TE Connectivity Q3 Earnings Preview: Analyst Estimates and Historical Trends

TE Connectivity is set to announce Q3 2025 earnings results on July 23rd. The consensus EPS estimate is $2.08, an 8.9% YoY increase, and the consensus revenue estimate is $4.32B, an 8.5% YoY increase. Over the past two years, TE Connectivity has consistently beaten earnings estimates and delivered strong revenue growth.

TE Connectivity (TEL) is scheduled to announce its third-quarter fiscal 2025 earnings results on July 23rd. The consensus EPS estimate is $2.08, representing an 8.9% year-over-year (YoY) increase, while the consensus revenue estimate is $4.32 billion, up 8.5% YoY [1]. Over the past two years, TE Connectivity has consistently beaten earnings estimates and delivered strong revenue growth.

TE Connectivity expects adjusted earnings of $2.06 per share for the quarter, suggesting an 8% YoY growth. This forecast includes a 4-cent impact from the Richards acquisition and tariff impact, as well as tax headwinds. The Zacks Consensus Estimate for earnings is $2.08 per share, indicating 8.9% growth from the figure reported in the year-ago quarter [1].

The company also anticipates net sales of approximately $4.30 billion in the third quarter, indicating roughly 5% YoY organic growth. Contribution from the Richards acquisition ($70 million) and 2% price-related to tariff recovery benefits top-line growth. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.29 billion, indicating year-over-year growth of 7.8% [1].

TE Connectivity’s third-quarter 2025 performance is expected to have benefited from stronger order volumes. The company reported orders exceeding $4.25 billion in the second quarter of fiscal 2025, which increased 6% both year over year and sequentially. This momentum is expected to have continued in the fiscal third quarter [1].

The company is seeing strong growth in the automotive sector, particularly within the electric and hybrid vehicle markets in Asia. With content per vehicle being 1.5 times higher for hybrids and twice as much for full EVs compared to internal combustion engine vehicles, TE Connectivity is well-positioned to capture increasing value as the industry transitions toward electrification. TE Connectivity expects 20% growth in hybrid and electric vehicle production, with roughly 80% of that production occurring in Asia in the remaining half of the fiscal year [1].

However, automotive weakness in Europe and North America has been a headwind for TE Connectivity’s Transportation Solutions. The company expects global content growth to be at the low end of its 4 to 6-point range for the second half of the fiscal year [1].

The Commercial Transportation business is expected to remain sluggish in the to-be-reported quarter. Weakness in the broader industrial markets in Europe and North America is expected to hurt the Sensors business [1].

TE Connectivity’s Industrial segment is expected to have benefited from strong demand for artificial intelligence (AI) applications, Energy, and Aerospace, Defense, and Marine. Although higher tariffs are a concern for TE Connectivity’s Industrial segment, the company’s localized manufacturing footprint minimizes tariff impact, which bodes well for margin expansion [1].

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. TE Connectivity currently has an Earnings ESP of +4.26% and a Zacks Rank #2 [1].

References:
[1] https://finance.yahoo.com/news/tel-report-q3-earnings-heres-153600310.html
[2] https://seekingalpha.com/news/4470023-te-connectivity-q3-2025-earnings-preview