TE Connectivity plcTEL
TE Connectivity plc Financial Overview 2021–2025
TE Connectivity’s Industrial Solutions segment surged an explosive 23.7% in FY2025, fundamentally shifting the company's growth engine away from its legacy automotive roots. Driven by a $2.3 billion strategic acquisition and insatiable demand for AI data networks, this pivot demonstrates that the manufacturer is successfully repositioning itself for the digital infrastructure and electrification boom.
Total revenue expanded from $14.92 billion in FY2021 to $17.3 billion in FY2025, even as its historically dominant Transportation segment stalled. Profitability scaled seamlessly alongside this top-line expansion. By driving manufacturing productivity and leaning into higher-margin data and energy products, consolidated gross margins improved from 32.7% in FY2021 to 35.2% in FY2025. The company paired this operational efficiency with aggressive capital returns, repurchasing $1.4 billion in shares during FY2025 while generating $4.1 billion in operating cash flow.
The market clearly rewarded this shifting revenue mix and robust cash generation. At the close of FY2025, the stock traded at $217.04, commanding a 35.2x price-to-earnings multiple on its $6.16 in earnings per share. This premium valuation reflects investor confidence in the underlying momentum heading into Q1 FY2026, where total top-line growth accelerated to 21.7% and operating margins expanded to 20.6%.
Recent Developments (Q4 2025 and Q1 2026)
Q1 2026 net sales hit $4.7 billion, fueled by 15.0% organic growth and a 38.2% spike in Industrial Solutions. Transportation Solutions rebounded, growing 10.0%. Operating income jumped 39.6% to $963 million, pushing diluted earnings per share to $2.53 from $1.75 a year earlier. Management capitalized on this momentum by restructuring debt in February 2026, issuing $750 million in new senior notes and securing a $3 billion credit facility. Additionally, the company adjusted its non-GAAP reporting for fiscal 2026 to exclude intangible amortization.
Bulls view the surging cross-segment organic growth and optimized balance sheet as indicators of sustainable fundamental strength. Conversely, bears argue the equity is priced for perfection, trading at a premium 36.3x earnings multiple at $223.84 per share as of January 22, 2026.
What to watch: execution of the remaining $983 million share repurchase authorization; strategic capital deployment using the new $3 billion credit facility
Rev
$17.26B
FY2025
NI
$1.84B
FY2025
EPS
$6.20
FY2025
OCF
$4.14B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
TE Connectivity plc 8-K Report, Material Agreement (Feb 17, 2026)
TE Connectivity plc (TEL) has executed a new Five-Year Senior Credit Agreement, establishing a $3 billion revolving credit facility. This new facility replaces its previous $1.5 billion credit line and extends the maturity date to February 13, 2031, with options for further extension. This strategic move enhances the company's financial flexibility and is intended to support its commercial paper program. The agreement includes provisions for potential increases in the credit line and outlines various interest rate options tied to market benchmarks plus an applicable margin. Notably, the company terminated its existing agreement without incurring early termination penalties. Key financial covenants within the new agreement include a leverage ratio that, if exceeded (Consolidated Total Debt to Consolidated EBITDA above 3.75:1, or 4.25:1 post-Qualified Acquisition), could trigger an Event of Default. Investors should note that the interest rates on borrowings are variable, linked to benchmark rates such as Term SOFR for USD, and include an annual facility fee ranging from 5.0 to 12.5 basis points. The company also engages in customary financial services with the lenders and their affiliates, which is a standard practice.
TE Connectivity plc 8-K Report, Corporate Update (Feb 9, 2026)
TE Connectivity plc (TEL), through its wholly-owned subsidiary Tyco Electronics Group S.A. (TEGSA), announced the issuance of new senior notes totaling $750 million. This offering comprises $200 million of 4.500% Senior Notes due 2031, which are fungible with existing notes, and $550 million of 4.875% Senior Notes due 2036. The net proceeds, approximately $745.5 million after deducting underwriter discounts, are earmarked for the repayment of existing debt, specifically the 3.700% Senior Notes due 2026 and 4.500% Senior Notes due 2026, as well as for general corporate purposes. The new notes are unsecured senior obligations of TEGSA, fully and unconditionally guaranteed on an unsecured senior basis by TE Connectivity plc and TE Connectivity Switzerland Ltd. This debt issuance aims to manage TE Connectivity's capital structure by refinancing upcoming maturities and potentially optimizing its interest expense. Investors should note the coupon rates and maturity dates, which reflect current market conditions for a company of TE Connectivity's credit profile.
TE Connectivity plc 8-K Report, Financial Results (Jan 21, 2026)
TE Connectivity plc (TEL) has filed an 8-K report on January 21, 2026, primarily to disclose its first-quarter results for fiscal year 2026. The filing incorporates by reference a press release (Exhibit 99.1) that contains the detailed financial performance for the quarter ending January 20, 2026. Investors should refer to this press release for specific revenue, profitability, and segment performance figures. The report also indicates that TEL will host a conference call and webcast on January 21, 2026, to discuss these results, with presentation materials (Exhibit 99.2) made available to the public. While this 8-K doesn't provide the actual financial numbers directly, it serves as the official notification and access point to the Company's Q1 FY2026 earnings information. Key metrics and management commentary regarding the operational and financial condition of the company will be found within the furnished press release and accompanying presentation. Investors looking for forward-looking guidance or strategic updates should carefully review these supplemental materials.
TE Connectivity plc 8-K Report, Regulation FD Disclosure (Nov 20, 2025)
TE Connectivity plc (TEL) has filed an 8-K Current Report primarily to announce and furnish materials related to its investor day meeting held on November 20, 2025. The key disclosure is a presentation that will be made at this event, providing insights into the company's strategic direction, performance, and outlook. This presentation is being furnished under Regulation FD and is available as an exhibit to this filing, with a live webcast accessible on the company's investor relations website.
TE Connectivity plc 8-K Report, Financial Results (Oct 29, 2025)
TE Connectivity plc (TEL) filed an 8-K on October 29, 2025, primarily to announce its fourth quarter and full fiscal year 2025 results. The report includes the earnings release and related conference call information. A key operational update is the company's decision to exclude amortization expense on intangible assets from several of its non-GAAP financial measures, effective fiscal year 2026. This change, including recast prior period segment results and non-GAAP reconciliations, is intended to provide a more consistent and comparable view of operating performance over time and against peers, particularly for companies that engage in acquisitions. Investors are encouraged to review the provided exhibits, which contain detailed recast segment results and non-GAAP reconciliations, to understand the impact of this accounting change and to assess the company's financial performance.
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