Amphenol Corp. (APH) gave investors a lot to like on Wednesday. The electronic connector maker posted record third-quarter 2026 results that beat Wall Street expectations, issued stronger-than-expected fourth-quarter and full-year forecasts, and topped it all off with a 20% dividend hike and a fresh $4 billion buyback plan.

The company reported adjusted earnings of 80 cents per share, beating analysts' expectations of 72 cents. Earnings rose 74% from 46 cents per share a year earlier.

Quarterly revenue surged 65% year over year to $10.230 billion, topping the consensus estimate of $9.465 billion. Organic sales increased 37%, driven by strong demand across several markets, particularly information technology and data communications.

Third-Quarter Earnings and Margins

Amphenol reported net income attributable to shareholders of $2.03 billion, up from $1.25 billion a year earlier.

GAAP earnings rose 61% to 79 cents per share from 49 cents.

Operating income climbed to $3.02 billion from $1.70 billion. GAAP operating margin expanded to 29.5% from 27.5%, while adjusted operating margin reached 29.7%.

The company booked record orders of $12.2 billion, resulting in a book-to-bill ratio of 1.19.

Operating cash flow totaled $2.1 billion, while free cash flow reached $1.6 billion.

Amphenol ended September with $4.17 billion in cash and cash equivalents.

AI Demand Drives Communications Growth

Communications Solutions revenue nearly doubled to $6.58 billion from $3.31 billion a year earlier.

Harsh Environment Solutions revenue increased 35% to $2.04 billion, while Interconnect and Sensor Systems revenue rose 17% to $1.60 billion.

CEO R. Adam Norwitt attributed the strong performance to organic growth across most end markets, including exceptional demand in the IT datacom business.

The company also benefited from acquisitions, including the CommScope business acquired earlier this year.

Fourth-Quarter and Full-Year Forecasts

Amphenol expects fourth-quarter adjusted earnings of 81 cents to 83 cents per share, exceeding analysts' estimate of 75 cents.

The company forecasts quarterly revenue of $10.3 billion to $10.5 billion, above the consensus estimate of $9.768 billion.

For fiscal 2026, Amphenol expects adjusted earnings of $2.82 to $2.84 per share, compared with Wall Street's estimate of $2.69.

Full-year revenue is projected at $36.9 billion to $37.1 billion, exceeding analysts' expectations of $35.631 billion.

Amphenol also raised its expected 2026 revenue contribution from the acquired CommScope business to $5.1 billion from $4.6 billion. It now expects the business to contribute 18 cents to adjusted earnings per share, up from its previous forecast of 15 cents.

Dividend Increase and $4 Billion Buyback

Amphenol increased its quarterly dividend by 20% to 15 cents per share, payable Jan. 13, 2027, to shareholders of record Dec. 22.

The board also authorized a new three-year, $4 billion share repurchase program, effective Jan. 1, 2027.

During the third quarter, Amphenol repurchased 3 million shares for $245 million and paid $308 million in dividends.

The company also completed its acquisition of Empire Electronics and signed agreements to acquire AdvancedPCB, Dexgreen and Humanetics Sensors.

The four transactions carry a combined purchase price of approximately $1.6 billion.

APH Stock Price Activity: Amphenol shares were up 6.51% at $83.30 during premarket trading on Wednesday, according to market data.