TE Connectivity Orders Jump 29% on AI Demand; Company Sees Double-Digit Growth in Fiscal 2027

TE Connectivity said orders jumped 29% in its fiscal fourth quarter and forecast double-digit sales growth for fiscal 2027, as customer spending on AI and data center connectivity kept fueling demand for its connectors and sensors.

The Galway, Ireland-based company reported record quarterly net sales of $5.3 billion, up 12% on a reported basis and 13% organically, according to its earnings release filed with an 8-K on Wednesday. Orders reached $6.1 billion, up 29% from a year earlier and 6% from the prior quarter.

Earnings growth tops 20%

GAAP diluted earnings per share from continuing operations rose 39% to $3.10. Adjusted EPS was $3.14, up 21% year over year. GAAP operating margin was 21% and adjusted operating margin was 22%.

The company generated $1.5 billion of operating cash flow and $1.2 billion of free cash flow in the quarter and returned approximately $800 million to shareholders.

Industrial leads, driven by AI

Industrial Solutions sales rose 20% to $2,799 million, according to an investor presentation furnished with the 8-K. Digital Data Networks, the business the company tied to AI applications, grew 34% to $949 million. Energy sales rose 12%, which the presentation attributed to grid hardening and data center build-out.

Transportation Solutions sales grew 8% to $2,600 million, including 7% growth in Automotive to $1,933 million and 18% growth in Commercial Transportation.

"In our Industrial Solutions segment, which grew 26% in 2026, we continue to benefit from our customers' AI investments, which create opportunities extending from inside the rack in the data center to the networking edge all the way to the energy grid," CEO Terrence Curtin said.

A record year

For fiscal 2026, which ended Sept. 25, net sales rose 15% to $19.9 billion, or 12% organically, and orders climbed 27% to $22.2 billion. GAAP EPS rose 80% to $11.07, and adjusted EPS increased 24% to $11.52.

The company said it set full-year records for sales, orders, operating margin, EPS and cash generation. It returned approximately $2.8 billion to shareholders during the year and committed $1.6 billion to bolt-on acquisitions in the Industrial segment to broaden its optics and power filtering portfolios.

Outlook for fiscal 2027

For the first quarter of fiscal 2027, TE expects sales of approximately $5.35 billion, up 15% on both a reported and organic basis. It expects GAAP EPS from continuing operations of approximately $3.04, up 20%, and adjusted EPS of approximately $3.30, up 21%.

For the full fiscal year, Curtin said the company expects "organic sales growth that is similar to our strong performance in fiscal 2026." TE held a conference call for investors at 8:30 a.m. ET on Wednesday.

By the numbers

• Q4 net sales: record $5.3 billion, up 12%
• Q4 orders: $6.1 billion, up 29%
• Q4 adjusted EPS: $3.14, up 21%
• Fiscal 2026 sales: $19.9 billion, up 15%
• Q1 fiscal 2027 outlook: sales of about $5.35 billion; adjusted EPS of about $3.30

Sources

1. TE Connectivity Form 8-K with fiscal fourth-quarter 2026 earnings release and investor presentation (Exhibits 99.1 and 99.2), filed Oct. 28, 2026 (accession 0001104659-26-119326)

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