It has been about a month since the last earnings report for TE Connectivity (TEL) . Shares have added about 0.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is TE Connectivity due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for TE Connectivity Ltd. before we dive into how investors and analysts have reacted as of late.TEL Q1 ...

Core Viewpoint - TE Connectivity (TEL) is identified as a strong growth stock due to its favorable growth metrics and Zacks Rank, making it a potential outperformer for growth investors [2][9]. Earnings Growth - TE Connectivity has a historical EPS growth rate of 8.4%, but projected EPS growth for this year is expected to be 24.8%, surpassing the industry average of 23.9% [4]. Asset Utilization Ratio - The company's asset utilization ratio (sales-to-total-assets ratio) is 0.73, indicating that it generates $0.73 in sales for every dollar in assets, which is higher than the industry average of 0.72 [6]. - TE Connectivity's sales are projected to grow by 11.5% this year, significantly outpacing the industry average growth of 4.4% [6]. Earnings Estimate Revisions - The current-year earnings estimates for TE Connectivity have increased by 3.6% over the past month, indicating a positive trend in earnings estimate revisions [7].

Core Insights - Telenor enters 2026 with a simplified portfolio, strong Nordic growth, and solid financial capacity, fulfilling promises made during the Capital Markets Day [1][5][6] Financial Performance - In Q4 2025, service revenues increased by 2.6% year-over-year, with adjusted EBITDA growing by 11.7%. For the full year, adjusted EBITDA reached NOK 34.5 billion and free cash flow before M&A was NOK 12.9 billion [2][14] - The Nordic region showed robust performance with 2.8% organic growth in service revenues and an 8.7% increase in adjusted EBITDA in Q4 [3] Strategic Developments - Telenor has simplified its portfolio by divesting from non-core assets, including the sale of Allente to Viaplay and Telenor Pakistan, along with a planned divestment of True Corporation valued at approximately NOK 39 billion [5][6] - The company aims to focus on a Nordic-centric strategy, which is expected to free up capital and enhance strategic flexibility [6] Shareholder Returns - The Board proposed a dividend of NOK 9.70 per share and announced a three-year share buyback program of NOK 15 billion, contingent on the completion of the True share sale [7][8] - Proceeds from the True sale will also be allocated to repay a bond loan of NOK 11.5 billion and fund the acquisition of GlobalConnect Norway B2C for NOK 6 billion [9] Security and Infrastructure - Telenor's security solutions successfully blocked around 2.1 billion digital attacks in 2025, highlighting the importance of its digital infrastructure for customer protection [10][11]

Core Viewpoint - Amphenol Corporation is experiencing significant growth, with strong financial performance and optimistic future projections despite recent share price volatility [2][4]. Financial Performance - In Q4 2025, Amphenol reported revenue of $6.4 billion, a 49% increase compared to Q4 2024 [2]. - The full-year revenue for 2025 reached $23.1 billion, reflecting a 52% rise from the previous year [3]. - The GAAP operating income for Q4 was $1.7 billion, with an operating margin of 26.8% [3]. Market Outlook - Seaport Global set a price target of $210 for Amphenol, indicating a potential price increase of approximately 40.44% from the current price of $149.53 [2]. - The Communications Solutions segment reported $3.4 billion in sales, a 78% increase, with 60% organic growth and an operating margin of 32.5% [5]. - Ongoing demand for AI-driven data centers is expected to provide a favorable environment for Amphenol's growth [5]. Investor Sentiment - Despite strong financial results, Amphenol's shares faced a sell-off due to valuation concerns, with a high price-to-earnings ratio of approximately 48 [4]. - The earnings beat in Q4 was less significant compared to previous quarters, which may have led to investor disappointment [4]. - Guidance for the first quarter suggests a sequential decline in earnings per share, contributing to cautious investor sentiment [4].

Core Viewpoint - TE Connectivity (TEL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for TE Connectivity is projected at $10.93 per share for the fiscal year ending September 2026, showing no year-over-year change [9]. - Over the past three months, analysts have increased their earnings estimates for TE Connectivity by 7.1% [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, making it a reliable tool for investors [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10][11]. Market Implications - The upgrade to Zacks Rank 1 for TE Connectivity suggests an improvement in the company's underlying business, likely leading to increased buying pressure and a rise in stock price [6][4]. - The correlation between earnings estimate revisions and near-term stock movements highlights the importance of tracking these revisions for investment decisions [7].

Core Insights - TE Connectivity's international operations are crucial for understanding its financial strength and growth potential, especially given its extensive global presence [1][2] Group 1: Revenue Performance - The company's total revenue for the recent quarter reached $4.67 billion, reflecting a 21.7% increase from the same quarter last year [4] - International revenue from the Asia-Pacific region amounted to $2.01 billion, representing 43% of total revenue and a surprising increase of 16.88% compared to analyst expectations [5] - EMEA contributed $1.44 billion, or 30.8% of total revenue, which was a decrease of 3.83% from analyst expectations [6] Group 2: Future Projections - Analysts project total revenue for the current fiscal quarter to be $4.7 billion, indicating a 13.6% increase year-over-year, with Asia-Pacific expected to contribute 36.3% ($1.71 billion) and EMEA 32.7% ($1.54 billion) [7] - For the full year, total revenue is projected to reach $19.24 billion, an 11.5% increase from the previous year, with Asia-Pacific expected to account for 36.6% ($7.05 billion) and EMEA 32.7% ($6.28 billion) [8] Group 3: Market Dynamics - The reliance on international markets provides TE Connectivity with opportunities for growth but also introduces risks related to currency fluctuations and geopolitical factors [3][9] - Analysts are closely monitoring these international revenue trends to refine earnings predictions, highlighting the importance of a company's domestic position as well [10]

Core Viewpoint - TE Connectivity plc has announced the pricing of an offering of additional senior notes, which will be used for debt repayment and general corporate purposes [1][3]. Group 1: Offering Details - The offering includes an additional $200 million aggregate principal amount of 4.500% Senior Notes due 2031, which will form a single series with the existing $450 million of similar notes issued on May 9, 2025, bringing the total outstanding amount to $650 million [2][9]. - The additional 2031 notes will be issued at a price of 100.907% with a stated interest rate of 4.500% per year, payable semi-annually [3]. - Additionally, the offering includes $550 million aggregate principal amount of 4.875% Senior Notes due 2036, which will be issued at a price of 99.718% [3]. Group 2: Use of Proceeds - The net proceeds from this offering will be utilized for the repayment of outstanding debt, specifically the 3.700% senior notes due 2026 and the 4.500% senior notes due 2026, along with general corporate purposes [3]. Group 3: Management and Closing - The joint book-running managers for this offering are BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., and Goldman Sachs & Co. LLC, with the offering expected to close on February 9, 2026 [4]. Group 4: Company Overview - TE Connectivity plc is a global industrial technology leader focused on creating a safer, sustainable, productive, and connected future, with a workforce of over 90,000 employees, including 10,000 engineers, operating in approximately 130 countries [7].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: TE Connectivity Overview - TE Connectivity (TEL) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's genuine growth prospects [2] - The stock has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects [4] - TE Connectivity has a historical EPS growth rate of 8.4%, but projected EPS growth for this year is 24.8%, surpassing the industry average of 23.9% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for growth stocks, reflecting how efficiently a company generates sales from its assets [6] - TE Connectivity's S/TA ratio is 0.73, indicating it generates $0.73 in sales for every dollar in assets, which is better than the industry average of 0.72 [6] Group 4: Sales Growth - Sales growth is another critical factor, and TE Connectivity is expected to achieve a sales growth of 11.2% this year, compared to the industry average of 4.9% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions can validate a stock's performance potential, with positive revisions indicating favorable outcomes [8] - TE Connectivity's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month [9] Group 6: Conclusion - TE Connectivity has achieved a Zacks Rank of 2 and a Growth Score of A, based on various favorable metrics, suggesting it is a strong candidate for growth investors [11]

Sales Performance - Net sales increased by 21.7% in Q1 fiscal 2026, reaching $4.669 billion, driven by growth in Industrial Solutions (38.2%) and Transportation Solutions (10.0%) segments [82]. - Organic net sales growth was 15.0% in Q1 fiscal 2026 compared to the same period in fiscal 2025, with acquisitions contributing an additional 4.0% [82]. - The acquisition of Richards Manufacturing contributed $107 million to net sales in Q1 fiscal 2026 [82]. - Transportation Solutions segment net sales increased by $224 million, or 10.0%, in Q1 fiscal 2026 compared to Q1 fiscal 2025, driven by organic net sales growth of 7.0% and a positive impact from foreign currency translation of 3.0% [103]. - Industrial Solutions segment net sales increased by $609 million, or 38.2%, in Q1 fiscal 2026 compared to Q1 fiscal 2025, primarily due to organic net sales growth of 26.3% and a 9.5% contribution from acquisitions [107]. Financial Metrics - Gross margin increased by $379 million to $1.739 billion in Q1 fiscal 2026, with a gross margin percentage of 37.2% [89]. - Selling, general, and administrative expenses rose by $111 million to $538 million in Q1 fiscal 2026, representing 11.5% of net sales [92]. - Operating income for Q1 fiscal 2026 was $963 million, with an operating margin of 20.6% [96]. - Operating income for the Transportation Solutions segment rose by $55 million to $501 million in Q1 fiscal 2026, with an operating margin of 20.3% [104]. - Operating income for the Industrial Solutions segment increased by $218 million to $462 million in Q1 fiscal 2026, with an operating margin of 21.0% [108]. Cash Flow and Capital Expenditures - Cash provided by operating activities decreased by $13 million to $865 million in Q1 fiscal 2026 from $878 million in Q1 fiscal 2025, primarily due to changes in working capital levels [112]. - Capital expenditures were $258 million in Q1 fiscal 2026, with expectations for capital spending to be approximately 6% of net sales for the fiscal year [113]. Debt and Liabilities - Total debt as of December 26, 2025, was $5,708 million, showing a slight increase from $5,694 million as of September 26, 2025 [115]. - Total current liabilities increased to $1,369 million, up from $1,348 million [123]. - Total noncurrent liabilities increased to $11,262 million, compared to $10,033 million in the previous quarter [123]. Shareholder Returns - The company declared a quarterly cash dividend of $0.71 per ordinary share, payable on March 13, 2026 [119]. - The company repurchased ordinary shares valued at $406 million in Q1 fiscal 2026, maintaining $983 million of availability under the share repurchase authorization [120]. Assets - Total current assets increased to $1,283 million as of December 26, 2025, up from $1,236 million on September 26, 2025 [123]. - Total noncurrent assets rose to $3,223 million, compared to $2,465 million in the previous quarter [123]. Income and Recovery - Net income from continuing operations for the quarter ended December 26, 2025, was $13 million, a recovery from a loss of $197 million in the prior year [125]. Compliance and Legal Matters - The company has reserved an aggregate of $27 million related to potential unpaid duties, fees, and interest from a compliance investigation [131]. - The company does not expect legal proceedings to have a material adverse effect on its financial position or cash flows [130]. Market Outlook - Forward-looking statements indicate potential growth opportunities and risks related to market conditions and competition [140]. - The company reported organic net sales growth (decline) as a key performance measure, excluding impacts from foreign currency and acquisitions [136].

Group 1 - Telenor Group will present its fourth quarter 2025 results on February 6, 2026, at 09:00 CET [1] - The presentation will be conducted by Group CFO Torbjørn Wist due to the temporary absence of Group CEO Benedicte Schilbred Fasmer [1] - The presentation will be available via webcast only, with no live Q&A participation [1] Group 2 - Media are invited to attend the quarterly results presentation at Telenor's headquarters, followed by one-on-one interviews starting at approximately 10:15 CET [2] - Additional information for media inquiries can be obtained by emailing thomas.midteide@telenor.com [2]