It has been about a month since the last earnings report for Amphenol (APH). Shares have lost about 0.7% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Amphenol due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Amphenol Corporation before we dive into how investors and analysts have reacted as of late.
Amphenol Earnings Surpass Estimates in Q4, Sales Increase Y/Y
Amphenol’s 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.
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.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in fresh estimates.
VGM Scores
At this time, Amphenol has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.
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.
Outlook
Amphenol has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Amphenol Corporation (APH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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