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Investing.com - TE Connectivity (NYSE:TEL) has been removed from Evercore ISI’s Tactical Outperform list following strong quarterly results and guidance, though the firm maintained its Outperform rating on the stock. The company’s shares are currently trading at $244.76, just 1% below their 52-week high of $247.34, with InvestingPro data showing the stock has delivered an impressive 67.9% return over the past year.
The connectivity and sensor solutions provider reported September-quarter revenue of $4.75 billion and earnings per share of $2.44 ($2.59 after adjustments), exceeding street expectations of $4.58 billion and $2.29, respectively. Growth reached approximately 17% year-over-year (11% organic), driven by Industrial segment performance up 34% and Transportation up 4%. This quarterly performance continues to strengthen the company’s $72.17 billion market capitalization, though InvestingPro analysis indicates the stock is currently trading at a high P/E ratio of 39.55.
For the December quarter, TE Connectivity guided for revenue of $4.5 billion and earnings per share of $2.53, ahead of street estimates of $4.32 billion and $2.16. About 15 cents of the earnings beat is attributed to a shift in accounting for amortization of intangibles.
Orders accelerated to $4.7 billion, up 22% year-over-year and 5% quarter-over-quarter, with improvements across Automotive, Data Device Networking, and Energy segments. The company also noted improving order rates in general industrial end markets, indicating ongoing recovery.
TE Connectivity management provided a framework for sustained mid-to-high single-digit growth and double-digit EPS growth in fiscal year 2026, supported by industrial recovery, automotive content growth, and AI ramps. The company exited FY25 with $900 million in AI-centric revenues and expects this figure to exceed $1.5 billion in FY26. According to InvestingPro data, the stock’s RSI suggests it’s in overbought territory despite these positive growth projections. InvestingPro offers 17 additional insights on TE Connectivity, including its dividend history and financial health metrics, through its comprehensive Pro Research Report available for over 1,400 US equities.
In other recent news, TE Connectivity reported record fourth-quarter results that surpassed analyst expectations. The company also provided an optimistic outlook for the first quarter of fiscal 2026. These developments have captured significant attention from investors. The strong performance in the fourth quarter highlights TE Connectivity’s robust financial health. Analysts had projected certain figures, but the company’s results exceeded those forecasts. The positive guidance for the upcoming quarter suggests continued growth. These recent developments are noteworthy for investors considering TE Connectivity.
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