APH · Earnings call · 2026Q3T · Full report

Defense Market Demand

AMPHENOL CORP /DE/ · 2026-10-28 · Importance 64 · Surprise 56 · In source text

The defense market represented 8% of third-quarter sales, which grew 42% in U.S. dollars and 30% organically, with robust growth across virtually all defense segments. Management cited increasing investment in current and next-generation defense technologies and rising electronics content, alongside growth from both traditional and newer defense equipment customers. The company sees opportunities in the U.S. as well as NATO countries, South Asia, and the Middle East, where governments are investing in domestic military technologies. Amphenol highlighted its broad high-technology interconnect portfolio and prior capacity expansions as positioning it to serve this demand.

Key facts

• Amphenol anticipated 2026 defense sales growth of more than 35%, primarily from strong organic growth and acquisitions.
• Amphenol expected defense sales to increase by a mid-single-digit percentage in Q4 2026 from Q3 levels.
• Amphenol’s defense-market sales grew 42% in U.S. dollars and 30% organically year over year in Q3 2026; defense represented 8% of quarterly sales.
• Defense sales increased 12% sequentially in Q3 2026, largely in line with expectations.
• Management said defense replenishment would be a multiyear, if not multi-decade, initiative in multiple countries around the world.
• Amphenol said countries around the world were increasing investment in current and next-generation defense technologies, and that recent significant capacity expansions positioned it to address this long-term demand trend.
• Amphenol said its defense-related optics business was strong and that it continued to invest further in high-technology optics for defense.
• Nearly every one of the roughly dozen defense-market applications Amphenol tracks grew double digits last quarter.

Impact estimates