TE Connectivity Ltd. (TEL) AI Stock Analysis

TE Connectivity Ltd., along with its subsidiaries, is a global leader in manufacturing and distributing connectivity and sensor solutions across Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. The company operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. Transportation Solutions provides terminals, connector systems, sensors, relays, antennas, and application tooling for automotive and commercial vehicle markets. Industrial Solutions delivers connectors, interventional medical components, relays, heat shrink tubing, wires, and cables to aerospace, defense, marine, medical, and energy sectors. Communications Solutions supplies electronic components for data, devices, and appliance applications.

Between FY2021 and FY2025, TE Connectivity grew revenue from $14.92B to $17.09B, producing a 5-year revenue CAGR of 7.0%. Revenue climbed 7.9% in FY2025 following slight contractions of 1.5% in FY2023 and 1.2% in FY2024. Gross margin expanded from 31.7% in FY2021 to 34.6% in FY2025, while operating margin rose from 17.5% to 18.8%. Net income reached $1.84B in FY2025, down from $3.19B in FY2024, yet EPS increased from $7.56 to $8.76. In the latest quarter ended June 30, 2026, revenue increased 13.8% year-over-year and earnings rose 19.2%. TTM revenue stood at $19.32B with a profit margin of 15.6%.

As of June 30, 2026, TE Connectivity held $1.24B in cash and short-term investments against total debt of $5.63B, resulting in net debt of $4.39B. Shareholders' equity was $13.25B on total assets of $26.07B, supporting a debt-to-equity ratio of 0.43 and a current ratio of 1.88. In FY2025, the company generated $4.14B in operating cash flow and $3.20B in free cash flow. Capital expenditures were $936.0M, share buybacks totaled $1.35B, and dividends paid were $803.0M, contributing to an 11.2% reduction in share count over five years.

At a last close of $212.64, TE Connectivity had a market capitalization of $61.56B and an enterprise value of $66.46B. The stock traded at a trailing P/E of 20.8x and a forward P/E of 16.6x, compared to the median of its S&P 500 Technology peers of 31.5x and 20.9x, respectively. Its price-to-sales of 3.2x and EV/EBITDA of 13.6x also sat below peer group medians of 6.3x and 19.9x. The stock has returned -3.8% over the past year, trailing the S&P 500 (SPY) return of 16.8%, and gained 56.5% over five years versus 83.0% for the index.

TE Connectivity pays a quarterly dividend with an annualized forward payout of $3.12 per share, representing a dividend yield of 1.47%. Its payout ratio is 27.5%. The company has paid dividends for 20 consecutive years, delivering a 5-year annualized dividend growth rate of 7.9%. Its last ex-dividend date was November 20, 2026.

Wall Street coverage includes 12 Strong Buy, 1 Buy, and 6 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $251.79 implies 18.4% upside over the October 16, 2026 close of $212.64. For the fiscal year ending September 30, 2026, analysts estimate revenue of $19.86B and EPS of $11.46, representing 30.8% EPS growth. TE Connectivity beat EPS expectations in all of its last 4 quarters. The next earnings date is October 28, 2026.

This page is an AI-written research summary of TE Connectivity Ltd. (TEL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: TEL income statement, TEL balance sheet, TEL key metrics, TEL analyst forecast, TEL chart. See the TEL stock overview for the latest quote and news.