Overview
Since the Report − 0.2%
Revenue grew 65.1% year over year, EPS beat the estimate by 9.6%; the stock rose 3.5% in its first reaction.
- RevenueQ3
- $10.23B
- ▲ 65% YoY · 8.4% Beat
- EPSAdjusted
- $0.80
- Estimate $0.73 · 9.6% Beat
Verdict
BUYAmphenol grew third-quarter sales 65% to $10.23 billion and beat estimates on both revenue and earnings. The stock closed up 3.5% after fourth-quarter sales guidance came in 10.4% above the market expectation. The next thing to watch is how much of the growth comes from organic demand rather than acquisitions.
Close on Report DayOct 28
$80.96▲ 3.5%Report-Day Move
- Market Cap(Today)
- ≈ $199 B
- 1Y Return(At Report)
- + 18%
- P/E(At Today's Price · $2.49 · Trailing 12M)
- 32.4
- PEG(Company Guidance 2026)
- 0.47
- Net Margin(Trailing 12M)
- 17.7%
Earnings Summary
In 30 Seconds- Sales rose 65% to $10.23 billion, beating the estimate by 8.4%, and adjusted EPS came in at $0.80.
- Fourth-quarter sales guidance is $10.3-10.5 billion; the midpoint is 10.4% above the market expectation.
- The stock closed up 3.5% at $80.96 after record orders and strong guidance.
The Numbers
Orders
$12.2B
Record · Book-to-Bill 1.19
Adjusted Operating Margin
29.7%
Year Ago 27.5% · Up 2.2 Points
Free Cash Flow
$1.62B
▲ 33.5% YoY · Year Ago $1.22B
Stock Reaction
▲ 3.5%
Close to Close · Prior $78.21
Quarterly Revenue ($ Billion)
6.19
Q3 25 · $6.19 B
6.44
Q4 25 · $6.44 B · QoQ + 3.9%
7.62
Q1 26 · $7.62 B · QoQ + 18.3%
8.76
Q2 26 · $8.76 B · QoQ + 14.9%
10.23
Q3 26 · $10.2 B · QoQ + 16.8% · YoY + 65.1%
10.3–10.5
Q4 26E · 10.3–10.5 · QoQ + 1.7% · YoY + 61.5%
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
- Q4 26E
Q4 2026 Company Guidance
- Q4 Revenue10.3 – 10.5 billion10.3 billion10.5 billion10.3 – 10.5 billion
Midpoint 10.4 · Market Expectation 9.4210.4% Above Estimate ▲
- Q4 Adjusted EPS0.81 – 0.83 $0.81 $0.83 $0.81 – 0.83 $
Midpoint 0.82 · Market Expectation 0.759.3% Above Estimate ▲
- Full-Year Revenue36.9 – 37.1 billion36.9 billion37.1 billion36.9 – 37.1 billion
Midpoint 37.0 · Market Expectation 35.623.9% Above Estimate ▲
- Full-Year Adjusted EPS2.82 – 2.84 $2.82 $2.84 $2.82 – 2.84 $
Midpoint 2.83 · Market Expectation 2.676.0% Above Estimate ▲
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±11% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Communications Solutions$6.58 BShare 64.4%▲ 99.0% YoY
Organic 51%
- Harsh Environment Solutions$2.04 BShare 20.0%▲ 35.0% YoY
Organic 29%
- Interconnect and Sensor Systems$1.60 BShare 15.7%▲ 17.0% YoY
Organic 11%
Key Metrics
Orders
$12.2 B
Press Release
Organic Sales Growth
37.0%
Press Release
Adjusted Operating Margin
29.7%
Press Release
Operating Cash Flow
$2.08 B
Press Release
Free Cash Flow
$1.62 B
▲ 33.5% YoYPress Release
Shares are computed over the segment total: $10.2 B. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“I would say that the vast majority of our sequential growth was related to AI. They need more interconnect period. I would tell you that CommScope is taking full advantage of being part of Amphenol.”
- Most Growth Tied to AI
- CommScope Integration Accelerating
- Record Orders, 1.19 Book-to-bill
Summary and Review
Summary
Amphenol's sales rose 65% year over year to $10.23 billion. The market expected about $9.44 billion, so the revenue gate is open by 8.4%. Adjusted EPS came in at $0.80, beating the $0.73 estimate by 9.6%. The midpoint of fourth-quarter sales guidance is $10.4 billion. That is 10.4% above the $9.42 billion expectation, so the guidance gate is also open. Organic growth contributed 37 points and acquisitions 28 points. The company beat the top of its own guidance on both measures.
The stock rose from $78.21 to $80.96 and closed up 3.5%. It reached $83.73 intraday, a gain of more than 7%, but gave back half of it during the session. The market read this report as a demand story. Record orders and a 1.19 book-to-bill show demand is arriving faster than shipments. Even so, the stock is up only 17.9% over the past year. The pullback from the intraday high suggests expectations were already high.
The score is 88 and the view is buy. Revenue, earnings and guidance gates are all open; the decision table puts this mix in the 80-95 band. Two caveats keep it from the top of the band. About two-fifths of growth comes from acquisitions. Datacom sales also depend heavily on AI spending. Still, the company lifted full-year EPS guidance 6% above the market expectation and held its margin. Growth at this pace with a steady margin keeps the score in the upper half of the band.
Full Review
Datacom is the growth engine.
Communications Solutions sales rose 99% year over year to $6.58 billion. Organic growth in the segment was 51%. This segment alone now exceeds the company's total sales from a year ago. It accounts for 64.4% of total sales, up from about 53% a year earlier. The release describes organic growth in the IT datacom market as exceptional. CEO Adam Norwitt said on the earnings call that the vast majority of sequential growth was related to AI. The segment's operating margin was 33.1%. A year ago it was 32.7%, a gain of 0.4 points. Holding margin while sales doubled shows the company is adding capacity without giving up profitability. Harsh Environment Solutions also grew 35% to $2.04 billion.
Acquisitions supply two-fifths of growth.
Of the 65% total growth, 37 points were organic and 28 points came from acquisitions. The largest contribution comes from the connectivity and cable business acquired from CommScope. The company raised its 2026 sales contribution estimate for that business from $4.6 billion to $5.1 billion. Expected EPS accretion rose from $0.15 to $0.18. Norwitt said on the call that CommScope is taking full advantage of being part of Amphenol. The company also announced three new acquisition agreements the same day: AdvancedPCB, Dexgreen and Humanetics Sensors. Together with Empire Electronics, closed in early September, the four deals cost about $1.6 billion. Their combined annual sales are about $750 million. Acquisitions have long been part of the company's growth model. That is why organic growth deserves separate attention.
Margin holds flat near a record.
Adjusted operating margin was 29.7%. A year ago it was 27.5%, an expansion of 2.2 points. Compared with 29.8% in the second quarter, it slipped 0.1 points. In other words, the margin is moving sideways near a record. That level held even as lower-margin acquisitions were consolidated. Harsh Environment Solutions margin rose from 27.1% to 30.1%, a gain of 3.0 points. Interconnect and Sensor Systems margin stayed at 20.0%, the same as a year ago. That segment's sales rose 17% to $1.60 billion, with organic growth of 11%. Weighted toward autos and industrial, it represents the part of the business outside the AI wave. The Empire Electronics deal strengthens its automotive side.
Cash, dividend and buybacks.
Operating cash flow was $2.08 billion and free cash flow $1.62 billion. Free cash flow was $1.22 billion a year ago, an increase of 33.5%. That equals 79% of adjusted net income. The company bought back $245 million of stock in the quarter and paid $308 million in dividends. The quarterly dividend was raised 20% to $0.15. The increase signals management's confidence in cash generation. A new three-year, $4 billion buyback program starting January 1, 2027 was also approved. See the share buyback guide and the cash flow guide for background. The new deals will be paid with cash and debt, so debt levels also deserve attention.
Next quarter, watch one line.
The average 12-month analyst target is $99.19, and the stock trades 22.5% below it. Adjusted EPS over the past four quarters totals $2.49. The midpoint of 2026 EPS guidance is $2.83. That implies 69.5% growth over $1.67 in 2025. The one number for readers to track is organic growth. If it stays above 25% in the fourth quarter, the AI demand story stands. If it falls below, acquisitions are now carrying growth. The second gauge is book-to-bill; staying above 1 shows demand is outpacing shipments. Both will be tested in the fourth-quarter report in late January. The company's first outlook for 2027 will also come that day. This guide explains how to read an earnings day.
Looking Ahead
Strengths and Risks
5 Strengths · 5 RisksStrengths
5- Sales beat the estimate by 8.4% and adjusted EPS beat by 9.6%.
- Orders hit a record $12.2 billion, with a book-to-bill of 1.19.
- The midpoint of fourth-quarter sales guidance is 10.4% above the market expectation.
- Adjusted operating margin expanded 2.2 points in a year to 29.7%.
- The quarterly dividend was raised 20% and a new $4 billion buyback program was approved.
Risks
5- Acquisitions account for 28 points of sales growthOrganic growth was 37%.
- Datacom sales depend on AI spending, and growth could slow sharply if that spending cools.
- The roughly $1.6 billion cost of four new acquisitions is paid with cash and debt.
- Interconnect and Sensor Systems margin of 20.0% is about 10 points below the company average.
- Adjusted operating margin slipped 0.1 points from the second quarter.
What to Watch
5- Fourth-quarter results are expected in late January 2027.
- The AdvancedPCB and Humanetics Sensors deals are expected to close in the fourth quarter of 2026.
- The Dexgreen deal is expected to close in the first quarter of 2027.
- The raised $0.15 per-share dividend will be paid on January 13, 2027.
- The new $4 billion buyback program takes effect on January 1, 2027.
Upcoming Earnings
To Understand This