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APH's Communications Segment Rides on Strong Portfolio: What's Ahead?
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Key Takeaways
Amphenol's Communications Solutions sales jumped 101.4% year over year to $2.91 billion.
Growth is fueled by cloud, 5G, and AI-driven demand for advanced interconnect solutions.
A $10.5 billion CCS acquisition broadens Amphenol's fiber and datacom connectivity portfolio.
Amphenol (APH - Free Report) is riding on strong growth in the Communications Solutions segment, which generates more than half of the company's revenues. In the second quarter of 2025, Amphenol reported segment sales of $2.91 billion, up 101.4% year over year and 78% organically.
The Communications Solutions segment offers a broad range of connector and interconnect systems, including high speed, radio frequency, power, fiber optic and other products, coaxial and high-speed cable, as well as antennas. A key driver behind the segment’s strong growth has been the surging demand for advanced interconnect solutions that support cloud data centers, next-generation 5G networks, and rapidly expanding AI infrastructure.
The segment serves automotive, broadband communications, commercial aerospace and defense, IT Datacom, industrial, mobile devices and mobile networks markets. A strong portfolio, along with a plethora of acquisitions — CIT, Lutze, CommScope’s (COMM) Andrew business, LifeSync, Narda-MITEQ, XMA and Q Microwave — is expected to drive segment revenues.
In early August, Amphenol announced a definitive agreement to acquire CommScope’s Connectivity and Cable Solutions (“CCS”) business for $10.5 billion in cash. The deal expands Amphenol’s interconnect product capabilities in the fast-growing IT datacom market. The CCS acquisition will diversify Amphenol’s broad portfolio of fiber optic and other interconnect product solutions in the communications networks and industrial markets.
How Rivals Stack Up Against APH in the Communications Race
Amphenol is facing stiff competition from the likes of TE Connectivity (TEL - Free Report) and Astera Labs (ALAB - Free Report) .
TE Connectivity is expected to benefit from strong demand for its solutions in the AI domain as well as energy applications. The company is benefiting from strength in Asia in the Transportation segment, driven by increased data connectivity trends and the ongoing growth of electrified powertrains. TEL expects fourth-quarter fiscal 2025 sales to increase 6% organically on a year-over-year basis to $4.55 billion. TE Connectivity is expected to benefit from strong demand for its solutions in AI domain as well as energy applications.
Astera Labs is rapidly expanding its portfolio to address the growing demands of AI infrastructure and connectivity solutions. It benefits from strong demand for its PCIe solutions, which is noteworthy. Expanding portfolio has been remarkable.
In 2025, Astera Labs announced that its PCIe 6 connectivity portfolio is ramping up production to fast-track the deployment of modern AI platforms at scale. The offerings include new Aries 6 PCIe Smart Gearbox, Scorpio P-Series Smart Fabric Switches, Aries 6 PCIe/CXL Smart DSP Retimers, Aries 6 PCIe/CXL Smart Cable Modules (Aries 6 SCMs) and PCIe 6 over Optics Technology.
Amphenol’s shares have appreciated 80.8% year to date, outperforming the broader Zacks Computer & Technology sector’s 23% growth.
APH’s YTD Price Performance
Image Source: Zacks Investment Research
Amphenol shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 37.86X, higher than the sector’s 29.25X.
APH’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2025 earnings is pegged at $3.03 per share, which has remained unchanged over the past 30 days. The figure indicates a 60.3% increase year over year.
Image: Bigstock
APH's Communications Segment Rides on Strong Portfolio: What's Ahead?
Key Takeaways
Amphenol (APH - Free Report) is riding on strong growth in the Communications Solutions segment, which generates more than half of the company's revenues. In the second quarter of 2025, Amphenol reported segment sales of $2.91 billion, up 101.4% year over year and 78% organically.
The Communications Solutions segment offers a broad range of connector and interconnect systems, including high speed, radio frequency, power, fiber optic and other products, coaxial and high-speed cable, as well as antennas. A key driver behind the segment’s strong growth has been the surging demand for advanced interconnect solutions that support cloud data centers, next-generation 5G networks, and rapidly expanding AI infrastructure.
The segment serves automotive, broadband communications, commercial aerospace and defense, IT Datacom, industrial, mobile devices and mobile networks markets. A strong portfolio, along with a plethora of acquisitions — CIT, Lutze, CommScope’s (COMM) Andrew business, LifeSync, Narda-MITEQ, XMA and Q Microwave — is expected to drive segment revenues.
In early August, Amphenol announced a definitive agreement to acquire CommScope’s Connectivity and Cable Solutions (“CCS”) business for $10.5 billion in cash. The deal expands Amphenol’s interconnect product capabilities in the fast-growing IT datacom market. The CCS acquisition will diversify Amphenol’s broad portfolio of fiber optic and other interconnect product solutions in the communications networks and industrial markets.
How Rivals Stack Up Against APH in the Communications Race
Amphenol is facing stiff competition from the likes of TE Connectivity (TEL - Free Report) and Astera Labs (ALAB - Free Report) .
TE Connectivity is expected to benefit from strong demand for its solutions in the AI domain as well as energy applications. The company is benefiting from strength in Asia in the Transportation segment, driven by increased data connectivity trends and the ongoing growth of electrified powertrains. TEL expects fourth-quarter fiscal 2025 sales to increase 6% organically on a year-over-year basis to $4.55 billion. TE Connectivity is expected to benefit from strong demand for its solutions in AI domain as well as energy applications.
Astera Labs is rapidly expanding its portfolio to address the growing demands of AI infrastructure and connectivity solutions. It benefits from strong demand for its PCIe solutions, which is noteworthy. Expanding portfolio has been remarkable.
In 2025, Astera Labs announced that its PCIe 6 connectivity portfolio is ramping up production to fast-track the deployment of modern AI platforms at scale. The offerings include new Aries 6 PCIe Smart Gearbox, Scorpio P-Series Smart Fabric Switches, Aries 6 PCIe/CXL Smart DSP Retimers, Aries 6 PCIe/CXL Smart Cable Modules (Aries 6 SCMs) and PCIe 6 over Optics Technology.
APH’s Share Price Performance, Valuation & Estimates
Amphenol’s shares have appreciated 80.8% year to date, outperforming the broader Zacks Computer & Technology sector’s 23% growth.
APH’s YTD Price Performance
Image Source: Zacks Investment Research
Amphenol shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 37.86X, higher than the sector’s 29.25X.
APH’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2025 earnings is pegged at $3.03 per share, which has remained unchanged over the past 30 days. The figure indicates a 60.3% increase year over year.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
APH’s currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.