TE Connectivity beats fourth-quarter profit expectations but revenue falls slightly short

The company expects first-quarter fiscal 2027 sales to rise 15 per cent and adjusted earnings per share to rise 21 per cent.

TE Connectivity reported fourth-quarter earnings per share of $3.14, $0.04 above expectations. Revenue came in at $5.31 billion, slightly below the $5.33 billion expected. Shares were down 0.3 per cent at $224.73 in pre-market trading.

Chief Executive Terrence Curtin credited strong orders and customer demand tied to AI, data and power trends for the quarter's growth.

For the first quarter of fiscal 2027, the company expects net sales of about $5.35 billion, up 15 per cent on both a reported and an organic basis. Organic growth means growth without acquisitions or currency effects. It expects GAAP earnings per share from continuing operations of about $3.04, up 20 per cent, and adjusted earnings per share of about $3.30, up 21 per cent. For the full fiscal 2027 year, it expects organic sales growth similar to fiscal 2026, after guiding to double-digit sales growth for the year earlier. Curtin said the momentum supports the outlook of mid-teens sales growth and earnings per share growth above 20 per cent for the year.

The weight falls on guidance. Beating earnings while missing on revenue means the outlook matters more than the quarter. The full-year organic figure is the number to watch, because it has to carry the mid-teens sales growth and above-20-per-cent earnings growth management is projecting. Whether orders keep pace with the AI, data and power demand Curtin cited will decide whether this strength lasts beyond the first quarter.