Amphenol Reports Record Q2 Earnings Driven by AI Infrastructure Growth
Amphenol Corporation (NYSE: APH) reported record second-quarter sales of $8.8 billion, a 55% year-over-year increase in U.S. dollars and 30% organically driven primarily by strong demand for artificial intelligence infrastructure. Adjusted diluted earnings per share rose to $1.35, up 67%, while GAAP EPS was slightly higher at $1.37. The company generated significant cash flow with operating cash flow reaching $1.6 billion and free cash flow totaling $1.2 billion. IT datacom sales surged by 89% year-over-year to represent 43% of total revenue, fueled largely by AI infrastructure demand. Orders hit a record high of $10.7 billion with a book-to-bill ratio of 1.23 and the company expects another mid-teens sequential increase in IT datacom sales for Q3. Amphenol also raised its full-year guidance for CommScope integration, now expecting $4.6 billion in revenue and $0.30 per share earnings accretion. The CFO highlighted margin expansion due to higher volumes, operational improvements at recent acquisitions like CommScope, and a recovery of IEEPA tariffs contributing positively.
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