TE Connectivity’s AI data center business tops $3 billion as sales hit a record

TE Connectivity rarely gets mentioned alongside the big-name AI chipmakers. But someone has to wire the data centers together, and business is very good.

The company reported record fiscal 2026 net sales of $19.9 billion, a 15% increase on a reported basis and 12% on an organic basis. Its Digital Data Networks (DDN) business, which serves hyperscale AI data centers, now brings in more than $3 billion in revenue.

The numbers behind the record year

TE Connectivity, which trades on the NYSE under the ticker TEL, makes connectors and sensors. Fiscal 2026 gave the company plenty to talk about. Adjusted earnings per share climbed 24% to $11.52, outpacing the growth in sales.

Orders rose 27% to $22.2 billion. That matters because orders are the pipeline. When orders run ahead of sales, a company has booked more work than it has shipped, which tends to set up the following year nicely.

The standout was DDN. Orders in that unit grew approximately 70% in fiscal 2026, according to the company. For a business that already generates more than $3 billion, that is not a rounding error.

TE credited most of its overall performance to its Industrial Solutions segment, with DDN doing much of the work inside it. Energy infrastructure, aerospace and defense, and transportation also contributed.

What management expects next

At a Baird investor event on November 13, 2026, CEO Terrence Curtin laid out the outlook for fiscal 2027. He projected approximately 12% organic revenue growth, matching the organic pace of the year just finished.

DDN is expected to drive the bulk of that. The unit is expected to contribute an additional $1 billion next year, on top of the more than $3 billion it already produces.

Curtin also said he sees no slowdown in demand, pointing to strength across AI, energy, and defense.

Building for the fiber-optic future

TE is putting money behind the forecast. The company is investing more than $60 million in a new facility in Henrietta, New York, slated to open in spring 2027.

The site will focus on high-density fiber optic solutions aimed at AI data centers.

The company also showed off its AI infrastructure connectivity products at the OCP Global Summit in October 2026.

What this means for investors and the AI supply chain

The order book is the number to watch. Orders grew faster than sales in fiscal 2026, and DDN orders grew faster still. If that pattern holds, it supports management’s call for roughly 12% organic growth in fiscal 2027.

Concentration is the obvious risk. DDN is now a business generating more than $3 billion in revenue tied heavily to hyperscale AI customers.

TE’s other end markets offer a partial cushion. Energy infrastructure, aerospace and defense, and transportation all contributed in fiscal 2026. Curtin cited energy and defense as among the areas showing no slowdown.

The Henrietta facility is the other thing to track. A spring 2027 opening means the extra fiber optic capacity arrives partway through the fiscal year in which DDN is expected to add $1 billion.

Adjusted EPS grew 24% against 15% reported sales growth, which implies the company is getting more profit out of each dollar of revenue.