The upcoming report from Amphenol (APH - Free Report) is expected to reveal quarterly earnings of $0.73 per share, indicating an increase of 55.3% compared to the year-ago period. Analysts forecast revenues of $9.44 billion, representing an increase of 52.4% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Amphenol metrics that are commonly monitored and projected by Wall Street analysts.
Analysts predict that the 'Net Sales- Harsh Environment Solutions' will reach $1.96 billion. The estimate points to a change of +29.2% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Net Sales- Interconnect and Sensor Systems' of $1.63 billion. The estimate indicates a year-over-year change of +19.4%.
The average prediction of analysts places 'Net Sales- Communications Solutions' at $5.85 billion. The estimate points to a change of +76.7% from the year-ago quarter.
The consensus estimate for 'Operating Income- Interconnect and Sensor Systems' stands at $344.85 million. Compared to the current estimate, the company reported $274.40 million in the same quarter of the previous year.
According to the collective judgment of analysts, 'Operating Income- Communications Solutions' should come in at $1.93 billion. The estimate is in contrast to the year-ago figure of $1.08 billion.
The combined assessment of analysts suggests that 'Operating Income- Harsh Environment Solutions' will likely reach $566.20 million. Compared to the present estimate, the company reported $410.90 million in the same quarter last year.
View all Key Company Metrics for Amphenol here>>>
Shares of Amphenol have experienced a change of -12.1% in the past month compared to the -1.2% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (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 >>>> .
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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 traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
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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.
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 #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 59.3% for the current fiscal year.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.05 to $2.66 per share. APH also boasts an average earnings surprise of +11.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, APH should be on investors' short list.
Wall Street's capital expenditure boom is showing no signs of slowing down, but have investors factored in the full extent of the opportunity construction and infrastructure firms could bring to their portfolios?
Amphenol (APH) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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. However, it isn't easy to find a great growth stock.
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.
Our proprietary system currently recommends Amphenol (APH - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this maker of fiber-optic products is a great growth pick right now, we have highlighted three of the most important factors below:
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 26.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 59.6% this year, crushing the industry average, which calls for EPS growth of 37.3%.
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 45.4%.
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.
There have been upward revisions in current-year earnings estimates for Amphenol. The Zacks Consensus Estimate for the current year has surged 0.3% 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 positions Amphenol well for outperformance, so growth investors may want to bet on it.
On October 19, 2026, we conducted a DCF analysis for Amphenol Corp APH amidst its recent price performance, which has seen a significant decline of 9.0% over the past week, yet an increase of 25.5% over the past year. This volatility highlights the tension in valuation perspectives. Here are some key points:
DCF Earnings-based intrinsic value of $49.63 compared to the current price of $79.35 (margin of safety: -59.9%) DCF Free Cash Flow (FCF)-based intrinsic value of $38.72, indicating a second opinion on valuation GF Score™ of 98/100 suggests strong financial health, but with low predictability (1/5 stars), impacting the reliability of the DCF inputs What Is APH Worth? DCF Earnings-Based Model The DCF earnings-based model for Amphenol Corp utilizes a two-stage approach to estimate intrinsic value, starting with a growth phase followed by a terminal phase. Below are the assumptions used in this model:
Parameter Value Current EPS (TTM, excl. non-recurring) $2.08 10-Year Growth Rate 17.3% 10-Year Treasury Rate 5.08% Discount Rate (ceil(Treasury) + 6%) 12% Terminal Growth Rate 4% In the growth phase (Years 1-10), the EPS is expected to grow at 17.3% annually, discounted at a rate of 12%. In the terminal phase (Years 11-20), growth is projected to slow to a terminal rate of 4%, also discounted at 12%. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.3%, discounted at 12% $27.11 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 12% $22.52 Intrinsic Value Growth + Terminal $49.63 Comparing the current price of $79.35 with the intrinsic value of $49.63 reveals that the stock is significantly overvalued, with a margin of safety of -59.9%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research indicates a stronger correlation between stock prices and 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 FCF-based intrinsic value for Amphenol Corp is calculated at $38.72. This figure further emphasizes the divergence in valuation perspectives, as it indicates a significantly overvalued status with a margin of safety of -104.9%. The contrasting values from the earnings-based DCF and the FCF-based DCF models highlight the uncertainty surrounding the stock's valuation.
How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for Amphenol Corp stands at $82.63, providing a third perspective on its valuation. GF Value™ is derived from a combination of historical trading multiples, past business growth, and future performance estimates. The differing valuations from the three models—DCF earnings, DCF FCF, and GF Value™—illustrate the complexity of determining a fair value for APH. You can explore more about GF Value™ here.
What Does APH's GF Score™ Tell Us? The GF Score™ measures a company's financial strength, profitability, growth potential, valuation, and momentum, providing a holistic view of its health. Amphenol Corp has a GF Score™ of 98/100, indicating strong financial performance, but its low predictability rank of 1/5 stars suggests that the DCF model may be less reliable for this stock. Below is a summary of APH's GF Score™ metrics:
Metric Rating GF Score™ 98/100 Financial Strength 6/10 Profitability 10/10 Growth 10/10 Valuation 9/10 Momentum 8/10 For more information, visit the APH stock page.
Key Assumptions and Limitations It is essential 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 yield less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—it is clear that they present conflicting views on Amphenol Corp's valuation. The earnings-based DCF suggests significant overvaluation, while the FCF model reinforces this sentiment with an even lower intrinsic value. Conversely, the GF Value™ indicates a slight undervaluation. The consensus is complicated by the guru ownership signal, with 17 gurus currently holding the stock, 6 adding to their positions, and 10 trimming their holdings. Additionally, insider activity shows net selling over the past 12 months, which may reflect concerns about the stock's future performance. For a deeper dive into the valuation, check out the APH DCF Calculator.
Frequently Asked Questions What is APH's intrinsic value based on DCF?
earnings-based $49.63, FCF-based $38.72
Is APH overvalued or undervalued?
Based on the DCF and GF Value™ consensus, APH is significantly overvalued.
How reliable is the DCF model for APH?
The DCF model's reliability is low, given the predictability rank of 1/5.
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].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Amphenol Corporation (NYSE:APH – Get Free Report) was the target of some unusual options trading activity on Thursday. Stock investors bought 19,404 put options on the company. This is an increase of approximately 120% compared to the average volume of 8,838 put options.
Amphenol Price Performance APH stock opened at $81.51 on Friday. The company has a quick ratio of 1.41, a current ratio of 1.89 and a debt-to-equity ratio of 1.10. Amphenol has a 52-week low of $59.01 and a 52-week high of $89.93. The stock’s 50 day moving average is $82.35 and its two-hundred day moving average is $76.98. The company has a market capitalization of $201.00 billion, a PE ratio of 38.37, a P/E/G ratio of 1.11 and a beta of 1.23.
Amphenol (NYSE:APH – Get Free Report) last released its earnings results on Wednesday, July 29th. The electronics maker reported $0.68 EPS for the quarter, beating the consensus estimate of $0.60 by $0.08. The company had revenue of $8.76 billion during the quarter, compared to analysts’ expectations of $8.26 billion. Amphenol had a return on equity of 39.87% and a net margin of 17.73%. The business’s revenue was up 55.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.41 EPS. Amphenol has set its Q3 2026 guidance at 1.400-1.420 EPS. Analysts predict that Amphenol will post 2.67 earnings per share for the current fiscal year.
Amphenol Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Tuesday, September 22nd were given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date was Tuesday, September 22nd. Amphenol’s dividend payout ratio (DPR) is presently 25.00%. Insider Buying and Selling at Amphenol In related news, CFO Craig A. Lampo sold 386,400 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $83.66, for a total value of $32,324,292.00. Following the completion of the sale, the chief financial officer directly owned 181,330 shares in the company, valued at approximately $15,169,161.15. This represents a 68.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Lance E. D’amico sold 100,000 shares of the business’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $81.00, for a total value of $8,099,500.00. Following the transaction, the executive vice president owned 114,130 shares in the company, valued at approximately $9,243,959.35. This represents a 46.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 2,098,608 shares of company stock worth $172,316,688. Insiders own 1.42% of the company’s stock.
Institutional Inflows and Outflows Several hedge funds and other institutional investors have recently modified their holdings of the business. Clal Insurance Enterprises Holdings Ltd boosted its position in Amphenol by 85.0% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 198 shares of the electronics maker’s stock valued at $25,000 after purchasing an additional 91 shares during the period. Retirement Wealth Solutions LLC grew its position in Amphenol by 831.2% in the 3rd quarter. Retirement Wealth Solutions LLC now owns 298 shares of the electronics maker’s stock worth $26,000 after purchasing an additional 266 shares during the last quarter. HHM Wealth Advisors LLC acquired a new stake in shares of Amphenol in the first quarter valued at approximately $27,000. NFSG Corp acquired a new stake in shares of Amphenol in the third quarter valued at approximately $28,000. Finally, Wilkerson Advisory Group LLC increased its stake in shares of Amphenol by 57.4% in the first quarter. Wilkerson Advisory Group LLC now owns 233 shares of the electronics maker’s stock valued at $29,000 after purchasing an additional 85 shares during the period. 97.01% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In APH has been the topic of several analyst reports. Barclays reiterated an “overweight” rating and set a $100.00 target price (down from $200.00) on shares of Amphenol in a report on Tuesday, September 8th. Robert W. Baird upped their price target on Amphenol from $88.50 to $95.00 and gave the stock an “outperform” rating in a report on Monday, July 13th. Sanford C. Bernstein started coverage on shares of Amphenol in a research report on Wednesday, September 23rd. They issued an “outperform” rating and a $99.00 price objective for the company. JPMorgan Chase & Co. lifted their price objective on shares of Amphenol from $100.00 to $107.50 and gave the company an “overweight” rating in a research note on Thursday, July 16th. Finally, Bank of America lifted their price objective on shares of Amphenol from $90.00 to $92.50 and gave the company a “buy” rating in a research note on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, Amphenol currently has a consensus rating of “Moderate Buy” and a consensus price target of $98.56.
View Our Latest Research Report on Amphenol
About Amphenol (Get Free Report)
Amphenol Corporation (NYSE: APH) designs, manufactures and markets electrical, electronic and fiber-optic connectors, interconnect systems, sensors and antenna solutions. Its products enable the transmission of power, signals and data in applications that include high-speed communications, industrial equipment, transportation systems and electronic devices.
The company serves a broad range of end markets, including aerospace and defense, automotive, information technology and data communications, mobile networks, industrial automation, medical equipment and commercial electronics.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest 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 are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see 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 ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% 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.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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.
Momentum investors should take note of this Computer and Technology stock. APH has a Momentum Style Score of A, and shares are up 4% over the past four weeks.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.04 to $2.67 per share. APH also boasts an average earnings surprise of +11.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APH should be on investors' short list.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of APH, NVDA either through stock ownership, options, or other derivatives. 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.
Amphenol delivered strong Q2 FY2026 growth, driven by AI-related demand and successful CCS acquisition integration. IT Datacom, now 43% of sales, grew 63% organically YoY, with AI products as the primary driver. CCS acquisition outperformed expectations, but increased debt and integration execution remain key risks.
Key Takeaways Vertiv's AI demand and margin gains face execution risks, while Amphenol offers greater near-term upside.
Amphenol's IT datacom sales surged 89% in Q2 2026, accounting for 43% of total sales.
Vertiv's Q2 operating margin rose 410 basis points to 22.6%, but execution and supply-chain risks persist.
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 benefiting from strong demand for AI infrastructure as hyperscalers, colocation providers, neocloud operators and enterprises continue to expand data-center capacity. The company’s global pipeline remains robust across its core markets, particularly in the Americas and APAC regions. In the second quarter of 2026, net sales increased 24% year over year, with the Americas and APAC both growing 29%. EMEA also returned to positive net sales growth.
Acquisitions have further strengthened Vertiv’s data center portfolio. The recent acquisitions of ThermoKey and Strategic Thermal Labs have expanded Vertiv’s capabilities in heat rejection and high-density thermal management, respectively. These moves enhance Vertiv’s ability to offer comprehensive solutions across the thermal spectrum from heat rejection to direct-to-chip cooling. In the second quarter of 2026, acquisitions contributed 5% to revenues.
Vertiv is benefiting from significant margin gains. In the second quarter of 2026, the company reported an adjusted operating margin of 22.6%, up 410 basis points year over year and well above its previous guidance. This margin expansion was driven by disciplined operational execution, productivity improvements and favorable price-cost dynamics, partially offset by tariff impacts. The company expects margin momentum to continue in the second half of 2026. For the third quarter of 2026, adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%, supported by organic growth, operating leverage and productivity.
Vertiv is demonstrating strong momentum and confidence in its trajectory as a leader in AI and digital infrastructure. For the third quarter of 2026, Vertiv expects net sales in the range of $3.65 billion to $3.85 billion.
The Case for APH StockAmphenol is benefiting from robust demand for AI-driven connectivity solutions, expanding investments in data center infrastructure and its diversified end-market exposure.
The company’s strong position in high-speed copper, fiber-optic and power interconnect solutions is helping it capitalize on accelerating investments in AI data centers and next-generation computing infrastructure. IT datacom has become APH’s largest end market, which accounted for 43% of second-quarter 2026 sales. Sales in this market surged 89% year over year and 22% sequentially, driven by accelerating demand for products used in AI applications. Amphenol expects IT datacom revenues to grow in the mid-teens sequentially in the third quarter of 2026, supported by accelerating AI data center investments and strengthening enterprise and cloud demand.
Amphenol’s strengthening position in optical connectivity has been noteworthy. The acquisition of CommScope’s Connectivity and Cable Solutions business has expanded its advanced fiber-optic interconnect capabilities and customer relationships. Amphenol now expects CommScope to contribute $4.6 billion in revenues and 30 cents in earnings per share accretion in 2026, up from its previous expectations of $4.1 billion and 15 cents, respectively. This reflects improving operational efficiency and rising demand for AI-related products.
Amphenol’s outlook for the third quarter of 2026 remains strong, driven by accelerating AI infrastructure investments, robust demand for high-speed connectivity solutions and broad-based strength across diversified end markets. The company expects revenues between $9.3 billion and $9.4 billion, representing year-over-year growth of 50-52%.
Price Performance and Valuation of VRT and APHIn the trailing 12-month period, Vertiv and Amphenol shares have rallied 31.5% and 36.8%, respectively. The outperformance of Amphenol can be attributed to its diversified business model. Its strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Acquisitions are also helping Amphenol expand its position across a broad array of technologies and markets.
Despite VRT’s expanding portfolio, timing shifts in large, multiphase project execution and temporary supply-chain congestion, particularly within complex infrastructure deployments, remain a headwind. Tariffs and trade-policy changes continue to create cost and logistics volatility.
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 19.2X, higher than Amphenol’s 13.57X.
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 $6.69 per share, which has been unchanged over the past 30 days. This represents a 59.29% year-over-year rise.
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is currently pegged at $2.66 per share, which has been unchanged over the past 30 days. This represents a 59.28% year-over-year rise.
ConclusionWhile both Vertiv and Amphenol stand to benefit from the AI infrastructure boom, Amphenol’s strong AI-driven demand, diversified end-market exposure and strategic acquisitions suggest it may offer greater upside potential in the near term.
Vertiv’s strong AI infrastructure demand and expanding margins remain noteworthy. However, near-term execution risks and supply-chain volatility remain headwinds. Stiff competition also remains a concern.
Both Vertiv and Amphenol carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
APH stock rallies 11.8% in the past three months as AI demand and acquisitions fuel growth, but premium valuation and market uncertainties raise concerns.
Electric components maker Amphenol (APH +1.55%) received a nice jolt from investors on Tuesday, as they bought into the stock, sending it to a market-beating gain that trading session. On the back of not one but two analyst price target raises, Amphenol's shares closed the day nearly 1.6% higher, more than enough to beat the S&P 500 index's 0.6% rise.
Supplying the most ambitious customers The first of the two was made by Goldman Sachs prognosticator Mark Delaney. He raised his fair value assessment on Amphenol to $116 per share from $102. This was followed by Baird's Luke Junk, who now feels the stock is worth $105 per share, up from $95. Both analysts maintained their equivalent of a buy recommendation on the company.
Image source: Getty Images.
According to reports, Delaney's increase came as part of a broader research note on stocks in the U.S. auto and industrial technology realm. In his view, companies like Amphenol will continue to benefit from supplying components needed for the build-out of artificial intelligence (AI) data centers.
This is currently a hot trend in the tech industry, as many companies involved in the sector are in something of a race to increase AI compute as quickly and powerfully as possible.
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Moneyball Superscore
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Full speed ahead... hopefully And despite sporadic fears that AI development might be progressing a bit too quickly, it shows few signs of abating, at least not yet; no one wants to squander a potentially huge competitive advantage, after all. I think these bullish assessments of Amphenol's future are spot-on, although we should keep a wary eye on signs of a genuine slowdown or pauses in AI build-outs.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amphenol and Goldman Sachs Group. The Motley Fool has a disclosure policy.
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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.
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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 B, forecasting year-over-year earnings growth of 59.3% for the current fiscal year.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $2.66 per share. APH also boasts an average earnings surprise of +11.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, APH should be on investors' short list.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Amphenol (APH - Free Report) , which belongs to the Zacks Electronics - Connectors industry.
When looking at the last two reports, this maker of fiber-optic products has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 13.05%, on average, in the last two quarters.
For the most recent quarter, Amphenol was expected to post earnings of $0.6 per share, but it reported $0.68 per share instead, representing a surprise of 13.33%. For the previous quarter, the consensus estimate was $0.47 per share, while it actually produced $0.53 per share, a surprise of 12.77%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Amphenol. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice 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 +0.35%, 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 October 28, 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.
Key Takeaways Amphenol's Communications Solutions revenues surged 85% year over year to $5.38 billion.AI-related products drove virtually all sequential IT datacom growth, with Q3 gains expected.CommScope is now expected to generate $4.6 billion in 2026 sales, up from $4.1 billion. Amphenol (APH - Free Report) is benefiting from robust growth in its Communications Solutions segment, supported by accelerating demand for high-speed interconnect products used in AI infrastructure and contributions from its acquisition program. In the second quarter of 2026, Communications Solutions revenues surged 85% year over year to $5.38 billion and increased 42% organically. The segment accounted for roughly 62% of Amphenol’s total revenues, making it the company’s largest growth engine. The year-over-year growth was primarily driven by outsized IT datacom growth, particularly AI-related applications, alongside strength in industrial, mobile devices and automotive markets.
AI infrastructure remains the biggest growth engine and is helping the company fight off competition from the likes of TE Connectivity (TEL - Free Report) and Bel Fuse (BELFB - Free Report) . IT datacom represented 43% of Amphenol’s second-quarter sales, with revenues rising 89% year over year and 63% organically. Sequentially, IT datacom revenues climbed 22%, with virtually all of the sequential growth stemming from AI-related products. APH expects another mid-teens sequential increase in the third quarter of 2026, supported by accelerating investments in AI data centers and stronger enterprise and cloud demand for traditional IT datacom equipment.
Amphenol’s broad portfolio across high-speed copper, fiber-optic and power interconnects is strengthening its exposure to the AI buildout. The company noted that customers increasingly require all three technologies as computing architectures become denser and more power-intensive. The CommScope acquisition is further strengthening Communications Solutions, particularly in optical interconnects. CommScope generated slightly more than $1.2 billion in second-quarter sales, while its IT datacom business nearly doubled year over year. Amphenol now expects CommScope to generate $4.6 billion of sales in 2026, up from its earlier expectation of $4.1 billion.
Higher Communications Solutions revenues are also supporting profitability. Segment operating margin expanded to 33.6% in the second quarter of 2026 from 30.6% a year earlier, benefiting primarily from operating leverage on significantly higher organic volumes. This combination of accelerating AI connectivity demand, rising optical exposure through CommScope and strength across several other end markets should continue to support Communications Solutions as an important growth driver for Amphenol.
For the third quarter of 2026, APH expects sales of $9.3-$9.4 billion. The range implies year-over-year growth of 50-52%, assuming current market conditions and constant exchange rates. Adjusted earnings are projected between $1.40 and $1.42 per share, indicating growth of 51-53% from the prior-year quarter.
How Rivals Stack Up Against APHTE Connectivity is challenging Amphenol across high-speed data and power connectivity by expanding its exposure to AI infrastructure. TEL’s Digital Data Networks (DDN) business is benefiting from hyperscaler investments in GPU clusters, with year-to-date DDN orders up more than 70%. In the third quarter of fiscal 2026, DDN sales increased 34% year over year, supported by demand for high-speed copper connectivity, while higher-voltage architectures are expanding opportunities in power connectivity. TE Connectivity estimates that power already represents roughly one-third of its DDN business, giving it exposure to both data transmission and rising power requirements inside AI racks.
Bel Fuse is a smaller but growing challenger. The company’s Industrial Technology & Data Solutions (ITDS) segment includes power supplies, fuses, integrated connector modules and transformers used in networking, data centers and AI applications. In the second quarter of 2026, ITDS revenues jumped 31.1% year over year to $100.2 million, while Data Solutions revenues surged 55%, aided by the beginning of a ramp tied to high-performance computing project wins. The dataMate acquisition also expanded Bel Fuse’s Data Solutions portfolio.
APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have surged 24.8% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 21.8%.
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 27.47X, higher than the broader sector’s 19.95X.
APH Stock is Overvalued
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $2.66 per share, up three cents over the past 30 days. The figure indicates a 59.3% 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.
Shares of Amphenol Corporation (NYSE:APH – Get Free Report) have been given an average rating of “Moderate Buy” by the eighteen ratings firms that are covering the company, MarketBeat.com reports. Two analysts have rated the stock with a hold recommendation and sixteen have assigned a buy recommendation to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $96.85.
Several analysts have issued reports on APH shares. Sanford C. Bernstein initiated coverage on shares of Amphenol in a report on Wednesday, September 23rd. They issued an “outperform” rating and a $99.00 price target on the stock. BNP Paribas Exane lifted their price objective on Amphenol from $107.50 to $110.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. UBS Group reaffirmed a “buy” rating and issued a $98.50 target price (up from $92.50) on shares of Amphenol in a research note on Thursday, July 30th. JPMorgan Chase & Co. raised their price target on Amphenol from $100.00 to $107.50 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Finally, Wolfe Research initiated coverage on Amphenol in a report on Wednesday. They issued an “outperform” rating and a $105.00 price target for the company.
Read Our Latest Analysis on APH
Insider Activity In other Amphenol news, CFO Craig Lampo sold 386,400 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $83.66, for a total value of $32,324,292.00. Following the transaction, the chief financial officer directly owned 181,330 shares in the company, valued at approximately $15,169,161.15. This represents a 68.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Lance D’Amico sold 100,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $81.00, for a total transaction of $8,099,500.00. Following the sale, the executive vice president directly owned 114,130 shares in the company, valued at $9,243,959.35. This represents a 46.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,098,608 shares of company stock valued at $172,316,688 in the last 90 days. Company insiders own 1.42% of the company’s stock. Institutional Trading of Amphenol Hedge funds and other institutional investors have recently bought and sold shares of the company. Purus Wealth Management LLC boosted its holdings in shares of Amphenol by 3.7% during the second quarter. Purus Wealth Management LLC now owns 1,801 shares of the electronics maker’s stock worth $318,000 after purchasing an additional 65 shares during the last quarter. Cornerstone Financial Management LLC increased its stake in Amphenol by 27.2% in the second quarter. Cornerstone Financial Management LLC now owns 304 shares of the electronics maker’s stock valued at $54,000 after purchasing an additional 65 shares during the last quarter. Sachetta LLC increased its stake in Amphenol by 14.9% in the first quarter. Sachetta LLC now owns 548 shares of the electronics maker’s stock valued at $69,000 after purchasing an additional 71 shares during the last quarter. Ferguson Wellman Capital Management Inc. lifted its position in Amphenol by 3.8% during the first quarter. Ferguson Wellman Capital Management Inc. now owns 1,980 shares of the electronics maker’s stock worth $250,000 after buying an additional 72 shares during the period. Finally, Guardian Wealth Advisors LLC NC boosted its stake in Amphenol by 0.5% in the 2nd quarter. Guardian Wealth Advisors LLC NC now owns 14,211 shares of the electronics maker’s stock worth $2,506,000 after buying an additional 72 shares during the last quarter. 97.01% of the stock is owned by hedge funds and other institutional investors.
Key Stories Impacting Amphenol Here are the key news stories impacting Amphenol this week:
Positive Sentiment: Wolfe Research initiated coverage with an “outperform” rating and a $105 price target, implying substantial upside from recent trading levels. The bullish view likely reflects Amphenol’s strong operating performance and demand for electronic components used in AI and data-center infrastructure. Positive Sentiment: Amphenol continues to screen well as a momentum stock. Zacks highlighted the company’s favorable momentum characteristics, which may attract quantitative and growth-oriented investors. Here’s Why Amphenol Is a Strong Momentum Stock Positive Sentiment: Coverage continues to emphasize Amphenol’s AI growth opportunity. Articles described the stock as an attractive way to gain exposure to booming AI-related demand, while a separate industry review called Amphenol a leading performer among electronic-component and manufacturing companies. Amphenol Offers Entry Amid Booming AI Growth Neutral Sentiment: After-hours trading was little changed, suggesting investors may be balancing the company’s strong growth outlook against its elevated valuation. Negative Sentiment: Zacks Research downgraded Amphenol from “strong buy” to “hold.” The move introduces a more cautious near-term view and could limit gains despite positive momentum and bullish coverage. Negative Sentiment: Valuation remains a concern. GuruFocus characterized Amphenol as overvalued despite its high-quality score, and the stock’s premium earnings multiple leaves it vulnerable to profit-taking or disappointment if growth slows. Amphenol Stock Still Overvalued Amphenol Trading Up 0.1% Shares of APH stock opened at $84.42 on Thursday. The stock has a market cap of $208.18 billion, a P/E ratio of 42.32, a P/E/G ratio of 1.17 and a beta of 1.24. The company has a quick ratio of 1.41, a current ratio of 1.89 and a debt-to-equity ratio of 1.10. Amphenol has a fifty-two week low of $59.01 and a fifty-two week high of $89.26. The business has a fifty day simple moving average of $80.98 and a 200-day simple moving average of $75.34.
Amphenol (NYSE:APH – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The electronics maker reported $0.68 EPS for the quarter, topping the consensus estimate of $0.60 by $0.08. Amphenol had a net margin of 17.73% and a return on equity of 39.87%. The business had revenue of $8.76 billion for the quarter, compared to analyst estimates of $8.26 billion. During the same period in the previous year, the firm earned $0.41 EPS. The business’s revenue for the quarter was up 55.0% compared to the same quarter last year. Amphenol has set its Q3 2026 guidance at 1.400-1.420 EPS. On average, analysts forecast that Amphenol will post 2.66 earnings per share for the current fiscal year.
Amphenol Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Tuesday, September 22nd will be paid a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, September 22nd. This represents a $1.00 annualized dividend and a yield of 1.2%. Amphenol’s payout ratio is presently 25.00%.
Amphenol Company Profile (Get Free Report)
Amphenol Corporation (NYSE: APH) designs, manufactures and markets electrical, electronic and fiber-optic connectors, interconnect systems, sensors and antenna solutions. Its products enable the transmission of power, signals and data in applications that include high-speed communications, industrial equipment, transportation systems and electronic devices.
The company serves a broad range of end markets, including aerospace and defense, automotive, information technology and data communications, mobile networks, industrial automation, medical equipment and commercial electronics.
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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.
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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 +23.8% 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.
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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.
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.
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.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.03 to $2.66 per share. APH boasts an average earnings surprise of +11.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APH should be on investors' short list.
On September 29, 2026, Amphenol Corp APH shares fell 0.3% to a current price of $84.34, which is within a 52-week range of $59.01 to $89.26. This slight decline comes amid a strong year, with shares up 25.4% year-to-date and an impressive 40.4% increase over the past year.
GF Value™ verdict: The current price is $84.34, compared to a GF Value™ estimate of $80.73, indicating that the stock is 4.5% overvalued.GF Score™ is 98/100, reflecting a strong overall performance in key financial metrics.Notable signal: Insider activity shows a net selling of $510.6M over the past 12 months, indicating caution among insiders.Is APH Overvalued or Undervalued?According to the GF Value™, Amphenol Corp is currently overvalued by 4.5%. The GF Value™ is GuruFocus's proprietary estimate of a stock's intrinsic value, which takes into account historical trading multiples, past business growth, and future performance forecasts. In this case, with a current price of $84.34 compared to a GF Value™ of $80.73, there is no margin of safety for potential investors.
Being overvalued suggests that the stock may be priced higher than its intrinsic value, which carries a risk for investors seeking to capitalize on future gains. While the company has a strong performance record, the current price may not reflect a favorable entry point for new investments, particularly considering the recent trend of net insider selling.
How Does APH's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)42.2x34.7xForward P/E25.8xN/AAmphenol Corp's current P/E ratio of 42.2x is significantly above its 5-year median P/E of 34.7x, which confirms the notion that the stock is trading at a premium compared to its historical valuations. This P/E analysis aligns with the GF Value™ verdict of being overvalued, as the current valuation indicates that investors are paying more for each dollar of earnings than they have in the past.
What Does APH's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. With a GF Score™ of 98/100, Amphenol Corp demonstrates exceptional performance, particularly in profitability and growth, both of which are rated 10/10.
MetricRatingGF Score™98Financial Strength6/10Profitability10/10Growth10/10Valuation7/10Momentum10/10Amphenol's strong scores in profitability, growth, and momentum indicate a robust operational performance. However, its financial strength rating of 6/10 suggests that there may be some concerns regarding the company's overall financial position. While the high GF Score™ is a positive indicator, the weaker financial strength may warrant caution, especially given the overvaluation concerns.
What Are Gurus and Insiders Doing with APH?Currently, 17 gurus hold Amphenol Corp's stock, with 6 adding to their positions and 10 trimming their holdings in recent quarters. This mixed activity among gurus reflects a degree of caution among institutional investors. Furthermore, insider activity shows that over the past 12 months, insiders bought $1.3M worth of shares but sold $511.9M, resulting in a net selling of $510.6M. This pattern of significant net selling by insiders may suggest a lack of confidence in the stock's current valuation.
The insider selling, in particular, stands out as a key signal for potential investors to consider. While guru activity shows some interest, the substantial net selling may indicate that insiders are not optimistic about the stock's near-term prospects, aligning with the overvaluation call from the GF Value™ analysis.
What This Means for InvestorsBased on the GF Value™ assessment, Amphenol Corp appears to be overvalued at its current price of $84.34, which is above the intrinsic value estimate of $80.73. The combination of a high current P/E ratio, the mixed signal from guru activity, and significant insider selling reinforces this valuation stance. Investors should exercise caution and consider these factors before making investment decisions regarding APH.
For further insights and details, you can visit the Amphenol Corp APH stock page and explore the GF Value™ page for additional valuation metrics.
Frequently Asked QuestionsWhat is APH's GF Score™?
APH has a GF Score™ of 98/100, indicating a strong overall performance across various financial metrics.
Is APH overvalued or undervalued?
APH is currently overvalued, with a GF Value™ estimate of $80.73 compared to its current price of $84.34.
What is APH's P/E ratio?
APH has a P/E ratio of 42.2x, which is significantly above its 5-year median P/E of 34.7x, indicating a higher valuation compared to its historical performance.
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Key Takeaways Amphenol posted record Q2 orders of $10.7B, with a 1.23:1 book-to-bill ratio.APH's adjusted operating margin rose to 29.8% on higher volumes and CommScope gains.APH's IT datacom sales jumped 89% y/y, driven by strong AI-related demand. Amphenol (APH - Free Report) is benefiting from strong order momentum, improving operating leverage and robust profitability, strengthening its position across artificial intelligence (AI) data-center, communications and industrial connectivity markets. In the second quarter of 2026, orders grew 94% year over year and 14% sequentially to $10.7 billion, resulting in a book-to-bill ratio of 1.23:1. Every end market recorded a positive book-to-bill ratio, highlighting broad-based demand and improving revenue visibility. This momentum enhances APH’s competitive positioning against Marvell Technology (MRVL - Free Report) and TE Connectivity (TEL - Free Report) .
Higher sales are also driving meaningful operating leverage. The adjusted operating margin expanded 420 basis points year over year and 250 basis points sequentially to 29.8%. Even excluding tariff recoveries, the margin approached 29%. CommScope contributed more than $1.2 billion in second-quarter sales and operated at a margin above 20%, including acquisition-related amortization. Management attributed the improvement to better factory execution, vendor management, SG&A discipline and leverage from higher volumes. Amphenol also raised its expected 2026 CommScope revenues to $4.6 billion from $4.1 billion, and doubled expected adjusted EPS accretion to 30 cents from 15 cents.
AI infrastructure remains a key growth driver. IT datacom represented 43% of second-quarter sales, with revenues rising 89% year over year and 63% organically. Sequential sales increased 22%, with virtually all growth driven by AI-related products. Amphenol is benefiting from demand for high-speed copper, fiber-optic and power interconnects, while CommScope is expanding its advanced optical presence. Strong execution is translating into higher earnings and cash flow. Adjusted EPS rose 67% year over year to $1.35, while operating and free cash flows reached $1.6 billion and $1.2 billion, respectively. APH ended the quarter with $8.4 billion of liquidity and a net leverage ratio of 1.3 times, supporting capacity expansion, product development and acquisitions.
APH Faces Tough CompetitionMarvell Technology is challenging APH through rapid AI data-center growth and improving operating leverage. MRVL’s second-quarter fiscal 2027 results raised the revenue outlook to roughly $12 billion, implying 45% growth, and lifted its fiscal 2028 revenue outlook to $18 billion, representing nearly 50% growth. Data-center revenues are expected to rise 60% in fiscal 2027 and more than 60% in fiscal 2028, driven by strength across interconnect, switching and custom businesses. In the second quarter of fiscal 2027, the non-GAAP operating margin was 36.6%, up 180 basis points year over year, demonstrating significant operating leverage in the business.
TE Connectivity is also pressuring APH through record orders and stronger profitability. In the third quarter of fiscal 2026, the company reported record orders of $5.7 billion, up 27% year over year, while Digital Data Networks orders increased more than 70% from the start of the fiscal year to the end of the third quarter. TEL maintained a 1.1 book-to-bill ratio and ended the quarter with a record backlog. The adjusted operating margin expanded 90 basis points year over year to 21.9%, while management indicated that its industrial businesses can generate more than 30% flow-through at the current volume levels.
APH Shares' Price Performance, Valuation & EstimatesShares of Amphenol have risen 24.5% year to date compared with the broader Zacks Computer and Technology sector’s 22.6% growth.
APH Stock’s Price Performance
Image Source: Zacks Investment Research
The APH stock is trading at a premium, with forward 12-month price/earnings of 27.02X compared with the broader sector’s 21.27X. Amphenol has a Value Score of D.
APH’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s earnings is pegged at 72 cents per share, up by a cent over the past 30 days, suggesting 53.19% year-over-year growth.
Amphenol currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amphenol (NYSE:APH – Get Free Report) and Murata Manufacturing (OTCMKTS:MRAAY – Get Free Report) are both large-cap technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.
Volatility and Risk Amphenol has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Murata Manufacturing has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Valuation and Earnings This table compares Amphenol and Murata Manufacturing”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Amphenol $23.09 billion 8.98 $4.27 billion $2.00 42.05 Murata Manufacturing $12.16 billion 7.74 $1.54 billion $0.47 54.79 Amphenol has higher revenue and earnings than Murata Manufacturing. Amphenol is trading at a lower price-to-earnings ratio than Murata Manufacturing, indicating that it is currently the more affordable of the two stocks.
Dividends Amphenol pays an annual dividend of $0.50 per share and has a dividend yield of 0.6%. Murata Manufacturing pays an annual dividend of $0.13 per share and has a dividend yield of 0.5%. Amphenol pays out 25.0% of its earnings in the form of a dividend. Murata Manufacturing pays out 27.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amphenol is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings This is a summary of recent ratings and target prices for Amphenol and Murata Manufacturing, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Amphenol 0 1 14 2 3.06 Murata Manufacturing 0 1 1 1 3.00 Amphenol currently has a consensus price target of $96.34, indicating a potential upside of 14.57%. Given Amphenol’s stronger consensus rating and higher possible upside, analysts plainly believe Amphenol is more favorable than Murata Manufacturing.
Institutional and Insider Ownership 97.0% of Amphenol shares are held by institutional investors. Comparatively, 0.8% of Murata Manufacturing shares are held by institutional investors. 1.4% of Amphenol shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability This table compares Amphenol and Murata Manufacturing’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Amphenol 17.73% 39.87% 14.80% Murata Manufacturing 13.86% 9.84% 8.39% Summary Amphenol beats Murata Manufacturing on 15 of the 17 factors compared between the two stocks.
About Amphenol (Get Free Report)
Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.
(Get Free Report)
Murata Manufacturing Co., Ltd. designs, manufactures, and sells ceramic-based passive electronic components and solutions in Japan and internationally. The company offers capacitors, inductors, noise suppression products/EMI suppression filters/ESD protection devices, resistors, thermistors, sensors, timing devices, quartz devices, sound components, power products, batteries, micro mechatronics, RFID product, baluns, couplers, filters, phase shifters, RF switches, front-end modules, SAW components, connectors, antennas, connectivity modules, wireless connectivity platforms, ionizers/active oxygen modules, and transformers. It also offers Femtet, a CAE software that solves various engineering challenges; and provides silver oxide battery. In addition, the company provides connectivity, Wifi sensing, IOT, AI, and RFID solutions. Murata Manufacturing Co., Ltd. offers its products for use in communications equipment, mobility, enterprise system, industrial, healthcare, medical, personal electronics applications, and other sectors. The company was founded in 1944 and is headquartered in Nagaokakyo, Japan.
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Amphenol Corporation (APH) shares up 7,273% 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 second-quarter fiscal 2026 earnings report showed another quarter of record sales, generating $8.8 billion (a 30% year-over-year gain), record adjusted diluted per-share earnings of $1.35 (a 67% rise), $1.6 billion in operating cash flow (88% of net income), and third-quarter guidance of up to $9.4 billion in sales and EPS of $1.42.
It’s no wonder APH shares are up 23% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Amphenol Gains on Institutional Inflows 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:
Big Money inflows over the last year, especially early in 2026 and again in the summer, pushed APH shares higher by 35%. 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 +22.6%.
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 garnered 47 outlier inflow signals since 2005 and is up 7,273% since its first appearance on the rare Outlier 20 report. The blue bars below show when APH was a top pick in the last three years…Big Money buying boosts share prices:
APH garnered 47 outlier inflow signals since 2005 and is up 7,273% since its first appearance on the rare Outlier 20 report. 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 a serious investor, take your investing to the next level. MoneyFlows created 11 Frontiers indexes to help serious investors capture AI-driven themes and learn the leading stocks in each Frontier. Get started here.
Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.
When investors focus on companies that benefit from increased defense spending, they generally think of the large contractors, such as L3Harris, Northrop Grumman, Boeing, Lockheed Martin, and RTX.
But the performance of all of those stocks has been underwhelming this year, while two lesser-known companies with exposure to defense spending have soared. The stocks for TTM Technologies (TTMI +0.92%) and Amphenol (APH +1.08%) are trading up more than 88% and more than 21%, respectively, so far this year.
Both companies benefit from simultaneous surges in spending across artificial intelligence (AI) infrastructure and aerospace and defense modernization. Here's why I like each of these stocks.
Image source: Getty Images.
They are part of the defense electronics supply chain Both companies benefit from the wide moat around the defense electronics supply chain. The defense electronics market generally commands higher operating margins than mass-market consumer or automotive electronics due to the rigorous quality and reliability requirements of combat.
California-based TTM Technologies is one of the world's largest circuit board manufacturers, producing printed circuit boards (PCBs) and radio-frequency (RF) components for the aerospace, defense, automotive, and telecommunications industries. Its components, microelectronics, radar systems, and fully integrated mission systems are used for airborne surveillance, missile defense systems, and other mission-critical uses by the defense industry.
The company expanded its defense capabilities in August by spending $1.1 billion to acquire EPIQ Design Solutions, which makes open-architecture, AI-enabled, software-defined radios, high-performance RF products, and radiation-tolerant space compute solutions for mission-critical signals intelligence and electronic warfare applications.
In the second quarter, TTM reported record revenue of $1 billion, up 37% year over year, and earnings per share (EPS) of $0.77, up 92.5% over the same period a year ago.
Amphenol, based in Connecticut, supplies rugged military-spec connectors and ruggedized sensors used across radar arrays, naval platforms, and missile systems. Defense industry qualification hurdles give Amphenol pricing power and high recurring revenue on multiyear defense contracts.
In the second quarter, Amphenol reported revenue of $8.8 billion, up 55% year over year, and EPS of $1.37, up 59% over the same period a year ago. In the quarter, the company bought an Italian company, EI.com, which should add to its defense sales. EI.com makes interconnect solutions and high-voltage cable assemblies serving the industrial, defense, and commercial aerospace markets.
Premium Feature
Moneyball Superscore
82/100
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0.92
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1.16
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$
126.98
Modernization efforts provide tailwinds Ongoing updates to the U.S. Department of Defense posture prioritize precision-guided munitions, autonomous air/ground systems, counter-drone technologies, and naval fleet expansion, all of which are heavily reliant on specialized cabling and board-level connectors that TTM provides.
Allied nations across Europe and the Indo-Pacific are also scaling up defense budgets. This spending benefits Amphenol directly because major defense contractors use standardized Amphenol components in platforms sold globally via foreign military sales.
They have other revenue streams While defense and aerospace spending make up 37% of TTM's sales, the company is also seeing the benefit of AI data center and networking spending on its products, which account for 40% of its revenue.
Amphenol's spending is even more diverse. Its harsh environment segment accounts for 21% of its sales, but less than half of that comes from defense sales. In recent quarters, the company has seen significant growth in AI data center infrastructure, reported primarily within its communications solutions segment, which, as of the second quarter, accounted for 61% of Amphenol's sales.
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Moneyball Superscore
91/100
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1.08
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0.89
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83.08
High valuations, but great growth is expected It's not unreasonable to expect continued double-digit revenue and EPS growth for both stocks. However, bear in mind that, compared to the major defense contractors, both stocks are pricey, with much higher valuations.
That's not a problem as long as current trends hold for both companies, but they could be tripped up by supply chain and production constraints, as well as any changes in the political climate that could cool defense spending. However, based on their forecasts for the third quarter, there doesn't appear to be any slowdown on the horizon.
TTM estimates that third-quarter sales will be in the range of $1.1 billion to $1.14 billion, an increase of 66% year over year at the midpoint, and adjusted EPS of between $1.21 to $1.27, up 85% over the same period last year at the midpoint.
Amphenol said it expects third-quarter revenue of $9.3 billion to $9.4 billion, up 51% year over year at the midpoint. It also estimates adjusted EPS of $1.40 to $1.42, up 52% at the midpoint from the same period last year.
The rewards outweigh the risks Both stocks are small potatoes compared to major defense contractors, and their stocks are likely to see greater volatility. The primary concerns for prospective investors include their lofty valuations, market cyclicality, and supply chain dependencies. However, their high operating margins and niche-like moat advantages make them appealing stocks even at their current elevated prices.
Amphenol provides premium stability and strong operating margins through its high-margin harsh-environment connectors, proprietary high-speed cabling, and an aggressive, highly disciplined bolt-on merger-and-acquisition strategy. Meanwhile, TTM offers a sharper, higher-beta upside as a primary supplier of specialized high-density interconnect (HDI) printed circuit boards and integrated RF microelectronics for advanced defense radar and AI servers. Together, both companies enjoy multibillion-dollar backlogs and structural pricing power because their hardware components are deeply embedded in critical aerospace and tech supply chains.
On September 21, 2026, we delve into the DCF analysis for Amphenol Corp APH, a company that has seen a year-to-date increase of 15.2% but recently experienced a 7.6% drop over the past week. The divergence between valuation models presents a compelling narrative for investors.
DCF Earnings-based intrinsic value of $49.79 vs current price of $77.55 (margin of safety: -55.8%) DCF FCF-based intrinsic value of $42.31 vs current price (second opinion) GF Score™ of 98/100 indicates high quality but low predictability (1/5 stars) affecting DCF reliability What Is APH Worth? DCF Earnings-Based Model The DCF earnings-based model employs a two-stage approach to estimate the intrinsic value of Amphenol Corp. The first stage anticipates a robust earnings growth of 15.5% per year for the next ten years, followed by a terminal growth rate of 4% for the subsequent ten years. The discount rate used is 11%, which combines the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $2.08 10-Year Growth Rate 15.5% 10-Year Treasury Rate 4.95% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 15.5%, discounted at 11% $26.99 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $22.80 Intrinsic Value Growth + Terminal $49.79 Comparing the current price of $77.55 to the intrinsic value of $49.79 reveals that the stock is significantly overvalued, with a margin of safety of -55.8%. It is important to note that GuruFocus uses EPS excluding non-recurring items as research indicates that stock prices are more closely correlated with earnings than free cash flow. For a detailed calculation, visit 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 $42.31. This figure further corroborates the earnings-based DCF, indicating a consensus that the stock is significantly overvalued, with a margin of safety of -83.3%. The disparity between the two models emphasizes the need for caution when interpreting these valuations.
How Does GF Value™ Compare to the DCF Models? In addition to the DCF models, the GF Value™ of Amphenol Corp stands at $80.03, suggesting a slight undervaluation of 3.1%. GF Value™ is GuruFocus' proprietary measure, calculated based on historical trading multiples, past business growth, and future performance estimates. The differing perspectives from the DCF models and GF Value™ highlight the complexity of valuing this stock. For more insights, check the GF Value™.
What Does APH's GF Score™ Tell Us? The GF Score™ evaluates the overall quality of a stock based on various factors, including financial strength, profitability, growth, valuation, and momentum. Amphenol Corp boasts a high GF Score™ of 98/100, indicating strong fundamentals. However, the low predictability rank of 1/5 stars suggests that the DCF model may be less reliable for this stock.
Key Assumptions and Limitations It is essential 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 Amphenol Corp, yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors The analysis of Amphenol Corp reveals a significant tension between the DCF earnings-based intrinsic value, the FCF-based intrinsic value, and the GF Value™. While the DCF models suggest that the stock is significantly overvalued, the GF Value™ indicates a slight undervaluation, creating a complex picture for investors. Additionally, the Guru 13F activity shows that 17 gurus currently hold the stock, with 6 adding positions and 10 trimming, while insiders have been net selling over the past year. This insider activity, combined with the guru ownership flow, adds another layer of caution for potential investors. For further exploration of the DCF analysis, visit the APH DCF Calculator.
Frequently Asked Questions What is APH's intrinsic value based on DCF?
Answer: earnings-based $49.79, FCF-based $42.31
Is APH overvalued or undervalued?
Answer: Based on the DCF and GF Value™ consensus, APH is currently overvalued.
How reliable is the DCF model for APH?
Answer: The predictability rank of 1/5 indicates that the DCF model is less reliable for APH.
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].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Data I/O (NASDAQ:DAIO – Get Free Report) and Amphenol (NYSE:APH – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Valuation and Earnings This table compares Data I/O and Amphenol”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Data I/O $21.50 million 1.23 -$5.24 million ($0.93) -3.02 Amphenol $23.09 billion 8.29 $4.27 billion $2.00 38.83 Amphenol has higher revenue and earnings than Data I/O. Data I/O is trading at a lower price-to-earnings ratio than Amphenol, indicating that it is currently the more affordable of the two stocks. Risk and Volatility Data I/O has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Amphenol has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.
Profitability This table compares Data I/O and Amphenol’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Data I/O -48.73% -66.83% -40.69% Amphenol 17.73% 39.87% 14.80% Analyst Recommendations This is a summary of current ratings and target prices for Data I/O and Amphenol, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Data I/O 1 1 1 2 2.80 Amphenol 0 1 14 1 3.00 Data I/O currently has a consensus target price of $5.11, suggesting a potential upside of 81.85%. Amphenol has a consensus target price of $96.00, suggesting a potential upside of 23.62%. Given Data I/O’s higher probable upside, equities analysts clearly believe Data I/O is more favorable than Amphenol.
Institutional & Insider Ownership 37.0% of Data I/O shares are owned by institutional investors. Comparatively, 97.0% of Amphenol shares are owned by institutional investors. 4.1% of Data I/O shares are owned by company insiders. Comparatively, 1.4% of Amphenol shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary Amphenol beats Data I/O on 11 of the 15 factors compared between the two stocks.
About Data I/O (Get Free Report)
Data I/O Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of programming and security deployment systems and services for electronic device manufacturers in the United States, Europe, and internationally. Its programming system products are used to program integrated circuits (ICs) with the specific data for the ICs. The company offers PSV handlers off-line automated programming systems, such as PSV2800 automated programming system which focuses on high-volume manufacturing in a lower cost platform; PSV7000 automated programming system for security deployment upgrades; PSV5000 automated programming system that combines mid-range capacity and supports security deployment; and PSV3500 automated programming system which provides basic programming needs. It also provides SentriX security deployment system; and LumenX and non-automated FlashPAK III programming systems. In addition, the company offers hardware support, system installation and repair, and device programming services. It markets and sells its products to original equipment manufacturers in automotive and consumer electronics, internet of things, and industrial, as well as electronic manufacturing service contract manufacturers through direct sales, and indirect sales representatives and distributors. Data I/O Corporation was incorporated in 1969 and is headquartered in Redmond, Washington.
About Amphenol (Get Free Report)
Amphenol Corporation, together with its subsidiaries, primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the United States, China, and internationally. It operates through three segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company offers connectors and connector systems, including harsh environment data, power, high-speed, fiber optic, and radio frequency interconnect products; busbars and power distribution systems; and other connectors. It also provides value-add products, such as backplane interconnect systems, cable assemblies and harnesses, and cable management products; other products comprising flexible and rigid printed circuit boards, hinges, other mechanical, and production related products. In addition, the company offers consumer device, network infrastructure, and other antennas; coaxial, power, and specialty cables; and sensors and sensor-based products. It sells its products through its sales force, independent representatives, and a network of electronics distributors to original equipment manufacturers, electronic manufacturing services companies, original design manufacturers, and service providers in the automotive, broadband communication, commercial aerospace, industrial, information technology and data communication, military, mobile device, and mobile network markets. Amphenol Corporation was founded in 1932 and is headquartered in Wallingford, Connecticut.
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Key Takeaways Amphenol's IT datacom sales jumped 89% in Q2 2026, driven by strong AI demand.APH is seeing strong AI demand for high-speed copper, fiber-optic and power interconnect solutions.CommScope added $1.2B in Q2 sales and strengthened Amphenol's fiber-optic capabilities for IT datacom. Amphenol (APH - Free Report) is benefiting significantly from accelerating demand in the IT datacom market, particularly for artificial intelligence (AI)-related applications. In the second quarter of 2026, IT datacom represented 43% of APH’s total sales, with revenues surging 89% year over year and 63% organically. Management also highlighted that the company’s AI revenue run rate has reached roughly $10.5-$11 billion, with AI-related sales growing faster than the overall IT datacom business. This momentum is strengthening APH’s position against TE Connectivity (TEL - Free Report) and Marvell Technology (MRVL - Free Report) in the expanding AI data-center connectivity market.
AI infrastructure expansion is driving strong demand for Amphenol’s high-speed copper, fiber-optic and power interconnect solutions. Management noted that virtually all of the 22% sequential IT datacom growth in the second quarter of 2026 came from AI-related products. Customers are requiring more copper, optics and power as AI clusters grow larger and more complex. APH’s portfolio spans passive and active fiber-optic solutions, high-speed copper and power connectivity, giving it exposure across multiple parts of the AI infrastructure stack. Power connectivity is another important growth opportunity.
APH’s offerings include board-level power, bus bars and complex cable assemblies extending from chips and racks to data-center switchgear. Management highlighted higher-voltage architectures, liquid cooling and sensor-enabled power connectors as emerging opportunities. Rising power density in AI systems could therefore expand Amphenol’s content per data center, complementing its high-speed data-connectivity business.
Amphenol’s acquisition of CommScope is further strengthening its optical position. In the second quarter of 2026, CommScope contributed more than $1.2 billion in sales while adding significant fiber-optic interconnect capabilities for IT datacom. Management said CommScope’s IT datacom business nearly doubled year over year and expects the market to account for just under half of CommScope’s 2026 sales compared with roughly one-third in 2025. CommScope is participating in customer discussions around the potential introduction of optics into scale-up architectures.
APH’s broad product portfolio may also help it participate across evolving AI architectures. Management said the company works with customers developing graphics processing unit, application-specific integrated circuit and XPU architectures, noting that all these architectures require interconnects. Management said inference is growing rapidly and requires an unprecedented level of interconnect intensity.
APH Faces Tough CompetitionTE Connectivity remains a formidable competitor. Its Digital Data Networks (DDN) sales increased 34% year over year in the third quarter of fiscal 2026, while DDN bookings grew more than 70% year to date. TEL is benefiting from rising demand for high-speed copper, optical, and higher-voltage power connectivity as AI architectures evolve.
Marvell Technology is also expanding rapidly in AI data-center connectivity. Its data-center revenues increased 46% year over year to $2.17 billion in the second quarter of fiscal 2027. MRVL is seeing strong demand for optical digital signal processors, 1.6T connectivity, broadband analog products and switching while expanding its scale-up optics opportunities across near-packaged optics and co-packaged optics.
APH’s Share Price Performance, Valuation & EstimatesShares of Amphenol have risen 16% year to date compared with the broader Zacks Computer and Technology sector’s 17% growth.
APH Stock’s YTD Price Performance
Image Source: Zacks Investment Research
APH stock is trading at a premium, with forward 12-month price/earnings of 25.32X compared with the broader sector’s 20.38X. Amphenol has a Value Score of D.
APH’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s earnings is currently pegged at 72 cents per share, up by 5 cents over the past 30 days, suggesting 53.19% growth.
Amphenol currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Amphenol (APH - Free Report) have gained 2.4% over the past four weeks to close the last trading session at $78.37, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $100.16 indicates a potential upside of 27.8%.
The average comprises 16 short-term price targets ranging from a low of $90.00 to a high of $115.00, with a standard deviation of $7.03. While the lowest estimate indicates an increase of 14.8% from the current price level, the most optimistic estimate points to a 46.7% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for APH, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in APHAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 1.3%, as three estimates have moved higher compared to no negative revision.
Moreover, APH currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much APH could gain, the direction of price movement it implies does appear to be a good guide.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
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Zacks Premium also includes 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 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 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 +23.8% 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.
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.
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.
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.
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 59.3% for the current fiscal year.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.22 to $2.66 per share. APH also boasts an average earnings surprise of +11.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, APH should be on investors' short list.
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.
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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 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 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 are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see 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 +23.8% 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.
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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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
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 A, and shares are up 0.4% over the past four weeks.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.31 to $2.66 per share. APH also boasts an average earnings surprise of +11.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, APH should be on investors' 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 growth stock that can live up to its true potential can be a tough task.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks 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.
Our proprietary system currently recommends Amphenol (APH - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
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 26.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 59.2% this year, crushing the industry average, which calls for EPS growth of 37.1%.
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 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.
The current-year earnings estimates for Amphenol have been revising upward. The Zacks Consensus Estimate for the current year has surged 1.3% over the past month.
Bottom LineAmphenol has not only earned a Growth Score of B 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 Corporation (APH) Citi's 2026 Global TMT Conference September 9, 2026 10:10 AM EDT
Company Participants
R. Norwitt - President, CEO & Chairman
Craig Lampo - Executive VP & CFO
Conference Call Participants
Asiya Merchant - Citigroup Inc., Research Division
Presentation
Asiya Merchant
Citigroup Inc., Research Division
Good morning, everyone. Still day -- the morning part of day 2 of Citi's Technology Conference. Hope everyone is awake and excited. I have the pleasure here to have Amphenol's management, Adam Norwitt here, Craig Lampo, Adam CEO, Craig CFO. We also have IR here in the audience with us. This is a fireside. For those who have seen me host Amphenol before, we have a bunch of questions here. We're going to run through them.
I will give an opportunity to investors towards the end. If you have any questions, please do raise your hand. We will make sure we get the mic to you. So welcome. Thank you.
R. Norwitt
President, CEO & Chairman
Thank you, Asiya.
Question-and-Answer Session
Asiya Merchant
Citigroup Inc., Research Division
It's a great time to be at Amphenol. Clearly, sales -- record sales, I think, up 55% year-on-year. Organically, of course, up 30% year-on-year, which phenomenal. Every, I think, end market for you guys showed a positive book-to-bill when you guys reported Q2 results. Just Adam, as you're thinking about some of your end markets out here, where do you think things have really been surprising to the upside? And where do you think there's still room for improvement here? Maybe demand didn't live up to expectations, clearly, very strong results. But just help investors understand where the demand, how demand is shaping up.
R. Norwitt
President, CEO & Chairman
Yes. Well, first of all, Asiya, thank you so much for hosting us. Thanks to Citi for having us, and thanks to all
Amphenol is rated a BUY, driven by exceptional 55% revenue growth and expanding margins, with Q2 2026 revenue reaching $8.76 billion. APH's premium valuation is justified by superior organic growth, durable operational leverage, and consistent earnings outperformance compared to peers. Order book strength ($10.7 billion) and multi-year AI infrastructure demand underpin sustainable future revenue growth, supporting continued upward repricing potential.
SummaryAmphenol Corporation (APH) is downgraded to Hold due to vulnerability to a potential AI data center slowdown and possible Fed rate hikes.APH's high valuation is justified by robust growth—YOY revenue up nearly 55% and levered free cash flow up 112%—but depends on sustained AI demand.Rising interest rates and a backlog of idle data centers could moderate AI infrastructure buildout, posing near-term risks to APH's profitability.I remain an AI bull, but prefer Alphabet over APH for now; clarity on Fed policy and AI sector momentum could quickly shift APH back to Buy. Getty Images
Thesis Idling AI data centers, rising costs, and especially a Federal Reserve rate hike could cause a moderate near-term slowdown in the AI data center buildout. In this scenario, I believe Amphenol (APH) is more vulnerable
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Amphenol (APH - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as 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 transaction of large amounts of shares then leads to price movement for the stock.
For Amphenol, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push 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 $2.63 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 11.8%.
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 #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Amphenol (APH - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Amphenol is one of 614 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Amphenol is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for APH's full-year earnings has moved 11.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, APH has gained about 20.8% so far this year. At the same time, Computer and Technology stocks have gained an average of 16.8%. This means that Amphenol is performing better than its sector in terms of year-to-date returns.
Another stock in the Computer and Technology sector, Advanced Energy Industries (AEIS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 27.5%.
Over the past three months, Advanced Energy Industries' consensus EPS estimate for the current year has increased 24.3%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Amphenol belongs to the Electronics - Connectors industry, which includes 2 individual stocks and currently sits at #33 in the Zacks Industry Rank.
Advanced Energy Industries, however, belongs to the Semiconductor Equipment - Wafer Fabrication industry. Currently, this 2-stock industry is ranked #9.
Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Amphenol and Advanced Energy Industries as they could maintain their solid performance.
Key Takeaways Amphenol's Communications Solutions revenues jumped 85% year over year, led by AI datacom demand.APH expects another mid-teen sequential IT datacom increase in Q3 as AI data-center investments accelerate.Amphenol strengthened its AI connectivity position with CommScope and Wilder Technologies acquisitions. Amphenol (APH - Free Report) is riding on strong growth in its Communications Solutions segment, supported by surging AI-related IT datacom demand and contributions from acquisitions. In the second quarter of 2026, Communications Solutions revenues jumped 85% year over year and 42% organically, representing roughly 62% of total revenues. Growth was primarily driven by outsized IT datacom demand, particularly for AI applications, along with strength in industrial, mobile-device and automotive markets.
AI infrastructure remains the biggest growth engine and is helping the company fight off competition from the likes of TE Connectivity (TEL - Free Report) and Bel Fuse (BELFB - Free Report) . IT datacom accounted for 43% of Amphenol’s quarterly sales and grew 89% year over year and 63% organically. Sequential growth reached 22%, with virtually all of the increase attributed to AI-related products. Amphenol expects another mid-teen sequential increase in the third quarter as AI data-center investments accelerate and cloud and enterprise customers expand infrastructure spending. Its exposure spans high-speed copper, fiber-optic and power interconnect solutions, allowing it to capture rising connectivity content across AI systems.
Acquisitions are further strengthening this position. CommScope’s IT datacom business, focused on advanced optical interconnect solutions, nearly doubled year over year, while Amphenol raised CommScope’s expected 2026 revenues to $4.6 billion from $4.1 billion. Wilder Technologies also expands APH’s capabilities in high-speed digital, RF and signal-integrity applications.
For the third quarter of 2026, APH expects sales of $9.3-$9.4 billion. The range implies year-over-year growth of 50-52%, assuming current market conditions and constant exchange rates. Adjusted earnings are projected between $1.40 and $1.42 per share, representing growth of 51-53% from the prior-year quarter.
How Rivals Stack Up Against APHTE Connectivity poses significant competition in AI connectivity. TEL’s Digital Data Networks revenues increased 34% year over year to $813 million in the third quarter of fiscal 2026, while Industrial Solutions revenues advanced nearly 22%. The company is benefiting from rising demand for connectivity technologies that distribute power, signal and data across AI-enabled data centers, with AI momentum helping drive record companywide orders of $5.7 billion, up 27% year over year.
Bel Fuse is a smaller but growing challenger. The company’s Data Solutions revenues surged 55% year over year to roughly $58 million as recent high-performance-computing project wins began ramping. Bel Fuse is also seeing stronger demand for integrated connector modules and RF connectors, while bookings remain strong across Data Solutions and distribution channels. This growing HPC and connectivity exposure could increase competitive pressure on APH for specialized interconnect and power content in next-generation computing infrastructure.
APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have surged 17.5% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 14.4%.
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 26.57X, higher than the broader sector’s 20.66.
APH Stock Is Overvalued
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $5.25 per share, up 7.8% over the past 30 days. The figure indicates a 57.19% jump year over year.
APH currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amphenol (APH - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, APH broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.
Shares of APH have been moving higher over the past four weeks, up 7.3%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that APH could be poised for a continued surge.
The bullish case solidifies once investors consider APH's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 5 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on APH for more gains in the near future.
It has been about a month since the last earnings report for Amphenol (APH - Free Report) . Shares have added about 1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, 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 latest 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 Q2 Earnings Beat Estimates, Revenues Rise Y/YAmphenol reported second-quarter 2026 adjusted earnings of $1.35 per share, up 66.7% year over year. The figure beat the Zacks Consensus Estimate by 13%.
Revenues surged 55% year over year to $8.76 billion and surpassed the consensus mark by 5.51%. Growth was driven by strong organic performance across most end markets, exceptional IT datacom demand and acquisition contributions. Orders reached a record $10.7 billion, resulting in a book-to-bill ratio of 1.23:1.
APH Sees Broad-Based Demand StrengthOrganic net sales increased 30% year over year, while constant-currency sales advanced 54%. Acquisitions contributed 24 percentage points to reported growth, underscoring the combined impact of internal expansion and portfolio additions.
Communications Solutions led the performance with 42% organic growth. Harsh Environment Solutions and Interconnect and Sensor Systems delivered organic growth of 22% and 13%, respectively. Foreign currency movements added roughly one percentage point to consolidated growth.
Amphenol’s Segments Post Strong GrowthCommunications Solutions revenues jumped 85% year over year to $5.38 billion. The segment remained the company’s largest business, benefiting from strong demand for high-speed connectivity applications, particularly in the IT datacom market.
Harsh Environment Solutions sales increased 28.5% year over year to $1.86 billion. Interconnect and Sensor Systems revenues rose 17.2% year over year to $1.52 billion. The broad segment expansion reflected Amphenol’s diversified exposure to communications, industrial, defense, aerospace, automotive and other electronics markets.
The company completed the acquisitions of El.Com and Wilder Technologies during the quarter. El.Com, which generates annual sales of approximately $150 million, expands Amphenol’s complex interconnect and high-voltage cable capabilities. Wilder Technologies contributes high-performance test and measurement solutions for IT datacom applications.
APH Expands Margins on Scale and TariffsAdjusted operating income was $2.61 billion, up 80.2% year over year. Adjusted operating margin improved 420 basis points (bps) year over year to 29.8%.
Communications Solutions’ operating margin increased 300 bps to 33.6%. Harsh Environment Solutions’ margin expanded 490 bps to 30.1%, while the Interconnect and Sensor Systems margin rose 150 bps to 21%.
Amphenol Generates Solid Cash FlowAmphenol ended June with $4.73 billion in cash and cash equivalents. Including short-term investments, total cash and investments were $5.42 billion. Long-term debt, excluding the current portion, stood at $17.18 billion following the company’s acquisition activity.
Operating cash flow totaled $1.56 billion, up from $1.42 billion in the prior-year quarter. Free cash flow increased to $1.21 billion from $1.12 billion, despite capital expenditures rising to $355.5 million.
Capital returns remained substantial. APH repurchased 1.5 million shares for $208 million and paid $307 million in dividends, returning a combined $515 million to shareholders during the quarter.
APH Benefits From Stronger CommScope ResultsAmphenol raised its expectations for the acquired CommScope business following better-than-anticipated performance. The operation is now projected to generate full-year sales of $4.6 billion and contribute 30 cents to adjusted earnings per share in 2026.
The revised outlook compares favorably with the previous expectations of $4.1 billion in revenues and 15 cents of adjusted earnings accretion. The improvement highlights the earnings leverage from the acquisition as Amphenol integrates the connectivity and cable operations.
Amphenol Issues Upbeat Q3 GuidanceFor the third quarter of 2026, Amphenol expects revenues between $9.3 billion and $9.4 billion. The range implies year-over-year growth of 50-52%, assuming current market conditions and constant exchange rates.
Adjusted earnings are projected between $1.40 and $1.42 per share, representing growth of 51-53% from the prior-year quarter. The guidance excludes any additional tariff recoveries, making underlying demand and acquisition execution central to the upcoming quarter’s performance.
How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 9.72% due to these changes.
VGM ScoresCurrently, Amphenol has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score 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 C. 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.
On August 24, 2026, we conducted a DCF analysis for Amphenol Corp
APH -3.32% 98
amidst a backdrop of mixed price performance. The stock has seen a year-to-date increase of 16.6% and a notable 45.3% rise over the past year, despite a recent decline of 6.0% over the past week.
DCF Earnings-based intrinsic value indicates a significant margin of safety of -57.7% compared to the current price. DCF Free Cash Flow (FCF)-based intrinsic value suggests an even larger margin of safety at -85.6%. GF Score™ of 98/100 indicates strong financial health, but the low predictability rank of 1/5 stars suggests caution regarding the reliability of DCF inputs. What Is APH Worth? DCF Earnings-Based Model The DCF earnings-based model for Amphenol Corp utilizes a two-stage approach. In the first stage, we project earnings growth at a robust rate of 15.5% annually for the next 10 years, followed by a terminal growth rate of 4% for the subsequent 10 years. The discount rate applied is 11%, derived from the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $4.31 10-Year Growth Rate 15.5% 10-Year Treasury Rate 4.71% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The following table summarizes the calculations for the two-stage model:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 15.5%, discounted at 11% $53.98 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $45.61 Intrinsic Value Growth + Terminal $99.59 With the current price at $157.01, the intrinsic value of $99.59 indicates that the stock is significantly overvalued, presenting a margin of safety of -57.7%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates a stronger correlation between stock prices and earnings than with free cash flow. For further calculations, visit the APH DCF Calculator.
What Does the Free Cash Flow DCF Say? The intrinsic value based on the Free Cash Flow (FCF) model is calculated at $84.59. This value further corroborates the findings from the earnings-based DCF model, as both indicate that the stock is significantly overvalued, with a margin of safety of -85.6% for the FCF model.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Amphenol Corp stands at $154.87, providing a third perspective on its valuation. This proprietary measure is derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—align in their assessment of the stock being overvalued. For more details, check out the GF Value™.
What Does APH's GF Score™ Tell Us? The GF Score™ evaluates various aspects of a company's financial health and growth potential. Amphenol Corp's score of 98/100 reflects strong fundamentals, but its low predictability rank of 1/5 stars suggests that the DCF model may not be as reliable for this stock. Below is a summary of APH's GF Score™ metrics:
Metric Rating GF Score™ 98/100 Financial Strength 6/10 Profitability 10/10 Growth 10/10 Valuation 9/10 Momentum 10/10 For more information, visit the APH stock page.
Key Assumptions and Limitations It is crucial to understand that DCF models are highly sensitive to the assumptions made regarding growth and discount rates. Stocks with low predictability ratings, such as Amphenol Corp, yield less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect actual future growth conditions.
What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—concur that Amphenol Corp is significantly overvalued at its current price. The consensus is reinforced by the guru ownership signal, with 19 gurus holding the stock, 8 of whom are adding positions, while 10 are trimming. Additionally, insider activity shows net selling over the past 12 months, which may raise concerns about future performance. Investors should exercise caution and consider these insights before making decisions. For further analysis, check the APH DCF Calculator.
Frequently Asked Questions What is APH's intrinsic value based on DCF?
According to the DCF analysis, the earnings-based intrinsic value is $99.59, while the FCF-based intrinsic value is $84.59.
Is APH overvalued or undervalued?
Both the DCF and GF Value™ models indicate that APH is overvalued at its current price.
How reliable is the DCF model for APH?
The DCF model's reliability is affected by its predictability rank of 1/5 stars, suggesting lower confidence in its estimates for this stock.
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].
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. However, it isn't easy to find a great growth stock.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end 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 one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also 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).
While there are numerous reasons why the stock of this maker of fiber-optic products is a great growth pick right now, we have highlighted three of the most important factors below:
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 26.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 57.2% this year, crushing the industry average, which calls for EPS growth of 34.2%.
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 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 7.8% 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.
Shares of Amphenol (APH - Free Report) have gained 1.1% over the past four weeks to close the last trading session at $159.57, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $200.5 indicates a potential upside of 25.7%.
The average comprises 16 short-term price targets ranging from a low of $175.00 to a high of $230.00, with a standard deviation of $14.14. While the lowest estimate indicates an increase of 9.7% from the current price level, the most optimistic estimate points to a 44.1% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
But, for APH, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in APHThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 7.8% over the past month, as four estimates have gone higher compared to no negative revision.
Moreover, APH currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much APH could gain, the direction of price movement it implies does appear to be a good guide.
Key Takeaways MRVL is accelerating AI connectivity growth, with interconnect revenues expected to rise more than 70%.Amphenol's IT datacom sales grew 63% organically, driven largely by AI-related demand.MRVL has surged 154.2% YTD, while APH offers a lower forward sales multiple. Marvell Technology (MRVL - Free Report) and Amphenol Corporation (APH - Free Report) are two connectivity infrastructure stocks riding the artificial intelligence (AI) wave. Increasing AI workloads are creating demand for faster connectivity infrastructure.
Marvell Technology is benefiting from AI-led demand across the data center end market, with custom silicon, interconnect, switching and optics driving record revenues and a higher multi-year outlook, while Amphenol is benefiting from sustained demand for high-speed, power and fiber interconnect products across copper, fiber and power, led by AI-related IT datacom programs.
With the AI boom to continue driving growth for the semiconductor industry, the question remains: Which stock makes for a better investment pick today? Let’s dive into the fundamentals, valuations, growth outlook and risks for each company.
The Case for MRVL StockNetworking remains a key beneficiary of rising AI cluster size and complexity. Marvell now expects its interconnect business to grow more than 70% year over year in fiscal 2027, supported by scale-out PAM ramp-ups and growing contributions from scale-up and scale-across networking.
Within optics, the company expects TIAs and drivers to exceed a $1 billion annualized run rate in the next few quarters and sees a path to about $1 billion annualized DCI module revenues during fiscal 2028. Management also expects scale-up optics to ramp up in fiscal 2028, with revenues now forecasted to double from the prior $150 million outlook.
Furthermore, MRVL’s collaboration spans optics, NVLink Fusion integration and AI-RAN, widening the set of platforms where Marvell silicon can be pulled through. During the first quarter of fiscal 2027, Marvell issued $2 billion of Series A Convertible Preferred Stock to NVIDIA, signaling strategic alignment and supporting investment in scale-up connectivity and custom platforms.
Marvell’s first-quarter fiscal 2027 results reinforced its momentum in AI infrastructure. Revenues rose 28% year over year to $2.42 billion, with data center up 27% to $1.83 billion and representing 76% of sales. Non-GAAP EPS was 80 cents. Management guided second-quarter fiscal 2027 revenues to about $2.7 billion at the midpoint. The Zacks Consensus Estimate for MRVL’s fiscal 2027 earnings implies year-over-year growth of 42.3%. Estimates have remained unchanged for the past 60 days.
Image Source: Zacks Investment Research
The Case for APH StockAmphenol continues to widen its addressable market through acquisitions that add high-technology interconnect capabilities. CommScope expands the company’s fiber optic and cable connectivity portfolio, while Andrew, Trexon and other prior deals broaden communications, defense and industrial offerings.
CommScope is also gaining traction in optical interconnect, with IT datacom expected to approach half of its 2026 sales versus about one-third in 2025. Amphenol also acquired El.Com, which adds complex interconnect and high-voltage cable assemblies and Wilder Technologies, which adds high-performance test and measurement solutions for high-speed applications.
Amphenol’s high-speed copper, fiber optic and power interconnect portfolio gives it exposure across multiple AI data-center architectures. In second-quarter 2026, IT datacom represented 43% of sales and grew 63% organically year over year, while sequential sales rose 22% largely on AI-related demand.
For the third quarter of 2026, Amphenol expects revenues between $9.3 billion and $9.4 billion. The range implies year-over-year growth of 50-52%, assuming current market conditions and constant exchange rates. Adjusted earnings are projected between $1.40 and $1.42 per share, representing growth of 51-53% from the prior-year quarter. The Zacks Consensus Estimate for APH’s third-quarter earnings suggests year-over-year growth of 52.7%. Estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Stock Price Performance and Valuation of MRVL & APHYear to date, MRVL shares have gained 154.2% compared with the surge of 18.1% in APH shares.
YTD Performance Chart
Image Source: Zacks Investment Research
MRVL is trading at a forward sales multiple of 13.18X, above its median of 8.21X over the past year. APH’s forward sales multiple sits at 4.99X, significantly above its median of 5.74X over the past year.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: MRVL vs. APH StockMarvell Technology and Amphenol offer compelling exposure to the structural growth in AI connectivity infrastructure. However, MRVL appears better positioned for investors seeking higher growth, supported by accelerating interconnect demand, strong AI-driven revenue growth and strategic alignment with NVIDIA. In terms of valuation, MRVL seems to be trading at a premium. Given these factors, APH seems to be a safer bet at present. MRVL and APH carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On August 17, 2026, we conducted a DCF analysis for Amphenol Corp (APH) amidst its notable price performance, which includes a year-to-date increase of 24.1% an
Key Takeaways Amphenol's IT datacom business is benefiting from rising AI-related interconnect demand.The CommScope acquisition strengthens Amphenol's position in optical interconnects.Amphenol expects continued AI-driven demand as bandwidth, optical, and power needs increase. Amphenol (APH - Free Report) is broadening its AI interconnect opportunity as rising data-center requirements drive demand for high-speed copper, fiber-optic and power interconnect solutions. The company’s IT datacom business, which represented 43% of sales in the second quarter of 2026, grew 89% year over year and 63% organically. AI-related products drove virtually all of the 22% sequential growth, underscoring the increasing role of AI applications in Amphenol’s interconnect business.
APH’s positioning across multiple connectivity technologies gives it exposure to the increasing interconnect content required by AI infrastructure. Its portfolio spans high-speed, power and fiber-optic technologies for data centers, including interconnect systems supporting bandwidth of up to 1.6 terabits per second. This breadth should allow APH to participate across evolving data-center architectures rather than remain tied to a single connectivity approach.
The acquisition of CommScope’s Connectivity and Cable Solutions business further strengthens this opportunity, particularly in optical interconnects. CommScope’s IT datacom business nearly doubled year over year in the second quarter, while IT datacom is expected to account for just under half of its 2026 sales compared with about one-third in 2025.
APH’s expanding AI interconnect exposure is expected to benefit from higher bandwidth requirements, greater optical adoption and increasing power needs across AI infrastructure. Third-quarter IT datacom sales are expected to increase in the mid-teens sequentially, providing a near-term indicator of continued AI-driven demand. With AI infrastructure increasingly requiring more connectivity across multiple layers, APH’s broad interconnect portfolio positions it to capture rising content as data-center architectures evolve.
How APH’s Peers Are PositionedAmphenol’s close peers TE Connectivity (TEL - Free Report) and Bel Fuse (BELFB - Free Report) also participate in the AI interconnect market through data-center and high-performance computing applications. TE Connectivity addresses AI interconnect across high-speed copper, optical connectivity, internal cabling and power, covering compute, networking and rack-level applications. Bel Fuse combines connectivity products for high-speed networking with power and magnetic solutions used in servers, networking equipment and data centers. TE Connectivity and Bel Fuse therefore provide relevant exposure to the same AI interconnect buildout as APH, whose IT datacom business is directly benefiting from rising AI-related interconnect demand.
APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have surged 49.6% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 30.3%.
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 27.91X, higher than the sector’s 21.54.
APH Stock is Overvalued
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $5.25 per share, up 11.7% over the past 30 days. The figure indicates a 57.19% jump year over year.
APH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Amphenol benefits from surging AI data center demand, with IT datacom sales up 89% in Q2'26.APH's Q2'26 orders jumped 94% to $10.7 billion, with organic orders rising 63% year over year.Amphenol raised its 2026 CommScope outlook to $4.6 billion in sales and 30 cents of EPS accretion. Amphenol (APH - Free Report) shares closed at $167.23 on Aug. 11, very close to the 52-week high of $178.52 hit on June 30. APH’s shares have risen 23.8% year to date (YTD), outperforming the Zacks Computer and Technology sector’s appreciation of 16.9%. The outperformance can be attributed to accelerating demand for APH’s high-speed and power interconnects that are used in AI servers and networking. Amphenol remains one of the biggest beneficiaries of AI data center investments. This, along with strong organic growth, acquisition synergies and improving profitability, is driving prospects of the stock.
So, is Amphenol stock a buy right now? Let’s dig deep to find out.
AI Demand & Diversified End-Markets Aid APH’s ProspectsAPH appears particularly well positioned as hyperscalers and other customers increase investment in AI data centers. The company participates across the connectivity architecture through its high-speed copper, fiber optics, and power interconnects offerings, rather than relying on a single technology. Management noted that customers are demanding “more of everything,” with AI demand growing faster than the already-strong 63% organic IT datacom growth rate. IT datacom has become APH’s largest end market, accounting for 43% of the second-quarter 2026 sales. Sales in this market surged 89% year over year and 22% sequentially, driven by accelerating demand for products used in AI applications.
Amphenol benefits from a diversified end market. In the second quarter of 2026, revenues jumped 55% year over year to $8.8 billion, including a strong 30% organic increase. The increase to outsized IT datacom demand, together with strong growth in industrial, defense, commercial aerospace and mobile devices, drove the revenue performance. Moreover, second-quarter 2026 orders reached $10.7 billion, up 94% year over year, producing a robust book-to-bill ratio of 1.23X. Organic orders were also up 63%, indicating that the momentum was not merely acquisition-driven.
APH is benefiting from increasing investment in current and next-generation defense technologies globally, while capacity expansions and a broader product portfolio should help it capture this demand. Commercial aerospace is benefiting from higher aircraft production and increasing APH content on next-generation aircraft. On a combined basis, these businesses provide diversification away from the more AI-sensitive IT datacom market.
Meanwhile, industrial sales rose 18% organically in the second quarter of 2026, with growth across virtually all industrial segments and double-digit growth across all three geographic regions. The acquisition of El.Com expands APH’s high-voltage and value-added interconnect capabilities, while continued adoption of electronics, sensors and connectivity in industrial equipment should support longer-term content growth. APH is benefiting from electrified drivetrains and increasing electronic content in next-generation vehicles. Management continues to target design wins in higher-content platforms, which could allow APH to grow even if overall global vehicle production remains relatively subdued.
APH Rides on Acquisitions & Strong Cash Generation AbilityAmphenol’s CommScope acquisition is performing substantially better than anticipated. Management raised its 2026 expectation for CommScope to $4.6 billion of sales and 30 cents per share of adjusted earnings accretion, versus its earlier forecast of $4.1 billion and 15 cents per share, respectively. Better-than-expected integration and earnings contribution have strengthened investor confidence in APH’s acquisition strategy.
Beyond CommScope, APH completed the El.Com and Wilder Technologies acquisitions in the second quarter of 2026. Wilder strengthens high-speed test and measurement capabilities for IT datacom, while El.Com adds high-voltage interconnect solutions for industrial, defense and aerospace customers. Amphenol views its ability to acquire and successfully integrate complementary businesses as a core competitive advantage
Moreover, APH’s strong cash generation ability should support reinvestment and shareholder returns. In the second quarter of 2026, operating cash flow was $1.6 billion and free cash flow was $1.2 billion. APH also returned about $515 million to shareholders through dividends and buybacks. Strong cash generation gives the company flexibility to fund capacity additions, acquisitions and shareholder returns simultaneously.
APH Shares Outperform Peers, Trades at PremiumAPH shares have outperformed peers, including TE Connectivity (TEL - Free Report) , Belden (BDC - Free Report) and Aptiv (APTV - Free Report) in the YTD period. Shares of Belden have jumped 17.3%, while TE Connectivity and Aptiv have lost 4.4% and 35.5%, respectively, over the same time frame.
APH Stock’s Price Performance
Image Source: Zacks Investment Research
Amphenol is 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 28.18X compared with the broader Zacks Computer and Technology sector and peers. The broader sector is trading at 21.33X while TE Connectivity, Belden and Aptiv trade at 17.02X, 14.03X and 7.93X, respectively.
APH Stock’s Valuation
Image Source: Zacks Investment Research
Technically, APH shares are trading above the 50 and 200-day moving averages (SMAs), indicating a bullish trend.
APH’s 3Q’26 Earnings Estimate Revision Shows Rising TrendAmphenol expects third-quarter 2026 earnings between $1.40 per share and $1.42 per share. Revenues are anticipated between $9.3 billion and $9.4 billion.
The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.42 per share, up 14.5% over the past 30 days and indicates 52.69% growth over the year-ago quarter’s reported figure.
ConclusionAmphenol’s robust AI-driven demand, diversified end-market exposure, strong order growth and successful acquisition strategy paint a promising growth picture. The better-than-expected performance of CommScope, healthy cash generation and favorable earnings estimate revisions further strengthen APH’s prospects.
APH currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Dell Technologies, Taiwan Semiconductor and three others stand out for dividend growth and solid fundamentals.Taiwan Semiconductor and Amphenol project strong 2026 revenue growth of 35.7% and 53.5%, respectively.The five stocks combine dividend growth with positive sales, earnings and projected EPS growth. All three major U.S. stock indices ended Aug. 7, 2026, in positive territory, as a softer-than-expected jobs report eased concerns over the Federal Reserve implementing further rate hikes in the near term. At the same time, robust tech and software earnings helped dispel fears surrounding artificial intelligence (AI) market disruption.
While lower rate expectations and strong tech earnings often drive investors toward aggressive growth plays, recent market volatility — particularly among tech firms making massive capital expenditures on AI data centers — warrants caution.
For risk-averse investors, steady dividend-growth stocks offer a far more prudent balance of consistent income, lower volatility, and reliable long-term returns at this juncture.
These dividend-growth stocks boast a consistent track record of raising payouts, underscoring the balance-sheet strength and cash-flow resilience required to navigate a period in which the traditional growth narrative is being reassessed.
Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks.
We have selected five dividend growth stocks — Dell Technologies (DELL - Free Report) , Taiwan Semiconductor (TSM - Free Report) , Amphenol Corp. (APH - Free Report) , Cheesecake Factory (CAKE - Free Report) and GormanRupp (GRC - Free Report) — that could be solid choices for your portfolio.
Why Is Dividend Growth Better?Stocks with a strong history of dividend growth are typically associated with mature companies that are less prone to sharp market swings, allowing them to serve as a hedge against economic or political uncertainty, as well as broader market volatility. Their steadily rising payouts provide a measure of downside protection.
These companies are generally backed by solid fundamentals, making them attractive long-term dividend-growth investments. Key strengths include durable business models, consistent profitability, expanding cash flows, healthy liquidity, strong balance sheets and attractive valuations.
A consistent history of dividend growth underscores the potential for continued growth ahead.
Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market or any other dividend-paying stock for an extended period.
As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are taken into account.
5-Year Historical Dividend Growth Greater Than Zero: This selects stocks with a solid dividend growth history.
5-Year Historical Sales Growth Greater Than Zero: This represents stocks with a strong record of growing revenues.
5-Year Historical EPS Growth Greater Than Zero: This represents stocks with a solid earnings growth history.
Next 3-5 Year EPS Growth Rate Greater Than Zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.
Price/Cash Flow Less Than M-Industry: A ratio lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.
52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has appreciated more than the S&P 500 over the past year.
Top Zacks Rank: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally outperform their peers in all types of market environments.
Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
These few criteria alone narrowed the universe from more than 7,700 stocks to just nine.
Here are the five of those nine stocks that fit the bill:
Texas-based Dell Technologies is a leading provider of servers, storage, and personal computers. The company’s IT solutions support customers in traditional infrastructure and multi-cloud environments. The Zacks Consensus Estimate for DELL’s fiscal 2027 revenues suggests a year-over-year improvement of 67.6%. The stock boasts a long-term (three-to-five years) earnings growth rate of 26.40%. It has an annual dividend yield of 0.56%.
DELL currently carries a Zacks Rank #2 and has a Growth Score of A.
Headquartered in Taiwan, Taiwan Semiconductor is the world's largest dedicated integrated circuit (IC) foundry. The Zacks Consensus Estimate for TSM’s 2026 revenues suggests a year-over-year improvement of 35.7%. The stock boasts a long-term earnings growth rate of 26.5% and has an annual dividend yield of 0.71%.
TSM currently sports a Zacks Rank #1 and a Growth Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Connecticut-based 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 Zacks Consensus Estimate for APH’s 2026 revenues suggests a year-over-year improvement of 53.5%. The stock boasts a long-term earnings growth rate of 24% and has an annual dividend yield of 0.59%.
APH currently sports a Zacks Rank #1 and a Growth Score of B.
Headquartered in California, Cheesecake Factory is a restaurant and bakery company that owns and operates hundreds of upscale, full-service dining locations. The Zacks Consensus Estimate for CAKE’s 2026 revenues suggests a year-over-year improvement of 6.8%. The stock boasts a long-term earnings growth rate of 12.50% and has an annual dividend yield of 1.12%.
CAKE currently sports a Zacks Rank #1 and a Growth Score of A.
Ohio-based GormanRupp designs, manufactures and sells pumps and related equipment (pump and motor controls) for use in water, wastewater, construction, industrial, petroleum, original equipment, agricultural, fire protection, military and other liquid-handling applications. The Zacks Consensus Estimate for GRC’s 2026 revenues suggests a year-over-year improvement of 6.5%. The stock boasts a long-term earnings growth rate of 13% and has an annual dividend yield of 0.91%.
GRC currently carries a Zacks Rank #2 and a Growth Score of A.
WALLINGFORD, Conn.--(BUSINESS WIRE)--Amphenol Corporation (NYSE: APH) today announced that at its meeting held on August 5, 2026, the Company's Board of Directors approved a two-for-one stock split to be paid in the form of a stock dividend. Each Amphenol shareholder of record at the close of business on August 17, 2026 will receive one additional share for every share held on the record date. Amphenol expects the additional shares will be distributed on September 2, 2026. Following the two-for.
Astera Labs (NASDAQ: ALAB | ALAB Price Prediction) and Amphenol (NYSE: APH) delivered earnings reflecting the same thesis: sell the picks and shovels of AI rack-scale density. Astera reported Q2 revenue of $392.40 million, up 104.45% year over year. Amphenol posted $8.76 billion in sales, up 55%. Same tailwind, different vehicles.
Scorpio Ignites Astera. CommScope Supercharges Amphenol. Astera’s story is Scorpio. CEO Jitendra Mohan said “Scorpio X-Series is in volume production, and we expect our Scorpio family to become our largest product category by revenue in Q3”, arriving one quarter earlier than previously flagged. Aries retimers hit a record too, and PCIe 6.0 crossed 50% of company revenue. Non-GAAP EPS came in at $0.80 versus $0.692 expected. That is the eighth straight beat, explaining the 244 P/E.
Amphenol’s engine differs. Communications Solutions grew 85% to $5.38 billion, powered by IT datacom and the CommScope CCS deal. Management lifted the 2026 CommScope revenue outlook to $4.6 billion from $4.1 billion, doubling EPS accretion to $0.30. Orders hit a record $10.7 billion, a 1.23:1 book-to-bill. Adjusted EPS of $1.35 beat the $1.1949 consensus.
Driver Astera Labs Amphenol Main Growth Engine Scorpio fabric switches IT datacom + CommScope Gross Margin Profile 73.7% ~40% (component economics) Customer Base Hyperscaler-concentrated ~40 countries, diversified Tight Focus Versus Wide Net Astera doubles down on AI fabric silicon. Mohan pointed to “content opportunity for Scorpio X series solutions alone to grow well beyond $1,000 per XPU”, with optical interconnects and UALink 2.0 pushing that higher into 2027. It is a concentrated bet on scale-up connectivity inside the rack.
Amphenol widens the aperture. CEO Adam Norwitt framed AI demand as “more of everything: more high-speed copper, more fiber optic solutions, and more power solutions”. Defense grew 37%, industrial 56%, mobile devices 17%. The trade-off is $18.8 billion in total debt and China tax accruals totaling $290 million.
The Next Test Is Scorpio Ramp and Book-to-Bill Durability Astera guided Q3 revenue to $540 million to $560 million, implying roughly 40% sequential growth. Watch whether Scorpio X-Series design wins broaden past the lead hyperscaler before optical revenue arrives in 2027. Amphenol guided Q3 to $9.30 billion to $9.40 billion. Watch whether that 1.23 book-to-bill holds once CommScope laps its first full year in the portfolio.
Why I Split the Difference For pure AI connectivity content growth exposure, Astera is the more thrilling ticket. The 91.41% year-to-date rally already reflects much of it, and a 244 multiple leaves no room for a single hyperscaler pause. Amphenol is the version for compounding. The 40 P/E carries a premium, and diversified end markets plus $1.21 billion in free cash flow cushion the ride. For a growth-and-quality blend, Amphenol offers the steadier compounding profile while Astera carries higher beta.
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