TE Connectivity Beats Q2 Earnings Estimates, Sees Growth in Orders Across All Segments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2024
0mins
Should l Buy TEL?
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.
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Analyst Views on TEL
Wall Street analysts forecast TEL stock price to rise
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 200.790
Low
240.00
Averages
270.70
High
297.00
Current: 200.790
Low
240.00
Averages
270.70
High
297.00
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.
Industrial Technology Index Shows Focus on AI ROI Over Innovation
- Focus on AI ROI: According to TE Connectivity's survey, 43% of executives prioritize increasing company profits, a 17-point rise from last year, while those selecting product innovation dropped to 26%, indicating a pressing demand for returns on AI investments.
- Widespread AI Adoption: This year, 35% of respondents reported extensive AI adoption, up 13 points from last year, with the U.S. leading at 41%, showcasing the rapid integration of AI in the industrial technology sector.
- Misalignment Between Engineers and Executives: TE Connectivity's CEO noted that while AI integration accelerates globally, a lack of shared objectives between engineers and executives could introduce friction, hindering innovation progress.
- Youth Optimism Towards AI: The survey reveals that younger respondents in China are the most optimistic about AI technology, with nearly half of executives and engineers eager to experiment with new technologies, reflecting a positive outlook on future advancements.
See More
Industrial Technology Index Shows AI Investment Returns Take Priority
- AI Adoption Surge: A global survey by TE Connectivity reveals that over 80% of industrial technology companies have adopted AI tools, indicating a significant shift towards digital transformation aimed at enhancing operational efficiency across the sector.
- Financial Goals Take Precedence: The survey indicates that 43% of executives prioritize increasing company profits, a 17-point rise from last year, while those focusing on product innovation dropped to 26%, reflecting a shift in corporate focus towards financial returns from AI investments rather than innovation.
- Significant National Disparities: The U.S. leads in extensive AI adoption with 41% of respondents indicating their companies have adopted AI widely, a 26-point increase from last year, while China's figure only rose by 1 point to 29%, highlighting varying adoption rates across countries.
- Youthful Optimism for AI: The survey shows that younger respondents globally, particularly in China, are optimistic about AI technology, with nearly half of executives and engineers eager to experiment with new technologies immediately, suggesting a substantial potential for AI in engineering and technology fields.
See More
TE Connectivity Named Among 2026 World's Most Ethical Companies for 12th Consecutive Year
- Ethical Standards Recognition: TE Connectivity has been named one of the World's Most Ethical Companies for the 12th consecutive year, being one of only five companies in the electronics and components sector, which reinforces its leadership in ethical business practices and strengthens its image as a trusted partner for customers.
- Employee Training Effectiveness: Over the past year, TE hosted more than 142,000 ethics and compliance training sessions, with over 99% of employees completing the global Guide to Ethical Conduct training, indicating the company's ongoing efforts to enhance employee awareness of ethics and compliance culture, thereby improving long-term performance.
- Governance Practices Enhancement: In 2025, TE strengthened its ethics and compliance program by integrating emerging technologies into risk management and enhancing reporting channels, ensuring that its governance aligns with leading industry practices, which boosts overall operational efficiency.
- Ethical Culture Assessment: Ethisphere's assessment is based on its proprietary Ethics Quotient, requiring companies to provide over 240 documented proof points covering corporate governance, training, risk assessment, and more, demonstrating TE's comprehensive commitment to promoting an ethical corporate culture.
See More
TE Connectivity Named Among 2026 World's Most Ethical Companies for 12th Consecutive Year
- Ethical Standards Recognition: TE Connectivity has been named one of the World's Most Ethical Companies by Ethisphere for the 12th consecutive year, standing out as one of only five companies in the electronics and components sector, which underscores its leadership in ethical business practices.
- Effective Employee Training: Over the past year, TE hosted more than 142,000 ethics and compliance training sessions, with over 99% of employees completing the global Guide to Ethical Conduct training, ensuring that all employees are actively engaged in upholding the company's core values.
- Governance Practices Enhancement: In 2025, TE strengthened its ethics and compliance program by integrating emerging technologies into risk management and enhancing reporting channels, thereby improving the overall performance in ethics and compliance.
- Long-term Performance Improvement: Ethisphere's chief strategy officer noted that companies with robust ethics, compliance, and governance programs are better positioned for long-term performance, and TE's ongoing efforts not only enhance its reputation but also lay a foundation for sustainable growth in the future.
See More
TE Connectivity Increases Share Repurchase Program by $3 Billion
- Share Repurchase Program Expansion: TE Connectivity's board has authorized a $3 billion increase in its share repurchase program, aimed at enhancing shareholder value and market confidence by reducing the number of outstanding shares, which is expected to positively impact earnings per share.
- Dividend Increase: The company announced a quarterly cash dividend increase from $0.71 to $0.78 per share, representing a 10% rise, which not only reflects strong financial performance but also demonstrates confidence in future profitability and cash flow generation.
- Board Member Reelection: During the 2026 annual general meeting, shareholders voted in favor of the reelection of all 13 board members, indicating strong shareholder support for the company's governance and strategic direction, thereby enhancing management stability.
- Global Business Overview: TE Connectivity operates in approximately 130 countries with over 90,000 employees, including 10,000 engineers, focusing on providing connectivity and sensor solutions that drive advancements in transportation, energy networks, and automated factories, underscoring its leadership in the industrial technology sector.
See More
Bloom Energy Shares Surge 63.27% Year-to-Date Amid Strong Demand
- Significant Revenue Growth: Bloom Energy reported record revenue of $2.02 billion for 2025, reflecting strong demand and an enhanced market position in the clean energy sector, which is crucial for its long-term strategy.
- Surging Order Backlog: The company's product backlog surged 140% year-over-year to $6 billion, indicating substantial future revenue potential, with management guiding 2026 revenues between $3.1 billion and $3.3 billion, which is strategically significant for growth.
- Declining Short Interest: Short interest in Bloom Energy decreased to 22.04 million shares, representing 10.43% of the public float, suggesting increased market confidence in the company's outlook, with short sellers needing approximately 2.18 days to cover their positions.
- Optimistic Analyst Ratings: The stock carries a Buy rating with an average price target of $92.78, as analysts express optimism about Bloom Energy's future performance, particularly driven by the demand from AI data centers, which is strategically important for its market expansion.
See More
Industrial Technology Index Shows Focus on AI ROI Over Innovation
- Focus on AI ROI: According to TE Connectivity's survey, 43% of executives prioritize increasing company profits, a 17-point rise from last year, while those selecting product innovation dropped to 26%, indicating a pressing demand for returns on AI investments.
- Widespread AI Adoption: This year, 35% of respondents reported extensive AI adoption, up 13 points from last year, with the U.S. leading at 41%, showcasing the rapid integration of AI in the industrial technology sector.
- Misalignment Between Engineers and Executives: TE Connectivity's CEO noted that while AI integration accelerates globally, a lack of shared objectives between engineers and executives could introduce friction, hindering innovation progress.
- Youth Optimism Towards AI: The survey reveals that younger respondents in China are the most optimistic about AI technology, with nearly half of executives and engineers eager to experiment with new technologies, reflecting a positive outlook on future advancements.
See More
Industrial Technology Index Shows AI Investment Returns Take Priority
- AI Adoption Surge: A global survey by TE Connectivity reveals that over 80% of industrial technology companies have adopted AI tools, indicating a significant shift towards digital transformation aimed at enhancing operational efficiency across the sector.
- Financial Goals Take Precedence: The survey indicates that 43% of executives prioritize increasing company profits, a 17-point rise from last year, while those focusing on product innovation dropped to 26%, reflecting a shift in corporate focus towards financial returns from AI investments rather than innovation.
- Significant National Disparities: The U.S. leads in extensive AI adoption with 41% of respondents indicating their companies have adopted AI widely, a 26-point increase from last year, while China's figure only rose by 1 point to 29%, highlighting varying adoption rates across countries.
- Youthful Optimism for AI: The survey shows that younger respondents globally, particularly in China, are optimistic about AI technology, with nearly half of executives and engineers eager to experiment with new technologies immediately, suggesting a substantial potential for AI in engineering and technology fields.
See More
TE Connectivity Named Among 2026 World's Most Ethical Companies for 12th Consecutive Year
- Ethical Standards Recognition: TE Connectivity has been named one of the World's Most Ethical Companies for the 12th consecutive year, being one of only five companies in the electronics and components sector, which reinforces its leadership in ethical business practices and strengthens its image as a trusted partner for customers.
- Employee Training Effectiveness: Over the past year, TE hosted more than 142,000 ethics and compliance training sessions, with over 99% of employees completing the global Guide to Ethical Conduct training, indicating the company's ongoing efforts to enhance employee awareness of ethics and compliance culture, thereby improving long-term performance.
- Governance Practices Enhancement: In 2025, TE strengthened its ethics and compliance program by integrating emerging technologies into risk management and enhancing reporting channels, ensuring that its governance aligns with leading industry practices, which boosts overall operational efficiency.
- Ethical Culture Assessment: Ethisphere's assessment is based on its proprietary Ethics Quotient, requiring companies to provide over 240 documented proof points covering corporate governance, training, risk assessment, and more, demonstrating TE's comprehensive commitment to promoting an ethical corporate culture.
See More
TE Connectivity Named Among 2026 World's Most Ethical Companies for 12th Consecutive Year
- Ethical Standards Recognition: TE Connectivity has been named one of the World's Most Ethical Companies by Ethisphere for the 12th consecutive year, standing out as one of only five companies in the electronics and components sector, which underscores its leadership in ethical business practices.
- Effective Employee Training: Over the past year, TE hosted more than 142,000 ethics and compliance training sessions, with over 99% of employees completing the global Guide to Ethical Conduct training, ensuring that all employees are actively engaged in upholding the company's core values.
- Governance Practices Enhancement: In 2025, TE strengthened its ethics and compliance program by integrating emerging technologies into risk management and enhancing reporting channels, thereby improving the overall performance in ethics and compliance.
- Long-term Performance Improvement: Ethisphere's chief strategy officer noted that companies with robust ethics, compliance, and governance programs are better positioned for long-term performance, and TE's ongoing efforts not only enhance its reputation but also lay a foundation for sustainable growth in the future.
See More
TE Connectivity Increases Share Repurchase Program by $3 Billion
- Share Repurchase Program Expansion: TE Connectivity's board has authorized a $3 billion increase in its share repurchase program, aimed at enhancing shareholder value and market confidence by reducing the number of outstanding shares, which is expected to positively impact earnings per share.
- Dividend Increase: The company announced a quarterly cash dividend increase from $0.71 to $0.78 per share, representing a 10% rise, which not only reflects strong financial performance but also demonstrates confidence in future profitability and cash flow generation.
- Board Member Reelection: During the 2026 annual general meeting, shareholders voted in favor of the reelection of all 13 board members, indicating strong shareholder support for the company's governance and strategic direction, thereby enhancing management stability.
- Global Business Overview: TE Connectivity operates in approximately 130 countries with over 90,000 employees, including 10,000 engineers, focusing on providing connectivity and sensor solutions that drive advancements in transportation, energy networks, and automated factories, underscoring its leadership in the industrial technology sector.
See More
Bloom Energy Shares Surge 63.27% Year-to-Date Amid Strong Demand
- Significant Revenue Growth: Bloom Energy reported record revenue of $2.02 billion for 2025, reflecting strong demand and an enhanced market position in the clean energy sector, which is crucial for its long-term strategy.
- Surging Order Backlog: The company's product backlog surged 140% year-over-year to $6 billion, indicating substantial future revenue potential, with management guiding 2026 revenues between $3.1 billion and $3.3 billion, which is strategically significant for growth.
- Declining Short Interest: Short interest in Bloom Energy decreased to 22.04 million shares, representing 10.43% of the public float, suggesting increased market confidence in the company's outlook, with short sellers needing approximately 2.18 days to cover their positions.
- Optimistic Analyst Ratings: The stock carries a Buy rating with an average price target of $92.78, as analysts express optimism about Bloom Energy's future performance, particularly driven by the demand from AI data centers, which is strategically important for its market expansion.
See More
