Buy Amphenol Stock Before Q4 Earnings Report? Here's What to Know

Amphenol APH is set to report its fourth-quarter 2025 results on Jan. 28.The company expects fourth-quarter 2025 earnings between 89 cents and 91 cents per share, indicating growth between 62% and 65% year over year. The Zacks Consensus Estimate for third-quarter 2025 earnings has increased a penny to 93 cents per share over the past 30 days, suggesting 69.1% growth from the figure reported in the year-ago quarter.Amphenol expects fourth-quarter 2025 revenues between $6 billion and $6.1 billion, suggesting year-over-year growth in the 39-41% range. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $5.84 billion, indicating an increase of 35.2% from the figure reported in the year-ago quarter.Consensus Estimate Trend Image Source: Zacks Investment ResearchAmphenol’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 17.9%.  Amphenol Corporation Price and EPS Surprise Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote Let’s see how things have shaped up for the upcoming announcement.Factors to Drive Amphenol’s Q4 ResultsAmphenol’s to-be-reported quarter's results are expected to have benefited significantly from sustained artificial intelligence (AI) infrastructure investments, a diversified end markets, continued defense modernization spending and strong contribution from acquisitions. These have been driving order growth, which surged 38% year over year and 11% sequentially to $6.111 billion in the third quarter of 2025, resulting in a book-to-bill ratio of 0.99 to 1. Order momentum is expected to have continued in the to-be-reported quarter.Acquisitions like Trexon, Rochester sensors, CIT, Lutze, Andrew business, LifeSync, Narda-MITEQ, XMA, Q Microwave, and others have been a key catalyst. CIT acquisition drives Amphenol’s footprint in the commercial aerospace end-market, while the Rochestor sensors’ acquisition expanded offerings in the industrial market. The Andrew business is benefiting the communications end-market sales, with 2025 sales expected to jump more than 130%.APH’s results are expected to have benefited from diversified end markets. The company’s leading position in the defense interconnect market has been a tailwind. Commercial aerospace is expected to have benefited from strong demand for APH’s products in next-generation commercial aircraft, including strong demand for jetliners. For the to-be-reported quarter, the company expects a mid-single-digit increase in both defense and commercial sales, respectively, on a sequential basis. In the industrial space, Amphenol is likely to have benefited from the strong adoption of its high-technology interconnect antenna and sensor offerings. Sales in the mobile device end market are expected to increase modestly quarter over quarter. The IT datacom end-market is expected to have benefited from strong demand for AI-related products, with sales likely to rise slightly on a sequential basis. Higher spending by communications network operators and equipment manufacturers, as well as the Andrew business acquisition, is expected to benefit top-line growth. However, the communications networks end-market sales are anticipated to suffer from seasonality. On a sequential basis, APH expects sales to decline in the low teens range. Moreover, industrial end-market sales are expected to moderate sequentially, while automotive sales are expected to decline over the same time frame in the fourth quarter of 2025.APH Shares Beat Sector, PeersAmphenol shares have appreciated 123.7% in a year, outperforming the Zacks Computer and Technology sector’s return of 28.5%. APH has outperformed broader sector peers, including TE Connectivity TEL, Corning GLW and Belden BDC. TE Connectivity, Corning and Belden shares have appreciated 49%, 88.4% and 1%, respectively, over the same time frame.Amphenol Stock Outperforms Sector Image Source: Zacks Investment Research APH stock is trading at a premium, as suggested by the Value Score of D. In terms of the forward 12-month price/earnings, APH is trading at 35.55X, higher than the broader sector’s 27.04X, TE Connectivity’s 19.87X, Corning’s 30.53X and Belden’s 14.41X.APH Stock Trades at a Premium Image Source: Zacks Investment Research Strategic Acquisitions Boost APH's Long-Term Growth ProspectsAmphenol continues to expand its portfolio and market reach through targeted acquisitions across communications networks, defense, commercial aerospace, industrial and IT datacom verticals. The completion of the CCS acquisition expands Amphenol’s interconnect product capabilities in the fast-growing IT datacom market.  Amphenol generates solid cash flow, which allows management the opportunity to invest in product innovations, acquisitions and business development. Total liquidity at the end of the third quarter was $10.9 billion, including cash and short-term investments on hand of $3.9 billion plus availability under Amphenol’s existing credit facilities. Net debt was $4.2 billion, and APH had no outstanding borrowings under its revolving credit facility or its commercial paper programs. The improved balance sheet is expected to help APH pursue further acquisitions and continue shareholder-friendly initiatives.ConclusionAmphenol’s AI-driven growth in the IT datacom end-market, accretive acquisitions and steady demand in defense and commercial aerospace end-markets support growth prospects. These factors, along with strong liquidity, make APH an attractive stock to buy ahead of the fourth-quarter 2025 results and justify the premium valuation. APH currently sports a Zacks Rank #1 (Strong 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 stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report Corning Incorporated (GLW): Free Stock Analysis Report Belden Inc (BDC): Free Stock Analysis Report TE Connectivity Ltd. (TEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks