Amphenol Corporation

(New York Stock Exchange)
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Very Bullish +85

Amphenol stock: Record sales back $4 billion buyback

Dividend Share buyback AI-generated analysis

πŸ“ˆ Amphenol reported record third-quarter sales of $10.2 billion, representing a 65% increase from the year-earlier quarter.

πŸ’° Adjusted diluted earnings per share jumped 74% to $0.80, while GAAP EPS rose 61% to $0.79.

πŸ“Š The company achieved an adjusted operating margin of 29.7%, up from 27.0% in the prior year.

πŸ’΅ Amphenol generated $1.6 billion in free cash flow during the third quarter.

πŸ”„ Shareholder returns increased significantly with a 20% dividend hike to $0.15 and a new $4 billion buyback program.

πŸ“… Management forecasts fourth-quarter sales between $10.3 billion and $10.5 billion.

πŸš€ Full-year 2026 guidance projects sales of $36.9 billion to $37.1 billion with EPS of $2.82 to $2.84.

🀝 The company expects to close acquisitions for AdvancedPCB, Humanetics Sensors, and Dexgreen in the coming quarters.

Bullish Signals
  • Amphenol reported record third-quarter sales of $10.2 billion, a 65% year-over-year increase driven by strong organic growth in information technology and data communications.
  • Adjusted diluted earnings per share surged 74% to $0.80, reflecting robust profitability with an adjusted operating margin expanding to 29.7%.
  • The company generated substantial free cash flow of $1.6 billion in the quarter, enabling significant capital returns to shareholders.
  • Amphenol increased its quarterly dividend by 20% to $0.15 per share and launched a new three-year share repurchase program of up to $4 billion.
  • Management provided strong fourth-quarter guidance with sales expected between $10.3 billion and $10.5 billion, implying approximately 60% growth.
  • Full-year 2026 outlook projects sales of $36.9 billion to $37.1 billion and adjusted EPS of $2.82 to $2.84, excluding pending acquisitions.
Full Analysis
Amphenol Corp. reported record third-quarter results, with sales surging 65% year-over-year to $10.2 billion and adjusted diluted EPS climbing 74% to $0.80. The company delivered strong organic growth across most end markets, including information technology and data communications, supported by contributions from recent acquisitions. Adjusted operating margins expanded to 29.7%, while the business generated $1.6 billion in free cash flow for the quarter. To reward shareholders, Amphenol increased its quarterly dividend by 20% to $0.15 per share and approved a new three-year share repurchase program of up to $4 billion starting in 2027. During the third quarter alone, the company returned $553 million to shareholders through a combination of dividends and stock buybacks. Management expects fourth-quarter sales to range between $10.3 billion and $10.5 billion with adjusted EPS between $0.81 and $0.83. For full-year 2026, Amphenol projects total sales between $36.9 billion and $37.1 billion and adjusted diluted EPS of $2.82 to $2.84. The company anticipates closing acquisitions for AdvancedPCB and Humanetics Sensors in the fourth quarter, with Dexgreen expected to close in early 2027. Management notes that while the growth case is supported by strong demand and capital returns, future performance remains dependent on end-market conditions and successful integration of acquired businesses.