Abstract
TE Connectivity will report fiscal first-quarter results on October 21, 2025 Pre-Market; this preview assesses expected revenue, margin, and EPS dynamics alongside the prevailing institutional stance.
Market Forecast
The market currently expects TE Connectivity’s fiscal first-quarter revenue of $4.53 billion, gross profit margin of 34.95%, net profit margin of 13.96%, and adjusted EPS of $2.55, implying year-over-year increases of 15.90% for revenue and 34.92% for EPS. TE Connectivity’s updated outlook points to steady demand across Transportation and Industrial solutions, with a focus on mix improvements and disciplined pricing. The segment with the strongest near-term growth narrative is Transportation Solutions, supported by content gains and resilient auto production; revenue last quarter was $2.41 billion, with growth inferred from the consolidated trend.
Last Quarter Review
TE Connectivity delivered fiscal fourth-quarter results with revenue of $4.75 billion, a gross profit margin of 34.95%, GAAP net profit attributable to the parent company of $0.66 billion, a net profit margin of 13.96%, and adjusted EPS of $2.44, each showing year-over-year improvement. The company outperformed consensus on revenue and adjusted EPS, reflecting stronger execution and cost discipline. Transportation Solutions generated $2.41 billion and Industrial Solutions generated $2.34 billion, with the combined performance indicating balanced demand across auto, aerospace/defense, factory automation, and energy markets.
Current Quarter Outlook
Transportation Solutions
Transportation Solutions remains the core profit engine this quarter, underpinned by stable global auto build rates and increasing electronic content per vehicle. The unit’s pricing discipline and product mix shift toward higher-value connectors and sensors support margin resilience, even if unit volumes moderate. Execution on platform wins in electric vehicles and advanced driver-assistance systems should sustain order visibility, while backlog quality and customer program ramps are key variables for the quarter’s revenue cadence.
Industrial Solutions
Industrial Solutions is positioned to benefit from gradual recovery trends in factory automation, energy, and aerospace/defense, with a sales mix that leans toward mission-critical connectivity and harsh-environment applications. The margin profile is helped by efficiency improvements and selective cost controls, which buffer against project timing variability. Orders tied to infrastructure and grid modernization could provide incremental upside, though shipment timing and channel inventory normalization remain watch items for quarterly revenue linearity.
Stock Price Drivers This Quarter
Stock performance will be sensitive to the interplay of EPS delivery versus consensus, gross margin trajectory relative to the 34.95% benchmark, and revenue growth against the 15.90% year-over-year forecast. Management’s commentary on order trends and book-to-bill across Transportation and Industrial will shape expectations for the remainder of the fiscal year. Any signals of accelerating content gains in EV platforms, disciplined pricing power, or improving backlog conversion could support multiple expansion, whereas signs of channel destocking or uneven project execution may cap near-term upside.
Analyst Opinions
The majority of recent institutional commentary has been constructive: Evercore ISI reiterated a Buy rating with price targets in the $250.00–$260.00 range, and TD Cowen maintained a Buy rating citing execution and growth potential, while Truist Financial held a neutral stance with a $239.00 target. The dominant view emphasizes consistent margin delivery, improving earnings power, and healthy end-market mix within Transportation and Industrial solutions. Supportive analyst narratives focus on sustained demand signals, ongoing cost discipline, and expanding electronic content per vehicle, which collectively underpin confidence in meeting or slightly exceeding the quarter’s EPS and revenue forecasts.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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