TE Connectivity Sets New Records: Fourth-Quarter Sales Up 17% as Industrial Growth Accelerates

Robust Fiscal Fourth Quarter Lifts Full-Year Performance

TE Connectivity (NYSE:TEL) delivered a standout finish to its fiscal year, posting record-breaking results for both the fourth quarter and the full year ending September 26, 2025. Net sales reached $4.75 billion in Q4—a 17% increase year-over-year, or 11% growth organically. These gains were powered by exceptional growth in both the Industrial and Transportation segments, with particularly strong demand from the AI and energy sectors.

Earnings, Margins, and Cash Flow Hit All-Time Highs

The company’s profitability metrics painted an equally impressive picture. Adjusted diluted earnings per share rose to $2.44 for the quarter (up 25% from a year earlier), while adjusted operating margins climbed to 20%. GAAP EPS from continuing operations more than doubled, hitting $2.23. Cash generation was robust as well, with quarterly free cash flow topping $1.15 billion and nearly $650 million returned to shareholders. For the full year, TE Connectivity notched records in sales, operating margin, and free cash flow, underlining the company’s operational discipline and strategic positioning.

Industrial Segment Growth Outpaces Transportation

The growth story was especially pronounced in the Industrial segment, where quarterly sales jumped 34%, driven by digital data networks (up nearly 80%) and energy solutions (up 83%). Industrial sales for the full year rose 24%, a clear sign of TE’s successful push into fast-growing markets like AI-driven infrastructure and clean energy.

Transportation, by contrast, was flat to modestly higher on the quarter but essentially flat for the year. While this segment remains a major revenue generator, its growth rate was eclipsed by TE’s surging industrial business, which is increasingly driven by global megatrends such as electrification and automation.

Strong Order Momentum and Optimistic Outlook for 2026

TE’s order book finished the quarter at $4.7 billion, up 22% year-over-year, supporting the company’s upbeat guidance. Management projects first-quarter fiscal 2026 sales to rise another 17%, with double-digit gains in adjusted EPS as the business momentum continues. CEO Terrence Curtin emphasized that these achievements came despite an "uneven macro environment," and he remains confident in TE’s ability to capitalize on long-term growth drivers.

Balance Sheet and Shareholder Returns Reflect Disciplined Execution

TE Connectivity’s balance sheet remains robust, ending the year with $1.26 billion in cash. The company returned $2.2 billion to shareholders via buybacks and dividends while deploying $2.6 billion on strategic acquisitions. This disciplined capital allocation underpins TE’s growth story while providing room for future investments and returns to shareholders.

Key Takeaway: Positioned for Continued Growth

TE Connectivity’s fourth quarter and full-year results not only shattered company records but also showed where future opportunities may lie. The industrial segment’s breakout performance signals TE’s increasing exposure to structural growth themes—like artificial intelligence, automation, and energy transition—that could underpin expansion well into the next decade.

Investors and market watchers should keep an eye on the company’s upcoming earnings and new initiatives, especially as TE Connectivity expects to continue its upward trajectory in fiscal 2026. As CEO Curtin put it, the company is "well positioned to keep capitalizing on key long-term growth trends"—a claim now well-supported by the numbers.

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