Amphenol APH is benefiting from strong growth in its Harsh Environment Solutions segment, which accounted for 24.5% of third-quarter 2025 net sales, driven by an expanding portfolio. Harsh Environment Solutions sales jumped 27% year over year to $1.52 billion in the third quarter of 2025. The segment offers electronics solutions appropriate for ruggedized as well as extreme vibration, temperature, and pressure environments.
Amphenol is expanding its Harsh Environment portfolio with the launch of the TS1 series, a high-performance industrial power connector platform developed to support reliable electrification under harsh environmental conditions. TS1 supports a wide range of platforms across the industrial, transportation, and commercial sectors, as well as energy storage systems used in applications like data centers and power transformers. Amphenol Socapex is launching the TEMPER-GRIP Power Contacts, which are designed to meet the growing demand for higher current-carrying capacity and superior performance in harsh environments.
The expanding portfolio is expected to boost the Harsh Environment Solution segment. The addition of Trexon is noteworthy in this regard. The Amphenol expects fourth-quarter 2025 revenues between $6 billion and $6.1 billion, suggesting growth in the 39-41% range. The Zacks Consensus Estimate for the fourth quarter of 2025 is pegged at $5.84 billion, indicating 35.2% growth from the figure reported in the year-ago quarter.
Intensifying Competition Hurts APH’s Prospects
Amphenol is facing stiff competition from the likes of TE Connectivity TEL and Belden BDC.
TE Connectivity is expected to benefit from strong demand for its solutions in the AI domain as well as energy applications. The company is benefiting from strength in Asia in the Transportation segment, where increased data connectivity trends and the ongoing growth of the electrified powertrain. TE Connectivity expects fiscal first-quarter 2026 net sales to increase 17% year over year and 11% organically year over year to $4.5 billion.
Belden competes with Amphenol by concentrating on innovation and capability upgrades in enterprise networking and industrial automation. Belden’s acquisitions, including Precision Optical and Voleatech, reinforce its strength in data-center and digital-factory markets. Collaboration with Accenture and NVIDIA is noteworthy.
APH’s Share Price Performance, Valuation & Estimates
Amphenol shares have jumped 84.2% in the trailing 12-month period, outperforming the broader Zacks Computer and Technology sector’s return of 24.1%.
APH Stock’s Performance
Image Source: Zacks Investment Research
APH stock is overvalued, with a forward 12-month price/earnings of 32.73X compared with the broader sector’s 27.76X. Amphenol currently has a Value Score of F.
APH Valuation
Image Source: Zacks Investment Research
Amphenol expects fourth-quarter 2025 earnings between 89 cents and 91 cents per share, indicating growth between 62% and 65% year over year. The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 92 cents per share, unchanged over the past 30 days, suggesting 67.3% year-over-year growth.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
Amphenol currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
