Amphenol Wins Goldman Conviction Nod as Data-Center Demand Lifts Outlook
Published on 11/03/2026 at 17:01 | Editorial boerse-global.de
Goldman Sachs added Amphenol to its US Conviction List yesterday, keeping a Buy rating and a $122 price target on the connector maker. The bank's reasoning centers on components for data centers, which it believes can drive faster revenue growth than the market currently expects. Investors responded briskly: the stock climbed 5.9% today.
The endorsement was not a ratings change — Amphenol already carried a Buy — but the move onto Goldman's roster of highest-conviction ideas landed alongside the company's quarterly results as a catalyst for the share-price advance in US trading, according to a market report. Barclays also weighed in yesterday, lifting its price target to $111 from $100 while reaffirming its Buy recommendation.
Record Quarter Beats on Every Line
The results underpinning that enthusiasm landed on October 28, when Amphenol reported record figures for the third quarter of 2026 and raised its guidance. Management pointed to robust growth across most end markets — IT data communications above all — with acquisitions adding a further layer.
Revenue came in at $10.2 billion, up 65% year over year. Organic growth accounted for 37%. The adjusted operating margin reached 29.7%, and adjusted diluted earnings per share rose 74% to $0.80.
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Orders were just as strong. Amphenol booked $12.2 billion in the quarter, a book-to-bill ratio of 1.19:1.
Guidance Points Higher
For the fourth quarter, the company projects revenue of $10.3 billion to $10.5 billion and adjusted diluted EPS of $0.81 to $0.83. Full-year 2026 revenue is guided to $36.9 billion to $37.1 billion.
A Four-Deal Shopping Spree
Alongside the numbers, Amphenol closed its acquisition of Empire Electronics and signed agreements to buy AdvancedPCB, Dexgreen Limited and Humanetics Sensors. The four deals carry a combined purchase price of roughly $1.6 billion, according to the company. The AdvancedPCB transaction, sold by Industrial Growth Partners, remains subject to US regulatory approval and customary closing conditions.
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Cash Coming Back to Shareholders
The board also signed off on a 20% dividend increase, taking the quarterly payout to $0.15 per share from $0.125. Shareholders of record on December 22, 2026 will receive the distribution on January 13, 2027.
A fresh $4.0 billion share buyback, meanwhile, takes effect January 1, 2027 and runs for three years. It follows the existing $2.0 billion program, which the company expects to complete first.
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