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Amphenol Before Q2 Earnings: Here's Why You Should Buy the Stock

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Key Takeaways

  • Strategic acquisitions like LifeSync and CIT bolster APH's positioning in high-reliability sectors.
  • The Andrew acquisition raised the FY accretion forecast from 6 cents to 9 cents per share.
  • Stock is trending above its 50 and 200-day SMAs, reinforcing a bullish outlook ahead of earnings.

Amphenol (APH - Free Report) is set to report its second-quarter 2025 results on July 23.

The company expects second-quarter 2025 earnings between 64 cents and 66 cents per share, indicating growth of 45% and 50% year over year.  The Zacks Consensus Estimate for second-quarter 2025 earnings has inched up by a penny over the past 30 days to 66 cents per share, suggesting 53.49% growth from the figure reported in the year-ago quarter.

Amphenol expects second-quarter 2025 revenues between $4.9 billion and $5 billion, suggesting year-over-year growth in the 36-39% range. The Zacks Consensus Estimate for second-quarter revenues is pegged at $4.97 billion, indicating an increase of 37.63% from the figure reported in the year-ago quarter.

Amphenol’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 11.79%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote

Let’s see how things have shaped up for the upcoming announcement.

APH’s Q2 Revenues to Grow Y/Y

Amphenol’s to-be-reported quarter's results are expected to have benefited significantly from sustained artificial intelligence (AI) infrastructure investments, continued defense modernization spending and the full-quarter contribution from the recently completed acquisition of the Andrew business.

A robust order backlog heading into the quarter likely acted as an additional tailwind. Orders surged 58% year over year and 6% sequentially to $5.292 billion in the first quarter, resulting in a book-to-bill ratio of 1.1 to 1. This healthy order environment is expected to have translated into sustained revenue momentum for the second quarter.

IT Datacom Segment to Drive Q2 Performance

The IT datacom segment, which represented 33% of sales in the first quarter, saw 134% organic growth and is expected to remain the primary growth driver in the second quarter. APH has guided for high-single-digit sequential growth, reflecting continued acceleration in AI-related data center investments. Demand for high-speed and power interconnect products used in next-generation computing systems appears sustainable. 

Amphenol’s broad exposure across hyperscalers, OEMs and chip manufacturers positions it well to capitalize on this unprecedented demand cycle. APH’s technological leadership in both copper and fiber optic solutions offers multiple avenues for growth as AI infrastructure rollouts scale globally.

Andrew Acquisition and Defense Strength to Boost Results

The Andrew acquisition, which closed in early February, is expected to contribute meaningfully to second-quarter results. APH raised its full-year accretion forecast from 6 cents to 9 cents per share, driven by stronger integration progress and better early performance from the Andrew business. The Communications Networks segment, which houses Andrew’s RF antenna and interconnect offerings, should benefit from a full-quarter revenue contribution, alongside healthy underlying demand from network operators and OEMs.

Defense end-markets are also expected to remain a solid contributor, building on 21% year-over-year growth in the first quarter. Continued geopolitical uncertainty and rising global defense budgets are supporting strong demand across the company’s rugged interconnect platforms. APH expects high-single-digit sequential growth in the segment, pointing to sustained momentum in military programs through the to-be-reported quarter.

APH Shares Beat Sector, Industry

Amphenol shares have appreciated 46.8% year to date (YTD), outperforming the Zacks Electronics Connectors industry’s increase of 44.3% and the Zacks Computer and Technology sector’s return of 8.7%.

APH Performance (Chart)

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Image Source: Zacks Investment Research

APH has outperformed broader sector peers, including Methode Electronics (MEI - Free Report) , TE Connectivity (TEL - Free Report) and Littelfuse (LFUS - Free Report) YTD. Methode Electronics and Littelfuse shares have declined 42.7% and 0.9%, respectively, while shares of TE Connectivity have returned 24.3%. 

APH stock is trading at a premium, as suggested by the Value Score of C.

In terms of the forward 12-month Price/Earnings, APH is trading at 36.36X, higher than the sector’s 27.67X. APH is trading at a premium when compared to its peers, including Methode Electronics, TE Connectivity and Littelfuse. The shares of Methode Electronics, TE Connectivity and Littelfuse are trading at a forward 12-month P/E ratio of 21.77X, 20.04X and 21.95X, respectively.

APH Valuation (Chart)

Zacks Investment Research
Image Source: Zacks Investment Research

Strategic Acquisitions Boost Long-Term Growth Prospects

Amphenol’s long-standing acquisitions strategy continues to strengthen its positioning in high-growth, application-specific markets. The recent LifeSync acquisition expanded APH’s offering in medical interconnects, while the earlier CIT deal brought in Conesys, enhancing capabilities in ruggedized connectors for aerospace and defense. These additions reinforce Amphenol’s edge in complex, high-reliability systems across critical sectors.

With a disciplined integration approach and focus on synergy-rich targets, APH has built a repeatable playbook that supports both revenue growth and margin stability. As electronic content continues to scale across industries, these strategic acquisitions remain central to Amphenol’s long-term earnings visibility and end-market diversification.

Here’s Why Amphenol is a Buy

Amphenol’s AI-driven datacom strength, accretive acquisitions and steady demand in defense and military end-markets are supporting strong growth prospects. 

While the stock trades at a premium, consistent outperformance and exposure to structural trends justify the valuation. 

APH shares are currently trading above the 50-day and 200-day moving averages, indicating a bullish trend ahead of earnings.

APH Trades Above 50-Day & 200-Day SMAs

Zacks Investment Research
Image Source: Zacks Investment Research

Amphenol currently has a Zacks Rank #2 (Buy), which implies investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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