APH · Earnings call · 2026Q3T · Full report
Communications Networks Weakness
AMPHENOL CORP /DE/ · 2026-10-28 · Importance 35 · Surprise 48 · No source text
Communications networks sales rose 25% in U.S. dollars because of the CommScope addition but declined 28% organically year over year. Management attributed the organic decline to softer demand in broadband and from other communications network operators; sales also fell 13% sequentially. CommScope’s broader technology portfolio and Amphenol’s global manufacturing footprint position the company to support service-provider and OEM customers when they expand networks. Management also described fiber-to-the-home connectivity products as the focus of Ireland-based DexScreen, a planned addition to the Communications Solutions segment.
Key facts
- Amphenol expected 2026 communications networks sales growth of more than 40%, driven by the CommScope acquisition and partially offset by organic decline.
- Amphenol’s communications networks sales grew 25% in U.S. dollars year over year in Q3 2026, driven by CommScope, but declined 28% organically; the market represented 8% of sales.
- Amphenol’s communications networks sales declined 13% sequentially in Q3 2026, in line with expectations.
- Amphenol expected further communications networks sales declines in Q4 2026 due to continued spending softness, particularly in broadband.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +1.6% | Amphenol’s communications networks sales grew 25% in U.S. dollars year over year in Q3 2026, driven by CommScope, but declined 28%… |
| revenue | negative | realized | — | Amphenol’s communications networks sales grew 25% in U.S. dollars year over year in Q3 2026, driven by CommScope, but declined 28%… |
| revenue | negative | realized | — | Amphenol’s communications networks sales declined 13% sequentially in Q3 2026, in line with expectations. |
| revenue | negative | probable | — | Amphenol expected further communications networks sales declines in Q4 2026 due to continued spending softness, particularly in broadband. |