APH · Earnings call · 2026Q3T · Full report

Operating Margin Drivers

AMPHENOL CORP /DE/ · 2026-10-28 · Importance 42 · Surprise 14

Third-quarter GAAP and adjusted operating income were both approximately $3 billion, and GAAP and adjusted operating margins were 29.5% and 29.7%, respectively. Adjusted operating margin increased 22 basis points year over year as operating leverage on higher sales more than offset margin dilution from recent acquisitions. Adjusted margin declined 10 basis points sequentially, primarily because second-quarter tariff recoveries provided a larger benefit. Excluding tariff-recovery benefits, adjusted operating margin improved approximately 70 basis points sequentially, including progress at recent acquisitions, particularly CommScope.

Key facts

• Q3 2026 GAAP and adjusted operating income were both approximately $3 billion; GAAP and adjusted operating margins were 29.5% and 29.7%, respectively.
• The CFO said 29.7% was not the bottom for operating margins and expected margins to expand as revenue grows.
• Excluding the larger Q2 tariff-recovery benefit, adjusted operating margin improved approximately 70 basis points sequentially, reflecting higher-volume conversion and acquisition profitability progress, particularly at CommScope.
• Year-over-year adjusted margin expansion was driven primarily by operating leverage on higher sales, more than offsetting margin dilution from recent acquisitions.
• CommScope was already in the low 20s on an operating margin basis at the time of the call.
• Management said CommScope had the potential to reach Amphenol’s corporate-average profitability over time.
• Management said it had greater confidence than at the beginning of the year that CommScope would reach the company average in the long term.
• Q3 2026 adjusted operating margin increased 22 basis points year over year and declined 10 basis points sequentially.