TE Connectivity Ltd.

(New York Stock Exchange)
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Bullish +65

TE Connectivity Sees 12% Growth as AI, Energy and Defense Demand Stay Strong

AI integration Acquisition Capacity expansion AI-generated analysis

πŸ“ˆ TE Connectivity expects about 12% organic revenue growth in fiscal 2027, matching its recent pace with AI, energy, and defense driving demand.

πŸ’° The Digital Data Networks business is projected to add more than $1 billion in revenue in fiscal 2027 after reaching over $3 billion last year.

⚑ TE's approximately $2 billion energy business grew 18% organically last year, with grid hardening accounting for 60% of the portfolio.

πŸ›‘οΈ The aerospace and defense connectivity business is also about $2 billion and expected to grow double-digits supported by a healthy backlog.

πŸš— Automotive content growth is forecast to outpace vehicle production by approximately five percentage points this year.

πŸ”‹ TE's automation demand has improved across regions, with expectations for double-digit growth driven by factory automation and battery storage.

🀝 The pending Astrodyne acquisition is expected to close near the end of the calendar quarter ending in December and add over $200 million in revenue.

πŸ”Œ Power products represent about 30% of Digital Data Networks revenue and are expected to grow faster than the business in fiscal 2027.

πŸš€ CEO Terrence Curtin stated that AI inference creates additional connectivity demand and the company is adding capacity without facing constraints.

πŸ”­ Optical connectivity products following the RAM Photonics acquisition remain in engineering, prototyping, and design validation phases.

Bullish Signals
  • TE Connectivity expects about 12% organic revenue growth in fiscal 2027, matching its recent pace with AI, energy, and defense driving demand.
  • The Digital Data Networks business is projected to add more than $1 billion in revenue in fiscal 2027 after reaching just over $3 billion last year.
  • TE's approximately $2 billion energy business grew 18% organically last year, with grid hardening accounting for 60% of the portfolio.
  • The aerospace and defense connectivity business is also about $2 billion and expected to grow double-digits supported by a healthy backlog.
  • Automotive content growth is forecast to outpace vehicle production by approximately five percentage points this year.
  • Power products represent about 30% of Digital Data Networks revenue and are expected to grow faster than the business in fiscal 2027.
  • CEO Terrence Curtin stated that AI inference creates additional connectivity demand and the company is adding capacity without facing constraints.
Full Analysis
TE Connectivity Ltd. (NYSE: TEL) is projecting approximately 12% organic revenue growth for fiscal 2027, driven by sustained demand in artificial intelligence, energy infrastructure, and aerospace and defense sectors. CEO Terrence Curtin confirmed that the company is performing above its previously outlined growth model and is not raising guidance, though it could potentially reach or exceed the high end of its range at times. The firm reports 12% organic growth and 15% total growth including acquisitions for its recently completed fiscal year. Key growth drivers include the Digital Data Networks (DDN) business, which is expected to add over $1 billion in revenue in fiscal 2027 after generating just over $3 billion last year. This expansion is fueled by hyperscale AI investments and demand for power, copper, and fiber connectivity solutions. Additionally, TE's energy business grew 18% organically last year, with grid hardening accounting for 60% of the portfolio and industrial power representing the fastest-growing segment. Beyond AI and energy, TE expects double-digit growth in aerospace and defense, automation, and automotive segments. The automotive content is forecast to outpace vehicle production by about five percentage points, supported by electric vehicle adoption and data connectivity needs. While optical connectivity products from its RAM Photonics acquisition remain in development, the company maintains that copper will remain critical inside racks and power products are expected to grow faster than the overall DDN business.