TE Connectivity Posts Record Q3, Guides Q4 Above Consensus, and Unveils $1.4B Astrodyne TDI Deal
TEL is trading near its 52-week low of $177.21 (9.5% above the low).
Summary
TE Connectivity posted record Q3 results with 14% sales growth and 22% adjusted EPS growth, guided Q4 above consensus, and announced a $1.4 billion acquisition of Astrodyne TDI to expand its industrial power portfolio.
Key Events · Earnings and Guidance · TEL
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Record Q3 Results Beat Guidance
Sales reached $5.16B (up 14% reported, 12% organic), adjusted EPS came in at $2.94 (up 22%), and adjusted operating margin expanded 90 bps to 22%. Orders hit a record $5.7B, up 27% year-over-year.
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Q4 Guidance Implies Double-Digit Growth
Management expects Q4 sales of ~$5.25B (up 11% reported and organic) and adjusted EPS of ~$3.05 (up 18%), implying full-year adjusted EPS growth of 23%.
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$1.4B Acquisition of Astrodyne TDI
The company is acquiring a provider of advanced power management solutions for mission-critical industrial applications, expected to add >$250M in annual sales and close by end of calendar 2026.
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Strong Cash Generation and Capital Returns
Year-to-date free cash flow stands at $2.2B; $2.0B has been returned to shareholders through dividends and share repurchases.
Analysis · TEL · Trade & Services
A standout quarter saw TE Connectivity deliver record sales of $5.16 billion, up 14% year-over-year, and adjusted EPS of $2.94, beating guidance. Broad-based demand strength is evident in the 27% surge in orders to $5.7 billion, with particular vigor in AI-driven data center and energy infrastructure markets. The Q4 outlook—$5.25 billion in sales and $3.05 in adjusted EPS—implies continued double-digit growth and likely exceeds consensus expectations. Meanwhile, the $1.4 billion acquisition of Astrodyne TDI expands TE's power portfolio in high-growth industrial applications, adding over $250 million in annual sales. With $2.2 billion in year-to-date free cash flow and $2 billion returned to shareholders, the company is executing well above its business model, reinforcing its position as a beneficiary of secular trends in electrification and AI.
At the time of this filing, TEL was trading at $194.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $61B. The 52-week trading range was $177.21 to $252.56. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.