TE Connectivity Reports Record Q4 Sales Growth, Raises Q1 Profit Forecast on AI Demand

TE Connectivity reported a strong fiscal fourth quarter for 2025, with net sales increasing 17% to a record $4.75 billion and adjusted earnings per share (EPS) of $2.44, surpassing Wall Street estimates. The company’s profit rose significantly to $663 million, or $2.22 per share, compared to the previous year, driven by robust demand in its Industrial and Transportation segments. Fueled by a surge in AI-related demand, particularly from U.S. tech giants investing heavily in infrastructure, TE Connectivity projects a 17% rise in first-quarter sales and a 23% increase in adjusted EPS, with a forecasted EPS of $2.53 exceeding analyst expectations. The company's core industrial unit recorded a 34% jump in fourth-quarter sales, reflecting growing investments in hardware for data centers, automation, and energy infrastructure. TE Connectivity’s upbeat outlook highlights the ongoing expansion of AI and digital infrastructure, signaling sustained growth for hardware suppliers in the sector. Despite a high price-to-earnings ratio suggesting potential overvaluation, analysts remain bullish, rating the stock as a Buy with a $250 price target.