How Investors Are Reacting To TE Connectivity (TEL) Earnings Beat Driven by AI-Fueled Industrial Demand

• TE Connectivity recently reported its third-quarter fiscal 2025 results, with adjusted earnings of US$2.27 per share and revenue of US$4.5 billion, both surpassing analyst expectations and driven by strong demand for AI applications and data centers in the Industrial Solutions segment.
• The company projected further sales and earnings growth for the fourth quarter, underscoring rising momentum in high-performance connectivity solutions as AI and next-generation infrastructure investments accelerate globally.
• We’ll examine how the company’s industrial segment surge, fueled by AI demand, could shape TE Connectivity’s investment outlook going forward.

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TE Connectivity Investment Narrative Recap

To be a shareholder in TE Connectivity, you need to believe that strong and rising global investment in AI and next-generation infrastructure will sustain robust demand for the company’s high-performance connectivity solutions, particularly in its Industrial Solutions segment. The recent quarterly results reinforced this catalyst, as accelerating AI-driven demand continues to be the main short-term performance driver; however, the biggest risk, concentration in rapidly evolving end-markets, remains and was not materially reduced by the report.

One recent announcement that stands out alongside these results is TE Connectivity’s 12% year-over-year projected sales growth for the upcoming quarter, supported by continued momentum in Industrial Solutions. This aligns directly with AI and data center demand emerging as the key growth engine, suggesting management’s confidence that these trends can drive near-term outperformance.

On the other hand, investors should not overlook the risk that new competitors or a slowdown in AI infrastructure spending could expose the company to...

Read the full narrative on TE Connectivity (it's free!)

TE Connectivity's narrative projects $20.3 billion in revenue and $3.1 billion in earnings by 2028. This requires 7.0% yearly revenue growth and an earnings increase of $1.6 billion from $1.5 billion today.

Uncover how TE Connectivity's forecasts yield a $217.56 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Two community fair value estimates for TE Connectivity span from US$150.77 to US$217.56, flagging a nearly US$67 range of possible outcomes. In light of the company’s recent surge in AI-driven revenue, readers will see that market participants weigh future demand trends very differently, explore more viewpoints from the Simply Wall St Community.

Explore 2 other fair value estimates on TE Connectivity - why the stock might be worth 26% less than the current price!

Build Your Own TE Connectivity Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TE Connectivity research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free TE Connectivity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TE Connectivity's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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