# TEL earnings call intelligence

LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/TEL) · [Earnings tab](https://www.lopjlb.com/stock/TEL?tab=earnings)

Updated: 2026-07-22T07:21:27

Quarters analyzed: 8

## Cross-quarter narrative

Across nine quarterly call summaries TE Connectivity moved from solid margin expansion and record free cash flow in 2024 to a pronounced focus on AI‑driven revenue, aggressive order growth and higher capital intensity in 2025‑26. Early calls highlighted modest organic growth, a restructuring in sensors/commercial transport and a $300 million FX headwind. By Q2 2025 the Richards acquisition closed, tariff exposure was partially mitigated and AI revenue topped $700 million, with margins nudging above 19%. Subsequent quarters saw AI revenue climb past $800 million, record quarterly orders exceeding $5 billion, and margins expanding toward 22 percent. Shareholder returns accelerated through dividend hikes and buybacks, while capex rose to roughly 6 percent of sales to fund AI and cloud initiatives. Macro‑level concerns emerged, notably regional demand weakness in North America, lingering tariff pricing noise, competitive pressure in the AI interconnect market, and potential capex strain. Despite these frictions, the company consistently delivered on major milestones such as the Richards acquisition, AI revenue targets and the Investor Day, reinforcing a trajectory of accelerating growth, expanding profitability and deeper AI integration.

## Latest CallCard · Q2

TE Connectivity Q2: sales $4.7B (+15%), record orders $5.3B, EPS $2.73 (+24%), margins +130bps; raised AI revenue outlook $150M for H2; Q3 guidance $5B sales, $2.83 EPS; broad order momentum across Industrial and Transportation.','tone': {'mgmt': 0.8, 'mgmt_rationale': 'Management highlighted record

**Guidance:** vague

**Tone:** mgmt 0 · Q&A pressure 0 · divergence 0

## Quarter one-liners

- **2026 Q2:** TE Connectivity Q2: sales $4.7B (+15%), record orders $5.3B, EPS $2.73 (+24%), margins +130bps; raised AI revenue outlook $150M for H2; Q3 guidance $5B sales, $2.83 EPS; broad order momentum across Industrial and Transportation.','tone': {'mgmt': 0.8, 'mgmt_rationale': 'Management highlighted record
- **2026 Q1:** TE Connectivity delivered record Q1 orders >$5B, 22% sales growth (15% organic), raised AI revenue outlook by $200M, guided Q2 sales $4.7B and EPS $2.65, with margins expanding to 22% and CapEx increased to ~6% of sales.','tone': {'mgmt': 0.8, 'mgmt_rationale': 'Management highlighted record orders,
- **2025 Q4:** TE Connectivity posted record FY25 sales of $17.3B, 20% operating margin and $3.2B free cash flow, highlighted AI revenue growth and maintained Q1 FY26 guidance despite uneven macro conditions.
- **2025 Q3:** TE Connectivity Q3 FY25: 14% sales growth, 19% adj. EPS growth, record 20% margins, $1B FCF; AI revenue >$800M FY25; Q4 guide: 12% sales, 16% EPS growth.','tone': {'mgmt': 0.8, 'mgmt_rationale': 'Management emphasizes record quarterly results, double-digit growth, margin expansion, strong free cash 
- **2025 Q2:** TE Connectivity Q2 FY25: sales $4.1B (+5% organic), record adj EPS $2.10, margins 19.4%; Q3 guide $4.3B sales, ~$2.06 EPS; tariff impact ~3% sales mitigated via sourcing/pricing; Richards acquisition closed; AI revenue >$700M FY25; industrial strength offsets uneven auto.
- **2025 Q1:** TE Connectivity posted record Q1 margins and FCF, guided sequential Q2 sales growth but flagged >$300M FY25 FX headwind; Industrial driven by AI/aerospace, Transportation mixed with auto content growth offset by commercial vehicle weakness.','tone': {'mgmt': 0.3, 'mgmt_rationale': 'Prepared remarks 
- **2024 Q4:** TE Connectivity beat Q4 guidance with 2% organic growth, 10% EPS growth, record margins and FCF; expects AI sales to double to $600M in FY25; guiding Q1 sales $3.9B, EPS ~$1.88; restructuring in Sensors, Commercial Transport weak.','tone': {'mgmt': 0.6, 'mgmt_rationale': 'CEO highlights record margi
- **2024 Q3:** TE Connectivity delivered Q3 sales in line with guidance, strong margin expansion (19.3% adj operating margin, +200bps YoY) and record free cash flow ($2B YTD), driven by

## Theme arcs

- **AI revenue growth** (improving): AI sales forecast doubled in FY25 and actual AI revenue rose from $600M to >$800M, with outlooks raised in 2026
- **Margin expansion** (improving): Adj. operating margin grew from 19.3% in Q3 2024 to 22% by Q1 2026
- **Order momentum** (improving): Order book crossed $5B in Q1 2026, supporting sales guidance
- **FX headwind** (deteriorating): > $300M FY25 FX impact flagged in Q1 2025 and not revisited later
- **Tariff impact mitigation** (stable): ~3% sales impact mitigated via sourcing and pricing from Q2 2025 onward
- **Regional demand weakness** (deteriorating): North America transportation and industrial orders declined, noted Q4 2025
- **Capex intensity** (new): Capex increased to ~6% of sales in 2026 to fund AI/cloud programs
- **Shareholder returns** (improving): Dividend raised 9% in Q2 2025 and $2.2B returned in FY25
- **Competitive AI market** (new): Concentration of rivals could limit share gains, flagged Q4 2025
- **Macro environment uncertainty** (new): Uneven macro conditions cited as a risk in Q4 2025

## Fear persistence

- **Regional demand weakness** [new]: Identified in FY25 Q4, especially in North America transportation and industrial orders
- **Tariff pricing impact** [recurring]: Tariff‑related margin noise noted in FY25 Q4 despite earlier mitigation efforts
- **AI market competition** [new]: Concentrated AI interconnect market could limit share gains, flagged Q4 2025
- **Capex pressure** [new]: Potential need for higher capex to fund AI/cloud programs, noted Q4 2025
- **Macro environment uncertainty** [new]: Uneven macro conditions and regional production variances cited as risk in Q4 2025
- **FX headwind** [new]: > $300M FY25 FX headwind flagged in Q1 2025

## Guidance path

2024 Q3:vague → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:maintained → 2025 Q3:vague → 2025 Q4:maintained → 2026 Q1:vague → 2026 Q2:vague

---

Research context only. Not personalized investment advice.

API: `GET /bff/api/bigfive/earnings-intel/TEL`