Electrical connector manufacturer Amphenol (NYSE: APH) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 53.4% year on year to $6.19 billion. On top of that, next quarter’s revenue guidance ($6.05 billion at the midpoint) was surprisingly good and 6.1% above what analysts were expecting. Its non-GAAP profit of $0.93 per share was 16.5% above analysts’ consensus estimates.

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“We are pleased to have closed the third quarter of 2025 with record sales and Adjusted Diluted EPS, both significantly exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt.

Company Overview

With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.

With $20.97 billion in revenue over the past 12 months, Amphenol is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices.

As you can see below, Amphenol’s 20.3% annualized revenue growth over the last five years was incredible. This is a great starting point for our analysis because it shows Amphenol’s demand was higher than many business services companies.

We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Amphenol’s annualized revenue growth of 29.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

This quarter, Amphenol reported magnificent year-on-year revenue growth of 53.4%, and its $6.19 billion of revenue beat Wall Street’s estimates by 11.5%. Company management is currently guiding for a 40.1% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 14.4% over the next 12 months, a deceleration versus the last two years. Still, this projection is eye-popping given its scale and suggests the market is baking in success for its products and services.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Amphenol has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average operating margin of 21.4%.

Analyzing the trend in its profitability, Amphenol’s operating margin rose by 4.8 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q3, Amphenol generated an operating margin profit margin of 27.5%, up 7.2 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Amphenol’s EPS grew at an astounding 26.6% compounded annual growth rate over the last five years, higher than its 20.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Amphenol’s earnings to better understand the drivers of its performance. As we mentioned earlier, Amphenol’s operating margin expanded by 4.8 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Amphenol, its two-year annual EPS growth of 40.2% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q3, Amphenol reported adjusted EPS of $0.93, up from $0.50 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Amphenol’s full-year EPS of $2.92 to grow 13.6%.

Key Takeaways from Amphenol’s Q3 Results

It was good to see Amphenol beat analysts’ EPS expectations this quarter. We were also excited its EPS guidance for next quarter outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 8.2% to $134.66 immediately following the results.

Indeed, Amphenol had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.