TE Connectivity Stock Rises on Q4 Earnings Beat, Revenues Up Y/Y

TE Connectivity TEL reported fourth-quarter fiscal 2025 adjusted earnings of $2.44 per share, which increased 25.1% from the year-ago quarter and beat the Zacks Consensus Estimate by 6.55%.Net sales totaled $4.75 billion, which beat the consensus estimate by 4.28% and increased 17% reported and 11% organically year over year. The surge was driven by growth in both the Industrial and Transportation segments.Orders increased in both segments to $4.7B, up 22% year over year and 5% sequentially.Following the release, TEL shares rose 4.40% in the pre-market trading, driven by strong operational performance and records in sales and cash flow.TE Connectivity Ltd. Price, Consensus and EPS Surprise TE Connectivity Ltd. price-consensus-eps-surprise-chart | TE Connectivity Ltd. QuoteTEL’s Q4 Top-Line DetailsThe Transportation solutions segment generated revenues of $2.41 billion, contributing 50.8% to net sales. The figure increased 3.6% year over year on a reported basis and 2% organically.Automotive sales increased 4% year over year, including 2% organic growth, supported by strong content-driven demand in Asia.Sensor sales fell 4% year over year and 6% organically, reflecting soft demand across Western end markets.Commercial transportation sales rose 7% year over year and 5% organically, driven primarily by growth in Asia and Europe.The Industrial Solutions segment generated revenues of $2.33 billion, making up 49.2% of net sales. This represented a 34% increase year over year on a reported basis and 24% growth organically.Digital Data Networks, Automation & Connected Living, Aerospace, Defense and Marine, and Energy saw year-over-year growth of 80%, 15%, 9% and 83%, respectively. However, the Medical sector experienced a decline of 16%.TEL’s Q4 Operating DetailsIn fourth-quarter fiscal 2025, GAAP gross margin expanded 100 basis points (bps) year over year to 35%.Selling, general, and administrative expenses, as a percentage of net sales, contracted 20 bps to 10.4%.Research, development, and engineering expenses were held flat at 4.8% of net sales, unchanged year over year.Adjusted operating margin expanded 130 bps year over year to 19.9% in the reported quarter.TEL’s Balance Sheet & Cash FlowAs of Sept. 26, 2025, cash and cash equivalents were $1.25 billion, up from $672 million as of June 27, 2025.Long-term debt was $4.842 billion as of Sept. 26, 2025, compared with $4.846 billion as of June 27, 2025.TE Connectivity generated $1.4 billion in cash from operations in the reported quarter, up from the previous quarter's figure of $1.2 billion.TEL generated a free cash flow of $1.2 billion in the fourth quarter, up from $962 million reported in the previous quarter.TE Connectivity’s Positive 1Q26 GuidanceTE Connectivity expects fiscal first-quarter net sales to increase 17% year over year and 11% organically year over year to $4.5 billion. Adjusted earnings are projected to be $2.53 per share, indicating growth of 23% year over year.TEL’s Zacks Rank & Other Stocks to ConsiderCurrently, TE Connectivity has a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Alkami Technology ALKT, AMETEK AME, and Advanced Energy AEIS. While Alkami Technology sports a Zacks Rank #1 (Strong Buy), AMETEK and Advanced Energy carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Alkami Technology is set to report third-quarter 2025 results on Oct. 30. Alkami Technology shares have lost 36.2% year to date.AMETEK is slated to report third-quarter 2025 results on Oct. 30. AMETEK shares have gained 2.7% year to date.Advanced Energy is set to report third-quarter 2025 results on Nov. 4. Advanced Energy shares have surged 77% year to date.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMETEK, Inc. (AME): Free Stock Analysis Report TE Connectivity Ltd. (TEL): Free Stock Analysis Report Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report Alkami Technology, Inc. (ALKT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks