Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 29, 2026 · Beat 7 of last 7 quarters
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Amphenol's record results and raised guidance underscore the accelerating pace of AI infrastructure buildout, with IT datacom now 43% of sales and growing 89% YoY. The company's ability to supply high-speed copper, fiber optic, and power interconnect solutions across all AI architectures positions it as a critical enabler of data center expansion. The strong book-to-bill of 1.23:1 and sequential growth in AI-related products suggest continued robust demand for interconnect infrastructure in the coming quarters.
Amphenol delivered record Q2 results with revenue of $8.8B, up 55% YoY, and adjusted EPS of $1.35, up 67% YoY, both exceeding guidance. Orders reached a record $10.7B with a book-to-bill of 1.23:1, driven by strength across all end markets. The company completed two acquisitions (Elcom and Wilder Technologies) and reported strong operating leverage, with adjusted operating margin expanding to 29.8%. IT datacom was the standout, growing 89% YoY (63% organic), driven by AI-related products, while CommScope contributed significantly and is tracking ahead of plan.
Management raised full-year expectations for CommScope to $4.6B in sales and $0.30 accretion, up from prior $4.1B and $0.15. For Q3 2026, they guided sales of $9.3–9.4B (up 50–52% YoY) and adjusted EPS of $1.40–1.42 (up 51–53% YoY). The outlook reflects continued acceleration in AI data center investments, with IT datacom expected to grow mid-teens sequentially, and mobile devices up ~20% on new program launches. Defense is expected to grow low double digits sequentially, while communications networks is expected to decline mid-teens. Management noted no additional net tariff recoveries are expected to be material going forward. They remain confident in the long-term demand for interconnect across all AI architectures and geographies.
“The one consistent thing we hear from our customers is they need more of everything. More high-speed copper. More fiber optic solutions, and more power solutions.”
on AI interconnect demand
“What AI is, is conversion of electrons into tokens. And everywhere along that phase, if you can make the conversion of electrons into tokens more efficient, then you are creating value for your customers.”
on Power interconnect opportunity
“We are not, like, model dependent. We are not frontier training versus inference dependent. We are not geographically dependent. I guess the only thing we are dependent on is that people continue to invest in this thing, and it continues to have increases in content.”
on AI demand durability
Can you drill into the CommScope guidance raise? Is it all IT datacom? What types of projects are they participating in?
Adam noted that IT datacom is driving the strength, but CommScope is growing across the board including communications networks and building connectivity. Their IT datacom business essentially doubled YoY, driven by advanced optical interconnect solutions for AI applications. Being part of Amphenol has given them access to long-standing relationships across the data center ecosystem.
You raised CommScope revenue from $4.1B to $4.6B but EPS outlook more than doubled. Can you walk through the margin profile and where the upside is coming from?
Adam and Craig explained that the profitability improvement is not just gross margin but also SG&A and operating expenses. CommScope is operating above 20% operating margin including amortization. The improvement is driven by operational execution, not pricing, and reflects the team's embrace of Amphenol's entrepreneurial culture.
Is the AI interconnect opportunity a copper versus fiber debate? How big is the fiber business within your AI revenue run rate?
Adam said customers need more of everything—copper, fiber, and power. He noted that CommScope's IT datacom business, which is nearly all optics and AI-related, is expected to be just under half of CommScope's total sales. He declined to give exact numbers but emphasized Amphenol has strong positions in high-speed copper, fiber optics, and power interconnect for AI.