TE Connectivity's Record Quarter
TE Connectivity Achieves Record Q3 Sales and Earnings, Exceeding Estimates Amid Strong Demand and Strategic Acquisition
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Key Points
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TE Connectivity reported a Q3 non-GAAP EPS of $2.94, beating estimates by $0.10, on revenue of $5.16 billion—up about 13.9% year over year and roughly $150 million above projections.
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Insiders sold about $4.0 million of TE Connectivity stock over the past three months, signaling some cautiousness among holders.
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GAAP operating margin was 19% in the quarter, while adjusted operating margin rose to 22%.
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Industrial segment grew organically by more than 20% in the quarter, while Transportation rose about 5% on an organic basis.
TE Connectivity posted record quarterly results, with net sales of $5.16 billion in fiscal Q3 2026 — up 14% year over year — and adjusted earnings per share of $2.94, beating Wall Street estimates by $0.10, according to MarketScreener.
Orders hit a quarterly record of $5.7 billion, up 27% year over year, signaling broad demand across the company's key markets. TipRanks reported the results mark a record for both sales and earnings in a single quarter.
Record Orders and Margins Drive a Blowout Quarter
Revenue of $5.16 billion topped analyst projections by roughly $150 million, GuruFocus noted. That represents a 13.9% jump from $4.534 billion in the same quarter a year ago. GAAP diluted EPS from continuing operations came in at $2.55, while adjusted operating margin climbed to 22%, up from 19% on a GAAP basis.
Yahoo Finance reported that TE Connectivity beat the Zacks Consensus Estimate of $2.85 per share, delivering an earnings surprise of about 3.2%. The company also generated strong free cash flow and returned a substantial amount of capital to shareholders year to date.
Industrial and Transportation Segments Both Post Strong Growth
The Industrial segment led the way, growing more than 20% on an organic basis. Organic growth strips out the effect of currency changes and acquisitions — it shows how the core business performed. Transportation grew about 5% organically, adding to the broad-based strength.
TipRanks highlighted that AI-related activity in data centers and energy infrastructure helped fuel Industrial demand. Both segments contributed to the double-digit top-line growth that defined the quarter.
$1.4 Billion Astrodyne TDI Deal Expands Power Management Business
TE Connectivity announced it will acquire Astrodyne TDI for about $1.4 billion. The deal is expected to add more than $250 million in annual sales. Astrodyne TDI specializes in power management — technology that controls how devices receive and use electrical power.
The acquisition fits TE Connectivity's push into higher-growth, higher-margin markets. Power management is increasingly important as data centers and industrial equipment demand more efficient energy use. The deal is seen as a way to strengthen the company's position in that fast-growing space, according to TipRanks.
Strong Q4 Guidance Despite Some Insider Stock Sales
TE Connectivity guided for another quarter of double-digit sales and EPS growth in Q4. That puts the company on track for a strong finish to the fiscal year. Management's confidence in the outlook is backed by the record $5.7 billion in orders booked this quarter.
Not everyone is fully buying in, though. GuruFocus noted that company insiders sold about $4 million worth of TE Connectivity stock over the past three months. Insider sales can sometimes signal caution, though they do not always predict a stock's direction.
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