What happened
Amphenol Corporation (NYSE: APH) reported third-quarter sales of $10.2 billion, up 65% in U.S. dollars and 37% organically from a year earlier. Acquisitions added 28%, according to the filing's reconciliation.
The organic figure is the cleaner read on demand for Amphenol's existing products.
Orders reached $12.2 billion, a book-to-bill of 1.19:1. That means Amphenol booked more orders than it recorded in sales. Adjusted diluted EPS was $0.80, up 74% from $0.46 a year earlier. GAAP diluted EPS was $0.79, up 61%.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Third-quarter net sales | $10.2 billion | from $6.2 billion, +65% | SEC 8-K, Exhibit 99.1 |
| Orders (book-to-bill 1.19:1) | $12.2 billion | SEC 8-K, Exhibit 99.1 | |
| Adjusted diluted EPS | $0.80 | from $0.46, +74% | SEC 8-K, Exhibit 99.1 |
| GAAP operating margin | 29.5% | from 27.5%, +2.0 percentage points | Calculated from SEC 8-K |
| Third-quarter free cash flow | $1.6 billion | SEC 8-K, Exhibit 99.1 | |
| Quarterly dividend per share | $0.15 | +20% | SEC 8-K, Exhibit 99.1 |
Read more: Amphenol (APH) company research
Where the growth came from
Communications Solutions drove the quarter. Sales rose 99% to $6.58 billion from $3.31 billion, with organic growth of 51%. Its operating margin was 33.1%, up from 32.7%. Chairman and CEO R. Adam Norwitt cited continued exceptional organic growth in the IT datacom market.
Harsh Environment Solutions grew 35%, or 29% organically, and its margin rose to 30.1% from 27.1%. Interconnect and Sensor Systems grew 17%, or 11% organically, with its margin unchanged at 20.0%.
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What holders get
The board approved a 20% dividend increase on Oct. 27, from $0.125 per share. The new rate is payable Jan. 13, 2027 to holders of record Dec. 22. A new three-year, $4 billion buyback starts Jan. 1, 2027. Amphenol expects to finish the existing $2 billion plan by Dec. 31.
In the third quarter Amphenol bought 3.0 million shares for $245 million and paid $308 million in dividends, a total of $553 million. Operating cash flow was $2.1 billion and free cash flow was well above the payout. Per-share data reflects the 2-for-1 stock split that began trading on Sept. 3.
What the deals cost
Amphenol closed Empire Electronics at the start of September. It also signed agreements for AdvancedPCB, Dexgreen Limited and Humanetics Sensors. The four deals cost about $1.6 billion combined, paid with cash on hand and debt.
Amphenol expects 2026 sales of about $320 million at Empire, $270 million at AdvancedPCB, $90 million at Dexgreen and $70 million at Humanetics Sensors.
The year's deals show on the balance sheet. Cash and equivalents fell to $4.17 billion on Sept. 30 from $11.13 billion on Dec. 31, 2025. Long-term debt excluding the current portion rose to $17.17 billion from $14.56 billion.
Acquisitions, net of cash acquired, used $11.06 billion in the nine months. Third-quarter interest expense was $212.3 million, up from $80.7 million a year earlier.
Why it matters
OptimistFi has argued that Amphenol creates value if its connector, sensor and cable content keeps getting designed into faster, more electrified products. Management must also turn that breadth into margins, cash and disciplined acquisitions. The quarter supports the first two parts.
Sales grew by $4.04 billion from the third quarter of 2025. Consolidated GAAP operating margin rose to 29.5% from 27.5%.
Some of the lift comes from deals. CommScope, which closed in the first quarter of 2026, is now expected to deliver $5.1 billion of 2026 sales and adjusted EPS accretion of $0.18. The prior outlook was $4.6 billion of sales and $0.15 per share.
GAAP EPS also includes a $60.0 million one-time tax item for foreign tax settlements, $52.2 million of stock-compensation tax benefits and $15.5 million of acquisition-related expenses.
The cash picture is more mixed. Working capital absorbed $415.9 million in the quarter against $60.9 million a year earlier. Capital spending rose to $457.2 million from $257.2 million. The filing lists higher debt and interest expense from the CommScope acquisition among its risks.
What's next
AdvancedPCB and Humanetics Sensors are expected to close in the fourth quarter of 2026 and Dexgreen in the first quarter of 2027. All three need regulatory approvals and other closing conditions. Amphenol's guidance excludes all three, so a delay or failure to close would change the acquisition part of the case.
Fourth-quarter guidance is sales of $10.3 billion to $10.5 billion, an increase of about 60% over the prior-year quarter and a step down from the third quarter's growth rate. Adjusted diluted EPS is guided to $0.81 to $0.83.
Full-year guidance is sales of $36.9 billion to $37.1 billion and adjusted diluted EPS of $2.82 to $2.84, assuming current market conditions and constant exchange rates. Results inside those ranges would reinforce the case. A margin miss would weaken it.
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Sources
- Amphenol third quarter 2026 earnings release (SEC 8-K, Exhibit 99.1) — Press release dated Oct. 28, 2026 with results, dividend, buyback, acquisitions, guidance and financial statements.
- SEC filing
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
