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GALWAY, Ireland - On Wednesday, TE Connectivity Ltd (NYSE:TEL) reported record fourth-quarter results that exceeded analyst expectations and provided an optimistic outlook for the first quarter of fiscal 2026.
The industrial technology company’s shares surged 9.92% in pre-market trading after the results.
The connectivity and sensor solutions provider posted adjusted earnings per share of $2.44 for the fourth quarter, significantly beating the analyst estimate of $2.29. Revenue reached a record $4.75 billion, up 17% YoY and well above the consensus estimate of $4.59 billion. The strong performance was driven by growth in both the Industrial and Transportation segments, with organic sales growth of 11%.
"Our teams executed at a high level against our business model to deliver strong results for the fourth quarter as well as the full year," said CEO Terrence Curtin. "Our performance resulted in records on the top line, earnings and cash flow in 2025 and sets TE up well going into our new fiscal year."
The Industrial Solutions segment was particularly strong, with sales increasing 34.4% to $2.34 billion, driven by innovations serving AI and energy customers. The Transportation Solutions segment saw more modest growth of 3.6% to $2.41 billion.
For the first quarter of fiscal 2026, TE Connectivity expects revenue of approximately $4.5 billion, representing 17% growth YoY and significantly above the analyst consensus of $4.34 billion. The company forecasts adjusted EPS of $2.53, well above the $2.17 consensus estimate.
The company also reported record free cash flow of $1.2 billion for the quarter and $3.2 billion for the full year, returning nearly $650 million to shareholders in the fourth quarter.
"With strong order levels and our continued operational resilience, we expect sales and EPS in the first quarter of fiscal 2026 to each be up double digits year over year," added Curtin.
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