Amphenol Corporation

First quarter 2026 sales were a record $7.6 billion, up 58% in U.S. dollars, 57% in local currencies, and 33% organically versus Q1 2025; GAAP diluted EPS was $0.72, up 24%, and adjusted diluted EPS was a record $1.06, up 68% from $0.63. GAAP operating income was $1.8 billion with GAAP operating margin of 24%; adjusted operating income was $2.1 billion with adjusted operating margin of 27.3%, up 380 bps year over year. Orders were $9.435 billion, up 78% year over year, and book-to-bill was 1.24:1. Operating cash flow was $1.1 billion and free cash flow was $831 million. For Q2 2026, Amphenol guided to sales of $8.1 billion to $8.2 billion and adjusted diluted EPS of $1.14 to $1.16, assuming current conditions and constant exchange rates. Management also said the effective tax rate is expected to remain at 27% for the rest of 2026, and quarterly interest expense net of interest income is expected to be about $200 million.

Adam Norwitt said the quarter reflected outstanding execution, broad demand across end markets, and especially strong momentum in IT datacom tied to AI, where sales were 41% of company sales in the quarter. He emphasized that Amphenol now has the broadest product suite across copper, power, active/passive optics, and that CommScope adds complementary capabilities in data center, communications networks, and building connectivity. His tone was very confident and upbeat, but he repeatedly framed the AI opportunity as long term and architecture-agnostic rather than tied to one specific technology winner.

Craig Lampo highlighted record sales, record orders, and record adjusted EPS, while noting adjusted operating margin of 27.3% increased 380 bps year over year despite $249 million of acquisition-related costs, including $179 million of noncash amortization and $70 million of transaction costs. He said operating cash flow was $1.1 billion, free cash flow was $831 million, and shareholder returns totaled about $485 million through share repurchases and the dividend. He also said total debt was $18.7 billion, net debt was $14.2 billion, liquidity was $7.6 billion, and net leverage was 1.6x. On taxes, he noted a $130 million accrual for a China tax matter and a $160 million additional tax provision, and said the adjusted tax rate for 2026 is expected to stay at 27%.

Analysts focused heavily on AI data center architecture shifts, especially co-packaged optics, active versus passive copper/optics, and whether Amphenol’s role changes as customers diversify suppliers. Management said customers want more interconnect rather than fewer options, that Amphenol can participate across multiple architectures, and that its execution record is a key differentiator; they did not give a quantitative view of revenue impact from CPO or 2027. Questions also centered on capacity and supply agreements, with management saying customers are increasingly making commitments that help justify capex, but not necessarily formal long-term supply agreements. In follow-ups, management said CommScope is already growing strongly and that there are no broad signs of extended lead times beyond customer-specific investment-related order apertures.