TE Connectivity plc (NYSE:TEL) shares gained 1.62% in pre-market trading on Wednesday after the company reported fourth-quarter fiscal 2026 earnings and revenue above analyst expectations and issued first-quarter guidance ahead of consensus forecasts.
The connectivity and sensor technology manufacturer reported adjusted earnings per share of $3.14, exceeding the consensus estimate of $3.07. Revenue increased 12% year over year to $5.3 billion, compared with $4.75 billion in the previous year and analysts’ expectations of $5.27 billion.
The results concluded a fiscal year in which TE Connectivity recorded higher sales, earnings and cash generation.
TE Connectivity reported an adjusted operating margin of 22% for the fourth quarter, compared with 21.1% in the corresponding period last year.
The company generated $1.2 billion in free cash flow during the quarter and returned approximately $800 million to shareholders.
Orders increased 29% year over year to $6.1 billion, reflecting continued demand for its connectivity products.
Chief Executive Officer Terrence Curtin highlighted the company’s financial performance and exposure to data and power infrastructure investment.
“Our teams delivered a strong fourth quarter to finish a year in which we set records in sales, earnings and cash generation,” Curtin said. “Our growth is supported by our strategic positioning of TE around accelerating data and power trends that are driving customer demand for connectivity innovations that are essential to next generation architectures.”
For the full fiscal year 2026, TE Connectivity reported net sales of $19.9 billion, representing growth of 15% on a reported basis and 12% organically.
Adjusted earnings per share increased 24% to $11.52, compared with $9.27 in fiscal 2025.
The Industrial Solutions segment recorded annual growth of 26%, supported by customer investment in artificial intelligence infrastructure.
The segment’s performance contributed to the company’s overall revenue expansion, alongside demand for connectivity solutions across data and power applications.
TE Connectivity expects first-quarter fiscal 2027 adjusted earnings per share of approximately $3.30, exceeding the analyst consensus estimate of $2.99.
The company forecasts quarterly revenue of approximately $5.35 billion, compared with Wall Street expectations of $5.12 billion.
The revenue outlook represents expected year-over-year growth of 15% on both a reported and organic basis.
The guidance follows the company’s fourth-quarter order growth and increased demand for connectivity technologies associated with AI and power infrastructure.
TE Connectivity’s fourth-quarter results exceeded market expectations, with revenue reaching $5.3 billion and adjusted earnings per share of $3.14.
Full-year sales increased 15% to $19.9 billion, while adjusted earnings per share rose 24%, supported by growth in Industrial Solutions and other connectivity applications.
The company’s first-quarter fiscal 2027 forecasts for both revenue and adjusted earnings are above analyst estimates, indicating expectations for continued growth.
Shares advanced 1.62% before the opening bell as investors assessed the quarterly results and the company’s financial outlook.
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