TE Connectivity is building the physical “architecture of electrification and data,” using high-switching-cost connectivity leadership to ride the AI data-center and EV/grid supercycles with expanding margins and resilient cash returns.
Overview
TE Connectivity is positioning itself as a foundational enabler of the global shift toward electrification and data-centric infrastructure. Following its September 2024 re-domiciliation to Ireland and segment simplification into Transportation and Industrial Solutions, TE is allocating capital and R&D toward the highest-value connectivity needs: high-voltage EV power distribution, ADAS/high-speed in-vehicle data backbones, AI data-center interconnects (including next-gen AECs), and utility/grid hardware for renewables integration. Financial execution supports the strategy: FY2025 delivered record sales of $17.3B, record 20% adjusted operating margin, and $3.2B of free cash flow with 100%+ conversion; FY2026 has shown strong acceleration with Q2 sales up 15% and margins expanding to ~22%. Record orders and rising AI expectations indicate TE is capturing outsized share of current capex cycles while continuing disciplined shareholder returns.