TE Connectivity (NYSE: TEL) Reports Q1 Earnings Beat with 22% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy TEL?
Source: Benzinga
- Earnings Beat: TE Connectivity reported adjusted earnings of $2.72 per share for Q1, a 33% year-over-year increase that surpassed analysts' expectations of $2.55, indicating a significant enhancement in profitability.
- Strong Revenue Growth: The company achieved quarterly revenue of $4.67 billion, a 22% increase year-over-year that exceeded the forecast of $4.53 billion, with a 15% organic growth reflecting robust performance in both Industrial and Transportation segments.
- Record Orders: TE Connectivity reported record quarterly orders of $5.1 billion, up 28% year-over-year and 9% sequentially, indicating strong market demand and substantial future growth potential.
- Healthy Cash Flow: The company generated $865 million in operating cash flow and $608 million in free cash flow during the quarter while returning $615 million to shareholders, demonstrating solid financial health.
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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: 211.670
Low
240.00
Averages
270.70
High
297.00
Current: 211.670
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.
Credo Reaches License Agreement with TE Connectivity on AEC Technology
- Agreement Reached: Credo Technology has entered into a license and settlement agreement with TE Connectivity regarding Active Electrical Cable technology, leading to the dismissal of all lawsuits between the two companies, which may help reduce uncertainties stemming from legal disputes.
- Stock Reaction: Following the announcement, Credo's shares fell approximately 2%, while TE Connectivity's shares dipped around 1% in premarket trading on Friday, indicating a cautious market reaction that could affect investor confidence in both companies' future prospects.
- Historical Context: Last August, Credo also reached a similar licensing and settlement agreement with Amphenol concerning their respective patents on active electrical cable technology, highlighting the company's proactive approach to intellectual property and its aim to mitigate competitive pressures through collaboration.
- Market Impact: Credo's agreement with Volex regarding its patents on AEC technology further demonstrates the company's technological influence and market consolidation capabilities within the industry, potentially laying the groundwork for future collaborations.
See More
Credo and TE Connectivity Reach AEC Technology License Agreement
- License Agreement Reached: Credo Technology Group and TE Connectivity have reached a license and settlement agreement regarding AEC technology, leading to the prompt dismissal of all lawsuits, indicating a consensus on technological collaboration that helps reduce uncertainties from legal disputes.
- Prospects for Technical Cooperation: This agreement provides a more solid legal foundation for Credo's innovations in high-speed connectivity, potentially facilitating its market expansion in AI-driven applications and enhancing the company's competitiveness in the industry.
- Market Demand Response: Credo is committed to delivering faster, more reliable, and energy-efficient solutions to meet the growing demands of AI, cloud computing, and hyperscale networks, and this collaboration will further drive the application of its products in the 100G to 1.6T port markets.
- Intellectual Property Protection: Although the terms of the agreement remain confidential, Credo's IP solutions are primarily based on its proprietary SerDes and DSP technologies, and this settlement will help protect its innovative achievements, ensuring the company's continued leadership in technology.
See More
CREDO TECHNOLOGY GROUP HOLDING LTD - DETAILS OF CREDO AND TE CONNECTIVITY AGREEMENT REMAIN PRIVATE
- Confidential Agreement: The terms of the agreement between Credo Technology Group Holding Ltd and Te Connectivity remain confidential.
- Focus on Connectivity: The agreement emphasizes aspects related to credit and connectivity within the technology sector.
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
Credo Reaches License Agreement with TE Connectivity on AEC Technology
- Agreement Reached: Credo Technology has entered into a license and settlement agreement with TE Connectivity regarding Active Electrical Cable technology, leading to the dismissal of all lawsuits between the two companies, which may help reduce uncertainties stemming from legal disputes.
- Stock Reaction: Following the announcement, Credo's shares fell approximately 2%, while TE Connectivity's shares dipped around 1% in premarket trading on Friday, indicating a cautious market reaction that could affect investor confidence in both companies' future prospects.
- Historical Context: Last August, Credo also reached a similar licensing and settlement agreement with Amphenol concerning their respective patents on active electrical cable technology, highlighting the company's proactive approach to intellectual property and its aim to mitigate competitive pressures through collaboration.
- Market Impact: Credo's agreement with Volex regarding its patents on AEC technology further demonstrates the company's technological influence and market consolidation capabilities within the industry, potentially laying the groundwork for future collaborations.
See More
Credo and TE Connectivity Reach AEC Technology License Agreement
- License Agreement Reached: Credo Technology Group and TE Connectivity have reached a license and settlement agreement regarding AEC technology, leading to the prompt dismissal of all lawsuits, indicating a consensus on technological collaboration that helps reduce uncertainties from legal disputes.
- Prospects for Technical Cooperation: This agreement provides a more solid legal foundation for Credo's innovations in high-speed connectivity, potentially facilitating its market expansion in AI-driven applications and enhancing the company's competitiveness in the industry.
- Market Demand Response: Credo is committed to delivering faster, more reliable, and energy-efficient solutions to meet the growing demands of AI, cloud computing, and hyperscale networks, and this collaboration will further drive the application of its products in the 100G to 1.6T port markets.
- Intellectual Property Protection: Although the terms of the agreement remain confidential, Credo's IP solutions are primarily based on its proprietary SerDes and DSP technologies, and this settlement will help protect its innovative achievements, ensuring the company's continued leadership in technology.
See More
CREDO TECHNOLOGY GROUP HOLDING LTD - DETAILS OF CREDO AND TE CONNECTIVITY AGREEMENT REMAIN PRIVATE
- Confidential Agreement: The terms of the agreement between Credo Technology Group Holding Ltd and Te Connectivity remain confidential.
- Focus on Connectivity: The agreement emphasizes aspects related to credit and connectivity within the technology sector.
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
