TE Connectivity TEL is scheduled to report its third-quarter fiscal 2026 results on July 22.
For the third quarter of fiscal 2026, adjusted earnings are projected to be approximately $2.83 per share, which indicates 17% year-over-year growth. The Zacks Consensus Estimate for earnings is pegged at $2.85 per share, which has increased by a penny over the past 30 days. This indicates 25.55% growth from the figure reported in the year-ago quarter.
TE Connectivity expects third-quarter fiscal 2026 sales of approximately $5 billion, implying 10% reported growth and 9% organic growth year over year. The Zacks Consensus Estimate for the to-be-reported quarter sales is pegged at $4.95 billion, suggesting 9.15% growth from the figure reported in the year-ago quarter.
TE Connectivity beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 5.97%.
TE Connectivity Ltd. Price and EPS Surprise
TE Connectivity Ltd. price-eps-surprise | TE Connectivity Ltd. Quote
Let’s see how things have shaped up for the upcoming announcement:
Factors to Note
TE Connectivity’s third-quarter fiscal 2026 performance is expected to have benefited from strong order momentum and backlog growth across all business segments. The company reported record orders of $5.3 billion in the fiscal second quarter, with a book-to-bill ratio of 1.12, indicating strong demand that is expected to carry into the fiscal third quarter.
Strong growth in its Industrial Solutions segment, particularly in digital data networks (DDN), energy, aerospace and defense, and factory automation, remains noteworthy. The DDN business, driven by AI-related demand, is projected to see an additional $150 million in revenues in the second half of the year, reflecting increased momentum and program ramps. The company’s recent acquisition of a leading passive optical connectivity technology further strengthens its position in both copper and optical solutions, supporting future growth in AI and data center applications.
The Industrial segment is also poised to benefit from secular growth trends in energy, aerospace and defense, and factory automation. In the fiscal second quarter, energy sales grew 60% (including acquisitions) and 11% organically, driven by investments in grid hardening, data center power infrastructure, and clean energy applications. This trend is expected to have continued in the to-be-reported quarter.
In the Transportation segment, TEL is leveraging its global leadership and co-creation model to outperform the market, particularly in commercial transportation and automotive. Commercial transportation sales grew 21% (17% organically) in the second quarter of fiscal 2026, with continued improvement in demand across all regions and increasing content per vehicle. Automotive content growth is expected to remain in the 4% to 6% range for fiscal 2026, driven by electrification, data connectivity, and electronification trends. Despite a flattish global auto production environment, TEL's strong order book and content gains are expected to have supported sequential and year-over-year growth in the to-be-reported quarter.
However, competitive pricing, auto production variability, input cost inflation, currency moves and a debt load that can constrain flexibility remain a headwind.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
TE Connectivity currently has an Earnings ESP of +0.18% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Amphenol APH has an Earnings ESP of +1.12% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol shares have gained 11.9% year to date. Amphenol is scheduled to report its second-quarter 2026 results on July 29.
ASE Technology ASX has an Earnings ESP of +23.53% and a Zacks Rank #1.
ASE Technology shares have surged 138.6% year to date. ASE Technology is set to report its second-quarter 2026 results on July 30.
Fortive FTV has an Earnings ESP of +2.82% and a Zacks Rank #2 at present.
Fortive shares have gained 11.9% in the year-to-date period. Fortive is set to report second-quarter 2026 results on July 29.
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TE Connectivity Ltd. (TEL): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).