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APH's Q3 earnings rose 73.9% to 80 cents per share, while revenues surged 65.1% to $10.23 billion.
Strong IT datacom demand drove 51% organic growth in Communications Solutions.
APH raised its 2026 revenue outlook to $36.9-$37.1 billion and boosted its quarterly dividend by 20%.
Amphenol (APH - Free Report) reported third-quarter 2026 adjusted earnings of 80 cents per share, up 73.9% year over year. The figure beat the Zacks Consensus Estimate by 9.59%.
Revenues surged 65.1% year over year to $10.23 billion and surpassed the consensus mark by 8.38%. Growth was driven by exceptional IT datacom demand, broad organic expansion and acquisition contributions. Record orders of $12.2 billion resulted in a book-to-bill ratio of 1.19:1.
APH Sees Broad-Based Demand Strength
Organic net sales increased 37% year over year, while constant-currency (cc) sales advanced 65%. Acquisitions contributed 28 percentage points to reported growth, highlighting the impact of portfolio expansion alongside underlying demand strength.
Communications Solutions led organic growth at 51%, supported by continued strength in IT datacom applications. Harsh Environment Solutions and Interconnect and Sensor Systems delivered organic growth of 29% and 11%, respectively.
Amphenol Corporation Price, Consensus and EPS Surprise
Communications Solutions revenues jumped 98.9% year over year to $6.58 billion. The segment remained Amphenol’s largest business, benefiting from strong demand for high-technology connectivity products and acquisition contributions.
Harsh Environment Solutions sales increased 34.7% year over year to $2.04 billion, while Interconnect and Sensor Systems revenues rose 17.2% year over year to $1.6 billion. The performance reflected growth across the company's diversified end markets, including defense, industrial and automotive applications.
APH Expands Operating Margins on Higher Sales
Adjusted operating income increased 78.4% year over year to $3.04 billion. Adjusted operating margin expanded 220 basis points (bps) to 29.7%, reflecting stronger profitability amid substantial revenue growth.
Communications Solutions’ operating margin improved 40 bps to 33.1%. Harsh Environment Solutions' margin expanded 300 bps to 30.1%, while Interconnect and Sensor Systems maintained its operating margin at 20%.
Amphenol Generates Solid Cash Flow
Amphenol ended September with $4.17 billion in cash and cash equivalents. Including short-term investments, total liquidity in cash and investments reached $5.30 billion. Long-term debt, excluding the current portion, stood at $17.17 billion.
Operating cash flow increased to $2.08 billion from $1.47 billion in the year-ago quarter. Free cash flow climbed 33.5% to $1.62 billion despite capital expenditures rising to $457.2 million.
APH repurchased 3 million shares for $245 million and distributed $308 million in dividends, returning $553 million to shareholders.
APH Accelerates Acquisitions and Shareholder Returns
Amphenol completed the acquisition of Empire Electronics in September. The automotive interconnect manufacturer is expected to generate approximately $320 million in 2026 sales, strengthening the company’s automotive market presence.
The company also signed agreements to acquire AdvancedPCB, Dexgreen and Humanetics Sensors. The four transactions, including Empire Electronics, carry a combined purchase price of approximately $1.6 billion.
Amphenol increased its quarterly dividend 20% to 15 cents per share, payable Jan. 13, 2027. The board also authorized a new three-year, $4 billion share repurchase program, effective Jan. 1, 2027.
Amphenol Raises CommScope Business Expectations
Amphenol increased its 2026 sales expectation for the acquired CommScope business to $5.1 billion from $4.6 billion, citing better-than-anticipated performance.
The company also raised its expected adjusted earnings contribution from CommScope to 18 cents per share from 15 cents. The improved projections reflect stronger contributions from the acquired connectivity and cable operations.
APH Issues Upbeat Q4 and 2026 Guidance
For the fourth quarter of 2026, Amphenol expects revenues between $10.3 billion and $10.5 billion, implying approximately 60% year-over-year growth. Adjusted earnings are projected between 81 cents and 83 cents per share, indicating growth of 65-69%.
For 2026, the company anticipates revenues of $36.9-$37.1 billion, representing approximately 60% growth. Adjusted earnings are expected between $2.82 and $2.84 per share, implying approximately 70% growth. The outlook excludes contributions from the pending AdvancedPCB, Dexgreen and Humanetics Sensors acquisitions.
Both Shopify and AMETEK are expected to report their respective quarterly results on Nov. 3, while Affirm will report its on Nov. 5. Shares of Affirm have dropped 2.3%, while Shopify and AMETEK have returned 4.3% and 21.2%, year to date, respectively.
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Amphenol's Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Amphenol (APH - Free Report) reported third-quarter 2026 adjusted earnings of 80 cents per share, up 73.9% year over year. The figure beat the Zacks Consensus Estimate by 9.59%.
Revenues surged 65.1% year over year to $10.23 billion and surpassed the consensus mark by 8.38%. Growth was driven by exceptional IT datacom demand, broad organic expansion and acquisition contributions. Record orders of $12.2 billion resulted in a book-to-bill ratio of 1.19:1.
APH Sees Broad-Based Demand Strength
Organic net sales increased 37% year over year, while constant-currency (cc) sales advanced 65%. Acquisitions contributed 28 percentage points to reported growth, highlighting the impact of portfolio expansion alongside underlying demand strength.
Communications Solutions led organic growth at 51%, supported by continued strength in IT datacom applications. Harsh Environment Solutions and Interconnect and Sensor Systems delivered organic growth of 29% and 11%, respectively.
Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote
Amphenol’s Segments Post Strong Growth
Communications Solutions revenues jumped 98.9% year over year to $6.58 billion. The segment remained Amphenol’s largest business, benefiting from strong demand for high-technology connectivity products and acquisition contributions.
Harsh Environment Solutions sales increased 34.7% year over year to $2.04 billion, while Interconnect and Sensor Systems revenues rose 17.2% year over year to $1.6 billion. The performance reflected growth across the company's diversified end markets, including defense, industrial and automotive applications.
APH Expands Operating Margins on Higher Sales
Adjusted operating income increased 78.4% year over year to $3.04 billion. Adjusted operating margin expanded 220 basis points (bps) to 29.7%, reflecting stronger profitability amid substantial revenue growth.
Communications Solutions’ operating margin improved 40 bps to 33.1%. Harsh Environment Solutions' margin expanded 300 bps to 30.1%, while Interconnect and Sensor Systems maintained its operating margin at 20%.
Amphenol Generates Solid Cash Flow
Amphenol ended September with $4.17 billion in cash and cash equivalents. Including short-term investments, total liquidity in cash and investments reached $5.30 billion. Long-term debt, excluding the current portion, stood at $17.17 billion.
Operating cash flow increased to $2.08 billion from $1.47 billion in the year-ago quarter. Free cash flow climbed 33.5% to $1.62 billion despite capital expenditures rising to $457.2 million.
APH repurchased 3 million shares for $245 million and distributed $308 million in dividends, returning $553 million to shareholders.
APH Accelerates Acquisitions and Shareholder Returns
Amphenol completed the acquisition of Empire Electronics in September. The automotive interconnect manufacturer is expected to generate approximately $320 million in 2026 sales, strengthening the company’s automotive market presence.
The company also signed agreements to acquire AdvancedPCB, Dexgreen and Humanetics Sensors. The four transactions, including Empire Electronics, carry a combined purchase price of approximately $1.6 billion.
Amphenol increased its quarterly dividend 20% to 15 cents per share, payable Jan. 13, 2027. The board also authorized a new three-year, $4 billion share repurchase program, effective Jan. 1, 2027.
Amphenol Raises CommScope Business Expectations
Amphenol increased its 2026 sales expectation for the acquired CommScope business to $5.1 billion from $4.6 billion, citing better-than-anticipated performance.
The company also raised its expected adjusted earnings contribution from CommScope to 18 cents per share from 15 cents. The improved projections reflect stronger contributions from the acquired connectivity and cable operations.
APH Issues Upbeat Q4 and 2026 Guidance
For the fourth quarter of 2026, Amphenol expects revenues between $10.3 billion and $10.5 billion, implying approximately 60% year-over-year growth. Adjusted earnings are projected between 81 cents and 83 cents per share, indicating growth of 65-69%.
For 2026, the company anticipates revenues of $36.9-$37.1 billion, representing approximately 60% growth. Adjusted earnings are expected between $2.82 and $2.84 per share, implying approximately 70% growth. The outlook excludes contributions from the pending AdvancedPCB, Dexgreen and Humanetics Sensors acquisitions.
Zacks Rank & Upcoming Earnings to Watch
Currently, Amphenol has a Zacks Rank #2 (Buy).
Shopify (SHOP - Free Report) , AMETEK (AME - Free Report) and Affirm (AFRM - Free Report) are some top-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both Shopify and AMETEK are expected to report their respective quarterly results on Nov. 3, while Affirm will report its on Nov. 5. Shares of Affirm have dropped 2.3%, while Shopify and AMETEK have returned 4.3% and 21.2%, year to date, respectively.