TE Connectivity Plc (NYSE:TEL) stock rose Wednesday after the company reported its fourth-quarter results before the market opened, beating Wall Street estimates.
The company reported quarterly adjusted earnings of $2.44 per share, beating analysts’ estimates of $2.29 and rising 25% from $1.95 a year earlier.
Revenue rose 17% to $4.75 billion, exceeding expectations of $4.58 billion and increasing 11% organically, supported by strong performance across the Industrial and Transportation segments.
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Adjusted operating margin improved to 19.9%, compared with 18.6% a year earlier.
The company ended the quarter with $1.26 billion in cash and cash equivalents.
Segment Performance
Transportation Solutions sales were $2.41 billion, while Industrial Solutions sales totaled $2.34 billion in the fourth quarter. Adjusted operating margins stood at 19.4% for Transportation Solutions and 20.3% for Industrial Solutions.
CEO Commentary
CEO Terrence Curtin said TE Connectivity achieved record revenue, earnings, and cash flow in 2025 despite a challenging macro environment, underscoring the strength of its diversified portfolio and strategic investments.
Industrial segment sales surged 24%, fueled by growing demand from AI and energy markets, while the Transportation segment saw solid gains from data connectivity and electric powertrain growth.
Looking ahead, Curtin expects double-digit year-over-year increases in both sales and EPS for the first quarter of fiscal 2026, supported by strong orders and operational resilience.
Outlook
The company expects its first-quarter adjusted earnings per share to $2.53, up 23% year over year, above the analysts’ estimates of $2.17.
The company forecast sales of $4.50 billion, up 17% on a reported basis and 11% organically year over year, above the consensus estimate of $4.34 billion.
Beginning in fiscal 2026, TE Connectivity said it will exclude amortization of intangible assets and related tax effects from specific non-GAAP measures. The company noted that its first-quarter of 2026 adjusted EPS guidance already reflects this change.
Price Action: TEL shares were trading higher by 6.02% to $250.77 premarket at last check Wednesday.
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