Key Takeaways
- Amphenol shares jumped 7% today after third-quarter sales hit a record $10.2 billion, well above the $9.49 billion analysts expected.
- Amphenol keeps beating its own forecasts, and the higher outlook shows that AI-driven demand for its products is still growing.
- Fourth-quarter guidance of $10.3 billion to $10.5 billion in sales and 81 to 83 cents of adjusted EPS beats consensus on both.
- A new $4 billion buyback follows the current $2 billion plan, and the Street’s estimates for 2026 and 2027 look likely to rise.
Amphenol (APH) is up 7% today. Before the open it reported a record third quarter, raised its 2026 outlook and announced a new $4 billion buyback.
Here’s what it reported:
It blew past its own guidance
- Sales: a record $10.2 billion, against $9.49 billion expected and Amphenol’s own guidance of $9.3 billion to $9.4 billion.
- Adjusted EPS: 80 cents, against 73 cents expected and guidance of 70 to 71 cents (adjusted for the stock’s two-for-one split).
- Fourth-quarter guidance: sales of $10.3 billion to $10.5 billion and adjusted EPS of 81 to 83 cents, against consensus of $9.83 billion and 76 cents.
- 2026 outlook: sales of $36.9 billion to $37.1 billion and adjusted EPS of $2.82 to $2.84, against consensus of $35.66 billion and $2.69.
That’s about $800 million above the top of its own range in a single quarter.
TIKR tracks 19 analysts on Amphenol. How many say “Buy”?
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AI is doing the heavy lifting
The engine is IT datacom, Amphenol’s data center business. In the second quarter, the segment made up 43% of sales and grew 63% organically, and almost all of that growth came from AI-related products.
That has pushed total revenue up steeply.
The midpoint of the new outlook, $37 billion, would be a 60% jump from 2025’s $23.1 billion. (Not all of that growth is organic. Amphenol expects the CommScope business it bought to add $4.6 billion of sales this year.)
Earnings are climbing even faster.
The $2.83 midpoint of the new range is 5% above the Street’s $2.69. And the fourth-quarter guidance alone, annualized, already puts Amphenol close to the $3.33 analysts expect for 2027, so those estimates look likely to rise too.
Plus: a bigger buyback
Amphenol expects to finish what’s left of its three-year, $2 billion plan by Dec. 31, and its board approved the new $4 billion plan on Oct. 27. That’s only about 2% of the company’s market value. But Amphenol made $1.2 billion of free cash flow in the second quarter alone, so it can easily pay for it.
The upshot
Amphenol keeps beating numbers it set for itself, and Wall Street is still a step behind. I think today’s jump is earned. With estimates likely heading higher, the stock has room to keep running.
Of course, IT datacom was 43% of second-quarter sales, so a pause in AI data center spending would hurt. The fourth-quarter report early next year will show whether this guidance was conservative too.
So what is Amphenol stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
