TE Connectivity Beats Q2 Earnings Estimates, Sees Growth in Orders Across All Segments

Written by Emily J. Thompson, Senior Investment Analyst

TEL+0.15%

SHOC0%

MOTO+0.65%

Source: earning

Updated: Apr 24 2024

0mins

Source: earning

Financial Performance: TE Connectivity Ltd reported a fiscal second-quarter 2024 net sales of $3.97 billion, down by 5% year-on-year but beating the consensus.
Segment Revenue: Revenue from Transportation Solutions, Industrial Solutions, and Communications Solutions declined year-on-year.
Margins and Cash Flow: The adjusted operating margin improved, generating $1.1 billion in free cash flow with $1.18 billion in cash and equivalents.
Outlook: TEL expects third-quarter net sales below consensus and adjusted EPS lower than expected.
Stock Information: TE Connectivity stock gained 12% in the last 12 months, trading lower premarket at $142.00.

TEL

$231.35+Infinity%1D

Analyst Views on TEL

Wall Street analysts forecast TEL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TEL is 270.70 USD with a low forecast of 240.00 USD and a high forecast of 297.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

10 Analyst Rating

7 Buy

3 Hold

0 Sell

Moderate Buy

Current: 231.000

Low

240.00

Averages

270.70

High

297.00

Current: 231.000

Low

240.00

Averages

270.70

High

297.00

Wells Fargo

Colin Langan

Equal Weight

maintain

$245 -> $249

2026-01-22

New

Reason

Wells Fargo

Colin Langan

Price Target

$245 -> $249

AI Analysis

2026-01-22

New

maintain

Equal Weight

Reason

Wells Fargo analyst Colin Langan raised the firm's price target on TE Connectivity to $249 from $245 and keeps an Equal Weight rating on the shares. The firm notes the company's Q1 EPS beat was driven by sales and margin. TEL guided to Q2 2026 EPS in-line with consensus. The company also raised its AI outlook from up $600M year-over-year to up $800M year-over-year.

BofA

Buy

maintain

$280 -> $290

2026-01-21

New

Reason

BofA

Price Target

$280 -> $290

2026-01-21

New

maintain

Buy

Reason

BofA raised the firm's price target on TE Connectivity to $290 from $280 and keeps a Buy rating on the shares. The company posted a beat to Q1 numbers and guided EPS slightly above Wall Street estimates but slightly below BofA expectations, with incremental margins remaining at 30%+ year-over-year and AI revenue raised to $2.2B for FY26B from $2.2B prior, the analyst tells investors in a research note. Th firm added that it expects strong earnings momentum and the multiple to re-rate higher based on both Industrial growth and solid content growth in Transportation.

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Goldman Sachs

Mark Delaney

Buy

maintain

$304 -> $306

2026-01-21

New

Reason

Goldman Sachs

Mark Delaney

Price Target

$304 -> $306

2026-01-21

New

maintain

Buy

Reason

Goldman Sachs analyst Mark Delaney raised the firm's price target on TE Connectivity to $306 from $304 and keeps a Buy rating on the shares. The company's Q1 results illustrated the growth potential of the business, with organic revenue up 15% y/y and orders at a record high, with contributions from multiple key applications including AI/datacenter, energy infrastructure, and high speed data connectivity in vehicles to support autonomy, the analyst tells investors in a research note. The firm adds that it continues to expect the company to generate strong growth from here, with a portion of the record Q1 orders longer-dated for AI build-outs.

Pareto

Hold

Buy

upgrade

$160

2026-01-19

New

Reason

Pareto

Price Target

$160

2026-01-19

New

upgrade

Hold

Buy

Reason

Pareto upgraded Telenor to Buy from Hold with a NOK 160 price target. The firm cites the company's long-term cash generation potential for the upgrade.

About TEL

TE Connectivity plc is a global industrial technology company. The Company’s range of connectivity and sensor solutions enable the distribution of power, signal, and data to advance next generation transportation, renewable energy, automated factories, data centers, medical technology, and more. The Company operates through two segments: Transportation Solutions and Industrial Solutions. Transportation Solutions segment includes its automotive, commercial transportation, and sensor businesses. The Industrial Solutions segment includes its aerospace, defense, and marine; medical; energy; digital data networks, and automation and connected living businesses. Its services and training include 3D Printing For Production (3D4P), Backshells Prototyping - BIT Workx, Electrical Installation Trainings, HarnWare Software, Machine Tooling Service & Repair, Medical Device Design Services, Microfluidic Devices and THE ACADEMY - Automotive Webinars.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.