Amphenol beats Q2 estimates, raises Q3 outlook on AI-driven demand

Investing.com -- Amphenol topped Wall Street expectations for the second quarter and issued stronger-than-expected third-quarter guidance on Wednesday, as robust AI-driven demand for IT datacom products and contributions from acquisitions lifted results. Shares rose about 7% in premarket trading.

The connector manufacturer reported adjusted earnings per share of $1.35, beating analysts' estimates of $1.16, while revenue climbed to $8.76 billion from $5.65 billion a year earlier, ahead of the consensus estimate of $8.19 billion. Organic sales grew 30%, and orders reached a record $10.7 billion, resulting in a book-to-bill ratio of 1.23.

Amphenol said adjusted operating margin expanded to 29.8%, helped in part by an $80 million net benefit related to the recovery of IEEPA tariffs. Chairman and CEO R. Adam Norwitt cited exceptional organic growth in the IT datacom market and broad-based strength across most end markets.

For the third quarter, the company forecast adjusted EPS of $1.40 to $1.42 on revenue of $9.3 billion to $9.4 billion, comfortably above analysts' expectations of $1.28 per share and $8.77 billion in revenue. The outlook excludes any additional tariff recoveries.

Amphenol also raised its outlook for the recently acquired CommScope connectivity and cable solutions business, saying it now expects the acquisition to contribute $4.6 billion in 2026 sales and add $0.30 to adjusted diluted EPS, up from prior expectations of $4.1 billion in sales and $0.15 in EPS accretion. During the quarter, the company completed the acquisitions of El.Com and Wilder Technologies.

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