TE Connectivity (NYSE: TEL) saw its shares surge 5.32% in pre-market trading on Wednesday following the release of its impressive third-quarter financial results and optimistic fourth-quarter guidance. The sensor and connector manufacturer reported record sales and earnings that surpassed analyst expectations, driven primarily by robust growth in its Industrial segment.

For the fiscal third quarter ended June 27, 2025, TE Connectivity posted adjusted earnings per share of $2.27, significantly beating the FactSet consensus estimate of $2.08. This represents a remarkable 19% year-over-year increase. The company's net sales reached a record $4.53 billion, up 14% on a reported basis and 9% organically compared to the same period last year. This figure also exceeded analyst projections of $4.32 billion.

Adding to investor enthusiasm, TE Connectivity provided an upbeat forecast for its fourth quarter. The company expects net sales of approximately $4.55 billion, representing a 12% increase on a reported basis and 6% organically. The projected adjusted earnings per share of $2.27 for Q4 is well above the FactSet consensus estimate of $2.14, indicating continued strong performance.

The company's growth was primarily fueled by its Industrial segment, which saw sales surge about 30% year-over-year. This increase was bolstered by increased demand for artificial intelligence applications and modern data centers. CEO Terrence Curtin highlighted the company's operational performance and its ability to mitigate the impact of tariffs through price increases and supply chain adjustments.

Analysts have responded positively to TE Connectivity's performance. Amit Daryanani of Evercore ISI maintained a Buy rating on the stock with a price target of $195.00, suggesting further upside potential. The company's strong cash generation, with free cash flow of $962 million in Q3, also impressed investors and analysts alike.