• TE Connectivity Ltd. (NYSE:TEL) is expected to announce a significant increase in earnings per share (EPS) and net sales in its first-quarter fiscal 2026 earnings.
• The company's growth is driven by robust orders in the Transportation and Industrial segments, benefiting from advancements in AI, electrification, and hyperscaler needs.
• TEL's financial metrics, including a price-to-earnings (P/E) ratio of approximately 38.6 and a debt-to-equity ratio of approximately 0.45, highlight its strong financial position.

TE Connectivity Ltd. (NYSE:TEL) is a global technology company that designs and manufactures connectivity and sensor solutions. The company serves a wide range of industries, including automotive, industrial, and communications. TEL is known for its innovative products that support advancements in AI, electrification, and hyperscaler needs. As TEL prepares to release its quarterly earnings, investors are keenly watching the company's performance metrics.

On January 21, 2026, TEL is set to announce its first-quarter fiscal 2026 earnings. Analysts estimate an earnings per share (EPS) of $2.54, which aligns with the Zacks Consensus Estimate. This figure represents a 30.3% increase from the same quarter last year, highlighting TEL's strong financial performance. The company anticipates net sales of approximately $4.5 billion, marking a 17% year-over-year growth on a reported basis and an 11% rise on an organic basis.

TEL's growth is supported by robust orders in the fourth quarter, totaling $4.7 billion, a 22% increase from the previous year. The company's Transportation and Industrial segments are experiencing heightened demand, driven by advancements in AI, electrification, and hyperscaler needs. This demand is expected to contribute significantly to TEL's revenue growth in the upcoming earnings report.

The stability in TEL's earnings estimates over the past 30 days is noteworthy. Analysts have not revised their initial estimates, indicating confidence in the company's performance. This stability is crucial, as changes in earnings estimates can significantly influence investor reactions and the short-term price performance of a stock. Empirical studies have shown a strong correlation between trends in earnings estimate revisions and stock price movements.

TEL's financial metrics provide further insight into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 38.6, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 4.15, while the enterprise value to sales ratio is around 4.41. Additionally, TEL's debt-to-equity ratio is approximately 0.45, suggesting a moderate level of debt relative to equity. These metrics reflect TEL's strong financial position as it prepares to release its earnings.