Amphenol Corp (NYSE:APH) saw its stock jump more than 8% in pre-market trading on Wednesday after reporting record third-quarter results and announcing a sharp increase to its dividend, fueled by strong demand from AI and data center infrastructure.
The Connecticut-based connector manufacturer posted adjusted earnings of $0.93 per share, an 86% surge from a year earlier and well above the $0.79 expected by analysts. Revenue jumped 53% to $6.2 billion, beating the $5.53 billion consensus estimate, as broad-based growth across nearly all end markets more than offset supply chain pressures.
Operating margin reached an all-time high of 27.5%, while free cash flow climbed to $1.2 billion. During the quarter, Amphenol repurchased $153 million in shares and distributed $201 million in dividends. The company also announced a 52% increase in its quarterly dividend to $0.25 per share, payable on January 7.
The company reaffirmed its confidence in growth opportunities tied to high-speed connectivity, especially in data centers and advanced electronics, as demand for interconnect solutions supporting artificial intelligence continues to surge.
“Sales increased from prior year by 53%, driven by strong organic growth in virtually all of our end markets, including exceptional organic growth in the IT datacom market, as well as contributions from the Company’s acquisition program,” said CEO R. Adam Norwitt.
Looking ahead to the fourth quarter, Amphenol expects earnings per share in the range of $0.89 to $0.91 and revenue of $6.0 billion to $6.1 billion, both above Wall Street forecasts. For the full year, the company anticipates adjusted earnings between $3.26 and $3.28 per share and revenue of up to $22.76 billion — representing about 50% growth over 2024.
Amphenol, which recently completed the acquisition of Rochester Sensors and is set to close deals for Trexon and CommScope’s CCS business in the coming quarters, emphasized that diversification and strategic acquisitions remain key pillars of its long-term growth plan.