Start here if you're new
what it is
TE makes the connectors, sensors, and network parts inside cars, factories, power grids, and communications systems.
how it gets paid
Last year Te Connectivity made $17.3B in revenue. It operates in two segments: Transportation Soluti was the main engine at $9.3B, or 54% of sales.
why it's growing
Revenue grew 8.9% last year. The commercial transportation business got a boost from solid demand in europe and asia.
what just happened
Latest quarter revenue hit $4.7B, up 22% vs. prior year, while EPS rose 45% to $2.53.
At a glance
A balance sheet — strong enough to weather a downturn
85/100 earnings predictability — you can trust these numbers
26.7x trailing p/e — priced about right
1.3% dividend yield — cash in your pocket every quarter
19.0% return on capital — nothing to write home about
xvary composite: 81/100 — above average
What they do
TE makes the connectors, sensors, and network parts inside cars, factories, power grids, and communications systems.
TE sells the parts your product gets built around first, not the accessories you swap out later. Transportation was 54% of 2025 sales, and operating margin was 25.0%. Switching costs (changing suppliers after your design is locked) are painful, so TE gets paid for being hard to replace.
How they make money
$17.3B
annual revenue · their business grew +8.9% last year
It operates in two segments: Transportation Soluti
$9.3B
n/a
Industrial Solutions
$8.0B
n/a
The products that matter
engineered connectivity components
Connectivity platform
$17.3B revenue · 16.5% net margin
This is the whole business in one line. A company that keeps 16.5 cents of every $1 in revenue does not trade like a generic parts bin.
profit engine
industrial and data infrastructure exposure
Industrial solutions
+34% latest top-line growth
This was the growth engine in the latest period. Management tied the jump to digital data network products, AI-related demand, and energy applications.
fastest grower
vehicle and commercial transport exposure
Transportation solutions
+4% latest sales growth
Transportation still grew, just at a very different speed. That matters because 4% is steady support, not enough to carry the full story if industrial cools.
steady support
Key numbers
7%
debt to capital
Long-term debt is just 7% of capital. Plain English: the balance sheet is light. So what: TE can absorb a slowdown better than a heavily levered peer.
19.0%
return on capital
Return on capital means profit earned on money invested in the business. Plain English: TE turns investment into earnings efficiently. So what: quality this high usually deserves a premium.
25.0%
operating margin
Operating margin means profit after running the business, before interest and taxes. Plain English: a quarter of sales survives the factory and salesforce. So what: TE has pricing power.
$211
18-month target
The published 18-month target is below the current $233.98 price. Plain English: near-term upside looks used up. So what: you are paying tomorrow's price today.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 80 / 100
- long-term debt $4.8B (7% of capital)
- net profit margin 15.9% — keeps 16 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in TEL 3 years ago → it's now worth $20,150.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Latest quarter revenue hit $4.7B, up 22% vs. prior year, while EPS rose 45% to $2.53.
The quarter was driven by Industrial Solutions, which posted 34% growth tied to grid hardening and renewable products. Gross margin was 37.2%, which tells you the mix stayed healthy.
$4.7B
revenue
$2.53
eps
37.2%
gross margin
the number that mattered
The 34% Industrial growth rate mattered most because it explains why total company revenue jumped 22%.
-
te connectivity closed out fiscal 2025 (ended september 26th) with better-than-expected results.
-
sales of $4.75 billion were more than $160 million higher than our estimate and increased 17% compared to the previous-year tally.
-
the advance was driven by another strong performance from the industrial solutions division, which posted a 34% jump in the top line.that group benefited from robust demand for digital data network products, largely due to strong momentum in ai applications.
-
growth, driven by grid hardening and renewable products, also supported energy applications.
-
the transportation solutions segment reported modest sales growth of 4% for the period.the commercial transportation business got a boost from solid demand in europe and asia, while the automotive segment benefited from content growth in asia.
source: company earnings report, 2026
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What could go wrong
TE's current story leans heavily on one fast lane and one steady lane. If the 34% industrial surge cools while transportation stays at 4%, the valuation loses its easiest defense.
med
industrial growth normalizes fast
Industrial solutions grew 34% in the latest period. If that snaps back hard, the part of the business doing the heavy lifting stops lifting.
the market is already leaning on the $19B fy2026 revenue estimate
med
transportation stays merely okay
Transportation solutions grew 4% in the latest period. That helps, but it does not offset a sharper slowdown elsewhere.
a two-speed business gets harder to justify at 26.7x trailing earnings
med
margin settles closer to 10.7% than 16.5%
The annual net margin shown here is 16.5%. The latest quarterly margin shown here is 10.7%. If the lower number tells the truer story from here, the premium multiple is the next thing under pressure.
a stock at $233.98 with a $211 long-term midpoint target does not leave much room for a margin downgrade
Here is what would change our mind: revenue tracking toward $19B, EPS building above $10.70, and margins staying closer to 16.5% than 10.7%. If that combination slips, this stops being a quality stock and starts being a quality stock priced like yesterday's good news.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the number
industrial growth after the 34% jump
That was the number that changed the quarter. If it cools hard next print, you will feel it in the narrative fast.
earnings
next quarterly print
Watch revenue against the $19B fy2026 estimate and EPS against $10.70. The stock is already priced for follow-through.
risk
margin durability
The gap between a 16.5% annual net margin and a 10.7% recent quarterly margin is the quiet part. You want that gap explained, not hand-waved.
valuation
stock price versus the $211 midpoint target
The shares already trade above the long-term midpoint target. Better execution fixes that. Ordinary execution does not.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — in human-speak, analysts expect the stock to rank better than most names over the next year.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks, helped by an A balance sheet.
chart momentum
top 20%
technical score 2 — the trend has been strong, which helps until valuation starts doing the arguing.
earnings predictability
85 / 100
Management usually produces steady numbers. That matters more when you are already paying a premium multiple.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 596 buyers vs. 442 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$138
$283
$234
current price
$211
target midpoint · 10% from current · 3-5yr high: $310 (+30% · 9% ann'l return)
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