TEL changes
Pick any two versions below to diff them.
- Price
- $217.76
- Discount category
- Close to intrinsic value
- Next earnings
- Jan 28, 2027
- Next earnings is estimate
- Yes
- Company name
- added: TE Connectivity
- Sector
- added: Electronic components: connectors and sensors
- About
- added: TE Connectivity makes connectors, sensors and other parts that carry power, signals and data in cars, trucks, factories, data centers, power grids, aircraft and medical devices. In the fiscal year to September 25, 2026, net sales were $19,885 million. Transportation Solutions gave $10,069 million, of which $7,523 million came from automotive. Industrial Solutions gave $9,903 million from digital data networks for data centers, automation and connected living, energy, aerospace, defense and marine, and medical. Asia-Pacific gave 39% of sales, EMEA 32% and the Americas 29%. The fiscal year ends on the last Friday of September. TE had about 104,000 employees at the end of fiscal 2026. It is incorporated in Ireland since September 30, 2024, when it moved from Switzerland. Its shares trade on the New York Stock Exchange. The head office is in Galway, Ireland. Terrence Curtin is Chief Executive Officer.
- Thesis
- added: TE Connectivity trades close to its intrinsic value because investors pay for its growth in AI data centers and energy networks, but they weigh it against slow growth in cars, which give three quarters of the sales of Transportation Solutions. In fiscal 2026, Industrial Solutions sales rose 26% and orders rose 27% to $22.2 billion, while automotive sales grew 3.0% organically. For the value to rise, three things must be true. Orders must turn into sales, so that organic sales growth in fiscal 2027 is similar to the 12% of fiscal 2026, as TE expects. The adjusted operating margin must stay at about 22% while TE adds capacity and buys Astrodyne for about $1.4 billion. Car production must stay stable, mainly in China and Europe. The Q1 fiscal 2027 report, expected in late January 2027, is the next test: TE expects sales of about $5.35 billion and adjusted EPS of about $3.30. A slowdown in AI data center spending can lower growth fast, because digital data networks gave much of the growth.
- Risks
- added: Much of the growth comes from connectors for AI data centers. Sales of digital data networks rose 34% in Q4 fiscal 2026, and a slowdown in data center spending can lower growth fast. Automotive gives about three quarters of the sales of Transportation Solutions. Lower car production, a slower change to electric cars or price pressure from car makers can reduce sales and margins. TE sells products in about 130 countries. Tariffs, export controls and trade disputes can raise costs and disrupt supply chains. TE grows partly through acquisitions, such as Richards Manufacturing for about $2.3 billion in fiscal 2025 and Astrodyne for about $1.4 billion. A weak integration can lower margins. Most sales are outside the United States. A stronger U.S. dollar lowers reported sales and earnings.
- Balance sheet
- added: Cash: $1.7B Debt: $5.6B Net debt: $3.9B Undrawn credit line: $3.0B, to February 2031 Debt due within 12 months: $502M TE funds itself with cash flow, senior notes and commercial paper. At September 25, 2026, short-term debt was $502 million and long-term debt $5,137 million, so total debt was $5,639 million. Cash and cash equivalents were $1,697 million. In February 2026, TE issued $750 million of senior notes due 2031 and 2036 and replaced its credit facility with a $3.0 billion facility that runs to February 2031, with no borrowings at the end of fiscal 2026. In fiscal 2026, cash flow from operating activities was $4,525 million and free cash flow $3,412 million. TE bought back shares for $1,892 million and paid dividends of $869 million, and $2.5 billion of the repurchase authorization was left. Total shareholders' equity was $13,573 million. There were 286,695,097 shares on November 5, 2026. The quarterly dividend is $0.78 per share. TE expects to pay about $1.4 billion in cash for Astrodyne by the end of calendar 2026. As of Sep 25, 2026.
- Checkpoints
- added: Oct 28, 2026: Q4 fiscal 2026 results and the fiscal 2027 view. Passed. Watch: Sales growth of 10% or more and an outlook for double-digit growth in fiscal 2027 pass; a lower outlook fails. Outcome: Q4 sales rose 12% to $5.3 billion, and TE expects double-digit sales growth in fiscal 2027. Dec 2026 (estimate): Astrodyne purchase closes. Pending. Watch: A closing by the end of calendar 2026 passes; a long delay or a stop of the deal fails. Jan 28, 2027 (estimate): Q1 fiscal 2027 results. Pending. Watch: Sales of about $5.35 billion and adjusted EPS of about $3.30 or more pass; lower results fail.
- Recent events
- added: Nov 2, 2026: TE said that John S. Jenkins, Jr., Executive Vice President and General Counsel, will retire on March 31, 2027. Jennifer A. Johnson joins as Executive Vice President and Chief Legal Officer, which TE expected on November 9, 2026. Oct 28, 2026: TE reported results for Q4 and the fiscal year 2026. Q4 net sales rose 12% to a record $5.3 billion, orders rose 29% to $6.1 billion, and adjusted EPS rose 21% to $3.14. For the year, net sales rose 15% to $19.9 billion, adjusted EPS rose 24% to $11.52, GAAP EPS was $11.07, and free cash flow was $3.4 billion. TE expects double-digit sales growth in fiscal 2027. Jul 22, 2026: TE reported Q3 fiscal 2026 results. Net sales rose 14% to a record $5.16 billion, adjusted EPS rose 22% to $2.94, and orders rose 27% to $5.7 billion. TE agreed to buy Astrodyne TDI, a maker of power and filter products, for about $1.4 billion in cash. Feb 13, 2026: TE replaced its $1.5 billion revolving credit facility with a new $3.0 billion five-year facility. On February 9, 2026, it issued $200 million of 4.500% senior notes due 2031 and $550 million of 4.875% senior notes due 2036.