TE Connectivity beat expectations in its fiscal second quarter, reporting higher earnings and revenue driven by strong demand for artificial intelligence and a solid recovery in industrial markets. These factors led to record order volumes.
TE Connectivity reported $2.73 per share on $4.7 billion revenue, a 47% jump from last year’s $1.86 per share and $3.97 billion revenue, beating both analyst estimates and its own forecast.
The company expects third-quarter earnings of $2.83 per share, up 17% year over year, with revenue of $5 billion, both above Wall Street’s estimates.
A key highlight this quarter was order intake, which hit a record $5.3 billion, up 25% from last year. Management said this surge is expected to turn into future sales and revenue, supporting growth in upcoming quarters. This demonstrates the company’s strong position in AI infrastructure, new transportation technologies, and electric grid upgrades. CEO Terrence Curtin added that more orders in energy, aerospace and defense, factory automation, and industrial transportation are helping growth expand beyond AI and could benefit the broader industrial sector.
Operating profit margins rose to 22% this quarter, up more than one percentage point. This improvement is due to a better product mix and greater efficiency.
TE expects AI-related revenue to reach $2.3- $2.4 billion by 2026, doubling from about $900 million in 2025. The stock is up 89% over the past year and now trades at 21 times forward earnings, compared with 16 times forward earnings a year ago.
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