In its upcoming report, Amphenol (APH - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.19 per share, reflecting an increase of 46.9% compared to the same period last year. Revenues are forecasted to be $8.3 billion, representing a year-over-year increase of 46.9%.
The consensus EPS estimate for the quarter has been revised 5.5% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain Amphenol metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts expect 'Net Sales- Harsh Environment Solutions' to come in at $1.80 billion. The estimate points to a change of +24.8% from the year-ago quarter.
The combined assessment of analysts suggests that 'Net Sales- Interconnect and Sensor Systems' will likely reach $1.52 billion. The estimate indicates a year-over-year change of +17.7%.
Based on the collective assessment of analysts, 'Net Sales- Communications Solutions' should arrive at $4.97 billion. The estimate indicates a year-over-year change of +70.9%.
The consensus among analysts is that 'Operating Income- Interconnect and Sensor Systems' will reach $312.89 million. Compared to the current estimate, the company reported $252.30 million in the same quarter of the previous year.
The average prediction of analysts places 'Operating Income- Communications Solutions' at $1.53 billion. Compared to the current estimate, the company reported $890.70 million in the same quarter of the previous year.
Analysts' assessment points toward 'Operating Income- Harsh Environment Solutions' reaching $502.00 million. Compared to the current estimate, the company reported $363.70 million in the same quarter of the previous year.
View all Key Company Metrics for Amphenol here>>>
Shares of Amphenol have experienced a change of -4.7% in the past month compared to the +0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #1 (Strong Buy), APH is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Amphenol Corporation (APH) shares up 6,875% since first institutional outlier signal in 2005.
APH designs, manufactures, and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, as well as specialty cables. Its first-quarter fiscal 2026 earnings report showed record sales of $7.6 billion (a 33% year-over-year gain), adjusted diluted per-share earnings of $1.06 (a 68% rise), $1.1 billion in operating cash flow (120% of net income), and nearly $9.5 billion in orders (up 78%). The company reports again on July 29.
It’s no wonder APH shares are up 17% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Institutions Push Amphenol Higher Institutional volumes reveal plenty. In the last year, APH has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in APH shares. They reflect our proprietary inflow signal, pushing the stock higher:
Multiple inflows versus just one outflow from Big Money saw APH jump 57% in a year. Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Amphenol.
Amphenol Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, APH has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +19.3%.
Now it makes sense why the stock has been generating Big Money interest. APH has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
Amphenol has been a top-rated stock at MoneyFlows. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s earned 47 outlier inflow signals since 2005 and is up 6,875% since its first appearance on the rare Outlier 20 report. The blue bars below show when APH was a top pick in the last year…Big Money remains a supporter:
Eight outlier inflows spread over the course of a year prove institutions believe in APH. Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Amphenol Price Prediction The APH action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in APH at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.
ABN Amro Investment Solutions lifted its position in shares of Amphenol Corporation (NYSE:APH – Free Report) by 16.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 53,550 shares of the electronics maker’s stock after acquiring an additional 7,488 shares during the quarter. ABN Amro Investment Solutions’ holdings in Amphenol were worth $6,766,000 at the end of the most recent quarter.
Several other hedge funds have also recently bought and sold shares of the company. Brighton Jones LLC grew its stake in Amphenol by 114.0% in the 4th quarter. Brighton Jones LLC now owns 17,624 shares of the electronics maker’s stock valued at $1,224,000 after acquiring an additional 9,390 shares during the last quarter. Revolve Wealth Partners LLC lifted its holdings in shares of Amphenol by 87.9% in the fourth quarter. Revolve Wealth Partners LLC now owns 10,094 shares of the electronics maker’s stock valued at $701,000 after purchasing an additional 4,721 shares in the last quarter. Bison Wealth LLC grew its position in shares of Amphenol by 8.3% in the fourth quarter. Bison Wealth LLC now owns 8,042 shares of the electronics maker’s stock valued at $559,000 after purchasing an additional 618 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of Amphenol by 55.4% in the second quarter. NewEdge Advisors LLC now owns 62,946 shares of the electronics maker’s stock valued at $6,216,000 after purchasing an additional 22,434 shares during the last quarter. Finally, Main Street Financial Solutions LLC increased its stake in shares of Amphenol by 15.5% during the 2nd quarter. Main Street Financial Solutions LLC now owns 4,745 shares of the electronics maker’s stock worth $469,000 after purchasing an additional 638 shares in the last quarter. 97.01% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling In other Amphenol news, CEO Richard Adam Norwitt sold 17,500 shares of the company’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $143.21, for a total transaction of $2,506,175.00. Following the completion of the sale, the chief executive officer directly owned 1,927,507 shares in the company, valued at $276,038,277.47. This represents a 0.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders sold 130,775 shares of company stock worth $18,709,350 in the last ninety days. Corporate insiders own 1.42% of the company’s stock.
Amphenol Stock Performance Shares of APH stock opened at $157.78 on Thursday. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.26 and a current ratio of 1.71. The firm has a market capitalization of $194.11 billion, a price-to-earnings ratio of 45.34, a price-to-earnings-growth ratio of 1.35 and a beta of 1.24. Amphenol Corporation has a one year low of $95.19 and a one year high of $178.52. The company has a 50 day moving average price of $151.63 and a 200 day moving average price of $144.48.
Amphenol (NYSE:APH – Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The electronics maker reported $1.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.11. The company had revenue of $7.62 billion for the quarter, compared to analyst estimates of $7.08 billion. Amphenol had a net margin of 17.24% and a return on equity of 37.44%. Amphenol’s revenue for the quarter was up 58.4% on a year-over-year basis. During the same quarter last year, the business earned $0.63 EPS. Amphenol has set its Q2 2026 guidance at 1.140-1.160 EPS. Sell-side analysts anticipate that Amphenol Corporation will post 4.87 EPS for the current year.
Amphenol Announces Dividend The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 23rd were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Tuesday, June 23rd. Amphenol’s payout ratio is 28.74%.
Analyst Ratings Changes A number of equities research analysts recently issued reports on APH shares. Wall Street Zen lowered Amphenol from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Jefferies Financial Group raised their price target on Amphenol from $165.00 to $190.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Rothschild & Co Redburn upped their price objective on Amphenol from $160.00 to $172.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Barclays reiterated an “overweight” rating and set a $200.00 price objective (up from $198.00) on shares of Amphenol in a research report on Monday, July 13th. Finally, TD Cowen restated a “hold” rating and issued a $175.00 target price (up from $135.00) on shares of Amphenol in a report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and a consensus price target of $186.00.
Check Out Our Latest Report on Amphenol
Amphenol Profile (Free Report)
Amphenol Corporation (NYSE: APH) is a leading global manufacturer of electronic and fiber optic connectors, interconnect systems, and related components. The company designs, engineers and produces a broad range of products including electrical connectors, cable assemblies, fiber optic solutions, sensors, antennas and electromechanical devices used to transfer power, signal and data across complex systems. Its product portfolio spans ruggedized connectors for harsh environments to high-speed solutions for data centers and telecommunications networks.
Amphenol serves a diverse set of end markets, including automotive, broadband and telecom, data communications, mobile devices, industrial, energy, and military/aerospace.
See Also Five stocks we like better than Amphenol Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding APH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amphenol Corporation (NYSE:APH – Free Report).
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The market expects Amphenol (APH - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of fiber-optic products is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +46.9%.
Revenues are expected to be $8.3 billion, up 46.9% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 5.53% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Amphenol?For Amphenol, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.12%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that Amphenol will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Amphenol would post earnings of $0.95 per share when it actually produced earnings of $1.06, delivering a surprise of +11.58%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Amphenol appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
SummaryAmphenol Corporation is upgraded to a buy, driven by robust organic growth, disciplined acquisitions, and expanding margins.APH’s Q1 revenue hit a record $7.62 billion, fueled by 33% organic growth and the CCS acquisition, with EBITDA tripling over three years.Non-GAAP operating margin reached 27.3%, and further margin expansion is expected as CCS integration matures and synergies materialize.While APH trades at a premium (P/E ~43x), accelerating earnings and secular tailwinds increasingly justify the valuation, supporting durable long-term growth. Supersmario/iStock via Getty Images
Amphenol Corporation (APH) is becoming one of the most renowned manufacturers of electronic connectors, cable assemblies, sensors, antennas, and other interconnect systems. These are the systems that enable the transmission of power, data, and signals for markets like AI data centers, automotive, aerospace, defense, industrial automation, mobile devices, and communications. The company generates
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Baader Bank Aktiengesellschaft decreased its position in Amphenol Corporation (NYSE:APH – Free Report) by 50.3% during the 1st quarter, according to its most recent filing with the SEC. The institutional investor owned 9,159 shares of the electronics maker’s stock after selling 9,254 shares during the period. Baader Bank Aktiengesellschaft’s holdings in Amphenol were worth $1,135,000 as of its most recent filing with the SEC.
Other large investors have also recently bought and sold shares of the company. Vermillion & White Wealth Management Group LLC boosted its holdings in Amphenol by 163.8% during the fourth quarter. Vermillion & White Wealth Management Group LLC now owns 182 shares of the electronics maker’s stock worth $25,000 after purchasing an additional 113 shares during the last quarter. Riggs Asset Managment Co. Inc. grew its position in Amphenol by 200.0% in the second quarter. Riggs Asset Managment Co. Inc. now owns 252 shares of the electronics maker’s stock valued at $25,000 after purchasing an additional 168 shares in the last quarter. Tucker Asset Management LLC acquired a new stake in Amphenol in the 4th quarter valued at $26,000. HHM Wealth Advisors LLC acquired a new stake in Amphenol in the 1st quarter valued at $27,000. Finally, Lloyd Advisory Services LLC. bought a new stake in Amphenol during the 4th quarter worth about $29,000. Institutional investors and hedge funds own 97.01% of the company’s stock.
Insider Buying and Selling at Amphenol In related news, CEO Richard Adam Norwitt sold 61,072 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $143.90, for a total value of $8,788,260.80. Following the sale, the chief executive officer owned 1,927,507 shares in the company, valued at approximately $277,368,257.30. This represents a 3.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last quarter, insiders sold 130,775 shares of company stock worth $18,709,350. 1.42% of the stock is currently owned by insiders.
Wall Street Analysts Forecast Growth A number of research firms have recently commented on APH. Evercore restated an “outperform” rating on shares of Amphenol in a research note on Wednesday, May 27th. Citigroup reiterated a “buy” rating and set a $195.00 target price (up from $180.00) on shares of Amphenol in a report on Monday, July 13th. Rothschild & Co Redburn increased their price target on Amphenol from $160.00 to $172.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. The Goldman Sachs Group raised their price target on Amphenol from $184.00 to $201.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Finally, TD Cowen reaffirmed a “hold” rating and set a $175.00 price target (up from $135.00) on shares of Amphenol in a research report on Monday, July 13th. Fourteen research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $186.00.
View Our Latest Stock Analysis on Amphenol
Amphenol Trading Down 0.5% Shares of NYSE:APH opened at $150.50 on Tuesday. Amphenol Corporation has a 52-week low of $95.19 and a 52-week high of $178.52. The company has a market capitalization of $185.15 billion, a P/E ratio of 43.25, a price-to-earnings-growth ratio of 1.29 and a beta of 1.24. The company has a 50-day simple moving average of $150.36 and a 200 day simple moving average of $144.16. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.26 and a current ratio of 1.71.
Amphenol (NYSE:APH – Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The electronics maker reported $1.06 earnings per share for the quarter, topping analysts’ consensus estimates of $0.95 by $0.11. The firm had revenue of $7.62 billion for the quarter, compared to the consensus estimate of $7.08 billion. Amphenol had a return on equity of 37.44% and a net margin of 17.24%.The business’s revenue was up 58.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.63 earnings per share. Amphenol has set its Q2 2026 guidance at 1.140-1.160 EPS. Sell-side analysts forecast that Amphenol Corporation will post 4.87 earnings per share for the current year.
Amphenol Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 23rd were issued a dividend of $0.25 per share. The ex-dividend date of this dividend was Tuesday, June 23rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.7%. Amphenol’s payout ratio is presently 28.74%.
Amphenol Company Profile (Free Report)
Amphenol Corporation (NYSE: APH) is a leading global manufacturer of electronic and fiber optic connectors, interconnect systems, and related components. The company designs, engineers and produces a broad range of products including electrical connectors, cable assemblies, fiber optic solutions, sensors, antennas and electromechanical devices used to transfer power, signal and data across complex systems. Its product portfolio spans ruggedized connectors for harsh environments to high-speed solutions for data centers and telecommunications networks.
Amphenol serves a diverse set of end markets, including automotive, broadband and telecom, data communications, mobile devices, industrial, energy, and military/aerospace.
See Also Five stocks we like better than Amphenol The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding APH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amphenol Corporation (NYSE:APH – Free Report).
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Andra AP fonden lifted its position in shares of Amphenol Corporation (NYSE:APH – Free Report) by 96.2% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 239,588 shares of the electronics maker’s stock after buying an additional 117,453 shares during the period. Andra AP fonden’s holdings in Amphenol were worth $30,272,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in Amphenol by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 126,553,498 shares of the electronics maker’s stock valued at $17,102,440,000 after buying an additional 1,322,682 shares during the period. J. Stern & Co. LLP lifted its holdings in shares of Amphenol by 9,435.8% during the 4th quarter. J. Stern & Co. LLP now owns 76,769,791 shares of the electronics maker’s stock valued at $10,374,670,000 after acquiring an additional 75,964,718 shares in the last quarter. State Street Corp boosted its position in Amphenol by 1.6% during the 4th quarter. State Street Corp now owns 56,913,598 shares of the electronics maker’s stock worth $7,705,440,000 after purchasing an additional 888,526 shares during the period. JPMorgan Chase & Co. boosted its position in Amphenol by 102.7% during the 4th quarter. JPMorgan Chase & Co. now owns 34,325,148 shares of the electronics maker’s stock worth $4,638,701,000 after purchasing an additional 17,387,536 shares during the period. Finally, Geode Capital Management LLC increased its holdings in Amphenol by 2.5% in the 4th quarter. Geode Capital Management LLC now owns 30,318,652 shares of the electronics maker’s stock valued at $4,087,372,000 after purchasing an additional 748,813 shares in the last quarter. Institutional investors and hedge funds own 97.01% of the company’s stock.
Amphenol Trading Down 0.5% NYSE:APH opened at $150.50 on Tuesday. The stock has a market cap of $185.15 billion, a price-to-earnings ratio of 43.25, a price-to-earnings-growth ratio of 1.29 and a beta of 1.24. Amphenol Corporation has a one year low of $95.19 and a one year high of $178.52. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.26 and a current ratio of 1.71. The business’s 50-day simple moving average is $150.36 and its 200 day simple moving average is $144.16.
Amphenol (NYSE:APH – Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The electronics maker reported $1.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.95 by $0.11. The firm had revenue of $7.62 billion during the quarter, compared to analyst estimates of $7.08 billion. Amphenol had a return on equity of 37.44% and a net margin of 17.24%.Amphenol’s quarterly revenue was up 58.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.63 EPS. Amphenol has set its Q2 2026 guidance at 1.140-1.160 EPS. As a group, sell-side analysts predict that Amphenol Corporation will post 4.87 earnings per share for the current fiscal year.
Amphenol Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 23rd were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Tuesday, June 23rd. Amphenol’s dividend payout ratio (DPR) is currently 28.74%.
Insider Buying and Selling at Amphenol In other news, CEO Richard Adam Norwitt sold 17,500 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $143.21, for a total value of $2,506,175.00. Following the sale, the chief executive officer owned 1,927,507 shares in the company, valued at approximately $276,038,277.47. This represents a 0.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last ninety days, insiders have sold 130,775 shares of company stock valued at $18,709,350. 1.42% of the stock is currently owned by insiders.
Wall Street Analyst Weigh In A number of research analysts have commented on the company. JPMorgan Chase & Co. boosted their price objective on Amphenol from $190.00 to $200.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. Robert W. Baird set a $177.00 target price on Amphenol in a research note on Thursday, April 30th. Seaport Research Partners reissued a “buy” rating and set a $215.00 price target on shares of Amphenol in a research report on Thursday, April 30th. TD Cowen restated a “hold” rating and issued a $175.00 price target (up from $135.00) on shares of Amphenol in a report on Monday, July 13th. Finally, Jefferies Financial Group increased their price objective on shares of Amphenol from $165.00 to $190.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Fourteen equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Amphenol presently has a consensus rating of “Moderate Buy” and a consensus target price of $186.00.
Get Our Latest Stock Report on APH
Amphenol Company Profile (Free Report)
Amphenol Corporation (NYSE: APH) is a leading global manufacturer of electronic and fiber optic connectors, interconnect systems, and related components. The company designs, engineers and produces a broad range of products including electrical connectors, cable assemblies, fiber optic solutions, sensors, antennas and electromechanical devices used to transfer power, signal and data across complex systems. Its product portfolio spans ruggedized connectors for harsh environments to high-speed solutions for data centers and telecommunications networks.
Amphenol serves a diverse set of end markets, including automotive, broadband and telecom, data communications, mobile devices, industrial, energy, and military/aerospace.
Featured Articles Five stocks we like better than Amphenol The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding APH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Amphenol Corporation (NYSE:APH – Free Report).
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The technology sector is gaining momentum from the ongoing wave of digital transformation, driven by the rapid adoption of Artificial Intelligence (AI). Technology companies have been spending heavily on AI as demand expands beyond model training into inference, agentic AI and eventually physical AI, creating sustained demand for advanced semiconductors. Rather than being concentrated in a single chip category, AI is increasing investments across leading-edge logic, DRAM, NAND, High-Bandwidth Memory (HBM) and advanced packaging. Demand is being fueled by hyperscaler investments and enterprise AI adoption.
Simultaneously, as enterprises build AI applications, demand for platforms that simplify AI development, testing and deployment has been increasing. Enterprises are investing heavily in organizing, governing and preparing data and demand for enterprise automation software has been on the rise. AI workloads consume significantly more compute resources than traditional applications, making cloud observability and monitoring applications more in demand. AI expands the attack surface while enabling attackers to discover vulnerabilities faster, thereby driving cybersecurity spending.
These factors bode well for technology stocks, a number of which are set to report quarterly results over the next couple of weeks. We pick four technology stocks — Alphabet (GOOGL - Free Report) , Texas Instruments (TXN - Free Report) , Amphenol (APH - Free Report) and Lam Research (LRCX - Free Report) — well-poised to beat earnings estimates this season.
Technology Stocks Riding on AI Boom, InvestmentsAI demand is escalating, and that has increased the need for AI infrastructure capacity expansion, including AI-optimized IaaS, AI-optimized servers, AI network fabric, AI processing semiconductors and devices. Per Gartner, global AI spending is expected to hit $2.59 trillion in 2026, indicating 47% growth over 2025.
Massive investment in chips, particularly graphics processing units (GPUs), and customized accelerators is driving demand for semiconductors. Demand for advanced process technologies (3 nm and 5 nm) is increasing. Per the Semiconductor Industry Association data, semiconductor sales in April 2026 were $110.5 billion, up 93.9% year over year and 11% month over month. In May, sales were $120.6 billion, up 9.2% month over month and 104.1% year over year.
How to Pick Earnings Estimates Beating Stocks?Finding technology stocks with the potential to beat earnings estimates can be daunting. Our proprietary methodology, however, makes it fairly simple.
You could narrow down the list of choices by looking at stocks that have the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination of ingredients, the odds of a positive earnings surprise are as high as 70%.
Top BetsAlphabet currently has an Earnings ESP of +1.92% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alphabet’s second-quarter results are expected to have benefited from sustained momentum in Google Search. AI Overviews and AI Mode have been increasing user engagement and pushing search queries to record levels, while Gemini is improving Google’s understanding of longer and more complex queries. This should have supported paid-click growth, ad relevance and advertiser returns. The continued adoption of AI Max and Performance Max could also have lifted advertising demand as businesses use generative AI for targeting, creative development and bidding.
Google Cloud is likely to have remained the fastest-growing part of Alphabet’s business. YouTube should have provided another growth catalyst, supported by direct-response advertising, connected-TV viewing, Shorts monetization and improving brand demand.
The company is scheduled to report second-quarter 2026 results on July 22. The Zacks Consensus Estimate for earnings has increased by a penny to $2.87 per share over the past month and suggests 24.24% growth over the figure reported in the year-ago quarter.
Texas Instruments is scheduled to report its second-quarter 2026 results on July 22. The company has an Earnings ESP of +2.16% and a Zacks Rank #1.
Texas Instruments’ second-quarter performance is likely to have benefited from strong demand for its analog and embedded chips. The company’s analog business remains the largest contributor, which is showing renewed strength supported by improving industrial demand, stronger data center investments and stable automotive sales.
Texas Instruments is benefiting from rising demand for power-management chips used in AI-driven data center infrastructure. Gradually improving end-market demand and easing customer inventory adjustments are likely to have aided growth in the embedded processing business during the second quarter.
The Zacks Consensus Estimate for earnings has increased by a penny to $1.91 per share over the past month and suggests 35.46% growth over the figure reported in the year-ago quarter.
Amphenol has an Earnings ESP of +1.12% and currently sports a Zacks Rank #1.
The company is expected to have benefited from continued AI data center spending. AI-related products were the primary contributor to sequential organic growth in the first quarter of 2026, and demand remains robust. Amphenol expects another sequential increase in IT datacom revenues, driven by AI infrastructure investments.
In the first quarter of 2026, quarterly orders of $9.4 billion produced a 1.24X book-to-bill, with every end market posting a book-to-bill above one, providing strong visibility into future shipments. The acquisition of CommScope broadens Amphenol's high-speed copper, fiber optic and power interconnect offerings, strengthening its position in AI data centers and communications infrastructure. APH expects high-single-digit sequential growth in industrial and defense markets, supported by automation, building connectivity and rising defense spending.
The Zacks Consensus Estimate for earnings has increased 3 cents to $1.19 per share over the past month. The company is scheduled to report second-quarter 2026 results on July 29.
Lam Research is set to report fourth-quarter fiscal 2026 results on July 29. The company has an Earnings ESP of +1.38% and a Zacks Rank #1.
Lam Research is expected to have benefited from AI-driven wafer fab equipment (WFE) spending in the to be reported quarter. LRCX expects AI to continue driving demand across leading-edge logic, DRAM, NAND and advanced packaging, with WFE demand remaining supply-constrained by clean-room availability rather than end demand. Increasing adoption of Gate-All-Around, backside power, HBM, 3D DRAM and advanced packaging is expanding Lam Research’s served market and boosting equipment intensity. These factors are expected to have benefited LRCX’s fiscal fourth quarter results.
The consensus estimate for LRCX’s earnings has increased by a penny to $1.69 per share over the past 30 days and indicates 27.07% growth over the figure reported in the year-ago quarter.
On July 20, 2026, we delve into the discounted cash flow (DCF) analysis for Amphenol Corp (APH). The company has experienced a price performance of -4.9% over t
Ascent Wealth Partners LLC grew its holdings in Amphenol Corporation (NYSE:APH – Free Report) by 1,143.3% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 59,801 shares of the electronics maker’s stock after acquiring an additional 54,991 shares during the quarter. Ascent Wealth Partners LLC’s holdings in Amphenol were worth $7,556,000 at the end of the most recent reporting period.
Several other institutional investors have also recently added to or reduced their stakes in APH. Capital Advisors Inc. OK increased its stake in Amphenol by 3.4% in the fourth quarter. Capital Advisors Inc. OK now owns 2,067 shares of the electronics maker’s stock valued at $279,000 after purchasing an additional 68 shares during the last quarter. Canvas Wealth Advisors LLC raised its holdings in Amphenol by 3.5% during the fourth quarter. Canvas Wealth Advisors LLC now owns 2,060 shares of the electronics maker’s stock worth $279,000 after purchasing an additional 70 shares in the last quarter. LOM Asset Management Ltd lifted its position in shares of Amphenol by 16.3% during the 4th quarter. LOM Asset Management Ltd now owns 500 shares of the electronics maker’s stock worth $68,000 after buying an additional 70 shares during the last quarter. Sachetta LLC boosted its holdings in shares of Amphenol by 14.9% in the 1st quarter. Sachetta LLC now owns 548 shares of the electronics maker’s stock valued at $69,000 after buying an additional 71 shares in the last quarter. Finally, Seeds Investor LLC boosted its holdings in shares of Amphenol by 4.0% in the 4th quarter. Seeds Investor LLC now owns 1,889 shares of the electronics maker’s stock valued at $255,000 after buying an additional 72 shares in the last quarter. Hedge funds and other institutional investors own 97.01% of the company’s stock.
Amphenol Stock Down 1.4% Shares of NYSE:APH opened at $151.03 on Friday. Amphenol Corporation has a 1-year low of $95.19 and a 1-year high of $178.52. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.71 and a quick ratio of 1.26. The stock has a market cap of $185.81 billion, a P/E ratio of 43.40, a P/E/G ratio of 1.30 and a beta of 1.24. The firm has a fifty day moving average price of $149.80 and a 200 day moving average price of $144.01.
Amphenol (NYSE:APH – Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The electronics maker reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.11. Amphenol had a net margin of 17.24% and a return on equity of 37.44%. The company had revenue of $7.62 billion for the quarter, compared to analyst estimates of $7.08 billion. During the same period in the previous year, the business posted $0.63 earnings per share. Amphenol’s quarterly revenue was up 58.4% on a year-over-year basis. Amphenol has set its Q2 2026 guidance at 1.140-1.160 EPS. Sell-side analysts predict that Amphenol Corporation will post 4.87 EPS for the current year.
Amphenol Announces Dividend The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 23rd were given a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.7%. The ex-dividend date was Tuesday, June 23rd. Amphenol’s payout ratio is 28.74%.
Analyst Ratings Changes Several equities research analysts recently commented on the stock. Bank of America lifted their price target on shares of Amphenol from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Rothschild & Co Redburn raised their price objective on Amphenol from $160.00 to $172.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. Wall Street Zen cut Amphenol from a “buy” rating to a “hold” rating in a research report on Saturday, May 9th. BNP Paribas Exane boosted their target price on Amphenol from $195.00 to $200.00 and gave the company an “outperform” rating in a report on Thursday, May 28th. Finally, The Goldman Sachs Group upped their target price on Amphenol from $184.00 to $201.00 and gave the company a “buy” rating in a research report on Thursday, April 30th. Fourteen research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $186.00.
Read Our Latest Analysis on Amphenol
Insider Buying and Selling In other Amphenol news, CEO Richard Adam Norwitt sold 17,500 shares of the stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $143.21, for a total transaction of $2,506,175.00. Following the completion of the sale, the chief executive officer directly owned 1,927,507 shares of the company’s stock, valued at approximately $276,038,277.47. This trade represents a 0.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last ninety days, insiders sold 130,775 shares of company stock worth $18,709,350. 1.42% of the stock is owned by corporate insiders.
Amphenol Company Profile (Free Report)
Amphenol Corporation (NYSE: APH) is a leading global manufacturer of electronic and fiber optic connectors, interconnect systems, and related components. The company designs, engineers and produces a broad range of products including electrical connectors, cable assemblies, fiber optic solutions, sensors, antennas and electromechanical devices used to transfer power, signal and data across complex systems. Its product portfolio spans ruggedized connectors for harsh environments to high-speed solutions for data centers and telecommunications networks.
Amphenol serves a diverse set of end markets, including automotive, broadband and telecom, data communications, mobile devices, industrial, energy, and military/aerospace.
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Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Amphenol (APH - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this maker of fiber-optic products a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Amphenol is 23.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 42.5% this year, crushing the industry average, which calls for EPS growth of 26.9%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Amphenol is 75.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of 15.1%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 28.9% over the past 3-5 years versus the industry average of -2.5%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Amphenol have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.
Bottom LineAmphenol has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Amphenol well for outperformance, so growth investors may want to bet on it.
Amphenol (APH - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Amphenol basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Amphenol imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for AmphenolThis maker of fiber-optic products is expected to earn $4.76 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Amphenol. Over the past three months, the Zacks Consensus Estimate for the company has increased 10.2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Amphenol to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Amphenol (APH - Free Report) Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, and coaxial, high-speed, fiber optic and specialty cable. The company is headquartered in Wallingford, Connecticut.
APH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. APH has a Momentum Style Score of B, and shares are up 3.4% over the past four weeks.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.00 to $4.76 per share. APH also boasts an average earnings surprise of +14.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APH should be on investors' short list.
On July 13, 2026, we present a DCF analysis for Amphenol Corp (APH), a company that has shown significant price performance over the past year, with a remarkabl
Amphenol (APH 1.97%) may be one of the quieter AI infrastructure winners, but its role is becoming harder to ignore. As data centers demand faster, cleaner, and more reliable connectivity, the company's connectors, cables, and interconnect systems could become increasingly important to the physical AI build-out.
Stock prices used were the market prices of June 25, 2026. The video was published on July 11, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amphenol. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Amphenol (APH - Free Report) . This company, which is in the Zacks Electronics - Connectors industry, shows potential for another earnings beat.
This maker of fiber-optic products has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.94%.
For the most recent quarter, Amphenol was expected to post earnings of $0.95 per share, but it reported $1.06 per share instead, representing a surprise of 11.58%. For the previous quarter, the consensus estimate was $0.93 per share, while it actually produced $0.97 per share, a surprise of 4.30%.
Price and EPS Surprise
For Amphenol, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Amphenol currently has an Earnings ESP of +0.43%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 29, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Amphenol (APH - Free Report) Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, and coaxial, high-speed, fiber optic and specialty cable. The company is headquartered in Wallingford, Connecticut.
APH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. APH has a Growth Style Score of A, forecasting year-over-year earnings growth of 42.5% for the current fiscal year.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $4.76 per share. APH boasts an average earnings surprise of +14.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, APH should be on investors' short list.
Amphenol is well-positioned as Nvidia's primary connector supplier, benefiting from hyperscaler AI data center capex and robust IT Datacom growth. APH's IT Datacom segment contributed 41% of revenues in Q1 2026. Strong execution is reflected in APH's 26% operating and 30% cash flow margins, even amid ongoing acquisitions and integration.
On July 07, 2026, Amphenol Corp (APH) shares fell 4.9% today to a current price of $158.61. This decline comes as the stock has seen a 52-week range from a low
On July 02, 2026, Amphenol Corp (APH) shares fell 4.4% to $164.59, reflecting a slight dip over the past week but a significant increase of 68.2% over the last
Key Takeaways Communications Solutions generated $4.53B in sales, up 88% and about 60% of APH revenues.AI-related IT datacom demand drove 99%-dollar growth and 81% organic growth for APH.APH expects second-quarter 2026 sales of $8.1B-$8.2B and adjusted EPS of $1.14-$1.16. Amphenol’s (APH - Free Report) Communications Solutions segment is becoming the company’s primary growth engine. In first-quarter 2026, the segment generated $4.53 billion in sales, up 88% year over year and 47% organically, making up about 60% of APH’s revenues. This growth was driven primarily by strong demand in IT datacom, especially AI-related applications, along with strength in industrial markets and contributions from acquisitions.
Moreover, the Communications Solutions segment’s operating income rose to $1.39 billion from $660.8 million reported in the year-ago quarter. Operating margin expanded to 30.6% from 27.4%, driven by higher volumes, although recent acquisitions are still somewhat margin-dilutive. The segment is also benefiting from Amphenol’s acquisition strategy. The CommScope deal added fiber optic interconnect capabilities for IT datacom and communications networks, as well as building infrastructure connectivity products. This strengthens Amphenol’s exposure to AI data centers, upgraded networks and broader connectivity demand.
Amphenol management’s comments reinforce the growth outlook. IT datacom represented 41% of sales, with revenues rising 99% in dollar terms and 81% organically, driven by AI-related products. With CommScope, Amphenol now has a broader portfolio of high-speed copper, power and fiber optic interconnect products, which management sees as critical for next-generation AI systems. The segment is driving Amphenol’s prospects by combining AI data center demand, network upgrades, acquisition-led portfolio expansion and rising margins. This gives APH a stronger growth profile and better earnings leverage, although integration costs and acquisition-related margin dilution remain near-term factors to watch.
For the second quarter of 2026, APH expects sales of $8.1-$8.2 billion. Adjusted earnings are projected at $1.14-$1.16 per share for the second quarter.
How Rivals Stack Up Against APHAmphenol is increasingly challenged by major rivals such as TE Connectivity (TEL - Free Report) and Bel Fuse (BELFB - Free Report) .
TE Connectivity remains Amphenol’s most formidable rival, matching APH across connectors, sensors and advanced interconnect solutions spanning automotive, industrial, aerospace and high-speed communications. With a vast global footprint, deep customer relationships and a broad product portfolio, TE Connectivity leverages targeted acquisitions and strong AI and EV design wins, especially in hyperscale platforms, to reinforce its leadership and keep pace with APH in the accelerating communications race.
Bel Fuse’s outlook is increasingly supported by rising AI infrastructure spending and the recovery in enterprise networking demand. The Industrial Technology & Data Solutions segment continues to benefit from healthy demand for networking and data infrastructure, with improving momentum in data center connectivity and high-performance computing applications. BELFB is seeing robust bookings from AI-focused customers and enterprise networking clients as hyperscalers invest in next-generation AI architectures, boosting demand for its power conversion, power protection and high-speed interconnect solutions.
APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have surged 27.5% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 18.2%.
APH Stock’s 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 33.18X, higher than the sector’s 24.14.
APH Stock Is Overvalued
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $4.76 per share, unchanged over the past 30 days. The figure indicates a 42.51% jump year over year.
APH currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 30, 2026, Amphenol Corp (APH) shares rose 6.0% to a current price of $176.32, continuing a strong performance over the past year with a 79.8% increase.
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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Amphenol?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Amphenol (APH - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $1.16 a share 26 days away from its upcoming earnings release on July 22, 2026.
APH has an Earnings ESP figure of +1.31%, which, as explained above, is calculated by taking the percentage difference between the $1.16 Most Accurate Estimate and the Zacks Consensus Estimate of $1.15. Amphenol is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
APH is just one of a large group of Computer and Technology stocks with a positive ESP figure. Analog Devices (ADI - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on August 19, 2026, Analog Devices holds a #2 (Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $3.39 a share 54 days from its next quarterly update.
The Zacks Consensus Estimate for Analog Devices is $3.33, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +1.89%.
Because both stocks hold a positive Earnings ESP, APH and ADI could potentially post earnings beats in their next reports.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Amphenol (APH - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Amphenol currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if APH is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of fiber-optic products holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For APH, shares are up 6.61% over the past week while the Zacks Electronics - Connectors industry is up 6.61% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 16.07% compares favorably with the industry's 14.32% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Amphenol have risen 27.47%, and are up 67.78% in the last year. In comparison, the S&P 500 has only moved 12.56% and 22.2%, respectively.
Investors should also take note of APH's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now APH is averaging 9,569,251 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with APH.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost APH's consensus estimate, increasing from $4.29 to $4.78 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that APH is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Amphenol on your short list.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Amphenol (APH - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this maker of fiber-optic products a great growth pick right now.
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Amphenol is 23.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 43% this year, crushing the industry average, which calls for EPS growth of 36.5%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Amphenol is 75.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of -86.7%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 28.9% over the past 3-5 years versus the industry average of -2.9%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Amphenol. The Zacks Consensus Estimate for the current year has surged 0.4% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Amphenol a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Amphenol well for outperformance, so growth investors may want to bet on it.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Amphenol (APH - Free Report) Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, and coaxial, high-speed, fiber optic and specialty cable. The company is headquartered in Wallingford, Connecticut.
APH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Computer and Technology stock. APH has a Momentum Style Score of B, and shares are up 16.1% over the past four weeks.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.49 to $4.78 per share. APH boasts an average earnings surprise of +14.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APH should be on investors' short list.
Key Takeaways AI demand is powering APH, but most revenues still come from non-AI markets.Aerospace, automotive and industrial businesses provide additional growth drivers.CommScope deal expands Amphenol's reach across broadband and data infrastructure. Amphenol Corporation (APH - Free Report) is riding a powerful wave of AI-driven data center spending, but the story goes well beyond AI. The bigger question is whether the company's diverse end markets can keep growth humming when AI demand eventually cools.
Management does not exactly break out AI revenues, but recent results leave little doubt that AI-related IT Datacom demand is doing much of the heavy lifting. First-quarter 2026 sales jumped 58% year over year to $7.6 billion, while orders climbed to $9.4 billion, resulting in a book-to-bill ratio of 1.24. The Communications Solutions segment, which houses the IT Datacom business, grew 88% and accounted for roughly 60% of total sales.
That growth has fueled investor enthusiasm, but it has also raised expectations. APH trades at 32.11X forward earnings, above both its five-year median of 29.26X and the industry average of 31.92X.
Still, AI is not the whole story. IT Datacom represented just over 40% of first-quarter sales, meaning a majority of revenues came from other markets. Automotive demand continues to benefit from rising electronic content per vehicle. Commercial aerospace is gaining from higher production at Boeing and Airbus, while defense spending remains healthy. Industrial demand is supported by factory automation and electrification. Meanwhile, the $10.5 billion acquisition of CommScope's Connectivity and Cable Solutions business broadens Amphenol's exposure to broadband and data infrastructure.
These businesses are unlikely to match AI's current pace of growth, but they should help Amphenol continue outgrowing many peers. That makes the company less dependent on AI than the market often assumes, though its premium valuation leaves little room for disappointment.
How Are Peers Diversifying?Among peers, TE Connectivity plc (TEL - Free Report) and Sensata Technologies Holding plc (ST - Free Report) are also pursuing diversification, though with different emphases.
TE Connectivity serves transportation, industrial equipment, aerospace, defense, energy and communications markets, benefiting from long-term trends such as EV adoption, factory automation and grid modernization. Sensata has expanded beyond its traditional base and now operates across automotive, industrials, and aerospace, defense and commercial equipment markets, with growing exposure to electrification, battery management systems and heavy vehicles. Still, both TE Connectivity and Sensata remain more reliant on transportation and industrial demand than APH.
APH’s Price Performance and EstimatesShares of Amphenol have gained 22.8% in the year-to-date period compared with the broader sector’s rise of 20%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $4.76 per share, implying a 42.5% jump from the year-ago period, followed by another 18.1% growth next year.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Has Amphenol (APH - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.
Amphenol is one of 592 companies in the Computer and Technology group. The Computer and Technology group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Amphenol is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for APH's full-year earnings has moved 10.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that APH has returned about 19.2% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 17.1%. This shows that Amphenol is outperforming its peers so far this year.
One other Computer and Technology stock that has outperformed the sector so far this year is Ambiq Micro, Inc. (AMBQ - Free Report) . The stock is up 177.6% year-to-date.
Over the past three months, Ambiq Micro, Inc.'s consensus EPS estimate for the current year has increased 28.7%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Amphenol is a member of the Electronics - Connectors industry, which includes 2 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, stocks in this group have gained 19.3% this year, meaning that APH is slightly underperforming its industry in terms of year-to-date returns.
Ambiq Micro, Inc., however, belongs to the Electronics - Semiconductors industry. Currently, this 47-stock industry is ranked #58. The industry has moved +57.3% so far this year.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Amphenol and Ambiq Micro, Inc. as they could maintain their solid performance.
Key Takeaways NVT benefits from AI data center demand, with organic orders up about 40% in Q1 2026 and backlog at $2.6B.APH's IT Datacom business surged 99% in Q1 2026, but other markets showed slower growth and mixed demand.NVT trades at a lower forward sales multiple while continuing to expand capacity for future growth. nVent Electric (NVT - Free Report) and Amphenol (APH - Free Report) are two key players in the electrical equipment and connectivity industry. They benefit from growing demand for data centers, electrification and industrial upgrades.
nVent Electric mainly sells electrical enclosures, connections and protection products used across industrial, commercial and infrastructure markets, including data centers. Amphenol designs and manufactures electrical, electronic and fiber-optic connectors and interconnect systems for a wide range of industrial and technology applications.
Both NVT and APH are positioned to benefit from long-term infrastructure and data-center investment trends. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for nVent Electric StocknVent Electric is benefiting from strong demand for data center infrastructure, which is becoming a major driver of its revenue growth. In the first quarter of 2026, the company reported organic sales growth of 34%, with infrastructure sales rising nearly 80% year over year. Management said data centers were the biggest contributor to growth, helping the company deliver record sales, orders and backlog.
The company is seeing demand across both gray-space and white-space data center applications. In the gray space, growth was driven by engineered buildings, enclosures and power connections. In the white space, liquid cooling, power distribution units and cable management solutions performed well. Management noted that growth was broad-based across the portfolio and supported by demand from hyperscalers, neocloud providers, multitenant operators and distribution partners.
nVent Electric's order trends also remain strong. Organic orders increased about 40% in the first quarter, largely driven by AI data center projects. Backlog reached a record $2.6 billion, rising in the low double digits sequentially. The company stated that most of its backlog extends beyond 12 months and into 2027, providing visibility into future revenues. In the first quarter, new products added more than 20 percentage points to sales growth, with many of those products tied to data center applications.
To support demand, nVent Electric is increasing capacity across its operations, which should help the company generate more revenue once fully ramped up. The company recently opened its new Blaine, MN, facility and expects production to ramp through 2026. It is also investing in additional capacity for liquid cooling and other data center products. Overall, the above-mentioned factors show that data center demand is likely to remain an important revenue growth driver for the company.
The Case for Amphenol StockAmphenol is seeing strong growth from rising investments in AI data centers, on the back of rising demand for the company’s products, which are used to transfer data and power inside AI servers, racks and data centers. In the first quarter of 2026, Amphenol’s IT Datacom segment delivered exceptional results. Sales in the IT Datacom segment increased 99% year over year and 81% organically. The segment accounted for 41% of total company sales, making it Amphenol’s largest business.
Demand for AI-related products remained the biggest growth driver during the first quarter. IT Datacom sales increased 27% sequentially, and 16% on an organic basis. Management noted that virtually all of this organic sequential growth came from AI-related products. Customer demand also remained strong. Amphenol reported record company-wide orders of $9.4 billion and a book-to-bill ratio of 1.24. Management noted that customers continue to increase purchases for AI infrastructure projects and are asking for more products as they expand data center capacity.
The company remains well-positioned to benefit from future AI spending. Amphenol supplies a broad range of high-speed copper, fiber-optic and power interconnect products that are used throughout AI data centers. The recent CommScope acquisition further expanded the company’s fiber and connectivity offerings, allowing it to participate in more areas of the data center architecture. Looking ahead, management expects IT Datacom sales to increase in the low teens sequentially in the second quarter of 2026. The outlook is supported by continued investments in AI data centers as well as healthy demand from enterprise and cloud customers.
While AI-related demand remains very strong, some of Amphenol's other businesses are growing at a much slower pace. In the mobile devices end market, organic sales increased only 1% in the first quarter. Management said growth in laptops and accessories was offset by weaker demand for handsets and wearables. The company expects mobile device sales to decline modestly in the second quarter of 2026 due to normal seasonal patterns.
In communications networks, organic sales were flat year over year. Here, stronger wireless demand was offset by weaker broadband demand. In the second quarter of 2026, sales in this market are expected to remain at first-quarter levels, indicating no meaningful near-term growth. The above-mentioned factors show that most of Amphenol's current growth is coming from AI-related IT datacom products. If AI spending slows, the slower growth in mobile devices and communications networks markets could weigh on the company's prospects in the near term.
NVT vs. APH: Earnings Estimate TrendThe Zacks Consensus Estimate for NVT’s 2026 and 2027 EPS is pegged at $4.55 and $5.57, respectively. The estimates for fiscal 2026 and 2027 have been revised upward by 9.6% and 15.1%, respectively, over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for APH’s 2026 and 2027 EPS is pinned at $4.76 and $5.62, respectively. The estimates for 2026 and 2027 have been revised upward by 11.7% and 9.3%, respectively, over the past 60 days.
Image Source: Zacks Investment Research
NVT vs. APH: Price Performance and ValuationYear to date, nVent Electric shares have rallied 74.3%, and shares of Amphenol have risen 21.6%.
NVT vs. APH: YTD Price Return Performance
Image Source: Zacks Investment Research
Currently, nVent Electric is trading at a forward sales multiple of 5.39X, lower than Amphenol’s forward sales multiple of 5.66X. APH does seem pricey compared with NVT. In contrast, NVT’s reasonable valuation makes it more attractive for investors looking for value and stability.
NVT vs. APH: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: NVT Has an Edge Over APHBoth nVent Electric and Amphenol are benefiting from higher spending on AI data centers and infrastructure. However, APH’s near-term prospects suffer from weakness in mobile devices and communications networks end markets, which could limit near-term growth.
In contrast, nVent Electric is experiencing strong demand for data center infrastructure, which is helping drive strong orders and a growing backlog. Further, NVT’s reasonable valuation offers some downside protection as well, making the stock an attractive buy.
Currently, nVent Electric sports a Zacks Rank #1 (Strong Buy), giving a clear edge over Amphenol, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol (APH) remains a buy, driven by the ongoing AI investment boom despite its expensive valuation. APH is positioned to benefit from AI-driven demand, enabling price hikes and robust free cash flow growth if the AI cycle persists. Risks include heavy China exposure, potential AI bubble burst, and technological shifts that could reduce component demand.
Key Takeaways Defense accounted for 8% of APH's Q1 2026 sales and grew 44% YoY in U.S. dollars.Trexon expanded Amphenol's aerospace and defense interconnect portfolio, strengthening key capabilities.APH expects defense sales to rise in the high single-digit range sequentially in Q2. Amphenol Corporation (APH - Free Report) is strengthening its position in the defense electronics market as governments worldwide increase investments in military modernization and advanced defense capabilities. Rising geopolitical tensions and growing demand for next-generation military technologies are creating opportunities across areas such as missile defense, smart munitions, radar systems and secure communications — all of which require highly reliable interconnect solutions.
The company has steadily expanded its defense presence through both organic investments and acquisitions, including Trexon. The acquisition strengthened APH's portfolio of specialized wire, cable and interconnect solutions used in aerospace and defense applications, complementing its broader RF and connectivity offerings. These capabilities are helping the company serve both established defense contractors and a growing group of emerging defense technology providers.
The defense market accounted for 8% of APH's first-quarter 2026 sales and grew 44% year over year in U.S. dollars, including 25% organic growth. The strength was broad-based, spanning multiple defense applications and geographies, highlighting the company's growing exposure to military modernization efforts worldwide.
Demand trends also remain favorable heading into the second quarter, with defense sales expected to increase in the high single-digit range sequentially. Supported by strong execution and expanding opportunities across defense markets, the segment could emerge as a long-term growth driver for Amphenol.
APH Faces Rising CompetitionSome of APH’s competitors in the defense space include TE Connectivity plc (TEL - Free Report) and Bel Fuse Inc. (BELFB - Free Report) .
TE Connectivity continues to benefit from rising defense spending through its portfolio of ruggedized connectors, sensors and electronic components used in military vehicles, communications systems and aerospace platforms. TEL reported 5% organic growth in its Aerospace, Defense and Marine segment in the second quarter of fiscal 2026.
Bel Fuse is sharpening its focus on defense and aerospace opportunities through its Aerospace, Defense & Rugged Solutions segment. By combining connectivity and power technologies for mission-critical applications, BELFB is enhancing its ability to serve defense, space and rugged industrial markets while expanding its role as a solutions provider. In the first quarter of 2026, the unit’s sales rose 20.1% year over year.
APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have surged 64.7% over the past year, outperforming the broader Zacks Computer and Technology sector’s 42.6% growth.
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 29.87X, higher than the sector’s 24.60X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings implies 42.5% growth from the year-ago period.
Image Source: Zacks Investment Research
APH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On June 15, 2026, we take a closer look at the DCF analysis for Amphenol Corp APH amidst its recent price performance. The stock has shown impressive gains, with a year-to-date increase of 14.0% and a remarkable 63.7% rise over the past year.
DCF Earnings-based intrinsic value of $87.11 vs current price of $153.80 (margin of safety: -76.6%) DCF FCF-based intrinsic value of $83.39 vs current price (second opinion) GF Score™ of 94/100 indicating high reliability of the DCF inputs What Is APH Worth? DCF Earnings-Based Model The DCF earnings-based model for Amphenol Corp considers a two-stage growth approach. In the first stage, we project earnings growth over the next ten years at a rate of 15.5%. This growth is then discounted at a rate of 11%, which is derived from the risk-free rate and equity risk premium. In the second stage, we apply a terminal growth rate of 4% for the following ten years, also discounted at 11%. The assumptions used in this model are summarized in the table below:
Parameter Value Current EPS (TTM, excl. non-recurring) $3.77 10-Year Growth Rate 15.5% 10-Year Treasury Rate 4.45% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), the EPS is expected to grow at 15.5% per year, resulting in a value of $47.22 per share when discounted at 11%. Following this, in the terminal phase (Years 11-20), the growth rate slows to 4%, leading to a terminal stage value of $39.89 per share. The summary of these calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 15.5%, discounted at 11% $47.22 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $39.89 Intrinsic Value Growth + Terminal $87.11 With the current price at $153.80, the intrinsic value of $87.11 indicates that the stock is modestly overvalued, with a margin of safety of -76.6%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access the APH DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Amphenol Corp is calculated at $83.39. When comparing this value with the earnings-based intrinsic value of $87.11, both models indicate that the stock is modestly overvalued, with a margin of safety of -84.4%. This alignment between the two valuation methods provides a consistent perspective on the stock's current valuation status.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Amphenol Corp is calculated at $135.86, offering a third perspective on the stock's valuation. GF Value™ is GuruFocus' proprietary measure, derived from historical trading multiples, past business growth, and future performance estimates. Notably, all three models—the DCF earnings-based, DCF FCF-based, and GF Value™—suggest that the stock is overvalued at its current price. For more information, visit the GF Value™ page.
What Does APH's GF Score™ Tell Us? The GF Score™ for Amphenol Corp stands at an impressive 94/100, indicating strong potential for long-term returns based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated superior returns. Below is a summary of APH's GF Score™ metrics:
Metric Rating GF Score™ 94/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 6/10 Momentum 8/10 With a predictability rank of 1/5 stars, it is essential to note that higher predictability ratings typically enhance the reliability of DCF models. For more insights, check the APH stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as APH's 1/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions.
What This Means for Investors In summary, the DCF earnings-based model, DCF FCF model, and GF Value™ all point towards Amphenol Corp being overvalued at its current price of $153.80. Given the significant discrepancies between the intrinsic values and the market price, investors may want to exercise caution.
For the full DCF analysis, visit the APH DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is APH's intrinsic value based on DCF?
earnings-based $87.11, FCF-based $83.39
Is APH overvalued or undervalued?
Based on the DCF earnings and FCF models, as well as GF Value™, APH is considered overvalued.
How reliable is the DCF model for APH?
The DCF model's reliability is limited due to a predictability rank of 1/5 stars.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Amphenol posted a 27.3% Q1 operating margin, up 380 bps year over year on strong sales growth.APH expects Q2 revenue of $8.1B-$8.2B, driven by AI demand and CommScope acquisition benefits.TE Connectivity and Astera Labs are intensifying competition with strong growth and margin gains. Amphenol (APH - Free Report) delivered a strong operating margin expansion in the first quarter of 2026. The company reported a non-GAAP operating margin of 27.3% for the first quarter, indicating a 380 basis points (bps) expansion from the year-ago quarter’s 23.5%. The strong year-over-year improvement was primarily driven by higher sales volumes and a robust operating leverage.
Amphenol recorded operating margin expansion across every business segment. Growth was led by the Communications Solutions segment, where operating margin expanded 320 bps year over year to 30.6%, benefiting from strong AI infrastructure and hyperscale data center demand.
Margins also improved across the Harsh Environment Solutions and Interconnect & Sensor Systems businesses, reflecting broad-based operational strength. The operating margin for Harsh Environment Solutions increased 350 bps to 28%, while that for Interconnect and Sensor Systems grew 210 bps to 20.2%.
Looking ahead to second-quarter 2026, Amphenol expects revenues between $8.1 billion and $8.2 billion, representing a 43-45% increase over the prior-year quarter. The company also expects adjusted EPS of $1.14-$1.16, representing a 41% to 43% increase over the prior-year quarter. The guidance suggests continued healthy demand and operating leverage, which should support strong margin expansions. Benefits from the CommScope acquisition, expanding AI-related deployments and strong order momentum, reflected in a 1.24:1 book-to-bill ratio, are likely to aid profitability.
However, potential pressure from tariffs and raw material inflation could weigh on margin expansion. Still, Amphenol’s diversified end-market exposure, scale advantages and strong execution position the company well to sustain elevated operating margins in the coming quarter.
APH Suffers From Tough CompetitionAmphenol is increasingly challenged by major rivals such as TE Connectivity (TEL - Free Report) and Astera Labs (ALAB - Free Report)
TE Connectivity is a major competitor to Amphenol, offering connectors, sensors and high-speed interconnects across automotive, industrial, aerospace and communications markets. Supported by a global presence, strong customer relationships and acquisitions, TE Connectivity is expanding in AI and EV platforms. In the second quarter of fiscal 2026, TEL posted revenues of $4.74 billion, up 15% year over year (7% organic), with the adjusted operating margin rising 130 bps to 22%.
For the third quarter of 2026, TE Connectivity expects total revenues of approximately $5 billion, representing 10% year-over-year growth. The company guided adjusted earnings per share of around $2.83, indicating a year-over-year increase of 17%.
Astera Labs is emerging as a strong challenger to Amphenol, driven by its focus on PCIe 6 and CXL solutions for AI infrastructure. It's Aries, Taurus and Scorpio platforms support high-speed, low-latency connectivity for next-gen graphics processing units. In the first quarter of 2026, Astera Labs’ revenues jumped 93% year over year to $308.4 million, while non-GAAP operating margin expanded 250 bps to 36.2%. For the second quarter of 2026, Astera Labs expects total revenues in the range of $355 million to $365 million, indicating year-over-year growth of 85-90%. Non-GAAP operating margin is expected to be approximately 37% for the second quarter, indicating a year-over-year contraction of 220 bps.
APH Share Price Performance, Valuation & EstimatesAmphenol shares have lost 4.4% year to date, underperforming the broader Zacks Computer and Technology sector’s 17.3% increase.
APH Stock’s Price Performance
Image Source: Zacks Investment Research
The APH stock is trading at a discount, with a trailing 12-month price/book of 11.29X compared with the Zacks Computer and Technology sector’s 11.73X. APH has a Value Score of D.
APH Stock Is Undervalued
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter 2026 earnings is currently pegged at $1.15 per share, revised upward by 10 cents over the past 30 days, suggesting approximately 42% year-over-year growth.
Amphenol currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Vertiv is expanding AI data center capabilities through liquid-cooling and thermal management acquisitions. APH saw IT datacom sales jump 81% organically in Q1 2026 on rising AI infrastructure demand. VRT shares surged 133.2% YTD, while APH fell 4.4% amid macro and debt-related pressures. Vertiv (VRT - Free Report) and Amphenol (APH - Free Report) are major players in the AI and data center infrastructure market, supplying critical power, cooling and connectivity solutions used in hyperscale and enterprise data centers. While Vertiv delivers critical power and cooling solutions for data centers fueling the AI boom, Amphenol provides the high-performance connectors and interconnect systems critical to data center operations.
So, VRT or APH — Which of these AI Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for VRTVertiv is a leading provider of thermal and power management solutions for data centers that consume immense amounts of power. The increasing complexity of AI hardware and edge computing further increases the demand for power. Vertiv’s energy-efficient power and cooling solutions play a critical role in this aspect.
Acquisitions have played an important role in further expanding Vertiv’s footprint. The company recently announced the acquisition of Strategic Thermal Labs, a specialist in advanced liquid-cooling technologies, to strengthen its capabilities in high-density data center environments.
The deal enhances Vertiv’s engineering expertise in cold-plate design, server-side liquid cooling and thermal validation, enabling better system performance, reliability and lifecycle outcomes. It also supports Vertiv’s broader thermal-chain strategy by improving the integration between server-level cooling and infrastructure, which is increasingly critical for AI and high-performance computing workloads. The acquisition reinforces Vertiv’s position in addressing rising heat challenges, driven by growing compute demands.
Vertiv is benefiting from strong international expansion, which is increasingly becoming a key driver of its growth and a signal for further upside potential. In the first quarter of 2026, Vertiv reported robust organic sales growth across multiple regions, with the Americas leading at 44% organic growth, APAC up 12% and EMEA expected to rebound in the second half of the year.
The Case for APH StockAmphenol is benefiting from the surge in demand for AI infrastructure, which has become a transformative force for the company’s growth and market positioning. The company’s high-speed and power interconnect products are increasingly tied to AI data-center buildouts.
In the first quarter of 2026, IT datacom represented about 41% of sales and grew 81% organically year over year. This robust performance was driven by accelerating investments in AI data centers and the company’s ability to capture a significant share of this unique interconnect opportunity. Management expects further sequential growth in the second quarter, with IT datacom sales increasing in the low teens as customers expand demand for both AI and traditional datacom.
Amphenol's recent acquisition of CommScope has further expanded its portfolio to include the industry's broadest range of high-speed copper, power, and fiber optics interconnect products. This enables Amphenol to serve customers across the entire AI ecosystem, from data center operators and system manufacturers to chip makers, supporting both current and next-generation architectures.
APH continues to benefit from accelerating AI infrastructure spending, supported by a diversified business model and an expanding portfolio strengthened through multiple acquisitions. The company exited first-quarter 2026 with record orders of $9.4 billion and a book-to-bill ratio of 1.24x.
Price Performance and Valuation of VRT and APHIn the year-to-date period, Vertiv’s shares have skyrocketed 133.2%, while Amphenol’s shares have lost 4.4%. The outperformance of VRT stock can be attributed to its extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbars, and modular solutions. Vertiv remains leveraged to rising data center power and thermal needs as AI deployments drive higher infrastructure density and faster build cycles.
The decline in APH stock can be attributed to a challenging macroeconomic backdrop, rising geopolitical risks, and elevated debt levels.
VRT and APH Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, Vertiv and Amphenol shares are currently overvalued as suggested by a Value Score of D.
In terms of trailing 12-month Price/Book, Vertiv shares are trading at 34.04X, higher than Amphenol’s 11.29X.
VRT and APH Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for VRT & APH?The Zacks Consensus Estimate for Vertiv’s 2026 earnings is currently pegged at $6.42 per share, which has increased 3.8% over the past 30 days. This represents a 52.86% year-over-year rise.
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is currently pegged at $4.76 per share, which has increased 11.4% over the past 30 days. This represents a 42.51% year-over-year rise.
Vertiv earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 14.65%. APH earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 14.08%. The average surprise of Vertiv is higher than that of Amphenol.
ConclusionWhile both Vertiv and Amphenol stand to benefit from the AI infrastructure boom, Vertiv’s stronger earnings momentum, diversified growth drivers, and consistent performance suggest it may offer greater upside potential in the near term.
Despite APH's expanding portfolio, a challenging macroeconomic environment, and rising debt levels remain a concern.
Both Vertiv and Amphenol carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amphenol offers a compelling GARP opportunity, driven by a competitive moat, diversified end markets, and accelerating growth in AI data centers. The company is rated a 'Buy' below ~$130, with a fair value estimate of $158.35, implying 27% upside, supported by robust organic growth and margin expansion. The current strategy involves a half-position at $125, with plans to add on pullbacks or via options strategies ahead of earnings and trim above fair value.
On May 22, 2026, Amphenol Corp (APH) shares rose 5.8% today, bringing the current price to $132.06. The stock has experienced a 52-week range of $83.44 to $167.
Amphenol is positioned as an essential enabler of technological progress, supplying critical connectors and cable systems for AI, data centers, EVs, and robotics. APH's organic growth in AI infrastructure exceeds 80% annually, and robotics adoption is an underappreciated future catalyst for exponential product demand. Despite rapid revenue and profit growth, APH trades at a forward P/E of 26—mispriced relative to its high-growth, high-margin profile and sector leadership.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Amphenol (APH - Free Report) Amphenol designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products, and coaxial, high-speed, fiber optic and specialty cable. The company is headquartered in Wallingford, Connecticut.
APH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. APH has a Growth Style Score of B, forecasting year-over-year earnings growth of 42.5% for the current fiscal year.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.49 to $4.76 per share. APH boasts an average earnings surprise of +14.1%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, APH should be on investors' short list.
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks.
Amphenol (APH - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this maker of fiber-optic products a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Amphenol is 23.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 42.4% this year, crushing the industry average, which calls for EPS growth of 38%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Amphenol is 75.8%, which is higher than many of its peers. In fact, the rate compares to the industry average of -86.7%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 28.9% over the past 3-5 years versus the industry average of -13.1%.
Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Amphenol. The Zacks Consensus Estimate for the current year has surged 9.7% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Amphenol a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Amphenol is a potential outperformer and a solid choice for growth investors.
Key Takeaways RF Industries is diversifying beyond telecom into aerospace, medical and edge data centers.APH is seeing strong AI data center demand for high-speed copper, power and fiber products.Amphenol's broad market reach and scale position it for sustained connectivity growth. The connectivity infrastructure market is witnessing strong demand growth, fueled by expanding data center investments, rising network upgrades and increasing adoption of high-speed communication technologies. Against this backdrop, RF Industries, Ltd. (RFIL - Free Report) and Amphenol Corporation (APH - Free Report) have emerged as notable players in the connectivity space, serving industries ranging from telecommunications and industrial automation to aerospace and defense.
While RF Industries is benefiting from improving operational execution and niche market exposure, Amphenol continues to leverage its scale, diversified portfolio and strong global presence. With both companies positioned to capitalize on long-term connectivity trends, investors may wonder which stock currently offers the stronger investment opportunity.
The Case for RFILOne of the biggest positives for RF Industries is its growing diversification across products, customers and end markets. Management highlighted that the business is no longer heavily dependent on a few telecom projects, as it is now generating opportunities across aerospace, industrial, medical, government, cable and edge data center markets. This broader exposure is helping RF Industries reduce cyclicality and build a more stable revenue base. The company also noted that strong demand in custom cable solutions helped offset delays in other segments during the quarter, showcasing the benefits of its diversified strategy.
Another encouraging factor is RF Industries’ improving profitability and operating leverage. Despite relatively flat sales, the company delivered meaningful margin expansion in the first quarter through pricing discipline, product mix improvements and operational efficiencies. Gross margin improved significantly year over year, while adjusted EBITDA also increased sharply. Management believes the company can sustain margins above the 30% level as higher-value products and stronger execution continue supporting profitability. The company’s capital-light manufacturing model and improved supply-chain flexibility are also helping boost efficiency without requiring major spending increases.
RF Industries is also benefiting from rising traction in its thermal cooling and small-cell solutions. Management emphasized growing customer interest in its DAC thermal cooling systems, particularly for edge data center and industrial applications. The company believes these solutions address a major unmet need at the edge of networks by lowering energy consumption and reducing maintenance requirements. RF Industries is already seeing installations, customer trials and repeat orders from blue-chip clients, which could support long-term growth opportunities in newer markets. In addition, backlog expanded strongly during the quarter, reflecting improving demand visibility heading into the rest of fiscal 2026.
On the downside, RF Industries still operates on a much smaller scale than larger peers, making earnings growth somewhat sensitive to project timing and customer spending patterns. Management acknowledged that backlog can fluctuate materially between quarters depending on when orders are received or fulfilled. The company also remains exposed to macroeconomic uncertainty, evolving tariff conditions and delays in customer projects, particularly in telecom-related markets. While diversification is improving stability, the business is still in the process of scaling its newer growth initiatives.
The Case for APHAmphenol’s biggest advantage in the connectivity space is its unmatched scale and diversification across end markets. The company continues to generate strong growth across IT datacom, industrial, defense, automotive and communications networks, reducing dependence on any single market cycle. Management emphasized that this broad exposure allows Amphenol to benefit from multiple long-term technology trends simultaneously, including artificial intelligence infrastructure, next-generation defense systems and industrial automation. The company’s balanced portfolio also provides stability and flexibility that smaller competitors often struggle to match.
Another major strength for Amphenol is its dominant position in AI-driven connectivity solutions. The company reported exceptional momentum in its IT datacom business, fueled by rising demand for high-speed copper, power and fiber-optic interconnect products used in AI data centers. Management noted that customers continue demanding more capacity as AI architectures become increasingly complex. Following the CommScope acquisition, Amphenol now offers one of the industry’s broadest connectivity portfolios, enabling it to participate across multiple layers of AI infrastructure. This positions the company to benefit from long-term data center expansion and rising networking complexity.
Amphenol also stands out for its strong execution capabilities and profitability profile. The company delivered record sales, robust order growth and impressive margin expansion during the quarter, reflecting operational discipline and pricing strength. Management repeatedly highlighted Amphenol’s ability to rapidly scale production, support customers during heavy-demand cycles and reinvest cash flows into new technologies and capacity expansion. This execution track record has helped the company gain market share across several connectivity markets while strengthening relationships with hyperscalers, telecom providers and industrial customers.
RFIL vs. APH: Whose Earnings Forecast Looks Better?The Zacks Consensus Estimate for RFIL’s fiscal 2026 sales implies a 7.5% year-over-year increase. The consensus estimate for 2026 earnings per share is 58 cents, compared with 40 cents reported in 2025. Earnings estimates for the current year have remained stable in the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for APH’s 2026 sales and EPS implies year-over-year growth of 44.4% and 42.5%, respectively. Earnings estimates for 2026 have increased in the past 30 days.
Image Source: Zacks Investment Research
Price Performance & ValuationRFIL stock has surged 344.5% in the past year compared with the S&P 500’s growth of 31.9%. Conversely, APH's shares have risen 59.2% in the same time frame.
Price Performance
Image Source: Zacks Investment Research
RFIL is trading at a forward 12-month price-to-earnings ratio of 39.43X, above its median of 32.59X over the last year. APH’s forward earnings multiple sits at 27.46X, below its median of 34.22X over the same time frame.
P/E (F12M)
Image Source: Zacks Investment Research
Wrapping UpBoth companies are benefiting from rising demand for connectivity infrastructure, but Amphenol appears to hold the stronger overall position at this stage. The company combines large-scale operations, broad end-market diversification and a dominant presence in fast-growing AI data center connectivity solutions, giving it multiple growth drivers beyond traditional telecom spending.
Amphenol’s stronger execution capabilities, deeper customer relationships and ability to rapidly scale production also provide a competitive edge in capturing next-generation networking and AI infrastructure opportunities. While RF Industries is making meaningful progress through diversification and improving profitability, it remains a smaller player that is still scaling its newer growth initiatives and remains more vulnerable to project timing fluctuations. Overall, Amphenol currently looks better positioned for sustained long-term growth and stability in the evolving connectivity market.
RFIL currently carries a Zacks Rank #3 (Hold), whereas APH has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Now some investors are looking even deeper into the AI ecosystem.
According to Josh Rubin, client portfolio manager at Thornburg Investment Management, investor interest is increasingly expanding beyond Nvidia and AI platform companies into other parts of the supply chain, particularly in Asia.
That shift could create a new group of AI winners.
The AI Supply Chain Trade Expands“The AI trade” has become one of Wall Street’s most crowded themes, but Rubin argues the story continues to broaden as investors gain confidence that AI spending is not a short-lived trend.
“There continues to be greater clarity on the duration of AI-related investment, and broader investor interest beyond Nvidia and AI platform companies or hyperscalers into more parts of the supply chain,” Rubin said.
The reasoning is straightforward. While Nvidia remains the face of the AI boom, every AI chip requires a vast network of suppliers providing manufacturing, memory, packaging, networking, power and cooling infrastructure.
As AI spending continues to surge, many of those suppliers are seeing earnings growth that increasingly reflects improving business fundamentals rather than speculative enthusiasm.
The Companies Behind NvidiaBeyond chips and memory, the AI boom is creating opportunities for companies supplying the infrastructure surrounding Nvidia systems.
As next-generation AI systems consume more electricity and generate more heat, the infrastructure supporting them is becoming increasingly valuable.
The Next Phase Of The AI BoomRubin believes earnings growth across much of the AI supply chain has largely been supported by improving profit outlooks rather than dramatic valuation expansion.
That distinction matters.
As investors gain greater visibility into the length of the AI investment cycle, some supply-chain companies could see both earnings growth and higher valuation multiples.
Still, Rubin cautioned that not every company will benefit equally.
“Not all companies will make super profits through the cycle,” he said, noting that some parts of the supply chain may expand capacity more quickly and eventually pressure margins.
For now, however, the AI spending wave continues to spread beyond chip designers and cloud giants.
Nvidia may still be the center of the AI universe. But the next group of winners could be the companies helping Nvidia build it.
Photo: YAKOBCHUK V on Shutterstock.com
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It has been about a month since the last earnings report for Amphenol (APH - Free Report) . Shares have added about 0.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amphenol due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Amphenol Corporation before we dive into how investors and analysts have reacted as of late.
Amphenol’s Q1 Earnings Beat Estimates, Revenues Up Y/YAmphenol delivered record first-quarter 2026 results, with adjusted earnings of $1.06 per share, up 68.3% from the year-ago quarter and beating the Zacks Consensus Estimate by 11.6%.
Revenues surged 58.4% year over year to $7.62 billion and topped the consensus mark by 7.2%. Strength in the IT datacom market and contributions from acquisitions helped lift performance, while quarterly orders reached $9.4 billion, translating to a book-to-bill of 1.24:1.
APH Posts Broad-Based Organic GrowthA key feature of the reported quarter was the pace of underlying demand. On a non-GAAP basis, Amphenol reported organic net sales growth of 33% year over year, with constant-currency (cc) net sales growth of 57%. Acquisitions added a meaningful layer of expansion, with acquisition impact quantified at 23% of net sales growth.
The company also highlighted the completion of the acquisition of CommScope’s Connectivity and Cable Solutions business during the quarter. Management tied its strategy to expanding its range of high-technology interconnect products through both innovation and acquisitions, positioning the company to benefit as electronics content rises across multiple end markets.
Amphenol Sees IT Datacom Lead Segment UpsideCommunications Solutions remained the largest contributor, generating net sales of $4.53 billion in the quarter. The segment also produced an operating margin of 30.6%, pointing to strong mix and execution as demand accelerated in high-technology connectivity applications.
Harsh Environment Solutions posted sales of $1.69 billion and an operating margin of 28.0%. Interconnect and Sensor Systems delivered $1.39 billion of sales with a 20.2% operating margin, reflecting steady contributions from a broad portfolio that spans sensors, specialty cable and interconnect systems.
APH Margins Expand as Profitability StrengthensProfitability improved alongside scale, with gross margin, on a GAAP basis, expanding 260 basis points (bps) year over year to 36.7%. Selling, general and administrative expenses were $851.5 million, up 48% year over year.
GAAP operating income rising to $1.83 billion and operating margin expanding to 24%, up 270 bps. On an adjusted basis, operating margin increased to 27.3%, as the company absorbed costs tied to its acquisition program while sustaining strong segment-level profitability.
Amphenol’s Balance Sheet & Cash Flow DetailsAmphenol ended the quarter with $4.13 billion of cash and cash equivalents and $4.58 billion of cash, cash equivalents and short-term investments. As of Dec. 31, 2025, Amphenol had cash and cash equivalents worth $11.43 billion.
Amphenol generated $1.12 billion of operating cash flow in the reported quarter, and free cash flow totaled $831 million after $292 million of capital spending, underscoring solid cash generation even as the company executed a large acquisition. Management continues to highlight operating and free cash flow as key sources of financial flexibility.
Capital allocation remained active. During the reported quarter, Amphenol repurchased 1.3 million shares for $178 million and paid $307 million in dividends, returning nearly $485 million to shareholders.
APH Outlines Higher Q2 Sales and Earnings RangeFor the second quarter of 2026, APH expects sales of $8.1-$8.2 billion, assuming the continuation of current market conditions and constant exchange rates. Management framed the outlook around accelerating electronics innovation and an expanded product set following the CommScope transaction, with demand opportunities spanning the company’s diversified end markets.
Adjusted earnings are projected at $1.14-$1.16 per share for the second quarter. Amphenol also emphasized its ability to dynamically adjust to changing market conditions while continuing to invest in growth and pursue long-term value creation.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 10.1% due to these changes.
VGM ScoresCurrently, Amphenol has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Amphenol has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways APH posted record Q1 2026 sales of $7.6B, up 58% YoY, with orders rising 78% to a record $9.4B.Amphenol offers copper, optical and power products, supporting diverse AI system architectures.APH's IT datacom business grew 81% organically and generated 41% of total first-quarter sales. Amphenol Corporation (APH - Free Report) is steadily expanding its role in the AI infrastructure ecosystem as demand for high-performance connectivity and power solutions continues to accelerate. In first-quarter 2026, the company reported record sales of $7.6 billion, up 58% year over year, while orders climbed 78% to a record $9.4 billion. The strong momentum was driven by its acquisition program and IT datacom business, which benefited from continued investments in AI data centers and cloud infrastructure.
A key advantage for Amphenol is the breadth of its product portfolio. The company now offers high-speed copper interconnects, power solutions, passive optical products and active optical technologies. This positions APH to participate across multiple AI architectures rather than betting on a single technology path. As customers evaluate copper, optical and hybrid designs for next-generation AI systems, the company remains well-positioned to support a wide range of evolving connectivity requirements.
The recent acquisition of CommScope’s Connectivity and Cable Solutions business further enhances this opportunity. Beyond strengthening the company's connectivity capabilities, the deal expands Amphenol's presence across the broader data-center ecosystem, creating opportunities across network infrastructure and next-generation AI data-center deployments. This creates additional avenues for growth as AI clusters become larger, faster and more complex.
Driven by accelerating AI-related product demand, the company's IT datacom business delivered 81% organic growth in the first quarter and accounted for 41% of total sales. With an expanding portfolio, deeper data-center exposure and growing relevance across evolving AI architectures, APH is increasingly strengthening its role in both AI connectivity and power delivery solutions.
APH Faces Stiff Competition in the AI Infrastructure SpaceAmphenol operates in a highly competitive AI infrastructure market, contending with strong rivals such as TE Connectivity plc (TEL - Free Report) and Broadcom Inc. (AVGO - Free Report) .
TE Connectivity is becoming a strong competitor in the AI infrastructure space by focusing on high-density data and power connectivity solutions for large-scale (hyperscale) systems. In the second quarter of fiscal 2026, TEL’s net sales rose 15% year over year, supported by its Transportation and Industrial segments.
Broadcom poses a strong competitive challenge to Amphenol in AI infrastructure, controlling the silicon, switching and optical technologies that form hyperscale AI architectures. AVGO’s total revenues increased 48% year over year in the second quarter of fiscal 2026, supported by higher demand for custom AI accelerators and AI networking.
APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have gained 15.4% over the past six months compared with the broader Zacks Computer and Technology sector’s 13.3% growth.
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 29.03X, higher than the sector’s 24.01X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s fiscal 2026 earnings implies 42.5% growth from the year-ago period.
Image Source: Zacks Investment Research
APH currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amphenol (NYSE:APH | APH Price Prediction) is a stock built to be owned for decades, because every meaningful electronics megatrend of the next twenty years (AI infrastructure, defense modernization, vehicle electrification, factory automation) physically depends on the connectors, sensors, and cables it sells.
For a retirement-focused investor who wants to stop watching the screen, Amphenol is the rare industrial that earns its place in a permanent portfolio. Roughly $1,500 buys about ten shares at the recent price of $149.22, and the case for holding them indefinitely rests on three pillars.
Pillar 1: Durability That Does Not Depend on One Cycle Amphenol sells into automotive electrification, military communication infrastructure, aerospace modernization, and cloud data centers through three reportable segments and manufacturing in approximately 40 countries. The company’s highly decentralized corporate architecture lets local teams adjust pricing and production in real time, and a steady acquisition program (five deals in 2025 plus the CommScope CCS close in Q1 2026) keeps widening the product moat. CEO Adam Norwitt frames the underlying tailwind directly: “The revolution in AI continues to create a unique opportunity for Amphenol, given our leading high-speed and power interconnect products.” Interconnects are the invisible plumbing. The plumbing does not go away.
Pillar 2: Compounding Income and Cash Returns The dividend was raised 52% in Q3 2025, from $0.165 to $0.25 per share, and Amphenol returned nearly $1.5 billion to shareholders in 2025 through dividends and buybacks. Cash generation funds it: full-year 2025 free cash flow reached $4.39 billion, up 104.39% year over year, with another $831.2 million in Q1 2026. Revenue per share, margins, and the payout have all expanded together for years, which is the textbook profile of a serial compounder.
Pillar 3: Survival Through Market Cycles Profitability has held through every recent macro shock. Adjusted operating margin was 27.3% in Q1 2026, 27.5% in both Q4 and Q3 2025, and 26.2% for full-year 2025. Gross margin has climbed from 31.0% in 2020 to 36.9% in 2025, and EBITDA went from $1.95 billion in 2020 to $6.89 billion in 2025. Q1 2026 also delivered record orders of $9.4 billion and a book-to-bill of 1.24:1, giving multi-quarter forward visibility.
The One Scenario Where It Underperforms A deep recession paired with a sharp pullback in AI data center capex would slow Amphenol meaningfully. Leverage is also higher than usual after $3.65 billion in new senior notes funded CommScope, interest expense more than doubled YoY to $207.9 million, and a Chinese tax inquiry produced $290 million in discrete charges in Q1 2026. The thesis holds. The decentralized model, the breadth of end markets, and the consistency of free cash flow are exactly what carried Amphenol through 2009, 2015, 2020, and 2022. A forever holding is judged across cycles.
For investors seeking a long-term industrial compounder, Amphenol’s combination of end-market breadth, cash returns, and through-cycle margins fits the profile worth researching further.
Amphenol (APH) is a leader in fiber-optic cables, high-speed interconnectivity, sensors, and antenna products. The stock touched an entry point this week during its time on the IBD Sector Leaders, then succumbed to weakness.
The stock is a play on the artificial intelligence theme. The electronics company saw "exceptional organic growth" in the first quarter of 2026 from its IT datacom market, which serves AI data centers, Amphenol Chief Executive R. Adam Norwitt said in April.
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Amphenol's Business Landscape "We are pleased to have closed the first quarter of 2026 with record sales and adjusted diluted EPS, both exceeding the high end of our guidance," Norwitt said in its first-quarter earnings release on April 29.
The IBD 50 name's products are used in automotive, aerospace, communications and industrial markets, as well as by the military. Amphenol provides data centers with copper interconnect parts, cables, and fiber-optic and high-speed connectors.
Its IT Datacom business components are designed for cloud computing, data storage systems, networking equipment and servers. The company completed its acquisition of CommScope's Connectivity and Cable Solutions business, expanding its fiber optic interconnect capabilities.
Amphenol's liquid cooling systems serve data centers, electric vehicle charging stations and energy storage systems.
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Amphenol Stock Tests Buy Point Amphenol stock broke out of a skewed stage-one double-bottom base with a 155.46 buy point on Wednesday, but the breakout quickly faded, and the stock closed lower.
The stock is seeking support at its 10-week moving average, according to MarketSurge pattern recognition. Its relative strength line has been steadily climbing off its mid-May low.
Institutional backing is a component of the IBD Methodology, as large block purchases can push up stock prices. Mutual funds have added shares for eight straight quarters, according to IBD Stock Checkup.
Eight IBD Mutual Fund Index names held Amphenol stock as of the March quarter, with Fidelity Contra Fund (FCNTX) owning 25.88 million shares. Most of the funds, however, trimmed their positions during the first quarter.
Fiber Optics Leader Sees Record Revenue Amphenol's first-quarter earnings grew 68% to $1.06 per share, with sales that climbed 58% to $7.62 billion. Its profit has jumped an average of 77% over the last three quarters.
The company gave a second-quarter profit forecast of $1.14 per share to $1.16 per share, representing a 41% to 43% increase from a year earlier. It also sees second-quarter revenue in the range of $8.1 billion to $8.2 billion, or a 43% to 45% lift over the prior year's quarter.
FactSet consensus expects full-year 2026 earnings of $4.75 per share, or a 42% rise. And 2026 sales are projected to jump 44% to $33.2 billion, followed by $37.7 billion in 2027.
Amphenol's overall strong fundamentals have helped the stock land an IBD Composite Rating of 97 and a best-possible 99 IBD Earnings Per Share Rating.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
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