Amphenol's Q4 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall

Amphenol’s APH fourth-quarter 2025 adjusted earnings of 97 cents per share beat the Zacks Consensus Estimate by 4.3%. The earnings figure jumped 76.4% year over year.

Net sales surged 49.1% year over year to $6.44 billion, beating the consensus mark by 5.64%. Organically, net sales increased 37% year over year. This exceptional top-line performance was driven by strong organic growth in the IT datacom end-market and strong contribution from acquisitions.
 

Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote

APH shares are down 15% at the time of writing this article following the impressive fourth-quarter 2025 results. Shares of the company have jumped 57.9% in the trailing six-month period, outperforming the Zacks Computer and Technology sector’s 16.8%.

APH’s Q4 Top-Line Details

Harsh Environment Solutions’ (25.7% of net sales) sales were $1.65 billion, up 31% year over year. Communications Solutions’ (53.2% of net sales) sales were $3.42 billion, which jumped 77.5% year over year. Interconnect and Sensor Systems Solutions’ (21.2% of net sales) sales were $1.36 billion, up 20.9% year over year.

Gross margin, on a GAAP basis, expanded 390 basis points (bps) year over year to 38.2%. 

Selling, general and administrative expenses, as a percentage of revenues, decreased 120 bps on a year-over-year basis to 10.7%.

Adjusted operating margin expanded 510 bps on a year-over-year basis to 27.5%.

APH’s Balance Sheet & Cash Flow

As of Dec. 31, 2025, Amphenol had cash and cash equivalents worth $11.43 billion, up from $3.89 billion as of Sept. 30, 2025.

Total debt was $15.5 billion as of Dec. 31, 2025, compared with $8.07 billion as of Sept. 30, 2025.

During the fourth quarter, the company purchased 1.3 million shares for $171 million. It also paid dividends of $202 million.

APH generated $1.7 billion in cash from operations in the fourth quarter, up from $1.4 billion in the previous quarter. The company generated a non-GAAP free cash flow of $1.5 billion in the third quarter, up from $1.22 billion in the second quarter.

Amphenol’s Q1 Guidance Positive

Amphenol expects first-quarter 2026 earnings between 91 cents and 93 cents per share, indicating growth between 44% and 48% year over year. Revenues are anticipated between $6.90 billion and $7 billion, suggesting growth in the 43-45% range.

Zacks Rank & Upcoming Earnings to Watch

Currently, Amphenol sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are KLA KLAC, Sandisk SNDK and Teradata TDC. Each of the three stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Both KLA and Sandisk are set to report their respective second-quarter fiscal 2026 results on Jan. 29. Teradata is set to report its fourth-quarter 2025 results on Feb. 10.

In the trailing six-month period, shares of Sandisk, KLA and Teradata have jumped 1021.5%, 76.5% and 33.8%, respectively.

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This article originally published on Zacks Investment Research (zacks.com).

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