenue of all foreign-invested enterprises in Shanghai, 44.68% of the total import and export volume, 31.75% of the total tax contributions, and 17.50% of total employment [2] - Notable companies such as Apple, Tesla, and Shanghai Samsung Semiconductor lead in operating revenue, while companies like Daqo (Shanghai) and Tesla excel in import and export volume [2] Group 2: National Distribution of Foreign Investors - Companies from the United States, Japan, and Germany dominate the list, accounting for over 55% of the total, with 87 American companies represented, marking an increase of 4 from the previous year [3] Group 3: High-Tech Industry Performance - The biopharmaceutical sector shows significant growth, with 19 companies listed, an increase of 7 from the previous year, and notable increases in tax contributions and import/export volumes [4] - High-tech industries, including integrated circuits and artificial intelligence, account for 52% of foreign investment in manufacturing, with foreign R&D centers increasing to 631, including 19 global R&D centers [4] Group 4: Performance of Foreign Financial Sector - The financial sector is a crucial part of Shanghai's economy, with 555 foreign financial institutions among 1782 licensed financial entities [5] - The top 100 list includes 21 foreign financial enterprises, with 8 in the operating revenue category, 6 of which are in the insurance sector showing double-digit growth [6]

Core Insights - Mouser Electronics is an authorized global distributor offering over 750,000 parts from TE Connectivity, including more than 75,000 items in stock and ready to ship [1][2] Product Offerings - TE's GEMnet multi-gig differential connector system supports up to 56 Gbps for various applications, including automotive and safety-critical systems [2] - The BIOFUSE Bio Innovation Splice Sealing (BISS) and Bio Innovation Cap (BICAP) are eco-friendly heat-shrink tubing and caps that provide high performance while reducing environmental impact [3] - TE's FAKRA and MATE-AX cable assemblies are designed for high-frequency automotive applications, offering a range of configurations and significant PCB footprint reduction [4] - The RT Series N EMC/RFI chokes filter electromagnetic interference on AC power lines up to 600 VAC, suitable for various applications including EV charging stations [5] Collaborations and Recognition - TE Connectivity and Mouser Electronics collaborated on an eBook discussing advancements in industrial automation and smart manufacturing [6] - Mouser has received multiple awards from TE Connectivity, including the TE Global High Service Distributor of the Year Award for several consecutive years [7][8] Company Overview - Mouser Electronics provides a wide selection of semiconductors and electronic components, with over 6.8 million products from more than 1,200 manufacturers available on its platform [11] - TE Connectivity is a global leader in industrial technology, focusing on connectivity and sensor solutions across various sectors, including transportation and energy [12]

Core Insights - TE Connectivity (TEL) demonstrated strong international revenue performance in the quarter ending September 2025, with total revenue reaching $4.75 billion, a year-over-year increase of 16.7% [4]. International Revenue Breakdown - EMEA contributed 32.7% of total revenue, amounting to $1.56 billion, slightly exceeding Wall Street's expectation of $1.55 billion. This marks a decrease from 34.1% in the previous quarter and 36.1% in the same quarter last year [5]. - Asia-Pacific generated $1.75 billion, representing 36.8% of total revenue, surpassing the projected $1.71 billion by 2.38%. This region's contribution increased from 36.6% in the previous quarter and 34.4% year-over-year [6]. Future Revenue Projections - Analysts project TEL's revenues for the ongoing fiscal quarter to be $4.51 billion, reflecting a 17.5% increase from the previous year, with EMEA and Asia-Pacific expected to contribute $1.51 billion (33.6%) and $1.66 billion (37%), respectively [7]. - For the full year, total revenue is anticipated to reach $18.85 billion, a 9.2% increase from the prior year, with EMEA and Asia-Pacific expected to account for $6.42 billion (34%) and $7.12 billion (37.8%) [8]. Conclusion on International Market Dependence - TEL's reliance on international markets presents both opportunities and challenges, making it essential to monitor international revenue trends for forecasting the company's future prospects [9].

Group 1 - Tactile Systems Technology, Inc. (TCMD) has seen a 29% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Harmony Gold Mining Company Limited (HMY) has experienced a 12.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Robinhood Markets, Inc. (HOOD) has reported a 21.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Fabrinet (FN) has seen an 8.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - TE Connectivity plc (TEL) has experienced a 7.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1: Las Vegas Sands Corp - Las Vegas Sands Corp reported a significant increase in revenue, driven by a resurgence in tourism and gaming activities in Macau and Singapore [1] - The company's net income rose to $1.2 billion, reflecting a year-over-year growth of 25% [1] - Las Vegas Sands is focusing on expanding its footprint in the Asian market, particularly in integrated resort developments [1] Group 2: Netflix Inc - Netflix Inc experienced a subscriber growth of 10 million in the last quarter, surpassing market expectations [1] - The company's revenue reached $8.5 billion, marking a 15% increase compared to the previous year [1] - Netflix is investing heavily in original content to maintain its competitive edge in the streaming industry [1] Group 3: TE Connectivity Ltd - TE Connectivity Ltd reported a revenue increase of 8% year-over-year, totaling $3.5 billion [1] - The company is benefiting from strong demand in the automotive and industrial sectors [1] - TE Connectivity is focusing on innovation and sustainability in its product offerings to drive future growth [1]

Core Insights - TE Connectivity plc has appointed Dr. Ken Washington to its board of directors, effective November 17, 2025, bringing significant technology development experience to the company [1][2]. Company Overview - TE Connectivity plc is a global leader in industrial technology, focusing on connectivity and sensor solutions that support advancements in transportation, energy networks, automated factories, and data centers [4]. Leadership Experience - Dr. Washington has a robust background in technology and innovation, having served as senior vice president and chief technology & innovation officer at Medtronic plc since 2023, and previously held key positions at Amazon Lab126 and Ford Motor Company [3]. Recent Performance - TE Connectivity reported a 17% sales growth in its fiscal fourth quarter, exceeding guidance, indicating strong financial performance [5]. Upcoming Events - The company will host an Investor Day on November 20, 2025, in Philadelphia, which will provide further insights into its strategic direction and performance [6].

Financial Performance - Fiscal 2025 net sales increased by 8.9% to $17,262 million compared to fiscal 2024, driven by a 23.7% increase in the Industrial Solutions segment[175] - Organic net sales growth for fiscal 2025 was 6.4%, with Richards Manufacturing contributing $179 million in net sales since its acquisition in April 2025[175] - Transportation Solutions segment net sales decreased by 1.0% to $9,388 million, primarily due to declines in sensors and commercial transportation markets[185] - Industrial Solutions segment net sales rose to $7,874 million, reflecting strong growth in digital data networks and energy markets[185] - Operating income for fiscal 2025 was $3,211 million, an increase of $415 million from fiscal 2024, resulting in an operating margin of 18.6%[196] - Operating income in the Transportation Solutions segment decreased by $62 million to $1,818 million in fiscal 2025, with an operating margin of 19.4%[205] - Organic net sales in the Automotive sector were flat in fiscal 2025, with growth of 11.3% in the Asia-Pacific region offset by declines in the EMEA and Americas regions[207] - Industrial Solutions segment net sales increased by $1,510 million, or 23.7%, in fiscal 2025 compared to fiscal 2024, driven by organic net sales growth of 17.6% and a 5.7% contribution from acquisitions[208] - Digital data networks saw organic net sales growth of 72.6% in fiscal 2025, primarily due to growth in AI and cloud applications[209] - The company reported a net loss of $197 million for fiscal 2025, an improvement from a net loss of $271 million in fiscal 2024[238] Expenses and Margins - Gross margin improved to 35.2% in fiscal 2025, up from 34.4% in fiscal 2024, with a gross margin increase of $623 million attributed to higher volume and improved productivity[188] - In fiscal 2025, selling, general, and administrative expenses increased by $134 million to $1,866 million, representing 10.8% of net sales[190] - Cost of sales for fiscal 2025 was $11,183 million, representing 64.8% of net sales, compared to 65.6% in fiscal 2024[188] - Acquisition and integration costs in fiscal 2025 totaled $47 million, with $28 million related to the acquisition of Richards Manufacturing[192] - Net restructuring charges were $126 million in fiscal 2025, down from $166 million in fiscal 2024, with expected annualized cost savings of approximately $80 million by the end of fiscal 2026[194] Cash Flow and Dividends - Cash provided by operating activities increased by $662 million to $4,139 million in fiscal 2025, attributed to higher pre-tax income and reduced income tax payments[219] - Cash dividends paid to shareholders were $2.72 per ordinary share in fiscal 2025, with a quarterly dividend of $0.71 declared for December 2025[175] - The board of directors declared a quarterly cash dividend of $0.71 per ordinary share, payable on December 12, 2025[232] - During fiscal 2025, the company repurchased approximately 8 million ordinary shares for $1,356 million, with $1.4 billion remaining under the share repurchase authorization[234] Acquisitions and Investments - The company acquired Richards Manufacturing for approximately $2.3 billion, enhancing its Industrial Solutions segment[179] - The company acquired Richards Manufacturing for approximately $2.3 billion in fiscal 2025, along with two additional businesses for a combined cash purchase price of $321 million[222] - Capital expenditures were $936 million in fiscal 2025, with expectations for fiscal 2026 capital spending to be approximately 5% of net sales[221] Debt and Financial Position - Total debt at fiscal year end 2025 was $5,694 million, an increase from $4,203 million in 2024[224] - The company has approximately $3.5 billion of cash and cash equivalents that are considered permanently reinvested in global operations[218] - Total current assets increased to $1,236 million in fiscal 2025 from $1,164 million in fiscal 2024, while total noncurrent assets rose to $2,465 million from $2,377 million[237] - Total contractual cash obligations at fiscal year end 2025 amounted to $8,597 million, including long-term debt principal payments of $5,753 million[243] - As of fiscal year end 2025, the ratio of Consolidated Total Debt to Consolidated EBITDA was compliant with the covenant, remaining below the threshold of 3.75 to 1.0[229] Tax and Deferred Assets - Income tax expense for fiscal 2025 was $1,361 million, with an effective tax rate of 42.5%, compared to a benefit of $397 million and an effective tax rate of (14.2)% in fiscal 2024[197] - The valuation allowance for deferred tax assets increased to $8,821 million in fiscal 2025 from $8,285 million in fiscal 2024[199] - The company has significant valuation allowances for deferred tax assets, which may impact future income tax expenses and earnings[263] - Changes in tax laws and rates could affect recorded deferred tax assets and liabilities, but no material changes are currently anticipated[264] - The company recognizes tax liabilities based on estimates of uncertainties in tax regulations across multiple jurisdictions[265] Pension and Retirement Plans - The company expects pension contributions to be approximately $70 million in fiscal 2026[220] - A 25-basis-point decrease in discount rates would increase the present value of pension obligations by $63 million, while a 25-basis-point increase would decrease it by $60 million[268] - At fiscal year end 2025, the long-term target asset allocation in U.S. plans is 25% return-seeking assets and 75% liability-hedging assets, with a current allocation of 67% return-seeking and 33% liability-hedging[270] - The funded status of defined benefit pension plans is measured as the difference between the fair value of plan assets and the projected benefit obligation[266] Market Risks and Hedging - The company utilizes established risk management policies to manage market risks associated with interest rates and foreign currency movements[283] - A 10% appreciation or depreciation of the underlying currency in cross-currency swap contracts would change the unrealized value of contracts by $594 million at fiscal year end 2025[285] - At fiscal year end 2025, commodity hedges related to expected purchases of gold, silver, copper, and palladium were in a net gain position of $80 million with a notional value of $569 million[290]

Core Insights - The Zacks Electronics - Miscellaneous Components industry is experiencing growth due to automation and increased spending in sectors like semiconductors, automobiles, and healthcare, with companies like TE Connectivity, nVent Electric, and Fabrinet positioned to benefit from AI and IoT advancements [1][3][4] - However, the industry faces challenges from global macroeconomic conditions, end-market volatility, higher tariffs, and geopolitical tensions, particularly between the U.S. and China [1][5] Industry Overview - The industry includes companies that provide various electronic components and accessories, serving markets such as telecommunications, automotive electronics, medical devices, and consumer electronics [2] - Key customers are original equipment manufacturers, independent distributors, and electronic manufacturing service providers [2] Trends Impacting the Industry - Automation is a significant driver, with demand for faster and more efficient electronics leading to increased use of control systems and collaborative robots [3] - Miniaturization in semiconductor manufacturing is creating strong demand for advanced packaging and new manufacturing materials [4] - Geopolitical tensions, particularly the U.S.-China trade restrictions, are negatively impacting the industry, especially regarding semiconductor supply [5] Industry Performance - The Zacks Electronics - Miscellaneous Components industry ranks 62, placing it in the top 25% of over 250 Zacks industries, indicating bullish near-term prospects [6][7] - The industry's earnings estimates have increased by 9.4% since June 30, 2025, reflecting positive sentiment among analysts [8] Stock Market Performance - The industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, appreciating 35.3% over the past year compared to the S&P 500's 14.2% and the sector's 24.9% [10] Current Valuation - The industry is currently trading at a forward P/E ratio of 23.45, slightly above the S&P 500's 23.30 but below the sector's 28.61 [13] Notable Companies - **TE Connectivity**: Expected to benefit from strong demand in AI and energy applications, with a projected 11% organic sales growth to $4.5 billion in Q1 fiscal 2026 [17][18] - **nVent Electric**: Anticipates 31-33% sales growth in Q4 2025, driven by acquisitions and strong data center orders [22][23] - **Fabrinet**: Forecasts 29% year-over-year revenue growth in Q2 fiscal 2026, with strong performance in non-optical communications [26][27]