TE Connectivity Reports Record Q3 Results, Forecasts Strong AI-Driven Growth

TE Connectivity Delivers Exceptional Q3 Performance

TE Connectivity Ltd (NYSE:TEL), a leading industrial technology company, has reported outstanding third-quarter results that surpassed analyst expectations. The company's strong performance was primarily driven by its Industrial segment and record operational efficiency 1

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Record-Breaking Financial Results

TE Connectivity achieved several financial milestones in Q3:

• Adjusted earnings per share (EPS) of $2.27, beating the analyst estimate of $2.08
• Record revenue of $4.5 billion, a 14% increase year-over-year (9% organic growth)
• Record adjusted operating margin of 19.9%
• Free cash flow of $962 million
• Cash flow from operating activities of approximately $1.2 billion 1

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CEO Terrence Curtin attributed the company's success to the diversity of its portfolio and global positioning, enabling TE Connectivity to achieve record performance in a dynamic environment 2

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Industrial Segment Leads Growth

The Industrial segment emerged as the standout performer, with an impressive 30% sales growth. This surge was primarily driven by:

1. High-speed connectivity solutions for AI applications
2. Strong growth in the energy business 1

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Transportation Segment Shows Resilience

Despite declines in vehicle production, the Transportation segment reported increased sales. This growth was attributed to:

• Strength in the Asian market
• Innovations in electrification and vehicle data connectivity 1

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Strategic Acquisition Strengthens Portfolio

TE Connectivity completed the acquisition of Richards for $2.3 billion in the third quarter, further bolstering its Industrial segment portfolio 1

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Optimistic Outlook and AI-Driven Growth

Looking ahead, TE Connectivity provided an upbeat forecast for its fiscal fourth quarter:

• Projected revenue of approximately $4.55 billion, surpassing the consensus estimate of $4.404 billion
• Expected adjusted EPS of $2.27, exceeding analyst estimates of $2.13 1

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Notably, the company anticipates its AI-related revenue to surpass $800 million by 2025, highlighting the significant role of artificial intelligence in TE Connectivity's future growth strategy 2

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Market Response

Following the announcement of these impressive results, TE Connectivity's shares rose 0.99% in pre-market trading, reflecting investor confidence in the company's performance and future prospects 1

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