olivLaw · US equity research
TE Connectivity plc TEL
Wholesale-Electronic Parts & Equipment, NEC · SIC 5065 · Vertical: Wholesale-Electronic Parts & Equipment, NEC (SIC 5065)
TE Connectivity plc (TEL) is a global leader in connectivity and sensor technologies, with net sales of 17.262 billion USD in fiscal 2025. In the first nine months of fiscal 2026 sales grew 16.5% to 14.573 billion USD, with organic growth of 11.4%. For the fourth quarter of fiscal 2026 the company guides to sales of about 5.25 billion USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, TE Connectivity plc (TEL) stock was 220.22 USD (+0.20% on the day), with market capitalisation 63.8 bn USD, P/E 27.5 on diluted EPS of 8.02 USD over the last 12 months, dividend yield 1.33%, beta 1.31, 52-week range 195.84–249.00 USD. Latest reported quarter (Q3 2026): revenue of 5.2 bn USD (+13.8% YoY), net income of 748.0 m USD (+17.2% YoY), diluted EPS 2.55 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 55.4
- strong (55–70)
- Bollinger (20, 2)
- 206.53 – 224.67
- in the upper half of the band · %B 0.75 · band width 8.4%
- SMA 50 / 200
- 212.05 / 212.51
- mixed trend
- MACD (12, 26, 9)
- 1.82 / 1.46
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.6% | −1.1% | +1.7 pp | — |
| 3 months | +1.0% | −0.5% | +1.5 pp | — |
| 6 months | +1.9% | +4.4% | −2.5 pp | — |
| Year to date | −3.2% | +12.3% | −15.5 pp | — |
| 1 year | −9.6% | +13.5% | −23.1 pp | +83.7% |
| 3 years | +75.1% | +76.4% | −1.3 pp | +77.1% |
| 5 years | +38.7% | +63.7% | −25.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 26 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '23 | Q3 '24 | Q4 '24 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.2 bn | 4.0 bn | 4.0 bn | 4.5 bn | 4.1 bn | 4.7 bn | 4.7 bn | 5.2 bn |
| Cost of revenue | 2.9 bn | 2.6 bn | 2.6 bn | 2.9 bn | 2.7 bn | 2.9 bn | 3.0 bn | 3.3 bn |
| Gross profit | 1.3 bn | 1.4 bn | 1.4 bn | 1.6 bn | 1.5 bn | 1.7 bn | 1.7 bn | 1.8 bn |
| SG&A | 435.0 m | 431.0 m | 444.0 m | 491.0 m | 454.0 m | 538.0 m | 536.0 m | 532.0 m |
| Operating income | 537.0 m | 755.0 m | 692.0 m | 857.0 m | 748.0 m | 963.0 m | 954.0 m | 981.0 m |
| Depreciation & amortisation | 200.0 m | 194.0 m | 232.0 m | 186.0 m | 244.0 m | 259.0 m | 243.0 m ≈ | 256.0 m ≈ |
| Interest expense | 20.0 m | 18.0 m | 19.0 m | 28.0 m | 14.0 m | 30.0 m | 32.0 m | 31.0 m |
| Pre-tax income | 525.0 m | 754.0 m | 687.0 m | 846.0 m | 755.0 m | 961.0 m | 942.0 m | 971.0 m |
| Income tax | 100.0 m | 181.0 m | 146.0 m | 208.0 m | 742.0 m | 210.0 m | 87.0 m | 223.0 m |
| Net income | 433.0 m | 573.0 m | 541.0 m | 638.0 m | 13.0 m | 750.0 m | 855.0 m | 748.0 m |
| Diluted EPS | 1.36 | 1.86 | 1.75 | 2.14 | 0.04 | 2.53 | 2.90 | 2.55 |
| Operating cash flow | 1.1 bn | 719.0 m | 1.0 bn | 878.0 m | 1.4 bn | 865.0 m | 947.0 m ≈ | 1.2 bn ≈ |
| Capex | 194.0 m | 151.0 m | 213.0 m | 205.0 m | 271.0 m | 258.0 m | 270.0 m ≈ | 304.0 m ≈ |
| Dividends paid | 184.0 m | 183.0 m | 196.0 m | 189.0 m | 209.0 m | 209.0 m | 208.0 m ≈ | 226.0 m ≈ |
| Share repurchases | 271.0 m | 476.0 m | 761.0 m | 303.0 m | 437.0 m | 405.0 m | 414.0 m ≈ | 529.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 83 percentile of its own 24-quarter history (min 8.4, median 17.4, max 352.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 14.0 bn | 13.4 bn | 12.2 bn | 14.9 bn | 16.3 bn | 16.0 bn | 15.8 bn | 17.3 bn |
| Revenue YoY | +14.8% | −3.9% | −9.5% | +22.6% | +9.1% | −1.5% | −1.2% | +8.9% |
| Net income | 2.6 bn | 1.8 bn | -241.0 m | 2.3 bn | 2.4 bn | 1.9 bn | 3.2 bn | 1.8 bn |
| Net income YoY | +52.4% | −28.1% | −113.1% | unavailable | +7.4% | −21.3% | +67.2% | −42.3% |
| Diluted EPS | 7.27 | 5.42 | -0.73 | 6.79 | 7.47 | 6.03 | 10.33 | 6.16 |
| Diluted EPS YoY | +54.7% | −25.4% | −113.5% | unavailable | +10.0% | −19.3% | +71.3% | −40.4% |
| net % | 18.3% | 13.7% | -2.0% | 15.2% | 14.9% | 11.9% | 20.2% | 10.7% |
| Free cash flow | 1.5 bn | 1.7 bn | 1.4 bn | 2.0 bn | 1.7 bn | 2.4 bn | 2.8 bn | 3.2 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 26 Sept 2025
- Cash
- 1.3 bn USD
- Financial debt
- 5.7 bn USD
- Net debt
- 4.4 bn USD
- Equity
- 12.6 bn USD
- Total assets
- 25.1 bn USD
- Debt / equity
- 0.45x
- Current ratio
- 1.56x
- ROE
- 14.8%
- ROA
- 7.7%
- FCF margin
- 18.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 12.2 bn | 14.9 bn | 16.3 bn | 16.0 bn | 15.8 bn | 17.3 bn | SEC (XBRL)· 10 Nov 2025verified |
| Cost of revenue | 8.4 bn | 10.0 bn | 11.0 bn | 11.0 bn | 10.4 bn | 11.2 bn | SEC (XBRL)· 10 Nov 2025verified |
| Gross profit | 3.7 bn | 4.9 bn | 5.2 bn | 5.1 bn | 5.5 bn | 6.1 bn | SEC (XBRL)· 10 Nov 2025verified |
| Research & development | 539.0 m | 612.0 m | 610.0 m | 593.0 m | 621.0 m | 699.0 m | SEC (XBRL)· 10 Nov 2025verified |
| SG&A | 1.4 bn | 1.5 bn | 1.6 bn | 1.7 bn | 1.7 bn | 1.9 bn | SEC (XBRL)· 10 Nov 2025verified |
| Operating income | 537.0 m | 2.4 bn | 2.8 bn | 2.3 bn | 2.8 bn | 3.2 bn | SEC (XBRL)· 10 Nov 2025verified |
| Depreciation & amortisation | 711.0 m | 769.0 m | 785.0 m | 794.0 m | 826.0 m | 838.0 m | SEC (XBRL)· 10 Nov 2025verified |
| EBITDA | 1.2 bn ≈ | 3.2 bn ≈ | 3.5 bn ≈ | 3.1 bn ≈ | 3.6 bn ≈ | 4.0 bn ≈ | SEC (XBRL)· 10 Nov 2025derived |
| Interest expense | 48.0 m | 56.0 m | 66.0 m | 80.0 m | 70.0 m | 77.0 m | SEC (XBRL)· 10 Nov 2025verified |
| Pre-tax income | 524.0 m | 2.4 bn | 2.7 bn | 2.3 bn | 2.8 bn | 3.2 bn | SEC (XBRL)· 10 Nov 2025verified |
| Income tax | 783.0 m | 123.0 m | 306.0 m | 364.0 m | -397.0 m | 1.4 bn | SEC (XBRL)· 10 Nov 2025verified |
| Net income | -241.0 m | 2.3 bn | 2.4 bn | 1.9 bn | 3.2 bn | 1.8 bn | SEC (XBRL)· 10 Nov 2025verified |
| Diluted EPS | -0.73 | 6.79 | 7.47 | 6.03 | 10.33 | 6.16 | SEC (XBRL)· 10 Nov 2025verified |
| Weighted average diluted shares | 332.0 m | 333.0 m | 325.0 m | 317.0 m | 309.0 m | 299.0 m | SEC (XBRL)· 10 Nov 2025verified |
| Dividend per share | 1.88 | 1.96 | 2.12 | 2.30 | 2.48 | 2.72 | SEC (XBRL)· 10 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 945.0 m | 1.2 bn | 1.1 bn | 1.7 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 10 Nov 2025verified |
| Receivables | 2.4 bn | 2.9 bn | 2.9 bn | 3.0 bn | 3.1 bn | 3.4 bn | SEC (XBRL)· 10 Nov 2025verified |
| Inventories | 2.0 bn | 2.5 bn | 2.7 bn | 2.6 bn | 2.5 bn | 2.7 bn | SEC (XBRL)· 10 Nov 2025verified |
| Current assets | 5.8 bn | 7.3 bn | 7.3 bn | 7.9 bn | 7.6 bn | 8.0 bn | SEC (XBRL)· 10 Nov 2025verified |
| Property, plant & equipment, net | 3.7 bn | 3.8 bn | 3.6 bn | 3.8 bn | 3.9 bn | 4.3 bn | SEC (XBRL)· 10 Nov 2025verified |
| Goodwill | 5.2 bn | 5.6 bn | 5.3 bn | 5.5 bn | 5.8 bn | 7.1 bn | SEC (XBRL)· 10 Nov 2025verified |
| Intangibles (excl. goodwill) | 1.6 bn | 1.5 bn | 1.3 bn | 1.2 bn | 1.2 bn | 2.2 bn | SEC (XBRL)· 10 Nov 2025verified |
| Total assets | 19.2 bn | 21.5 bn | 20.8 bn | 21.7 bn | 22.9 bn | 25.1 bn | SEC (XBRL)· 10 Nov 2025verified |
| Accounts payable | 1.3 bn | 1.9 bn | 1.6 bn | 1.6 bn | 1.7 bn | 2.0 bn | SEC (XBRL)· 10 Nov 2025verified |
| Short-term debt | 694.0 m | 503.0 m | 914.0 m | 682.0 m | 871.0 m | 852.0 m | SEC (XBRL)· 10 Nov 2025verified |
| Long-term debt | 3.5 bn | 3.6 bn | 3.3 bn | 3.5 bn | 3.3 bn | 4.8 bn | SEC (XBRL)· 10 Nov 2025verified |
| Current liabilities | 3.7 bn | 4.7 bn | 4.6 bn | 4.5 bn | 4.7 bn | 5.1 bn | SEC (XBRL)· 10 Nov 2025verified |
| Total liabilities | 9.7 bn | 10.7 bn | 9.9 bn | 10.1 bn | 10.4 bn | 12.4 bn | SEC (XBRL)· 10 Nov 2025verified |
| Equity | 9.4 bn | 10.6 bn | 10.8 bn | 11.6 bn | 12.4 bn | 12.6 bn | SEC (XBRL)· 10 Nov 2025verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 2.0 bn | 2.7 bn | 2.5 bn | 3.1 bn | 3.5 bn | 4.1 bn | SEC (XBRL)· 10 Nov 2025verified |
| Capex | 560.0 m | 690.0 m | 768.0 m | 732.0 m | 680.0 m | 936.0 m | SEC (XBRL)· 10 Nov 2025verified |
| Free cash flow | 1.4 bn ≈ | 2.0 bn ≈ | 1.7 bn ≈ | 2.4 bn ≈ | 2.8 bn ≈ | 3.2 bn ≈ | SEC (XBRL)· 10 Nov 2025derived |
| Investing cash flow | -865.0 m | -1.0 bn | -878.0 m | -768.0 m | -950.0 m | -3.6 bn | SEC (XBRL)· 10 Nov 2025verified |
| Financing cash flow | -1.1 bn | -1.4 bn | -1.7 bn | -1.8 bn | -2.9 bn | -629.0 m | SEC (XBRL)· 10 Nov 2025verified |
| Dividends paid | 625.0 m | 647.0 m | 685.0 m | 725.0 m | 760.0 m | 803.0 m | SEC (XBRL)· 10 Nov 2025verified |
| Share repurchases | 523.0 m | 831.0 m | 1.4 bn | 945.0 m | 2.1 bn | 1.3 bn | SEC (XBRL)· 10 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 56 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 63.8 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet92
- Valuation24
- Quality90
- Growth8
- Returns75
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 35.74 – 224.04 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)137.88 – 224.04 (Mid 170.88)WACC 8.9% · starting FCFF 3.4 bn USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 12.5%
- Peers: EV/EBITDA141.14 – 169.42 (Mid 151.94)3 companies used · median multiple 10.4x · quartiles 9.7x – 11.5xARW, AVT, ITRN
- Peers: P/E135.45 – 178.14 (Mid 158.67)4 companies used · median multiple 19.8x · quartiles 16.9x – 22.2xARW, AVT, ITRN, RELL
- Dividend discount (DDM)35.74 – 48.07 (Mid 41.00)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 56/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.6% | 89 (on a fixed band) | 10% |
| Net margin · Quality | 12.6% | 80 (vs peers) | 6% |
| FCF conversion · Quality | 140.1% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 2.0% | 16 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -6.2% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 0.9x | 87 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 34.1x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.9x | 90 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 27.5x | 12 (on a fixed band) | 10% |
| EV/EBITDA · Valuation | 14.7x | 3 (on a fixed band) | 10% |
| FCF yield · Valuation | 5.2% | 65 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 4.1% | 59 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 25.7% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet92/100 · 3/3 factors with a value
- Growth8/100 · 2/2 factors with a value
- Quality90/100 · 3/3 factors with a value
- Returns75/100 · 2/2 factors with a value
- Valuation24/100 · 3/3 factors with a value
Memo
TE CONNECTIVITY PLC (TEL). Latest full fiscal year: 2025; data up to 2026-06-26.
Figures computed from the financial statements: revenue 17.3 bn USD in 2025; YoY growth 8.9%; net margin 12.6%; ROE 18.5%; net debt/EBITDA 0.9x.
The estimated value range is 136.66–173.78 USD per share (median of 4 methods, agreement: high); assumptions are illustrative. Against the central value of 155.30 USD, the price of 220.22 USD leaves a potential of -29.5% (value / price − 1) and a margin of safety of -41.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 56/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 13.6%
- Net margin: 12.6%
- FCF conversion: 140.1%
- Net debt / EBITDA: 0.9x
- Interest coverage: 34.1x
- Current ratio: 1.9x
- Payout ratio (FCF): 25.7%
What contradicts it
- Revenue CAGR 3Y: 2.0%
- EPS CAGR 3Y: -6.2%
- P/E (TTM): 27.5x
- EV/EBITDA: 14.7x
- The price is above the estimated value range
Versus the vertical median
Wholesale-Electronic Parts & Equipment, NEC (SIC 5065) · same industry (4-digit SIC) · compared with 5 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| TELTe Connectivity PLC | 63.8 bn | 27.5 | 18.5% | 12.6% | +8.9% | −10% / +75% |
| ARWArrow Electronics, Inc. | 10.3 bn | 12.9 | 12.2% | 2.3% | +10.5% | +88% / +71% |
| AVTAvnet, Inc. | 7.0 bn | 21.4 | 6.7% | 1.2% | +24.5% | +80% / +83% |
| ITRNIturan Location & Control Ltd. | 1.1 bn | 18.2 | 28.8% | 16.1% | +6.8% | +33% / +98% |
| RELLRichardson Electronics, Ltd. | 211.2 m | 24.7 | 5.2% | 3.6% | +9.4% | +87% / +50% |
| DCMDeFi Capital Markets, Inc. | 10.0 m | — | -95.0% | -437.8% | −79.4% | unavailable / unavailable |
1- and 3-year price returns: for TEL from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 129.27 Total return -40% · Per year -40% | 228.82 Total return 5% · Per year 5% | 345.06 Total return 58% · Per year 58% |
| 3 years | 119.16 Total return -43% · Per year -17% | 237.92 Total return 12% · Per year 4% | 394.84 Total return 85% · Per year 23% |
| 5 years | 109.84 Total return -45% · Per year -11% | 247.39 Total return 20% · Per year 4% | 451.79 Total return 115% · Per year 17% |
- Exit P/E± 59.48
- Net margin± 41.64
- Annual revenue growth± 35.03
- Annual dilution± 3.50
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 24 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results).
In brief
TE Connectivity plc (TEL) is a global leader in connectivity and sensor technologies, with net sales of 17.262 billion USD in fiscal 2025 1. In the first nine months of fiscal 2026 sales grew 16.5% to 14.573 billion USD, with organic growth of 11.4% 2. For the fourth quarter of fiscal 2026 the company guides to sales of about 5.25 billion USD 3.
SWOT
Strengths
- The company has a diversified product portfolio and a broad customer base, which reduces dependence on any single end market, as the filing states 1.
- Organic sales growth and guidance for the fourth quarter point to solid operating momentum, supported by demand in the industrial segment 23.
- The company generates substantial operating cash flow, which can fund acquisitions and shareholder returns from current activity 13.
Weaknesses
- A large part of sales is invoiced in foreign currencies and the company does not hedge this exposure, which makes reported results sensitive to exchange rates 1.
- The Transportation Solutions segment saw sales declines in fiscal 2025, linked to sensors and commercial transportation 1.
- Exposure to China is significant, both through manufacturing sites and through sales to customers in that market 1.
Opportunities
- Demand tied to artificial intelligence and data centers could open growth opportunities in the Industrial Solutions segment 23.
- Recent and announced acquisitions could extend the power and energy product portfolio if integration proves successful 13.
- Electrification of transport and modernization of energy grids could create additional demand for the company's solutions 1.
Threats
- Trade tensions and tariffs between major economies can affect costs and demand across several segments 1.
- Price swings in raw materials such as copper, gold and silver can affect margins if costs cannot be passed on to customers 1.
- Changes in global tax legislation, including the global minimum tax, could raise the effective tax rate and cash taxes 1.
Risks
- Currency exposuremedium
Most sales are invoiced in currencies other than the U.S. dollar and the company does not hedge these exposures, which can affect reported results 1.
- Trade tensions and tariffshigh
Tariffs and trade restrictions between the U.S., China and the EU could raise costs or limit market access, a risk the company names explicitly 1.
- Exposure to Chinahigh
Operations and sales to customers in China are exposed to regulatory changes and economic uncertainty in that country 1.
- Supply chain interruptionsmedium
Natural disasters, military conflicts or pandemics could interrupt production and deliveries, which could affect results 1.
- Raw material costsmedium
Prices of precious metals and copper are volatile, and the company consumes them in large quantities, which can affect margins 1.
Investment thesis
What would need to be true (bull case)
- Sales growth in the first nine months of fiscal 2026 and record orders point to strong momentum in both segments 23.
- If expansion in the Industrial Solutions segment is sustained, the company could benefit from demand linked to data centers and energy infrastructure 23.
- Strong operating cash flow gives flexibility for acquisitions and for returning cash to shareholders 3.
What would break the thesis
- Exposure to trade tensions and tariffs between major economies could weigh on margins and demand in the automotive business 1.
- The Transportation Solutions segment saw declines in fiscal 2025, and its recovery depends on cyclical end markets 12.
- Large acquisitions carry integration risk, and weaker-than-expected performance could reduce the anticipated benefits 13.
What to watch
- Delivery of fourth quarter fiscal 2026 sales and EPS guidanceQ4 2026
- Closing and integration of the Astrodyne TDI acquisitionend of calendar 2026
- Evolution of trade tariffs and their impact on costs2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 24 Jul 2026; since then the company filed 8-K (28 Oct 2026 · results).
The business
Direct sales represented about 75% of total net sales, and products are sold in about 130 countries, supplemented by third-party distributors 1. About 60% of net sales are invoiced in currencies other than the U.S. dollar, and the company has elected not to hedge this exposure 1. The company had about 93,000 employees at fiscal year end 2025 and backlog of 6,188 million USD 1.
In fiscal 2025 the company acquired Richards Manufacturing, a U.S. producer of electrical distribution products, for about 2.3 billion USD in cash, and in fiscal 2026 it agreed to acquire Astrodyne TDI for about 1.4 billion USD 13. If this transaction closes as expected, it would strengthen the Industrial Solutions segment 3.
Segments
Industrial Solutions
The Industrial Solutions segment accounted for 46% of net sales in fiscal 2025 and covers digital data networks, automation, aerospace, defense and marine, energy and medical components 1. Segment sales rose 28.3% in the first nine months of fiscal 2026, and the Astrodyne TDI acquisition would be reported in this segment 23.
Market context
The company estimates that its two segments serve a combined market of about 200 billion USD at fiscal year end 2025 1. Recent growth has been supported by demand for data center and artificial intelligence infrastructure, and third-quarter fiscal 2026 orders totaled 5.7 billion USD 3.
Demand in automotive and industrial production is sensitive to economic cycles, trade tariffs and currency movements, which the company cites explicitly as risks 1. If these conditions weaken, the pace of sales growth could be affected 1.
Trends
- Demand for AI infrastructure and data centerstailwind
Growing orders in digital data networks and energy suggest sustained demand for high-performance connectivity linked to artificial intelligence investment 23.
- Trade tariffs and trade policyheadwind
The company notes that new tariffs and trade tensions between the U.S., China and the EU can raise costs and affect demand, although pricing actions partly offset the effect 1.
- Currency fluctuationsmixed
A stronger U.S. dollar can reduce reported revenue, while a weaker dollar has the opposite effect; currency translation was positive in fiscal 2026 12.
- Growth through acquisitionstailwind
Recent acquisitions such as Richards Manufacturing and Astrodyne TDI expand the Industrial Solutions portfolio and add to reported sales 13.
Competitive position
The industries in which the company operates are highly competitive, with rivals ranging from large multinational corporations to local manufacturers, and competition is based on product breadth, innovation, price, quality, delivery and service 1. The company has experienced steady downward pressure on prices, partly offset by price increases 1.
Competition differs by segment, and the competitors named in the filing include players in automotive components and in industrial electronic components 1.
- AmphenolAPH
Named competitor in both segments, especially in industrial connectivity components 1.
- AptivAPTV
Named competitor in the Transportation Solutions segment, active in automotive connectivity solutions 1.
- Sensata TechnologiesST
Named competitor in the Transportation Solutions segment, particularly in sensors 1.
- Molex
Named competitor in both segments, without a confirmed U.S. public listing in the source 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Is TE Connectivity Stock Underperforming the Dow?Yahoo Finance — News · 09 Sept 2026 · EN
The latest news item in our archive is from 09 Sept 2026; the newest SEC filing is from 02 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report02 Nov 2026Departure or appointment of officers
- Current report28 Oct 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report07 Oct 2026Departure or appointment of officers
- Quarterly report24 Jul 2026
- Current report22 Jul 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report24 Apr 2026
- Current report22 Apr 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report11 Mar 2026Shareholder vote
- Current report17 Feb 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report09 Feb 2026Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-09-26 · SEC / TE Connectivity plc · 10 Nov 2025
- [2] Form 10-Q, quarter ended 2026-06-26 · SEC / TE Connectivity plc · 24 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / TE Connectivity plc · 22 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.