TE Connectivity’s AI data center business tops $3 billion as sales hit a record
TE Connectivity reported record fiscal 2026 sales of $19.9 billion, with its AI-focused Digital Data Networks (DDN) business generating over $3 billion in revenue.
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.
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.
Future Growth Projections
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.
Strategic Investments
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.
Investor Considerations
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.
Adjusted EPS grew 24% against 15% reported sales growth, which implies the company is getting more profit out of each dollar of revenue.
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