TE Connectivity (TEL1N) AI Stock Analysis

TE Connectivity

(BMV:TEL1N)

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Action:N/A

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Positive Factors

Growth and backlogStrong organic growth combined with a substantially larger backlog provides evidence of broad customer demand and improved revenue visibility. This supports continued execution over the next several quarters and gives TE Connectivity a durable base for reinvestment, capacity expansion, and operating leverage.

Negative Factors

Automotive exposureA softer vehicle-production environment can limit volume-driven revenue growth in TE Connectivity’s transportation business, even when content per vehicle increases. Continued weakness in North America adds regional pressure and makes automotive execution more dependent on electrification and electronics content gains.

TE Connectivity (TEL1N) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 61.67B
Dividend Yield: 1.25%
Average Volume (3M): ―
Price to Earnings (P/E): 19.1
Beta (1Y): 0.19
Revenue Growth: 3.42%
EPS Growth: 63.23%
Country: Mexico
Employees: 80,000
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

TE Connectivity Business Overview & Revenue Model

Company Description

TE Connectivity plc, together with its subsidiaries, manufactures and sells connectivity and sensor solutions in Europe, the Middle East, Africa, the AsiaPacific, and the Americas. The company operates through two reportable segments, Transportation...

TE Connectivity Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q4-2026)|% Change Since:16.94%|Next Earnings Date:Jan 26, 2027

Earnings Call SentimentPositive

The call was strongly positive, supported by record fiscal 2026 results, double-digit organic growth, robust orders and backlog, expanding margins, strong cash generation, and significant AI-related growth opportunities. The company also cited challenges including slightly declining vehicle production, a challenged North American automotive market, tariff-related sales reductions, expected foreign-exchange headwinds, and persistent input-cost inflation, but these issues were outweighed by the breadth and strength of the reported performance and outlook.

Positive Updates

Strong Fiscal 2026 Sales and Earnings Growth

Fiscal 2026 sales grew by $2.6 billion, or 15% year-over-year, while adjusted earnings per share increased 24% to $11.52. Full-year sales were nearly $20 billion, growing 15% on a reported basis and 12% organically.

Negative Updates

Tariff Refunds Reduced Reported Sales

Fourth-quarter sales included IEEPA tariff refunds that resulted in a reduction of sales of $87 million. Management expects an additional $50 million of tariff refunds in the first quarter of fiscal 2027, and that reduction is included in guidance.

Company Guidance

For the first quarter of fiscal 2027, TE Connectivity expects sales of $5.35 billion, an increase of 15% year-over-year on both a reported and an organic basis, adjusted earnings per share to be around $3.30, growing 21% over last year's levels, an additional $50 million of tariff refunds with that reduction in sales included in guidance, and an adjusted effective tax rate of 21%; for fiscal 2027, it expects another year of double-digit organic sales growth, similar to the 12% organic growth levels in 2026, adjusted effective tax rate of 22%, restructuring charges below the $100 million level, a slight year-over-year currency headwind, DDN revenue growth of over $1 billion with the vast majority from AI applications and over half of that growth in the second half of the fiscal year, DDN sales up slightly from quarter four to quarter one, up a little bit higher in quarter two, and a bigger step up in the second half, global vehicle production down slightly, and automotive growth over market in the four-six point range.

TE Connectivity Risk Analysis

TE Connectivity disclosed 42 risk factors in its most recent earnings report. TE Connectivity reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

TE Connectivity Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:TEL1N against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXPI	82Outperform	$65.44B	20.30	29.17%	1.56%	8.77%	39.24%
TXN	77Outperform	$274.90B	38.92	40.51%	1.92%	20.27%	40.76%
ADI	73Outperform	$202.12B	49.24	12.26%	1.03%	33.65%	114.59%
ON	68Neutral	$27.90B	45.36	8.38%	―	-3.14%	44.55%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60Neutral	$41.86B	79.81	2.97%	0.77%	15.81%	-2.21%

* Technology Sector Average

Performance Comparison

MX:TEL1N and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:TEL1N	TE Connectivity Ltd.	4225.10	187.19	4.64%
ADI	Analog Devices, Inc.	417.11	186.39	80.78%
NXPI	NXP Semiconductors	259.61	52.87	25.57%
ON	ON Semiconductor Corporation	71.67	21.21	42.03%
STM	Stmicroelectronics N.V.	46.74	22.53	93.05%
TXN	Texas Instruments	300.84	142.82	90.38%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

TE Connectivity AI Stock Analysis