01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- Net sales increased by 58% to $7.62 billion compared to the prior year period.
- Organic net sales growth was robust at 33%, indicating strong underlying business performance.
- The acquisition of CommScope, completed in January 2026, significantly contributed to revenue growth.
- Operating income grew to $1.83 billion, with operating margin expanding to 24.0%.
- Net cash provided by operating activities increased by 47% to $1.12 billion.
- Diluted EPS rose to $0.72 from $0.58 in the prior year period.
- The effective tax rate significantly increased to 42.7% due to specific tax items in China.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Amphenol Corp kept $0.12.
- Revenue$7.62B100.0%
- Cost of revenue−$4.82B63.3%
- Gross profit$2.80B36.7%
- Operating costs−$968.4M12.7%
- Operating income$1.83B24.0%
- Interest, other & tax−$898.8M11.8%
- Net income$933.0M12.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $7.62B$4.81B | +58.4% |
| Cost of Revenue | $4.82B$3.17B | +52.2% |
| Gross Profit | $2.80B$1.64B | +70.3% |
| SG&A Expenses | $851.50M$575.20M | +48.0% |
| Operating Income | $1.83B$1.02B | +78.7% |
| Net Income | $933.00M$737.80M | +26.5% |
| EPS (Basic) | $0.76$0.61 | +24.6% |
| EPS (Diluted) | $0.72$0.58 | +24.1% |
| Shares Outstanding (Basic) | 1.23B1.21B | +1.6% |
| Shares Outstanding (Diluted) | 1.29B1.27B | +1.9% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Amphenol's revenue growth in Q1 2026?
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.
How did the CommScope acquisition impact Amphenol's financial results?
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.
What is causing the significant increase in Amphenol's effective tax rate for Q1 2026?
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.
How is Amphenol managing its debt following recent acquisitions?
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.
06—Continue