Electrical connector manufacturer Amphenol (NYSE: APH) announced better-than-expected revenue in Q3 CY2025, with sales up 53.4% year on year to $6.19 billion. On top of that, next quarter’s revenue guidance ($6.05 billion at the midpoint) was surprisingly good and 6.1% above what analysts were expecting. Its non-GAAP profit of $0.93 per share was 16.5% above analysts’ consensus estimates.
Is now the time to buy APH? Find out in our full research report (it’s free for active Edge members).
Amphenol (APH) Q3 CY2025 Highlights:
- Revenue: $6.19 billion vs analyst estimates of $5.56 billion (53.4% year-on-year growth, 11.5% beat)
- Adjusted EPS: $0.93 vs analyst estimates of $0.80 (16.5% beat)
- Adjusted EBITDA: $1.93 billion vs analyst estimates of $1.64 billion (31.2% margin, 17.5% beat)
- Revenue Guidance for Q4 CY2025 is $6.05 billion at the midpoint, above analyst estimates of $5.70 billion
- Adjusted EPS guidance for the full year is $3.27 at the midpoint, beating analyst estimates by 7.2%
- Operating Margin: 27.5%, up from 20.3% in the same quarter last year
- Market Capitalization: $157.4 billion
StockStory’s Take
Amphenol’s third quarter was marked by robust growth across nearly all major end markets, with the market responding positively to the company’s results. Management attributed the strong performance to broad-based demand for high-technology interconnect solutions, particularly in IT Datacom and communications networks. CEO Adam Norwitt highlighted the company’s “outstanding execution across a diverse array of markets,” pointing to double-digit organic sales growth in defense, industrial, and automotive segments. The acquisition of Andrew and other recent additions also contributed to the company’s ability to capture opportunities across the electronics value chain.
Looking forward, Amphenol’s outlook is shaped by continued strength in AI-driven data center demand, expanding product content in aerospace and automotive, and the integration of newly acquired businesses like Trexan and Rochester Sensors. Management emphasized the company’s strategy to leverage its diversified technology portfolio, noting, “Our leading high-speed and power interconnect products are critical components in next-generation systems.” CFO Craig Lampo signaled that while margin variability is possible, operational discipline and acquisition synergies are expected to support profitability through the year.
Key Insights from Management’s Remarks
Management credited the quarter’s outperformance to exceptional volume growth in IT Datacom and communications, acquisition integration, and product complexity driving customer value.
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AI and IT Datacom Surge: Amphenol saw major acceleration in sales to data centers and AI applications, driven by high demand for advanced interconnect and power solutions. Management noted this was a balanced mix of traditional IT infrastructure and newer AI platforms, with CEO Adam Norwitt stating, “Our products are critical components in these next-generation systems.”
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Acquisition Integration Success: Recent acquisitions, including Andrew and Rochester Sensors, have broadened Amphenol’s product range and contributed to share gains in communications and industrial markets. The pending Trexan deal is expected to further strengthen the company’s defense offerings, as Norwitt commented, “Trexan capabilities will bring incremental potential.”
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Profitability from Product Complexity: Increasing complexity and technology content in interconnect products was a key factor in margin expansion. Management explained that Amphenol’s ability to deliver high-value, high-performance products supports sustained higher margins, even as manufacturing and design challenges grow.
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Diverse End Market Growth: Double-digit organic growth was achieved in nearly all end markets except mobile devices. Particularly, defense, commercial aerospace, and industrial segments outperformed internal expectations due to rising demand for next-generation electronics and increased government and commercial investment.
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Operational Efficiency and Cash Flow: Strong operating leverage and disciplined cost management enabled record operating and free cash flow conversion. Management highlighted ongoing automation and supply chain investments as key to supporting growth while containing costs.
Drivers of Future Performance
Amphenol expects robust demand for AI infrastructure, ongoing acquisition integration, and product innovation to drive results, while monitoring margin variability.
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AI and Data Center Expansion: Management anticipates sustained demand for high-speed and power interconnects in data centers supporting AI workloads. The company’s position across both established and emerging architectures is expected to drive revenue growth, with Norwitt noting continued “multi-decade build-up of our capabilities.”
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Acquisition Integration and Synergy: The recent and pending acquisitions, including Trexan and Rochester Sensors, are projected to broaden Amphenol’s portfolio and customer base, particularly in defense and industrial markets. Management expects integration efforts to yield incremental margin and cross-selling opportunities.
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Margin and Cost Management: While operating margins are expected to remain strong, CFO Craig Lampo cautioned that adding costs to support rapid growth and potential variability in revenue could create some quarter-to-quarter fluctuation. However, operational discipline and automation investments are expected to help mitigate these risks.
Catalysts in Upcoming Quarters
In the upcoming quarters, StockStory’s team will be watching (1) the pace of integration and performance from recent acquisitions like Trexan and Rochester Sensors, (2) sustained demand and order trends in AI-driven IT Datacom and communications, and (3) margin stability as cost structures adjust to support growth. Developments in automation and supply chain efficiency will also be important indicators of operational resilience.
Amphenol currently trades at $128.83, up from $124.43 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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