Amphenol’s fourth quarter was marked by robust revenue growth and a significant operating margin expansion, but the negative market reaction reflected investor caution. Management attributed the strong results to broad-based demand across nearly all end markets, with the IT datacom segment, particularly AI-driven applications, serving as a major catalyst. CEO Adam Norwitt noted that record bookings were “driven primarily by data center demand related in particular to artificial intelligence investments being planned by a number of our large customers.” Additionally, recent acquisitions, including Trexon, contributed to sales growth and segment diversification. Despite these achievements, investors appeared focused on the sustainability of this growth given the scale of recent order inflows.
Is now the time to buy APH? Find out in our full research report (it’s free for active Edge members).
Amphenol (APH) Q4 CY2025 Highlights:
- Revenue: $6.44 billion vs analyst estimates of $6.23 billion (49.1% year-on-year growth, 3.3% beat)
- Adjusted EPS: $0.97 vs analyst estimates of $0.94 (3.1% beat)
- Adjusted EBITDA: $2.02 billion vs analyst estimates of $1.94 billion (31.4% margin, 4.3% beat)
- Revenue Guidance for Q1 CY2026 is $6.95 billion at the midpoint, above analyst estimates of $6.72 billion
- Adjusted EPS guidance for Q1 CY2026 is $0.92 at the midpoint, above analyst estimates of $0.90
- Operating Margin: 26.8%, up from 22.1% in the same quarter last year
- Market Capitalization: $180 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amphenol’s Q4 Earnings Call
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William Stein (Truist Securities) asked about the drivers behind the record bookings and whether the high order level was concentrated in a single segment. CEO Adam Norwitt clarified that while AI-related IT datacom was a primary driver, bookings were strong across most end markets.
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Amit Daryanani (Evercore ISI) inquired about the range of offerings after the CommScope acquisition. Norwitt explained that Amphenol now covers the full spectrum from high-speed copper to fiber optic interconnect, allowing for a more comprehensive customer solution.
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Luke Junk (Baird) questioned the importance of rapid CommScope integration and its impact. Norwitt responded that the focus is on empowering teams rather than traditional integration, emphasizing continuity and leveraging the acquired organization’s existing strengths.
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Mark Delaney (Goldman Sachs) asked about margin sustainability given rising metals costs and acquisition impacts. CFO Craig Lampo stated that while materials costs are monitored, operational discipline and margin targets remain intact, with CommScope expected to gradually reach company-average margins.
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Asiya Merchant (Citigroup) sought clarity on capital expenditure plans amid strong order momentum. Lampo confirmed that Amphenol will maintain its disciplined approach, targeting capex at the upper end of the historic range to support growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the pace of integration and performance of the CommScope and Trexon acquisitions, (2) sustained demand in AI-driven IT datacom and data center segments, and (3) broad-based growth across industrial, defense, and automotive markets, particularly in Europe. Execution on capital allocation and margin management amid these dynamics will also be a key signpost for future performance.
Amphenol currently trades at $147.08, down from $166.25 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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