Is Amphenol Still The Business You Bought?

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If you own Amphenol (APH), you likely bought it as a steady profit maker that sells interconnect products. The company reported record results for its second quarter of 2026 on July 29, and its next report is expected on or around October 28, 2026. Before that report arrives, is the Amphenol you hold still the company you chose?

Amphenol Now Keeps Far More Of Each Sale

Partly. Amphenol still sells the same kind of products, but the company earns far more on them, and a larger share of sales now comes from its Communications Solutions segment. Over the twelve months to June 30, 2026, Amphenol’s operating margin reached 27.7%, compared with a median of 20.1% across the 56 quarter ends from September 2011 to June 2025. The margin had not hit that level at any quarter end since at least September 2011.

Sales over those twelve months also rose 54.2% from a year earlier, outpacing the 10.7% median across the same quarter ends. Gross margin reached 38.5%, compared with a median of 31.9%. Shareholders can appreciate these numbers: Amphenol is growing faster and keeping more of its sales at the same time.

Why Is Amphenol Earning So Much More?

According to management, sales rose much faster than costs. On the July 29 call, executives said the higher adjusted operating margin in the second quarter came mainly from much higher sales volumes spread over costs, and to a lesser extent from a tariff recovery benefit.

Most of those extra sales originated from data centers. Sales to the IT datacom market made up 43% of Amphenol’s second quarter sales, and the category grew 89% from a year earlier. Management tied that demand to spending on AI data centers, alongside enterprise and cloud customers buying more traditional IT datacom equipment.

The underlying business has changed along with its margins. Revenue in the Communications Solutions segment reached $12.2 billion in the year to December 2025, up from $6.38 billion a year before.

What Amphenol’s New Shape Means For Your Money

So far, holders have done well. Amphenol stock returned 27.1% over the year to October 20, 2026, compared with 17.1% for the S&P 500. But you also pay more for each dollar of profit. At that close, the stock traded at 37.9 times its earnings over the last twelve months, against 23.0 for the S&P 500.

The company carries more debt as well. Total debt at the end of the quarter, June 30, 2026, stood at $18.8 billion, up from $8.06 billion a year earlier. Amphenol bought part of its growth. Management named CommScope’s Connectivity and Cable Solutions business among its recent acquisitions and expects it to bring in $4.6 billion of sales in 2026. Operating income over the last twelve months was 12.7 times interest expense.

You now own a company more tied to data center spending, while not every market is growing. Management said second-quarter sales in the communications networks market, 11% of the total, fell 6% from a year earlier on an organic basis, which leaves out acquisitions, as communications network operators and wireless equipment manufacturers bought less.

Amphenol’s twelve-month operating margin stood between 20.2% and 21.1% each June from 2021 to 2024. It rose to 23.0% in the twelve months to June 2025, when sales grew 40.5%. You can no longer assume its margins sit near their old level. The company now earns more, and a larger portion of what it earns comes from data center customers. Amphenol’s operating margin over the last twelve months is the measure to watch when the company reports on or around October 28, 2026.

Does This Mean You Should Act On APH?

Our purpose is to inform you with unique data so you can make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

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