Amphenol Rises 90% in a Year: Should You Still Buy the Stock in 2026?
Amphenol APH shares have jumped 90.3% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s return of 24.1%. APH has been benefiting from strong order growth, which jumped 38% year over year and 11% sequentially to $6.11 billion. Amphenol’s expanding portfolio of fiber optic, power, antenna and sensor technologies continues to gain traction across datacom, aerospace and defense markets. The company’s strategy of expanding business through acquisitions has been a key catalyst.
The company has outperformed peers, including TE Connectivity TEL, Corning GLW and Belden BDC in the past year. Shares of TE Connectivity and Corning have returned 49.9% and 68.9%, respectively, while Belden shares have dropped 8.2% over the same timeframe.
APH Stock’s Performance
Will the momentum in APH stock continue in 2026? Let’s find out.
Strong Portfolio & Acquisitions Aid APH’s Prospects
Rising AI workloads and cloud infrastructure upgrades are fueling demand for high-speed interconnects. This momentum is expected to support APH’s Communications Solutions segment. Electrification in transportation and rising electronic content in medical devices are driving the adoption of Amphenol’s cable assemblies and sensor-based systems. These drivers are expected to support steady growth in the Interconnect and Sensor Systems segment.
Amphenol continues to expand its portfolio and market reach through targeted acquisitions across communications, medical and defense verticals. Plethora of acquisitions — CIT, Lutze, CommScope’s Andrew business, LifeSync, Narda-MITEQ, XMA, Q Microwave, Rochester sensors and others — have been driving Amphenol’s prospects. APH acquired more than 50 companies in the past 10 years. In early November, Amphenol completed the Trexon acquisition for approximately $1 billion in cash. Trexon is expected to be accretive to earnings in the first year post-closing.
The pending acquisition of CommScope’s Connectivity and Cable Solutions (“CCS”) business will expand Amphenol’s interconnect product capabilities in the fast-growing IT datacom market. The CCS acquisition will diversify Amphenol’s broad portfolio of fiber optic and other interconnect product solutions in the communications networks and industrial markets.
Strong Liquidity to Boost APH’s Growth Trajectory
Amphenol generates solid cash flow, which allows management the opportunity to invest in product innovations, acquisitions and business development. In the third quarter of 2025, operating cash flow was $1.47 billion or 117% of net income, whereas the free cash flow was $1.215 billion or 97% of net income.
Total liquidity at the end of the third quarter was $10.9 billion, including cash and short-term investments on hand of $3.9 billion plus availability under Amphenol’s existing credit facilities. Net debt was $4.2 billion, and APH had no outstanding borrowings under its revolving credit facility or its commercial paper programs. The improved balance sheet is expected to help APH pursue further acquisitions and continue shareholder-friendly initiatives. In the third quarter of 2025, the company returned $354 million through dividends and share buybacks. It raised its quarterly dividend by 52% to 25 cents per share to be payable beginning January 2026.
APH’s Earnings Estimate Revision Shows Positive Trend
The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 92 cents per share, up 3 cents over the past 30 days and indicating 67.3% growth over the year-ago quarter’s reported figure. The consensus mark for fourth-quarter 2025 revenues is pegged at $5.84 billion, suggesting 35.2% growth from the year-ago quarter’s reported figure.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
The Zacks Consensus Estimate for 2025 earnings is pegged at $3.29 per share, up 2.1% over the past 30 days and indicating 74.1% growth from 2024’s reported figure. The consensus mark for 2025 revenues is pegged at $22.74 billion, suggesting 49.4% growth from the 2024 reported figure.
APH Stock Trades at a Premium
Amphenol shares are trading at a premium, as suggested by a Value Score of F.
In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 36.10X, higher than the broader sector and peers, including TE Connectivity, Corning and Belden. The broader sector is trading at 28.53X while TE Connectivity, Corning and Littelfuse trade at 21.43X, 28.08X and 14.14X, respectively.
APH Stock’s Valuation
Technically, APH is currently trading above the 50-day and the 200-day moving averages, indicating a bullish trend.
APH Stock Trades Above 50-Day & 200-Day SMAs
Conclusion
Amphenol’s diversified end-market exposure, expanding interconnect portfolio and strong acquisition execution continue to support solid growth visibility. These factors justify a premium valuation.
APH currently has a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research