TE Connectivity Reports Record Orders Amid AI Infrastructure Growth, But Stock Falls on Guidance Concerns
TE Connectivity (NYSE:TEL) reported a record fiscal Q3 2026 with strong revenue and order growth driven by increased demand for electrical connectors in data centers. The company's net revenue rose to $5.16 billion, surpassing Wall Street estimates, while adjusted earnings per share hit $2.94. Despite these results, the stock fell about 7% after management provided a fourth-quarter guidance that signaled slower growth compared to Q3. The order flow surged by 27% year-over-year to $5.7 billion, with Industrial Solutions revenue up 22%. CEO Terrence Curtin noted AI cloud momentum is outpacing initial forecasts and highlighted over 70% YTD growth in data center connection orders. TE Connectivity also announced a $1.4 billion acquisition of Astrodyne TDI for power management solutions. The stock's decline reflects investor focus on forward guidance rather than past performance, as the fourth-quarter revenue forecast showed an 11% year-over-year increase—slower than Q3’s growth rate.
Topics: AI infrastructure connector systems data centers hyperscalers