10-QPeriod: Q1 FY2026

AMPHENOL CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 1, 2026For Securities:APH

Summary

Amphenol Corporation reported strong financial results for the first quarter of 2026, demonstrating significant growth driven by both organic expansion and strategic acquisitions. Net sales surged by 58% year-over-year to $7.62 billion, with organic growth contributing a substantial 33% of this increase, underscoring robust demand across its key end markets, particularly in information technology and data communications (IT datacom), fueled by AI-related applications. The company successfully integrated its significant acquisition of CommScope, which closed in January 2026, contributing substantially to the reported revenue growth. Despite increased interest expenses due to higher debt levels associated with acquisitions, Amphenol maintained strong operational leverage, leading to a notable increase in operating income and a healthy operating margin of 24.0%. The company also saw a significant rise in net cash provided by operating activities, indicating strong cash generation capabilities. However, investors should note a sharp increase in the effective tax rate primarily due to specific tax matters in China, which management is actively addressing.

Financial Highlights

52 data points
Beta

Revenue

$7.62B

36.7% Gross Margin

Net Income

$933.00M

12.2% Net Margin

EPS (Diluted)

$0.72

Total Assets

$42.13B

Cash & Equivalents

$4.13B

Free Cash Flow

$829.90M

Financial Statements
Beta
Revenue$7.62B
Cost of Revenue$4.82B
Gross Profit$2.80B
SG&A Expenses$851.50M
Operating Income$1.83B
Net Income$933.00M
EPS (Basic)$0.76
EPS (Diluted)$0.72
Shares Outstanding (Basic)1.23B
Shares Outstanding (Diluted)1.29B

Key Highlights

  • 1Net sales increased by 58% to $7.62 billion compared to the prior year period.
  • 2Organic net sales growth was robust at 33%, indicating strong underlying business performance.
  • 3The acquisition of CommScope, completed in January 2026, significantly contributed to revenue growth.
  • 4Operating income grew to $1.83 billion, with operating margin expanding to 24.0%.
  • 5Net cash provided by operating activities increased by 47% to $1.12 billion.
  • 6Diluted EPS rose to $0.72 from $0.58 in the prior year period.
  • 7The effective tax rate significantly increased to 42.7% due to specific tax items in China.

Frequently Asked Questions

Amphenol's revenue growth in the first quarter of 2026 was driven by a combination of strong organic growth across all three segments, particularly in the IT datacom market with strength in AI-related applications, and the significant contribution from the CommScope acquisition completed in January 2026. The company experienced robust demand in IT datacom, industrial, defense, and commercial aerospace markets.

The acquisition of CommScope, which closed on January 9, 2026, had a material impact on Amphenol's financial results for the first quarter of 2026. It contributed significantly to the reported net sales increase and added substantial goodwill and intangible assets. The acquisition was funded through a combination of debt financing (Delayed Draw Term Loans and November Senior Notes) and cash on hand. While contributing to top-line growth, the acquisition also led to increased interest expense.

The effective tax rate for the first quarter of 2026 increased significantly to 42.7% from 22.7% in the prior year. This increase is primarily due to specific tax matters in China, including unfavorable determinations from tax authorities leading to an accrual of $130.0 million and reassessments of prior years' tax assumptions resulting in an additional $160.0 million in tax obligations. Additionally, a general shift in income to higher-tax jurisdictions also contributed to the higher effective tax rate.

Amphenol financed the significant CommScope acquisition through a combination of its existing credit facilities, new senior notes issuances, and cash on hand. As of March 31, 2026, the company had substantial borrowings under its Delayed Draw Term Loans. While the company has increased its debt levels, it maintains access to significant liquidity through its revolving credit facility and commercial paper programs, which it actively manages to meet its financial commitments and fund future growth initiatives.