Amphenol (APH 3.75%), a leading provider of electrical, electronic, and fiber optic connectors and interconnect systems, reported its earnings for Q2 2025 on July 23, 2025. The quarter delivered both record revenue and profitability, with results far exceeding Wall Street forecasts. Analysts expected adjusted (non-GAAP) earnings per share (EPS) of $0.67, but reported non-GAAP EPS reached $0.81, a jump of 84% compared to the prior year. Revenue (GAAP) rose 57.0% to $5.65 billion, beating the $5.039 billion GAAP consensus. The performance was propelled by strong growth in its Information Technology (IT) and data communications segments, margin expansion. Overall, the quarter was a standout, with Amphenol surpassing its own guidance and market expectations (non-GAAP).
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Adjusted, Non-GAAP) | $0.81 | $0.67 | $0.44 | 84.1% |
| Revenue (GAAP) | $5.65 billion | $5.04 billion | $3.61 billion | 57.0% |
| Operating Margin (Adjusted, Non-GAAP) | 25.6% | 21.3% | 4.3 pp | |
| Free Cash Flow (Non-GAAP) | $1.12 billion | $528 million | 112.4% | |
| Net Income Attributable to Amphenol (GAAP) | $1.09 billion | $525 million | 107.7% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About Amphenol’s Business and Key Focus Areas
Amphenol designs and manufactures interconnect solutions, including connectors and cables, for a wide range of global industries. Its products enable the transfer of power, signal, and data—critical for everything from communications networks and data centers to industrial machinery, automotive technology, aerospace, and defense.
The company’s strengths include its commitment to technological innovation—especially in high-speed, fiber optic, and harsh environment interconnects—along with a global manufacturing presence spanning approximately 40 countries. Amphenol’s flexible cost structure, focus on operational efficiency, and ongoing strategic acquisitions support a diversified customer base and a reduced risk profile. Recent acquisitions and growth in IT datacom, as well as disciplined cost and asset management, are central to its recent trajectory.
Quarter Review: What Drove Amphenol’s Results?
Results were driven by both organic and acquired growth across all reporting segments. Growth in the IT datacom market was the most notable factor, as demand for artificial intelligence (AI) and data center buildouts remained elevated. Management highlighted that roughly two-thirds of year-over-year IT datacom growth related directly to AI projects in the prior quarter.
Communications Solutions led segment performance, increasing GAAP sales by 101% to $2.91 billion, with strong organic growth at 78%. The segment’s operating margin expanded to 30.6 %, up from 24.3 % in the comparative period. This surge reflected continued momentum in datacom and the integration of recent acquisitions. The Harsh Environment Solutions segment also grew sharply, with sales up 38% to $1.45 billion, and margins at 25.2%. Interconnect and Sensor Systems posted a 16% rise in revenue (GAAP), reaching $1.3 billion and a margin of 19.5%.
Amphenol, known for its expertise in radio frequency (RF), high-speed, and fiber optic interconnects—such as the high-speed connectors and fiber systems used in server racks and networking switches—continued its innovation push. The integration of new assets, including Narda-MITEQ—a maker of active RF interconnect components geared toward the defense market—into the Harsh Environment Solutions segment occurred this quarter.
Adjusted operating margin set a company record at 25.6%. Free cash flow more than doubled from the prior year, supporting capital returns to shareholders. Amphenol returned approximately $360 million to shareholders through a mix of buybacks and dividends. Inventory (GAAP) grew by $591 million year to date to $3.14 billion as of June 30, 2025.
The company’s manufacturing base—over 300 facilities in 40 countries—allowed it to address customer needs with resilience against tariffs; with dividends paid totaling $199.6 million, up from $132.1 million in Q2 2024.
Looking Ahead: Guidance and Key Watch Areas
Management issued a revenue forecast for the next quarter between $5.4 billion and $5.5 billion and expects adjusted EPS of $0.77 to $0.79, but the guidance is slightly conservative compared to this quarter’s outperformance.
Amphenol’s leaders emphasized opportunities in innovation and global supply chain resilience, while also acknowledging the importance of managing inventory and working capital growth. The company is expected to maintain its policy of returning capital to shareholders as cash flows allow. Investors will be watching trends in IT datacom exposure, ongoing acquisition activity, and the trajectory of AI spending by key customers, as well as inventory normalization, over the coming periods.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
