TE Connectivity delivered record fiscal third-quarter results as growing demand for AI infrastructure, industrial automation, and transportation technologies drove double-digit revenue growth. The connectivity and sensor technology company also announced a $1.4 billion agreement to acquire Astrodyne TDI, expanding its power management portfolio to capitalize on increasing enterprise investment in data centers and mission-critical industrial infrastructure.

TE Connectivity reported record financial results for its fiscal third quarter ended June 26, 2026, highlighting continued momentum in industrial technologies, transportation systems, and AI-related infrastructure. The company generated record net sales of $5.16 billion, up 14% year over year on a reported basis and 12% organically, while record customer orders suggest demand remains strong heading into the final quarter of fiscal 2026.

The results reflect accelerating enterprise investment in technologies supporting artificial intelligence, electrification, industrial automation, and next-generation connectivity—markets where TE Connectivity supplies critical interconnects, sensors, connectors, and power solutions.

The company also announced a definitive agreement to acquire Astrodyne TDI, a provider of advanced power management and electromagnetic filtering technologies, in a transaction valued at approximately $1.4 billion. The acquisition is expected to strengthen TE Connectivity’s Industrial Solutions business as demand for resilient power infrastructure continues to expand alongside AI deployments.

AI Infrastructure Continues to Drive Industrial Demand

Chief Executive Officer Terrence Curtin said customer demand for the company’s interconnect technologies continued to strengthen across multiple markets during the quarter.

Industrial Solutions recorded sales growth exceeding 20%, while the Transportation segment delivered 5% organic growth, supported by higher technology content across automotive and mobility platforms.

Perhaps more notable was the company’s order performance. TE Connectivity received $5.7 billion in orders, a 27% increase compared with the same period last year, with double-digit growth reported across all major business lines.

Management attributed much of the momentum to accelerating investment in AI data centers, broader energy infrastructure, and industrial modernization projects requiring high-performance connectivity and power technologies.

The rapid expansion of generative AI has significantly increased demand for advanced networking hardware, high-speed interconnect systems, power distribution technologies, and thermal management solutions. These components are essential for supporting hyperscale data centers and AI computing clusters built around advanced processors from companies including NVIDIA, AMD, and Intel.

Profitability Improves Alongside Revenue Growth

Beyond top-line growth, TE Connectivity reported improved profitability.

GAAP diluted earnings per share (EPS) from continuing operations increased 19% year over year to $2.55, while adjusted EPS reached a company record of $2.94, representing 22% annual growth.

Adjusted operating margin expanded to 22%, improving by 90 basis points from the previous year. According to the company, stronger operational execution and disciplined cost management supported margin expansion while allowing continued investment in future growth initiatives.

Cash generation also remained robust. Operating cash flow totaled $1.2 billion during the quarter, while free cash flow reached $883 million. Year-to-date, the company has generated $3.0 billion in operating cash flow and returned approximately $2.0 billion to shareholders through dividends and share repurchases.

Astrodyne TDI Acquisition Expands Industrial Power Portfolio

Alongside its earnings announcement, TE Connectivity unveiled plans to acquire Astrodyne TDI from Tinicum L.P.

Astrodyne TDI develops advanced power management, electromagnetic interference (EMI) filtering, and power conversion technologies used in mission-critical industrial applications. The business is expected to contribute annual revenue exceeding $250 million following completion of the transaction.

The acquisition aligns with broader industry trends as manufacturers and infrastructure providers expand investments in AI computing facilities, renewable energy systems, industrial automation, and electrified transportation—all of which require increasingly sophisticated power management technologies.

Subject to regulatory approvals, the transaction is expected to close before the end of the calendar year.

Enterprise Connectivity Market Benefits from AI Expansion

TE Connectivity’s results reinforce broader market trends across the industrial technology sector.

Major technology companies including Microsoft, Amazon Web Services (AWS), Google Cloud, and Meta continue investing billions of dollars in hyperscale AI infrastructure. These projects require extensive deployment of connectors, high-speed cables, sensors, power systems, and networking hardware supplied by companies operating throughout the semiconductor and industrial electronics ecosystem.

Demand is also being supported by vehicle electrification, factory automation, renewable energy deployment, and digital industrial transformation, creating additional opportunities for suppliers of advanced connectivity technologies.

According to IDC, global spending on AI infrastructure continues to accelerate as enterprises expand investments in AI-enabled computing environments. Gartner likewise projects sustained growth in data center infrastructure spending driven by generative AI workloads and enterprise modernization initiatives.

Outlook Points to Continued Growth

Looking ahead, TE Connectivity expects continued momentum during the fourth quarter of fiscal 2026.

Management forecast revenue of approximately $5.25 billion, representing 11% year-over-year growth, with adjusted EPS expected to reach approximately $3.05, up 18% from the prior year.

The guidance suggests the company expects demand across industrial technologies and transportation markets to remain resilient despite broader macroeconomic uncertainty.

For enterprise technology buyers, TE Connectivity’s latest performance highlights the growing importance of foundational infrastructure technologies that enable AI computing, industrial automation, energy modernization, and connected mobility. As organizations continue expanding digital infrastructure, demand for advanced connectivity, sensing, and power management solutions is likely to remain a key driver across the industrial technology landscape.

Market Landscape

The industrial technology sector is benefiting from accelerating investment in AI infrastructure, electrification, and digital transformation. Suppliers of connectors, sensors, power systems, and networking components are experiencing increased demand as hyperscale cloud providers, manufacturers, and energy companies modernize infrastructure. Strategic acquisitions, such as TE Connectivity’s planned purchase of Astrodyne TDI, reflect a broader industry trend toward expanding power management capabilities to support increasingly power-intensive AI and industrial computing environments.

Top Insights

• TE Connectivity reported record quarterly revenue of $5.16 billion, driven by double-digit growth across industrial technologies and transportation markets.
• Customer orders reached a record $5.7 billion, reflecting accelerating investment in AI infrastructure, industrial automation, and energy modernization.
• The company agreed to acquire Astrodyne TDI for $1.4 billion, expanding its power management technologies for mission-critical industrial applications.
• Strong profitability and cash generation enabled continued shareholder returns while funding strategic investments in connectivity and AI infrastructure.
• Fourth-quarter guidance indicates sustained enterprise demand for advanced interconnect, sensing, and power technologies supporting AI-enabled infrastructure