TE Connectivity Ltd (NYSE:TEL) surged nearly 10% in premarket trading Wednesday after the industrial technology group reported record fourth-quarter results that topped Wall Street expectations and issued a bullish forecast for fiscal 2026.
The company posted adjusted earnings of $2.44 per share, handily beating the $2.29 analyst consensus. Revenue climbed 17% year-over-year to $4.75 billion, setting a new quarterly record and exceeding expectations of $4.59 billion. Growth was broad-based, with both the Industrial and Transportation segments contributing to an 11% organic sales increase.
“Our teams executed at a high level against our business model to deliver strong results for the fourth quarter as well as the full year,” said Terrence Curtin, CEO of TE Connectivity.
“Our performance resulted in records on the top line, earnings and cash flow in 2025 and sets TE up well going into our new fiscal year.”
The Industrial Solutions segment was the standout performer, posting 34.4% sales growth to $2.34 billion, driven by demand from AI infrastructure and energy-related innovations. The Transportation Solutions segment rose 3.6% to $2.41 billion, reflecting steady automotive and commercial transport demand.
Looking ahead, the company guided for first-quarter fiscal 2026 revenue of about $4.5 billion, implying 17% year-over-year growth and topping the $4.34 billion analyst estimate. TE also expects adjusted EPS of $2.53, well above the $2.17 consensus.
The company reported record free cash flow of $1.2 billion for the quarter and $3.2 billion for the full year, returning $650 million to shareholders in Q4 through dividends and buybacks.
“With strong order levels and our continued operational resilience, we expect sales and EPS in the first quarter of fiscal 2026 to each be up double digits year over year,” Curtin added.
The strong finish to 2025 and confident guidance positioned TE Connectivity as one of the top-performing industrial technology names heading into the new fiscal year.