TE Connectivity delivers 12% sales increase and over 20% EPS growth in fiscal fourth quarter

What happened

TE Connectivity reported record fourth-quarter net sales of $5.3 billion, up 12% from a year earlier, with orders of $6.1 billion and adjusted earnings per share of $3.14, up 21%.

Confirmed

Global impact / market context

The maker of data and power connectors grew sales and profit while generating $1.2 billion in free cash flow, which is cash left after spending on operations and equipment, and returned about $800 million to shareholders.

Confirmed

Strong orders of $6.1 billion, up 29%, suggest customers are committing to future purchases, which supports the company's expectation of double-digit sales growth in fiscal 2027 and points to steady demand for connectivity products.

Analyst inference

What to watch

1. Watch whether TE Connectivity converts its $6.1 billion order backlog into sales, since orders rose 29% and the company ties its fiscal 2027 outlook to that demand. Confirmed
2. Track the company's capital spending plans, because added factory capacity would raise costs now but could support the expected double-digit sales growth next year. Proposed
3. Monitor adjusted operating margin, which was 22%, since holding it near that level while sales grow would signal pricing power and cost control rather than discounting. Analyst inference

Evidence

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