TLDR
- Amphenol reported Q4 adjusted earnings of 97 cents per share on revenue of $6.4 billion, beating analyst estimates of 93 cents and $6.2 billion.
- The company issued strong Q1 2026 guidance with earnings of 91-93 cents per share and revenue of $6.9-$7 billion, exceeding analyst expectations of 89 cents and $6.5 billion.
- Shares dropped 13% to $144.83 despite the earnings beat, marking the largest single-day percentage decline since December 2000.
- The stock had surged 23% year-to-date and nearly 140% over the past year prior to earnings, creating elevated investor expectations.
- CEO Adam Norwitt reported Q4 sales increased 49% year-over-year, with the recent CommScope acquisition expected to add $4.1 billion in 2026 revenue.
Amphenol delivered a solid earnings beat Wednesday morning, but investors weren’t impressed. The stock tanked 13% in a move that caught many off guard.
The electronics maker reported fourth-quarter adjusted earnings of 97 cents per share on revenue of $6.4 billion. Analysts had expected 93 cents per share and $6.2 billion in sales.
The company didn’t stop there. Management guided first-quarter 2026 earnings between 91 and 93 cents per share, topping the 89-cent consensus estimate.
Revenue guidance also came in strong. Amphenol expects between $6.9 billion and $7 billion in Q1 sales, crushing analyst forecasts of $6.5 billion at the midpoint.
So why the selloff? The stock had been on fire heading into the report.
Shares jumped 23% year-to-date and nearly 140% over the past 12 months. That’s a massive run compared to the Nasdaq’s 3.4% gain so far in 2026.
When Beating Expectations Isn’t Enough
Evercore ISI analyst Amit Daryanani pointed to elevated expectations on the buy side. Institutional investors were looking for $6.6 billion to $6.8 billion in sales, banking on a stronger AI infrastructure cycle.
The actual results, while good, didn’t meet those lofty internal targets. Sometimes a beat just isn’t big enough when a stock’s already priced for perfection.
Amphenol had also gotten a boost just before earnings. J.P. Morgan raised its price target on the stock Tuesday, sending shares up 6.9% in the session before the report.
The company manufactures cables, sensors, and other hardware for data centers. AI demand has been a major tailwind, but the stock remains vulnerable to negative sentiment shifts.
Concerns about Chinese competition hit shares early last year. Then in January, Nvidia unveiled its Rubin chip platform featuring a cable-free design.
That initially spooked investors. But the stock quickly recovered as traders realized the platform uses more connectors, which actually helps Amphenol.
Strong Performance Across the Board
CEO Adam Norwitt called the fourth-quarter results a “record” performance. Revenue jumped 49% from the prior year.
Adjusted operating margin hit 27.5% in the quarter. That reflects what Norwitt described as “excellent profitability.”
The company has seen “strong organic growth in virtually all of our end markets,” according to Norwitt. An aggressive acquisition strategy has also boosted results, with five deals completed in 2025 alone.
The most important recent purchase was CommScope’s connectivity and cable solutions business. That deal closed earlier this month.
The CommScope unit should generate $4.1 billion in sales during 2026. It’s also expected to add around 15 cents to Amphenol’s full-year adjusted earnings.
Amphenol reported a return on equity of 33.46% and a net margin of 18.22% for the quarter. Year-over-year revenue growth came in at 49.1%.
The company opened Wednesday at $143.42 with a market cap of $175.55 billion. Shares have a 12-month range of $56.45 to $167.04.
Wall Street remains bullish on the stock despite Wednesday’s drop. Eleven analysts rate it a buy, while two have hold ratings. The average price target sits at $149.54.
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