Al Root

TE Connectivity reported better-than-expected quarterly numbers. The artificial-intelligence boom is alive and well and other end markets are joining the party.

The electrical component supplier reported fiscal second-quarter earnings per share of $2.73 from sales of $4.7 billion on Wednesday. Wall Street was looking for $2.69 a share from sales of $4.7 billion. Results topped TE's own guidance of $2.65 a share.

A year ago, TE reported EPS of $1.86 from sales of $3.97 billion.

Looking ahead, the company expects fiscal third-quarter earnings per share of $2.83, up 17% from the same period a year earlier, from sales of $5 billion. Wall Street projects earnings of $2.80 a share and revenue of $4.9 billion.

"This performance and our record orders were driven by our strategic positioning in key trends, including AI, next-generation transportation, and electric grid modernization, along with the broadening of growth across our portfolio," said CEO Terrence Curtin in a statement.

Energy, aerospace & defense, factory automation, and industrial transportation businesses are picking up, Curtin told Barron's. Orders in the quarter were a record $5.3 billion, up 25% year over year. The broadening of growth is a positive data point for other industrial stocks.

Operating profit margins were strong as well, at 22% in the quarter, up more than one percentage point year over year. TE's AI business will be $2.3 billion or $2.4 billion in fiscal year 2026, up from about $900 million in fiscal year 2025.

TE stock was up 1% at $245.53 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up about 0.5%.

Coming into Wednesday trading, TE stock was up about 7% year to date and up about 89% over the past 12 months. Gains leave shares trading for about 21 times earnings expected over the next 12 months, up from about 16 times a year ago.

Write to Al Root at allen.root@dowjones.com

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April 22, 2026 06:49 ET (10:49 GMT)

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