Amphenol APH is set to report its third-quarter 2026 results on Oct. 28.
The company offered third-quarter 2026 earnings guidance between $1.40 per share and $1.42 per share, indicating growth of 51-53% year over year. Following the two-for-one stock split, Amphenol revised guidance to 70-71 cents per share. The Zacks Consensus Estimate for third-quarter 2026 earnings has increased by a penny to 73 cents per share over the past 30 days, suggesting 55.3% growth from the figure reported in the year-ago quarter.
Amphenol expects third-quarter 2026 revenues between $9.3 billion and $9.4 billion, suggesting year-over-year growth in the 50-52% range. The Zacks Consensus Estimate for third-quarter revenues is pegged at $9.44 billion, indicating an increase of 52.4% from the figure reported in the year-ago quarter.
Consensus Estimate Trend
Image Source: Zacks Investment Research
Amphenol’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 11.76%.
Amphenol Corporation Price and EPS Surprise
Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Drive Amphenol’s Q3 Results
Amphenol’s third-quarter 2026 results are expected to have benefited from accelerating investments in artificial intelligence (AI) infrastructure, driving robust demand for high-speed copper, fiber-optic, and power interconnect solutions. The IT datacom business, accounting for 43% of second-quarter revenues, registered 89% year-over-year growth and 63% organic growth. APH expects third-quarter IT datacom revenues to increase in the mid-teens sequentially, supported by AI data center expansion, hyperscaler investments and growing demand for traditional IT equipment from enterprise and cloud customers.
Strong contribution from the CommScope acquisition, particularly in advanced optical interconnect solutions for AI data centers, is expected to have driven top-line growth. CommScope’s IT datacom business nearly doubled year over year in the second quarter, reflecting accelerating demand for optical connectivity. Higher sales volume, improving operational efficiency at CommScope and greater customer penetration are expected to have supported profitability in the to-be-reported quarter.
Moreover, increasing defense electronics investments and demand for advanced interconnect solutions across military applications are expected to have benefited APH’s top-line growth. Amphenol anticipates low-double-digit sequential growth in third-quarter Defense revenues, supported by strong customer demand and expanded production capacity. Commercial aerospace revenues, which grew 21% organically in the second quarter, are expected to have increased modestly sequentially, benefiting from rising aircraft production and greater electronic content in next-generation aircraft.
Third-quarter performance is also expected to have benefited from new customer product launches across smartphones, laptops and wearable devices. The mobile devices business has been benefiting from continued demand for antennas, interconnect products and advanced mechanisms. Amphenol expects approximately 20% sequential revenue growth in the third quarter, driven by the initial ramp-up of new customer programs. Resilient demand across diversified industrial applications, including factory automation, medical technology and building connectivity, is expected to have benefited revenues. Automotive revenues are also expected to have remained stable sequentially, supported by increasing electronic content in vehicles and growing adoption of electrified drivetrains.
However, Amphenol’s third-quarter 2026 results are likely to face pressure from weaker demand in communications networks. The company expects revenues from this market to decline in the mid-teens sequentially during the third quarter. Moreover, the absence of additional tariff recoveries, following an $80 million benefit in the second quarter of 2026, could have partially offset sequential margin expansion.
APH Shares Lag Sector, Trades at a Premium
Amphenol shares have appreciated 9.7% year to date (YTD), underperforming the Zacks Computer and Technology sector’s return of 14.1%.
APH has outperformed TE Connectivity TEL and Belden BDC, but lagged Corning GLW YTD. While Corning shares have returned 41.3%, TE Connectivity and Belden shares have dropped 8.5% and 10.6%, respectively, over the same time frame.
APH Stock’s Price Performance
Image Source: Zacks Investment Research
APH stock is trading at a premium, as suggested by the Value Score of C. In terms of the forward 12-month price/earnings, APH is trading at 23.31X, higher than the broader sector’s 18.86X, TE Connectivity’s 15.75X and Belden’s 10.52X. However, Amphenol is trading below Corning’s multiple of 29.75.
APH Stock Trades at a Premium
Image Source: Zacks Investment Research
AI Infrastructure Demand Aids APH’s Prospects
APH’s prospects are expected to benefit from accelerating investments in AI infrastructure and the rising complexity of next-generation computing architectures. Increasing GPU and custom AI accelerator deployments require greater bandwidth, higher power delivery and more sophisticated interconnect technologies. As customers require increasing amounts of copper, optical and power connectivity, Amphenol is well-positioned to capture growing interconnect content across successive generations of AI systems.
Amphenol’s diversified interconnect portfolio provides a significant competitive advantage as AI computing architectures evolve. The company holds strong positions in high-speed copper connectivity, fiber-optic interconnect solutions and power distribution technologies. The CommScope acquisition is expected to remain a major long-term growth driver by significantly expanding Amphenol’s optical interconnect capabilities and relationships with data center customers. Rising defense spending globally and increasing electronic content in next-generation military and commercial aircraft are other tailwinds.
Conclusion
AI-driven IT datacom expansion, CommScope’s optical connectivity business, and higher defense demand appear to be the strongest near-term growth drivers for Amphenol. Moreover, rising interconnect content per AI system, a diversified technology portfolio, and improving operational efficiency provide the principal opportunities for sustained revenue and earnings growth.
APH currently has a Zacks Rank #2 (Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amphenol Corporation (APH): Free Stock Analysis Report
Corning Incorporated (GLW): Free Stock Analysis Report
Belden Inc (BDC): Free Stock Analysis Report
TE Connectivity Ltd. (TEL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).