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Amphenol's Q2 EPS rose 88.4% to 81 cents, beating estimates by 22.73% on strong sales growth.
Q2 net sales jumped 56.5% to $5.7B, with 41% organic growth led by IT datacom and acquisitions.
Amphenol expects Q3 EPS of 77-79 cents and revenue growth of 34-36% YoY.
Amphenol’s (APH - Free Report) second-quarter 2025 adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate by 22.73%. The earnings figure increased 88.4% year over year.
Net sales increased 56.5% year over year to $5.7 billion, beating the consensus mark by 13.05%, Organically, net sales increased 41% year over year.
This exceptional top-line performance was driven by strong organic growth across all end markets, led by exceptional gains in the IT datacom sector. Strategic contributions from the company’s ongoing acquisition program further amplified the growth.
APH shares jumped 5.21% in the pre-market trading to $107.70 after the company delivered impressive second-quarter results.
APH’s Q1 Top-Line Details
Harsh Environment Solutions’ (25.6% of net sales) sales were $1.45 billion, up 38.2% year over year.
Communications Solutions’ (51.5% of net sales) sales were $2.91 billion, which increased 101.4% year over year.
Interconnect and Sensor Systems Solutions’ (22.9% of net sales) sales were $1.3 billion, up 15.7% year over year.
Gross margin, on a GAAP basis, expanded 270 basis points (bps) year over year to 36.3%.
Selling, general and administrative expenses, as a percentage of revenues, decreased 130 bps on a year-over-year basis to 11%.
Adjusted operating margin expanded 430 bps on a year-over-year basis to 25.6%.
APH’s Balance Sheet & Cash Flow
As of June 30, 2025, Amphenol had cash and cash equivalents worth $3.23 billion, down from $3.34 billion as of Dec. 31, 2024.
Total debt was $8.06 billion as of June 30, 2025, compared with $6.89 billion as of Dec. 31, 2024.
During the second quarter, the company purchased 2 million shares for $160 million. It also paid dividends of $200 million.
APH generated $1.4 billion in cash from operations in the second quarter, up from $764.9 million in the previous quarter, indicating a substantial increase.
The company generated a non-GAAP free cash flow of $1.1 billion in the second quarter, up from $580.4 million in the first quarter, reflecting a strong sequential improvement.
Amphenol’s Q3 Guidance Positive
Amphenol expects third-quarter 2025 earnings between 77 cents and 79 cents per share, indicating growth between 54% and 58% year over year.
Revenues are anticipated between $5.4 billion and $5.5 billion, suggesting growth in the 34-36% range.
The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $5.16 billion, suggesting a 27.75% increase year over year. The consensus estimate for earnings is pegged at 68 cents per share, up by a penny over the past 30 days and indicates 36% year-over-year growth.
Zacks Rank & Other Top-Ranked Technology Stocks
Currently, Amphenol carries a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Amphenol Beats Q2 Earnings Estimates, Revenues Increase Y/Y
Key Takeaways
Amphenol’s (APH - Free Report) second-quarter 2025 adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate by 22.73%. The earnings figure increased 88.4% year over year.
Net sales increased 56.5% year over year to $5.7 billion, beating the consensus mark by 13.05%, Organically, net sales increased 41% year over year.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
This exceptional top-line performance was driven by strong organic growth across all end markets, led by exceptional gains in the IT datacom sector. Strategic contributions from the company’s ongoing acquisition program further amplified the growth.
APH shares jumped 5.21% in the pre-market trading to $107.70 after the company delivered impressive second-quarter results.
APH’s Q1 Top-Line Details
Harsh Environment Solutions’ (25.6% of net sales) sales were $1.45 billion, up 38.2% year over year.
Communications Solutions’ (51.5% of net sales) sales were $2.91 billion, which increased 101.4% year over year.
Interconnect and Sensor Systems Solutions’ (22.9% of net sales) sales were $1.3 billion, up 15.7% year over year.
Gross margin, on a GAAP basis, expanded 270 basis points (bps) year over year to 36.3%.
Selling, general and administrative expenses, as a percentage of revenues, decreased 130 bps on a year-over-year basis to 11%.
Adjusted operating margin expanded 430 bps on a year-over-year basis to 25.6%.
APH’s Balance Sheet & Cash Flow
As of June 30, 2025, Amphenol had cash and cash equivalents worth $3.23 billion, down from $3.34 billion as of Dec. 31, 2024.
Total debt was $8.06 billion as of June 30, 2025, compared with $6.89 billion as of Dec. 31, 2024.
During the second quarter, the company purchased 2 million shares for $160 million. It also paid dividends of $200 million.
APH generated $1.4 billion in cash from operations in the second quarter, up from $764.9 million in the previous quarter, indicating a substantial increase.
The company generated a non-GAAP free cash flow of $1.1 billion in the second quarter, up from $580.4 million in the first quarter, reflecting a strong sequential improvement.
Amphenol’s Q3 Guidance Positive
Amphenol expects third-quarter 2025 earnings between 77 cents and 79 cents per share, indicating growth between 54% and 58% year over year.
Revenues are anticipated between $5.4 billion and $5.5 billion, suggesting growth in the 34-36% range.
The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $5.16 billion, suggesting a 27.75% increase year over year. The consensus estimate for earnings is pegged at 68 cents per share, up by a penny over the past 30 days and indicates 36% year-over-year growth.
Zacks Rank & Other Top-Ranked Technology Stocks
Currently, Amphenol carries a Zacks Rank #1 (Strong Buy).
Allegro Micro Systems (ALGM - Free Report) , Alkami Technology (ALKT - Free Report) and Meta Platforms (META - Free Report) are some stocks that investors can consider in the broader Computer and Technology sector.
Allegro Micro Systems, Alkami Technology and Meta Platforms each sport a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Allegro Micro Systems shares have increased 54.9% year to date. ALGM is scheduled to release first-quarter fiscal 2026 results on July 31.
Alkami Technology shares have declined 23.6% year to date. ALKT is set to report its second-quarter 2025 results on July 30.
Meta Platforms shares have returned 20.6% year to date. META is scheduled to release second-quarter 2025 results on July 30.