Te Connectivity Plc TEL

Revenue is driven modestly by SG&A spending, with an elasticity of about 0.07% increase in revenue per 1% SG&A rise, indicating a low but positive impact from SG&A in a log-log framework. The model uses 53 quarters of data and achieves 4.4% MAPE, though holdout testing shows predicting 4.2B vs 4.7B actual (about 10% error), signaling reasonable but imperfect near-term accuracy. The FY forecast implies approximately $17B in revenue, down 3.8% year over year, pointing to near-term headwinds and limited organic growth drivers. Given the modest SG&A elasticity, ROI on SG&A spending appears constrained, suggesting meaningful upside would require efficiency gains or the emergence of other revenue drivers beyond SG&A.