Amphenol Corporation (APH) Earnings & Analysis

Latest quarter

Amphenol reported Q3 FY2026 revenue of $10.2 billion, up 65.1% from $6.2 billion a year earlier and above the $9.4 billion consensus. Adjusted diluted EPS of $0.80 also beat the $0.73 consensus. The filing reported GAAP diluted EPS of $0.79, compared with $0.49 a year earlier.

The filing attributed sales growth to organic gains across all three segments and acquisitions. It identified IT datacom, particularly AI-related applications, as a contributor, while communications networks sales declined organically. Amphenol reported an operating margin of 29.5%, up from 27.5% a year earlier; the filing attributed the improvement primarily to operating leverage and cost control, partly offset by acquisitions.

Amphenol generated $1.6 billion in free cash flow, compared with $1.2 billion a year earlier. Revenue also exceeded the company’s own Q3 guidance of $9.3 billion to $9.4 billion.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

Revenue came in within or above the company’s guide in 2 of the last 2 quarters it guided.

What management said on the call

CFO Craig Lampo said third-quarter sales grew 37% organically from a year earlier. CEO Adam Norwitt highlighted organic growth of more than 20% in five of Amphenol’s seven end markets. The company said IT datacom accounted for 48% of sales, with about three quarters of those sales related to AI. It also said organic sales to communications network operators fell 28%, with weaker broadband demand contributing to the decline.

Lampo said orders reached $12.17 billion in the quarter, up 99% from a year earlier, and produced a book-to-bill ratio of 1.19 to 1. He said bookings supported a positive book-to-bill in all but one end market.

Asked about margins, Lampo pointed to the value of Amphenol’s technology, execution and cost discipline, alongside the ability to leverage higher volumes. He said the company shares some of those margins with customers. He attributed the year-over-year increase in adjusted operating margin to leverage on higher sales volumes, which more than offset dilution from recent acquisitions. Excluding tariff-recovery benefits, he said sequential margin improvement also reflected progress on profitability at recent acquisitions, particularly CommScope.

Lampo said he expected organic growth to support further margin expansion, while acquisitions typically have lower profitability than Amphenol. On investment, he said the historical capital-expenditure range of 3% to 4% of sales remained relevant over the long term, although spending could be slightly above that range during rapid growth. For the fourth quarter, Amphenol said it expected communications-network sales to decline further.

Lampo also said the board raised the quarterly dividend to $0.15 per share beginning with January 2027 payments and approved a new three-year $4 billion repurchase plan effective January 1, 2027.

Guidance

Amphenol now expects CommScope to generate $5.1 billion in 2026 sales, compared with the $4.6 billion it forecast in July. It also expects CommScope to add $0.18 to 2026 adjusted diluted EPS, compared with its July projection of $0.30; the July projection preceded the September two-for-one stock split.