TE Connectivity Prepares to Report Q2 2025 Earnings Amid Stock Challenges

TE Connectivity plc (TEL), valued at a market cap of $36.8 billion, is an industrial technology leader that specializes in connectivity and sensor solutions. The company, headquartered in Ballybrit, Ireland, operates through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. On Wednesday, April 23, TEL is expected to unveil its fiscal Q2 2025 earnings prior to market opening.

Analysts forecast that TE Connectivity will report adjusted earnings of $1.96 per share for the upcoming quarter. This figure represents a 5.4% increase from the $1.86 per share reported during the same quarter last year. Notably, TEL has successfully met or exceeded Wall Street’s earnings expectations in the past four quarters.

Fiscal Year 2025 Expectations and Future Outlook

For the full fiscal year 2025, analysts project that TEL will achieve an adjusted EPS of $8.05, which reflects a 6.5% increase from $7.56 in fiscal 2024. Furthermore, earnings are anticipated to climb nearly 10.7% year-over-year to reach $8.91 in fiscal 2026.

Stock Performance Against Market Trends

Over the past year, TEL’s stock has declined by 15.5%, which has significantly lagged behind the S&P 500 Index’s decrease of 4.2% and the Technology Select Sector SPDR Fund’s (XLK) drop of 12.8% during the same period.

Recent Results and Analyst Ratings

After the release of its mixed Q1 2025 results on January 22, TEL saw its shares rise by 4.6%. The company exceeded earnings expectations, reporting an adjusted EPS of $1.95 against consensus estimates of $1.89. However, its net sales of $3.8 billion were below Wall Street’s forecasts. For Q2 2025, TEL has provided revenue guidance of $3.95 billion, alongside the adjusted EPS guidance of $1.96, representing a 5% increase from last year’s earnings in the same quarter.

Currently, analysts maintain a moderately optimistic view on TEL, reflected in a “Moderate Buy” rating overall. Out of the 14 analysts covering the stock, eight recommend a “Strong Buy,” while six suggest a “Hold.” The mean price target stands at $170.43, indicating a potential upside of 39.3% from current trading levels.

On the date of publication,
Aditya Sarawgi
did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data available in this article are purely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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