Amphenol Earnings Record Quarter, Stock Sells Off
Amphenol earnings showed record quarterly and full year results while guidance hinted at near-term EPS moderation, raising investor scrutiny of valuation.
KEY TAKEAWAYS
- Reported record Q4 sales $6.4 billion and adjusted EPS $0.97, beating consensus.
- Q1 2026 guidance set sales midpoint near $6.95 billion and EPS near $0.92, implying sequential EPS moderation.
- The shares had doubled in 2025 yet sold off after the report, renewing valuation scrutiny.
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Amphenol Corporation’s earnings released Jan. 28, 2026, showed record fourth-quarter and full-year revenue and adjusted diluted EPS. However, the company’s guidance for the next quarter signaled a near-term EPS moderation, prompting investor scrutiny of its premium valuation.
Record Quarter and Margins
The company reported fourth-quarter sales of $6.4 billion, up 49% year over year in U.S. dollars and 37% organically, surpassing analyst estimates by about 3.3%. Adjusted diluted EPS rose 76% to $0.97, exceeding consensus ranges. Operating margin expanded to 26.8%, a 4.7 percentage-point increase from 22.1% the prior year, driving the stronger profit performance.
Adjusted EBITDA reached $2.01 billion, representing a 31.3% margin, while free-cash-flow margin stood at 22.8%, indicating robust cash conversion. Full-year 2025 sales totaled $23.09 billion, a 52% increase from the previous year, reflecting the company’s expanded scale.
Guidance and Valuation Context
Amphenol set Q1 2026 guidance with a sales midpoint near $6.95 billion, about 44.5% higher year over year and roughly 3.5% above analyst estimates. Adjusted EPS guidance at the midpoint was near $0.92, slightly above consensus but implying a sequential EPS moderation from the prior quarter.
Fiscal 2026 consensus projects revenue of approximately $26.71 billion and EPS of $4.26, implying about 28.2% year-over-year EPS growth. Achieving this will depend on sustaining the margin and cash-conversion levels demonstrated in the recent quarter.
Following the report, APH stock sold off, highlighting investor sensitivity to valuation after the shares roughly doubled in 2025. The contrast between strong growth and margins and the prospect of near-term EPS moderation explains the renewed scrutiny of the company’s premium multiple. Investors must reconcile the record operating performance with the earnings growth pace implied by guidance and consensus.
