A global maker of connectors, cables, sensors, and antennas whose parts carry signals in phones, data centers, cars, and military gear. Founded in 1932 in Chicago, founder Arthur J. Schmitt invented molded radio tube sockets, and the name blends "American" and "phenolic," the plastic he used. During World War II, mechanics so often called its military connectors "the Amphenol connector" that the name stuck.
Q2 FY2026 revenue rose 55% to $8.76B with gross margin at 40.5% and EPS of $1.37.
AI-related IT datacom demand and the CommScope acquisition kept driving growth. rose 55% to $8,758.1M, widened 4.2 points to 40.5%, and rose 59.3% to $1.37 as Communications Solutions grew 85% on AI demand. The company is larger and more leveraged after the acquisition, with tariff and China-exposure risks carried forward.
Key takeaways
Communications Solutions led the quarter with 85% sales growth (42% organic), fueled by AI-related IT datacom demand, lifting consolidated 55% to $8,758.1M with 30% and a 24% acquisition contribution.
widened 4.2 points to 40.5% and rose to 29.5% from 25.1%, driven by and an $80M IEEPA that partially offset lower-margin acquisitions.
was $1.37, while adjusted diluted EPS was $1.35 excluding $23.5M in and $39M in .
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net sales surged 55% to $8.76B, driven by 30% organic growth and the CommScope acquisition, with operating margin expanding to 29.5%.
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Consolidated rose 55% to $8.76B, with of 30% and a 24% contribution from acquisitions.
Communications Solutions led with 85% sales growth (42% organic), fueled by outsized IT datacom demand, especially AI-related applications.
was $2.68B for the first half of 2026; the company paid $230M to settle a China tax matter and recorded $160M in additional related tax obligations.
The CommScope acquisition closed for $10.68B, funded by senior notes, delayed-draw term loans, and cash, with $1,534.1M drawn under the Three-Year Delayed Draw Term Loan at floating rates as of June 30, 2026.
What changed
Q2 2026 Communications Solutions was 42%, below the 47% posted in Q1 2026, indicating the AI-driven rebound is continuing but the organic rate eased one quarter later.
The $10.5B CommScope CCS Business acquisition closed for $10.68B in the period, funded against $17.2B , up 141.1% from $7.1B.
No non-cash charge was reported this quarter; the $10.6B balance from year-end 2025 carried tariff and China-exposure risk forward with no charge recorded.
U.S. tariffs on China, Mexico, and Canada remained a factor with China at about 22% of ; the company recorded an $80M IEEPA and a $230M China tax settlement during the quarter.
rose to $17.2B from $16.6B at Q1 2026, with $934.1M and $1,534.1M outstanding under the 364-Day and Three-Year Delayed Draw Term Loans at floating rates, against the about $800M full-year net guide.
What to watch
Q3 2026 Communications Solutions to see if the 42% Q2 figure holds or fades after four quarters of AI-driven rebound.
Q3 2026 net as $17.2B and floating-rate term loans fund the CommScope deal against the about $800M full-year guide.
Any non-cash charge as the $10.6B balance carries tariff and China-exposure risk into H2 2026.
Effect of new U.S. tariffs on China, Mexico, and Canada on costs and sales in Q3 2026, with China at about 22% of .
improved to 29.5% from 25.1%, driven by and an $80M IEEPA tariff recovery, partially offset by lower-margin acquisitions.
was $1.37; adjusted diluted EPS was $1.35, excluding $23.5M in acquisition-related expenses and $39M in discrete tax items.
was $2.68B for H1 2026; the company paid $230M to settle a China tax matter and recorded $160M in additional related tax obligations.
The company completed the CommScope acquisition for $10.68B, funded by senior notes, delayed-draw term loans, and cash.
Quantitative and Qualitative Disclosures About Market Risk
Market risk arises from foreign exchange and interest rates; no material change in FX sensitivity since the 2025 Annual Report.
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The Company states there has been no material change in its foreign currency exchange rate sensitivity assessment since the 2025 Annual Report.
Borrowings under the Euro Commercial Paper Program and may be denominated in foreign currencies, exposing the Company to exchange rate risk.
Interest rate risk is managed through a mix of fixed- and floating-rate debt and hedging contracts, including recent treasury lock derivatives.
In August 2025, the Company entered into $1.5B 10-year and $1.0B 30-year treasury locks, settling at a cumulative $88.0M loss upon the November 2025 senior notes issuance.
As of June 30, 2026, the Company had $934.1M and $1,534.1M outstanding under its 364-Day and Three-Year Delayed Draw Term Loans, respectively, which bear floating interest rates.
The Company does not expect interest rate changes to materially affect or cash flows for the remainder of 2026 but notes rates could change significantly.
Information required with respect to legal proceedings in this Part II, Item 1 is incorporated herein by reference and included in Note 15 of the Notes to Condensed Consolidated Financial Statements contained in Part I, Item 1 of this Quarterly Report.
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Information required with respect to legal proceedings in this Part II, Item 1 is incorporated herein by reference and included in Note 15 of the Notes to Condensed Consolidated Financial Statements contained in Part I, Item 1 of this Quarterly Report.
There have been no material changes to the Company’s risk factors as disclosed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
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There have been no material changes to the Company’s risk factors as disclosed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.