Core Insights - China is not only the largest display market globally but also at the forefront of technological innovation [1][3] - TEL's global sales are highest in China, and the company aims to deepen cooperation with Chinese enterprises in the display industry [3] Industry Overview - The 2025 World Display Industry Innovation Development Conference was held in Chengdu, highlighting the rapid rise of the new display industry in the region [1][3] - The global display industry continues to show strong growth resilience despite macro challenges, driven by technological innovation and industrial cluster upgrades in China [3] Company Strategy - TEL focuses on dry etching processes, providing solutions for both LCD and OLED applications, and has established partnerships with multiple Chinese display companies [3] - The company plans to enhance equipment quality and cost-effectiveness while concentrating on high-growth areas like OLED, aiming for long-term industry development through localized services [3]

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]

Financial Data and Key Metrics Changes - The company reported fourth quarter sales of $4.75 billion, growing 17% year-over-year and 11% organically, exceeding guidance [7] - Full year sales reached a record $17.3 billion, up 9% on a reported basis and 6% organically [9] - Adjusted earnings per share (EPS) for the fourth quarter was $2.44, a 25% increase compared to the previous year [7] - Adjusted operating margins were 20%, an increase of 130 basis points year-over-year [8] - 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 - The industrial segment saw reported growth of 24%, with organic growth of 18%, driven by demand in artificial intelligence and energy infrastructure applications [8] - Transportation orders increased by 9% year-over-year, with auto growth in all regions [10] - The Digital Data & Devices segment grew 80% year-over-year, reflecting strong demand from hyperscaler platforms [13] Market Data and Key Metrics Changes - Orders for the fourth quarter totaled $4.7 billion, a 22% increase year-over-year [7] - Organic order growth was observed across all regions, with significant contributions from automotive and energy sectors [10] - The company expects global auto production to remain stable at 87 million-88 million units in fiscal 2026, with content growth driven by electrification and data connectivity [11] Company Strategy and Development Direction - The company aims to continue executing its long-term value creation model, with a focus on operational resilience and strategic positioning in growth sectors [6] - The upcoming Investor Day event is expected to provide further insights into growth opportunities and the company's value creation model [5][22] - The company is making changes to its non-GAAP reporting to better reflect cash profitability, which may influence future M&A strategies [21][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong performance despite an uneven macro environment, with expectations for double-digit growth in the first quarter of fiscal 2026 [6][9] - The company anticipates continued momentum in AI and cloud-related revenues, with a projected run rate of $1.5 billion [60] - Management noted that while there are challenges in certain markets, overall demand trends appear to be stabilizing [41][44] Other Important Information - The company returned over $2 billion to shareholders and invested $2.6 billion in bolt-on acquisitions during the year [9][20] - Adjusted effective tax rates are expected to be approximately 22% for the first quarter of fiscal 2026 [18] Q&A Session Summary Question: AI revenue growth and future forecasts - Management confirmed AI sales reached over $900 million in fiscal 2025, with expectations for continued growth driven by strong orders and design wins [27] Question: Capital expenditures for fiscal 2026 - Management indicated that capital expenditures would likely remain in line with previous years, supporting growth initiatives [36] Question: Trends in end markets and demand changes - Management noted stability in transportation orders and consistent growth in industrial segments, with some regional disparities [41][44] Question: Margins and profitability concerns - Management addressed concerns about margins, indicating that operational performance remains strong despite some noise from tariff pricing [90] Question: Market share dynamics in AI - Management emphasized the importance of technology and co-designing with customers to capture market share in the competitive AI landscape [95]

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]