Earnings call transcript: Amphenol tops Q3 2026 estimates as AI demand surges

Amphenol reported stronger-than-expected third-quarter 2026 results, surpassing Wall Street estimates for both earnings and revenue. Adjusted earnings per share (EPS) of $0.80 topped the forecasted $0.72, while revenue of $10.2 billion exceeded the projected $9.44 billion. Sales increased by 65% from the previous year, and orders reached a record high of $12.17 billion, driving a book-to-bill ratio of 1.19 to 1.

The company's success was largely driven by AI-related demand, with IT datacom sales growing by 117% year-over-year. Amphenol lifted its dividend by 20% and authorized a $4 billion share repurchase plan. Management raised its full-year sales outlook for CommScope, its recent acquisition, and guidance for sales and stock price for 2026.

The positive earnings beat resulted in a 2.93% increase in Amphenol's stock price to $80.50 in premarket trading, after closing at $78.21. The company's broad-based growth across defense, industrial, automotive, and mobile devices, along with record margins, suggests continued strong demand for high-speed interconnect, optical products, and power solutions.

Amphenol's focus on AI infrastructure and its commitment to returning capital to shareholders through a higher dividend and share repurchase program received positive market response.