TE Connectivity Boosts Outlook on $1.4B Astrodyne Deal

Key Moments

TE Connectivity projected fourth-quarter adjusted earnings of $3.05 per share and revenue of about $5.25 billion, both above analyst expectations.
The company agreed to acquire Astrodyne TDI for $1.4 billion and anticipated closing the transaction by the end of 2026.
Third-quarter revenue increased 14% to $5.16 billion, while adjusted profit reached $2.94 per share, topping analyst estimates.

AI-Driven Demand Supports Strong Outlook

Electronic equipment manufacturer TE Connectivity on Wednesday projected fourth-quarter profit and sales ahead of Wall Street forecasts, supported by heightened demand for its tools and products tied to artificial intelligence.

The company has benefited from increased global investment in data centers and network infrastructure, as customers expand capacity for AI-related workloads. TE produces electrical connector systems that are used in data center environments and other networking applications.

Pricing Strategy and Cost Pressures

Chief Executive Officer Terrence Curtin told Reuters in an interview that TE planned to maintain its approach of offsetting higher raw material costs through price increases to preserve margins. He noted that costs for oil-based materials such as resins have remained elevated amid renewed fighting between the U.S. and Iran.

Addressing questions about potential tariff refunds under measures imposed by President Donald Trump, Curtin said the company had submitted applications but had not “gotten big money back.” He added that any refunds received would be returned to customers rather than used for broad-based price reductions.

Astrodyne Acquisition and Market Reaction

TE also announced an agreement to acquire Astrodyne TDI, a provider of power management and filtering solutions, for $1.4 billion. The company expects the deal to be completed by the end of 2026.

Despite the upbeat guidance and acquisition announcement, shares of TE were down more than 5% in premarket trading.

Item	Figure	Context
Astrodyne TDI purchase price	$1.4 billion	Expected deal closing by end of 2026
Premarket share move	Down more than 5%	Following earnings and acquisition news

Order Trends and Forward Guidance

Curtin highlighted robust demand, stating, “Our orders are up 70% this year, building strong backlog into next year.”

For the current quarter, TE forecast adjusted earnings of $3.05 per share. Analysts had expected $2.96 per share, according to data compiled by LSEG. The company projected fourth-quarter revenue of about $5.25 billion, topping the analyst consensus of $5.16 billion.

Metric	Company Outlook	Analyst Expectation (LSEG)
Adjusted EPS – current quarter	$3.05	$2.96
Revenue – fourth quarter	About $5.25 billion	$5.16 billion

Third-Quarter Performance

For the quarter ended June 26, TE reported revenue of $5.16 billion, a 14% increase, driven by growth in its industrial and transportation segments. Analysts on average had anticipated $5 billion.

Adjusted profit for the same period was $2.94 per share, above the $2.84 per share expected by analysts.