WS Investor
28 Oct 2026, 14:49
TE Connectivity Falls 2.2% Despite Record Q4 Sales, Strong Orders and Double-Digit FY27 Growth Outlook
TE Connectivity (NYSE: TEL) shares fell about 2.2% despite reporting record fiscal fourth-quarter 2026 sales, strong order growth and a constructive outlook for fiscal 2027.
Fourth-quarter sales rose 12% year over year to a record $5.3 billion, including 13% organic growth. Adjusted EPS increased 21% to $3.14, while GAAP EPS jumped 39% to $3.10. Adjusted operating margin reached 22%.
Orders were particularly strong at $6.1 billion, up 29% year over year and 6% sequentially, providing solid visibility into the next fiscal year. For full-year 2026, sales increased 15% to $19.9 billion, adjusted EPS rose 24% to $11.52 and free cash flow reached $3.4 billion.
Management said AI-related investment continues to support demand in Industrial Solutions, with opportunities spanning data centers, networking infrastructure and the power grid. Full-year orders climbed 27% to $22.2 billion.
For fiscal Q1 2027, TE Connectivity expects sales of about $5.35 billion, up 15%, and adjusted EPS of roughly $3.30, up 21%. Management also expects full-year fiscal 2027 organic sales growth to remain around the strong pace achieved in fiscal 2026.
The 2.2% decline appears to reflect profit-taking or elevated expectations rather than weakness in the reported fundamentals, as sales, orders, margins and forward guidance all remained strong.
TE Connectivity (NYSE: TEL) shares fell about 2.2% despite reporting record fiscal fourth-quarter 2026 sales, strong order growth and a constructive outlook for fiscal 2027.
Fourth-quarter sales rose 12% year over year to a record $5.3 billion, including 13% organic growth. Adjusted EPS increased 21% to $3.14, while GAAP EPS jumped 39% to $3.10. Adjusted operating margin reached 22%.
Orders were particularly strong at $6.1 billion, up 29% year over year and 6% sequentially, providing solid visibility into the next fiscal year. For full-year 2026, sales increased 15% to $19.9 billion, adjusted EPS rose 24% to $11.52 and free cash flow reached $3.4 billion.
Management said AI-related investment continues to support demand in Industrial Solutions, with opportunities spanning data centers, networking infrastructure and the power grid. Full-year orders climbed 27% to $22.2 billion.
For fiscal Q1 2027, TE Connectivity expects sales of about $5.35 billion, up 15%, and adjusted EPS of roughly $3.30, up 21%. Management also expects full-year fiscal 2027 organic sales growth to remain around the strong pace achieved in fiscal 2026.
The 2.2% decline appears to reflect profit-taking or elevated expectations rather than weakness in the reported fundamentals, as sales, orders, margins and forward guidance all remained strong.
