Amphenol Corporation (NYSE:APH) saw its shares rise 6% after reporting second-quarter earnings that far surpassed analyst predictions, fueled by outstanding growth in its IT datacom segment.
The company posted adjusted earnings per share of $0.81, outperforming the estimated $0.66 by 23%. Revenue surged to $5.7 billion, marking a 57% year-over-year increase and well exceeding the consensus estimate of $5.02 billion. Organic growth was especially strong at 41% compared to the prior year’s quarter.
“We are pleased to have closed the second quarter of 2025 with record sales and Adjusted Diluted EPS, both significantly exceeding the high end of our guidance,” said Amphenol President and CEO R. Adam Norwitt. “In the second quarter, we once again realized excellent profitability with Adjusted Operating Margin reaching a record 25.6%.”
The Communications Solutions segment was a key driver, with sales doubling to $2.91 billion from $1.44 billion a year earlier. Operating margin for this division improved to 30.6%, up from 24.3% in the same period last year.
Looking ahead to Q3, Amphenol projects sales between $5.4 billion and $5.5 billion, reflecting a 34% to 36% increase over last year. The company expects adjusted EPS in the range of $0.77 to $0.79, representing a 54% to 58% gain from Q3 2024.
Amphenol continues to leverage its financial resources through acquisitions and shareholder returns. During the quarter, the company repurchased 2 million shares for $160 million and paid dividends totaling $200 million, returning about $360 million to shareholders.
“The revolution in electronics continues to accelerate, with new innovations creating exciting growth opportunities for Amphenol across each of our diversified end markets,” Norwitt added.
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