Record quarterly results exceed Wall Street expectations
TE Connectivity plc (NYSE:TEL) reported stronger-than-expected fiscal third-quarter 2026 results on Wednesday, driven by robust revenue growth across its Industrial and Transportation businesses and an optimistic outlook for the current quarter.
The company posted adjusted earnings per share of $2.94, exceeding analysts’ consensus estimate of $2.84 by $0.10.
Investors welcomed the results, sending TE Connectivity shares up 5.75% in premarket trading.
Revenue reached a record $5.16 billion, ahead of the $5.01 billion expected by analysts. Sales increased 14% year over year on a reported basis and 12% organically.
Fourth-quarter outlook points to continued momentum
TE Connectivity also issued guidance for the fourth quarter that came in above market expectations.
The company forecasts adjusted earnings per share of approximately $3.05, compared with the analyst consensus of $2.98. Revenue is expected to reach roughly $5.25 billion, exceeding Wall Street’s estimate of $5.15 billion.
The revenue outlook represents year-over-year growth of approximately 11% on both a reported and organic basis.
“Our teams delivered record third quarter results above guidance, with strong growth performance in both segments, as we continued to capitalize on customer demand for our innovative interconnect technologies,” said CEO Terrence Curtin. “Our Industrial team delivered sales growth of over 20%, while Transportation increased sales by 5% organically by growing content with customers and outperforming end markets.”
Industrial division drives growth
The Industrial Solutions business generated revenue of $2.58 billion during the quarter, representing a 21.9% increase from a year earlier. The segment reported an adjusted operating margin of 22.8%.
Transportation Solutions also delivered revenue of $2.58 billion, rising 6.7% year over year, while adjusted operating margin reached 21.0%.
Across the group, adjusted operating margin improved by 90 basis points from the prior year to 22%, reflecting stronger profitability despite continued investment in growth initiatives.
Record orders and acquisition support long-term outlook
TE Connectivity reported record quarterly orders of $5.7 billion, an increase of 27% from the previous year, with double-digit order growth across all business segments.
The company generated free cash flow of $883 million during the quarter and $2.2 billion for the fiscal year to date. It also returned $2.0 billion to shareholders through dividends and share repurchases over the same period.
Separately, TE Connectivity announced a definitive agreement to acquire Astrodyne TDI for approximately $1.4 billion. The acquisition is expected to contribute more than $250 million in annual revenue once completed.
TE Connectivity stock price
