TE Connectivity Q3 Earnings Call Highlights

Key Points Interested in TE Connectivity Ltd.? Here are five stocks we like better. TE Connectivity posted record third-quarter results, with sales of $5.

2 billion, adjusted EPS of $2.94, and record orders of $5.7 billion.

Management said demand from AI infrastructure, electrification, automation, and power investment is driving the outperformance. Industrial strength was led by AI-related data and power demand, especially in the Digital Data Networks and energy businesses. Executives said copper and optical connectivity both have roles in AI systems, while rising power needs are creating additional growth opportunities.

The company raised its full-year outlook and added to growth via acquisition, now expecting fiscal 2026 sales to grow about 15% and adjusted EPS to rise 23% year over year. TE also announced a $1.4 billion deal to acquire Astrodyne TDI, which is expected to add more than $250 million in annual sales.

3 Stocks Quietly Leveraging AI While Everyone Chases NVIDIA TE Connectivity (NYSE:TEL) reported record adjusted earnings per share and record orders in its fiscal 2026 third quarter, with executives pointing to accelerating demand tied to artificial intelligence infrastructure, power investment, electrification and automation. Chief Executive Officer Terrence Curtin said the company's "strategic positioning around the accelerating data and power trend continues to drive broad-based outperformance," adding that TE is participating in what he described as one of the largest global technology and infrastructure investment cycles. The company now expects full-year fiscal 2026 sales to grow approximately 15%, representing more than $2.

5 billion of incremental revenue, while adjusted earnings per share are expected to rise 23% year over year. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Insiders Sold Big at These 3 Stocks—Should You Worry? For the third quarter, TE Connectivity reported sales of $5.

2 billion, up 14% on a reported basis and 12% organically from the prior year. Orders rose 27% year over year to a record $5.7 billion and increased 7% sequentially.

The company said it ran a book-to-bill ratio of 1.1 both in the quarter and year to date. Adjusted earnings per share increased 22% year over year to a record $2.

94. Adjusted operating margin expanded 90 basis points to 21.9%.

GAAP operating income was $981 million, while GAAP EPS was $2.55, including restructuring, acquisition and other charges as well as amortization expense. Story Continues AI and Power Demand Drive Industrial Segment Growth → 3 Photonics Companies Making Quantum Tech Possible This mid-cap tech stock just jumped 30%...

and is still cheap TE's Industrial Solutions segment posted third-quarter sales growth of 22% on a reported basis and 21% organically. Curtin said the segment benefited from growth across the portfolio, led by more than 30% organic growth in both the Digital Data Networks, or DDN, business and the energy business. In DDN, sales increased 34% year over year and were up $100 million sequentially.

Curtin said the company continues to see demand tied to AI architectures, including increasing deployment of CPUs and networking that expands the market for high-speed copper connectivity. He also said TE sees longer-term opportunities in optical connectivity following its RAM Photonics acquisition, though meaningful revenue from fiber-attached unit technology is not expected until 2028 and beyond. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Responding to analyst questions about copper versus optical connectivity in AI infrastructure, Curtin said TE views the opportunity as "copper and optical," rather than one replacing the other.

He said copper is expected to remain important within racks and scale-up architectures, while optical is already prevalent in scale-out applications. He also noted that rising power requirements in AI systems are creating additional opportunities for TE's power connectivity products. Energy sales grew 33% organically in the quarter.

Curtin said the business is benefiting from utility grid hardening, aging infrastructure replacement and data center build-outs. He estimated that about one-third of the energy market growth where TE is positioned is driven by data center build-outs, and said the company views the energy business as more of a "mid-teens" grower for the year and into next year. Automation and Connected Living sales rose 16%, or 14% organically, with growth across every region.

Aerospace and defense sales increased 12%, supported by strength in commercial aerospace and defense markets. Curtin said defense is seeing a stronger inflection, particularly in Europe and the U.S.

, with backlog building as program velocity increases. Transportation Segment Outperforms Vehicle Production TE's Transportation Solutions segment grew 7% on a reported basis and 5% organically. Automotive sales increased 5% reported and 3% organically, despite