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]

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 ...

Core Insights - TE Connectivity (TEL) reported quarterly earnings of $2.44 per share, exceeding the Zacks Consensus Estimate of $2.29 per share, and up from $1.95 per share a year ago, representing an earnings surprise of +6.55% [1] - The company achieved revenues of $4.75 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.28%, compared to $4.07 billion in the same quarter last year [2] - TE Connectivity shares have increased approximately 65.5% year-to-date, significantly outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.14, with expected revenues of $4.29 billion, and for the current fiscal year, the EPS estimate is $9.51 on revenues of $18.37 billion [7] - The estimate revisions trend for TE Connectivity was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Electronics - Miscellaneous Components industry, to which TE Connectivity belongs, is currently ranked in the top 13% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net sales for Q4 2025 reached a record $4.75 billion, representing a 17% increase year over year and an 11% organic growth[4] - GAAP diluted EPS from continuing operations was $2.23, up 148% year over year, while adjusted EPS was a record $2.44, an increase of 25% year over year[4] - Total orders increased to $4.7 billion, up 22% year over year and 5% sequentially[4] - Full-year net sales were a record $17.3 billion, up 9% on a reported basis and 6% organically[4] - For Q1 FY26, the company expects sales of approximately $4.5 billion, up 17% year over year, and GAAP EPS of approximately $2.33, an increase of 33% year over year[6] - The company reported a total operating income of $3.394 billion for the year ended September 26, 2025, with an operating margin of 19.7%[36] - For the quarter ended September 26, 2025, net income was $663 million, a significant increase from $276 million in the same quarter of 2024[25] - Total net sales for the quarter reached $4,749 million, an increase of 16.7% from $4,068 million in the same quarter of 2024[29] - Operating income for the quarter was $943 million, with an operating margin of 19.9%[32] - The diluted earnings per share from continuing operations for the quarter were $2.44, reflecting an increase from $1.95 in the same quarter last year[32] Cash Flow and Shareholder Returns - Cash flow from operating activities for the full year was $4.1 billion, with free cash flow reaching a record $3.2 billion[4] - The company returned $2.2 billion to shareholders and deployed $2.6 billion for bolt-on acquisitions during the fiscal year[4] - Free cash flow for the quarter was $1,154 million, compared to $833 million in the same quarter of 2024, representing a growth of 38.6%[27] - Cash flows from operating activities for the year were $4,139 million, compared to $3,477 million in 2024, indicating a year-over-year increase of 19.0%[25] Segment Performance - The Industrial segment saw a 24% sales increase during the year, driven by innovations for AI and energy customers[5] - Organic net sales growth for the Transportation Solutions segment was 3.6%, with Automotive growing by 3.9% and Commercial Transportation by 7.4%[30] - Digital Data Networks within Industrial Solutions saw a significant increase of 79.9%, contributing $314 million to net sales[30] - The Industrial Solutions segment reported a total of $1.510 billion in net sales for the year, with a 23.7% growth rate[36] - The Energy sector within Industrial Solutions experienced a remarkable growth of 46.2%, contributing $425 million to net sales for the year[36] Outlook and Projections - The adjusted EPS outlook for Q1 FY26 excludes amortization expense on intangible assets[7] - For the outlook of the quarter ending December 26, 2025, the company projects diluted earnings per share from continuing operations to be $2.33, with an adjusted EPS of $2.53[43] - TE Connectivity anticipates a net sales growth of 17.3% for the upcoming quarter, with organic net sales growth projected at 10.6%[43] - The company expects acquisition-related charges of $0.02 and restructuring charges of $0.03 to impact the upcoming quarter's earnings[43] Tax and Debt - The effective tax rate for the quarter was 21.4%, down from 26.0% in the previous year[32] - The effective tax rate for the quarter ended December 27, 2024, was reported at 25.2%, which is expected to adjust to 23.0% in the future outlook[41] - Long-term debt increased to $4,842 million in 2025, up from $3,332 million in 2024, reflecting a rise of 45.4%[24] - The company has noted a decrease in corporate tax rates in non-U.S. jurisdictions, impacting deferred tax asset valuations[42] Capital Expenditures and Assets - Capital expenditures for the quarter were $271 million, compared to $213 million in the same quarter of 2024, showing an increase of 27.2%[25] - Total assets increased to $25,081 million in 2025, up from $22,854 million in 2024, reflecting a growth of approximately 9.7%[24] - The company reported a total shareholders' equity of $12,585 million in 2025, slightly up from $12,355 million in 2024[24]