- Price
- $80.88
- Fair value
- $100.00
- Discount
- 19.1%
- Uncertainty
- Medium
- LSEG rating
- 1.76
- Moat
- Wide
- Next earnings
- 2026-10-29
- Next earnings is estimate
- Yes
- Company name
- Amphenol
- Sector
- Electronic connectors & cables
- About
- Amphenol designs and makes connectors, cables, antennas and sensors. Its products carry power and data inside AI servers and data centers, cars, airplanes, factory equipment, phones and communication networks. It reports three segments: Communications Solutions, Harsh Environment Solutions, and Interconnect and Sensor Systems. Communications Solutions is the largest, with $5.4 billion of the $8.8 billion of sales in Q2 2026. The IT datacom market, which includes AI data centers, gave $3.8 billion of sales in Q2 2026. Amphenol grows partly by buying companies. In Q1 2026, it completed the purchase of CommScope's Connectivity and Cable Solutions (CCS) business, and it expects this business to bring about $4.6 billion of sales in 2026. Amphenol did a 2-for-1 stock split in September 2026, and the per-share figures in this profile are adjusted for the split.
- Thesis
- Amphenol trades at a discount because investors fear that its growth depends on AI data center spending that can slow. In Q2 2026, IT datacom sales grew 63% on an organic basis to $3.8 billion, about 43% of total sales. If the large cloud companies cut their AI budgets, these orders can fall fast. Investors also watch the cost of the CommScope CCS purchase, which Amphenol paid for with cash and new debt. Debt was $18.8 billion at June 30, 2026, against $5.4 billion of cash and short-term investments. Part of the Q2 2026 margin also came from an $80 million benefit from IEEPA tariff refunds, which will not repeat. For the gap to close, orders must stay above sales, as they did with a book-to-bill of 1.23 in Q2 2026, Amphenol must reach its Q3 2026 guidance of $9.3 to $9.4 billion of sales and $0.70 to $0.71 of split-adjusted adjusted EPS, and growth must spread beyond IT datacom to markets such as defense, industrial and automotive. CommScope must also reach its expected 2026 sales of $4.6 billion. The first test is the Q3 2026 report, expected in late October 2026. The second test is the Q4 2026 report, expected in late January 2027, with the first view of 2027. If orders stay strong, the gap can close over the next two to four quarters. The main risk is a cut in AI data center spending that reduces orders.
- Risks
- IT datacom sales were $3.8 billion in Q2 2026, about 43% of total sales, and grew 63% on an organic basis from AI demand. A small number of large cloud companies drive this spending. If they cut their AI budgets, orders can fall fast.
Amphenol paid about $10.6 billion, net of cash acquired, for acquisitions in Q1 2026, mainly CommScope CCS, and issued $3.6 billion of new debt. Debt was $18.8 billion at June 30, 2026. If CommScope does not reach its expected sales, the purchase can earn a low return.
Part of the margin in Q2 2026 came from an $80 million benefit from IEEPA tariff refunds. New tariffs on parts that Amphenol makes outside the US can raise its costs.
Amphenol sells into cyclical markets, such as automotive, industrial and mobile devices. A slowdown in these markets can lower sales when AI growth slows too.
- Balance sheet
- Cash: $5.4B
Debt: $18.8B
Net debt: $13.4B
Interest cover: 11×
Debt due within 12 months: $1.6B
At June 30, 2026, Amphenol had $4.7 billion of cash and $0.7 billion of short-term investments. Debt was $18.8 billion, of which $1.6 billion was due within one year. Debt rose in Q1 2026, when Amphenol issued $3.6 billion of senior notes and other long-term debt and used cash to buy CommScope CCS. Interest cover is operating income of $4.4 billion divided by interest expense of $421.6 million in the first half of 2026. Free cash flow was $1.2 billion in Q2 2026. In Q2 2026, Amphenol bought back 1.5 million shares before the split for $208 million and paid $307.3 million of dividends.
As of 2026-06-30.
- Checkpoints
- Oct 29, 2026 (estimate): Q3 2026 results: orders and IT datacom. Pending. Watch: Sales within or above $9.3 to $9.4 billion, split-adjusted adjusted EPS of at least $0.70, and a book-to-bill above 1 pass; a book-to-bill below 1 or lower IT datacom orders fail.
Jan 2027 (estimate): Q4 2026 results and 2027 view. Pending. Watch: Organic growth in markets beyond IT datacom and CommScope sales near $4.6 billion for 2026 pass; falling orders or weak CommScope sales fail.
- Recent events
- 2026-09-02: Amphenol completed its 2-for-1 stock split. Shareholders of record on August 17, 2026 received one more share for each share. The Q3 2026 dividend became $0.125 per share after the split, payable on October 14, 2026.
2026-08-06: Amphenol announced the 2-for-1 stock split, which the Board approved on August 5, 2026. It restated its Q3 2026 adjusted EPS guidance to $0.70 to $0.71 after the split.
2026-07-29: Amphenol reported record Q2 2026 results. Sales were $8.76 billion, up 55%, and up 30% on an organic basis. Orders were $10.7 billion, with a book-to-bill of 1.23. The adjusted operating margin was 29.8%, including an $80 million benefit from IEEPA tariff refunds. Split-adjusted adjusted EPS was $0.675. Amphenol raised its 2026 sales expectation for the CommScope CCS business to $4.6 billion from $4.1 billion. It guided Q3 2026 sales of $9.3 to $9.4 billion.
2026-04-29: Amphenol reported Q1 2026 results. Sales were $7.6 billion, up 58%, and up 33% on an organic basis. Orders were $9.4 billion, with a book-to-bill of 1.24. Split-adjusted adjusted EPS was $0.53, up 68%. Amphenol completed the purchase of CommScope's CCS business in the quarter and paid $10.6 billion, net of cash acquired, for acquisitions in Q1 2026.