TE Connectivity weighed on by sales miss and Middle East tensions

Published: 2026-04-22 12:38:23 ET TEL

TE Connectivity delivered quarterly results slightly below expectations, amid supply chain disruptions linked to tensions in the Middle East. Revenue came in at $4.74bn, compared to the $4.76bn anticipated, triggering a drop of over 10% in the share price during trading. The company cited increased cost pressure, notably due to rising freight rates and petroleum-based materials, such as resins.

Esteban Tesson

Published on 04/22/2026 at 12:38 pm EDT

Despite the sales decline, adjusted EPS reached $2.73, beating forecasts of $2.70, and the group projects $2.83 for the current quarter, ABOVE the consensus. Faced with uncertainty regarding the duration of the disruptions, management indicated it is considering price hikes to preserve margins. The surge in plastic and polymer costs, linked to volatility in oil flows, is affecting the entire sector.In the details, the Industrial Solutions division recorded 27% y-o-y growth, driven by demand for artificial intelligence and energy infrastructure, particularly for data centers.