IT data communications business growth and acquisitions driven by dual engines, Amphenol (APH.US) Q3 results and Q4 guidance exceed expectations

Amphenol (APH.US) released its Q3 2026 results before the U.S. market open on Wednesday. Q3 net sales were $10.230 billion, up 65% year-over-year, above the market consensus of approximately $9.465 billion; organic growth was 37%, with constant-currency and USD figures consistent. Adjusted diluted EPS was $0.80, up 74% year-over-year, above the consensus of $0.72; GAAP diluted EPS was $0.79, up 61% year-over-year. The company said both sales and adjusted EPS exceeded the upper end of its prior guidance (adjusted EPS guidance had been $0.70 to $0.71). The Communications Solutions segment posted sales of $6.583 billion, up 99% year-over-year, of which 48 percentage points came from acquisitions and organic growth was 51%; the company said the IT data communications market continued to show "exceptionally strong" organic growth. Harsh Environment Solutions sales were $2.042 billion, up 35% (organic 29%); Interconnect and Sensor Systems sales were $1.605 billion, up 17% (organic 11%). Adjusted operating margin was 29.7%, and the combined segment operating margin was 29.5% versus 27.5% a year earlier. Quarterly orders hit a record, with a book-to-bill ratio of 1.19:1. On guidance, the company expects Q4 sales of $10.3 billion to $10.5 billion and adjusted EPS of $0.81 to $0.83, above the IBES consensus of $9.768 billion and $0.75; full-year sales guidance is $36.9 billion to $37.1 billion and adjusted EPS $2.82 to $2.84. The guidance excludes the three pending acquisitions of AdvancedPCB, Dexgreen and Humanetics Sensors. The company also raised its full-year sales contribution forecast for the CommScope business to $5.1 billion from $4.6 billion, and its contribution to adjusted EPS to $0.18 from $0.15. On shareholder returns, the quarterly dividend was raised 20% to $0.15 from $0.125, payable January 13, 2027; the board approved a three-year $4 billion buyback program effective January 1, 2027, replacing the $2 billion program that will be exhausted by year-end. In Q3 the company repurchased 3 million shares for $245 million.