Amphenol APH shares jumped 6.86% to close at $76.03 on Thursday, following impressive first-quarter 2025 results reported on Wednesday. Adjusted earnings of 63 cents per share beat the Zacks Consensus Estimate by 21.15% and surged 57.5% year over year. Net sales increased 47.7% year over year to $4.81 billion, beating the consensus mark by 13.93%. 

Organically, net sales increased 33% year over year. The solid top-line growth benefited from robust growth in the IT datacom sector, along with solid gains in the mobile devices, defense and communications network markets. Contributions from the company’s ongoing acquisition program amplified top-line growth. Orders jumped 58% year over year and 6% sequentially to $5.29 billion resulting in a book-to-bill ratio of 1.1 to 1. 

Adjusted operating margin expanded 250 basis points (bps) year over year and 110 bps sequentially to 23.5% in the reported quarter, driven by strong top-line growth.

APH Offers Positive Q2 Guidance

Amphenol offered positive second-quarter 2025 guidance. Earnings are now expected between 64 cents and 66 cents per share, indicating year-over-year growth between 45% and 50%. Sales are anticipated between $4.90 billion and $5 billion, suggesting year-over-year growth of 36-39%.

The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 55 cents per share, up by a penny over the past 60 days and indicating 27.91% growth over the year-ago quarter’s reported figure. The consensus mark for 2025 earnings is pegged at $2.34 per share, up 2.6% over the past 60 days and indicates 23.81% growth year over year.
 

APH’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, with the average surprise being 11.79%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The impressive first-quarter 2025 results and the positive second-quarter guidance is expected to help the Amphenol stock push forward in the rest of 2025. APH shares have returned 9.5% year to date outperforming the Zacks Computer & Technology sector’s decline 12.1% as well closest peers including CommScope COMM, TE Connectivity TEL and Sensata Technologies Holding ST. While shares of TE Connectivity have returned 0.4%, CommScope and Sensata Technologies Holding have dropped 27% and 21%, respectively.

APH Stock Performance

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So, is APH stock a buy right now? Let’s analyze.

APH Stock Rides on Diversified Business

Amphenol’s diversified business model lowers the volatility of individual end markets and geographies. Its wide array of interconnect and sensor products boosts long-term prospects. 

Amphenol’s long-term prospects benefit from strong spending by countries around next-generation defense technologies. Strong demand for jetliners and next-gen aircraft is bullish for the commercial aerospace segment. 

Amphenol plans to expand its high-technology interconnect antenna and sensor offerings, both organically and through complementary acquisitions in the industrial domain. The company’s solutions are critical for both high-speed power and fiber optic interconnect solutions. The growing use of AI and machine learning is driving these technologies, benefiting APH’s long-term prospects in the IT datacom end market.

Acquisitions Boost Amphenol’s Prospects

Acquisitions have helped APH strengthen its product offerings and expand its customer base. The buyouts contributed 8% to 2024 revenues. 

In May 2024, it completed the acquisition of CIT, which expanded Amphenol’s footprint across defense, commercial air and industrial end markets. The Lutze acquisition strengthens APH’s broad offering of high-technology interconnect products for industrial markets and expands the range of value-added interconnect products. 

The acquisition of CommScope’s Andrew business expands Amphenol’s footprint in the areas of base station antennas and related interconnect solutions, as well as distributed antenna systems. The Andrew acquisition is expected to add roughly 9 cents to earnings in 2025. The acquisition of LifeSync, a leading provider of interconnect products for medical applications with annual sales of approximately $100 million, is noteworthy for APH’s prospects.

Amphenol Stock Trades at a Premium

Amphenol shares are overvalued, as suggested by a Value Score of D. APH stock is trading at a significant premium with a forward 12-month Price/Earnings (P/E) of 31.33X compared with the sector’s 23.2X.

Price/Earnings Ratio (Forward 12 Months)

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Amphenol shares are trading at a premium compared with TE Connectivity and Sensata Technologies Holding, shares of which are trading at 16.78X and 6.56X, respectively.

Conclusion

Amphenol benefits from a diversified business model. APH’s strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. 

Amphenol stock currently has a Zacks Rank #2 (Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Amphenol Corporation (APH) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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