TE Connectivity (TEL) Down 7.7% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for TE Connectivity (TEL). Shares have lost about 7.7% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is TE Connectivity due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for TE Connectivity Ltd. before we dive into how investors and analysts have reacted as of late.TE Connectivity Q4 Earnings & Revenues Beat Estimates, Increase Y/YTE Connectivity 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.TEL’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.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.The consensus estimate has shifted 18.55% due to these changes.VGM ScoresCurrently, TE Connectivity has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise TE Connectivity has a Zacks Rank #2 (Buy). 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Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>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 TE Connectivity Ltd. (TEL): 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