AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 5/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Application-specific engineering and demanding supplier qualification requirements provide a credible structural advantage, corroborated by substantial organic growth. Comparative technology leadership remains an issuer assertion, and margins alone do not establish the moat.
durability · 2/4 · Qualification requirements and a ten-year growth record support persistence, but technological entry risk and limited patent dependence leave durability mixed. Historical growth does not prove that the same competitive advantage will persist.
customer dependency · 2/4 · Technical and qualification requirements imply moderate supplier dependence. Short order commitments and absent customer-level replacement or renewal evidence prevent a strong dependency assessment.
erosion resilience · 2/4 · Organic growth and sustained operating achievements show successful adaptation, while competitive pricing requirements and technological change leave meaningful erosion exposure. The disclosed risks are possibilities, not evidence of realized competitive collapse.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · — · Organic growth combines pricing and volume, while disclosed operating leverage is attributed principally to volume and cost control. No passage establishes actual price increases, price cuts or realized price premiums.
retention · 2/4 · Supplier qualification friction and organic growth support continuing customer demand indirectly. They do not establish a retention rate or pricing-related customer loyalty; short commitments limit visibility.
margin resilience · 3/4 · Operating margins improved across the disclosed 2023–2024 and first-half 2025–2026 comparisons despite acquisition dilution. This demonstrates strong operating resilience during growth, with an $80 million tariff recovery benefiting 2026. It does not isolate pricing power or demonstrate downturn resilience.
contractual freedom · — · Short contracts may allow frequent negotiations, but their duration does not establish Amphenol's ability to set prices or change terms. Competitive-price requirements do not disclose the relevant contractual rights.
Predictability84
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 75.00
- Revenue growth volatility (pp)
- 18.89
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 2.79
Financial strength87
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 63.70
- netDebtEbitGrade
- 85.10
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 100.00
- Debt / FCF (x)
- 3.54
- Net debt / operating income (x)
- 0.74
- Interest coverage (x)
- 15.96
- Current ratio (x)
- 2.98
Capital allocation96
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 28.96
- 3-year average dilution (%)
- 0.72
- 3-year average SBC / revenue (%)
- 0.70
- cashConversionGrade
- 100.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Strong cash generation accompanies substantial reinvestment and shareholder distributions. First-half 2026 acquisition spending of $10.684 billion substantially exceeded operating cash flow of $2.679 billion, alongside debt issuance and cash depletion. Historical acquisition shortfalls and rising share counts despite repurchases make discipline mixed; acquisition returns remain unestablished.
incentive alignment · 3/4 · Actual outstanding options vest over five years, historical incentive payouts depend on growth, and anti-hedging and anti-pledging rules preserve economic exposure. Alignment is meaningful, but growth-based adjusted metrics can reward acquisitions while excluding acquisition costs; actual executive ownership is not supplied.
execution · 3/4 · Reported long-term sales and cash-flow growth, 2025 organic growth, and subsequent organic volume and margin gains demonstrate strong execution through indirect operating evidence. Acquisition disappointments and material prior-period tax reassessments prevent an exceptional assessment.
governance · 3/4 · Independent key committees and implemented shareholder rights—including annual director elections, written consent and removal of supermajority requirements—support strong governance. The announced combined chair/CEO structure increases oversight demands; its subsequent implementation is not assumed, and the tax determinations warrant scrutiny without establishing governance misconduct.
Evidence
Amphenol’s core competencies include application-specific industrial interconnect solutions utilizing integrated assemblies, including with both cable and flexible printed circuits, as well as high-power interconnects requiring advanced engineering and system integration.
Business—application-specific industrial engineering capabilities · Filed 11/02/2026
With our industry-leading high-speed, power and active and passive fiber optic interconnect technologies, together with superior simulation and testing capability and cost effectiveness, Amphenol is a market leader in interconnect development for the information technology and data communications (“IT datacom”) market.
Business—issuer assessment of IT datacom technology and market position · Filed 11/02/2026
For many years, customers have generally been consolidating their lists of qualified suppliers to companies that have the ability to meet certain technical, quality, delivery and other standards while maintaining geographic flexibility and competitive prices.
MD&A—qualified supplier consolidation and competitive pricing requirements · Filed 11/02/2026
The Company believes that its global presence is an important competitive advantage, as it allows the Company to provide quality products on a timely and worldwide basis to its multinational customers, while at the same time offering a level of resiliency and diversification against local risks and challenges that may emerge in any single geography.
MD&A—management assessment of global presence · Filed 11/02/2026
dollars and 38% organically compared to the full year 2024 • GAAP Diluted EPS of $3.34, up 74% compared to prior year • Adjusted Diluted EPS of $3.34, up 77% compared to prior year • GAAP and Adjusted Operating Margin of 25.4% and 26.2%, respectively • Operating and Free Cash Flow of $5.4 billion and $4.4 billion, respectively • Completed five acquisitions • Signed agreement to acquire CommScope’s CCS business, and closed on the acquisition in January 2026 • Returned nearly $1.5 billion to shareholders Over the past ten years, Amphenol has grown Net sales by 315%, Adjusted Diluted EPS by 457% and Operating Cash Flow by 422%, a significant long-term achievement that reflects the Company’s ongoing track record of creating long-term value for our shareholders.
Proxy statement—2025 operating achievements and ten-year growth record · Filed 08/04/2026
The increase in operating margin for the Communications Solutions segment relative to the comparable period in 2025 was primarily driven by strong operating leverage on the significantly higher organic sales volumes, partially offset by the negative impact on operating margin related to acquisitions completed within the prior 12 months that are currently operating below the average operating margin of the Company.
MD&A—Communications Solutions organic volume growth and operating leverage · Filed 01/05/2026
Rapid technological changes could also lead to the entry of new competitors of various sizes, against whom we may not be able to successfully compete.
Risk factors—technological change and potential new competition · Filed 11/02/2026
While we consider our patents and trademarks to be valuable assets, we do not believe that our competitive position or our operations are dependent upon or would be materially impacted by the loss of any single patent or group of related patents, or by a third party’s successful enforcement of its patents against us or any of our products.
Business—limited dependence on individual patents or related patent groups · Filed 11/02/2026
For example, some of our customers are making significant investments in AI, and these investments are driving robust demand for certain of the Company’s products.
Risk factors—AI investment driving current product demand · Filed 11/02/2026
It is generally expected that a substantial portion of our remaining performance obligations will be fulfilled within three months, and nearly all of our performance obligations are fulfilled within one year.
Revenue recognition—timing of remaining performance obligations · Filed 31/07/2026
Since our performance obligations are part of contracts that generally have original durations of one year or less, we have not disclosed the aggregate amount of transaction prices associated with unsatisfied or partially unsatisfied performance obligations as of June 30, 2026.
Revenue recognition—contracts generally lasting one year or less · Filed 31/07/2026
Periodic downturns in any of our customers’ end markets can significantly reduce demand for certain of our products and result in customers canceling, delaying, reducing or otherwise modifying their purchase commitments, which could have a material adverse effect on the Company’s business, financial condition and results of operations.
Risk factors—potential customer commitment changes in downturns · Filed 11/02/2026
Operating income was $4,416.4 or 27.0% of net sales, for the six months ended June 30, 2026, compared to $2,443.6, or 23.4% of net sales, for the six months ended June 30, 2025.
MD&A—first-half 2026 operating income and margin comparison · Filed 31/07/2026
The decrease in Operating expenses as a percentage of net sales and increase in Operating income as a percentage of net sales for the six months ended June 30, 2026 was primarily driven by strong operating performance and disciplined cost control, which generated strong operating leverage on the significant growth experienced during the period, and to a lesser extent, due to a net benefit of $80.0 related to the recovery of IEEPA tariffs, partially offset by the effect of acquisitions, which currently have higher Operating expenses as a percentage of net sales compared to the Company average.
MD&A—operating leverage, cost control, tariff recovery and acquisition effects · Filed 31/07/2026
Operating income was $3,156.9, or 20.7% of net sales, in 2024, compared to $2,559.6, or 20.4% of net sales, in 2023.
MD&A—2024 and 2023 operating income and margins · Filed 11/02/2026
4 Table of Contents AMPHENOL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (dollars in millions) Six Months Ended June 30, 2026 2025 Cash from operating activities: Net income $ 2,727.5 $ 1,845.0 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 827.2 445.7 Stock-based compensation expense 79.6 57.9 Deferred income tax provision (benefit) 279.9 (35.4) Net change in components of working capital (1,176.4) (374.3) Net change in other long-term assets and liabilities (59.1) 242.8 Net cash provided by operating activities 2,678.7 2,181.7 Cash from investing activities: Capital expenditures (647.1) (485.7) Proceeds from disposals of property, plant and equipment 5.1 5.7 Purchases of investments (701.0) (12.6) Sales and maturities of investments 325.4 11.6 Acquisitions, net of cash acquired (10,684.0) (2,483.2) Other, net (2.0) — Net cash used in investing activities (11,703.6) (2,964.2) Cash from financing activities: Proceeds from issuance of senior notes and other long-term debt 4,927.2 1,430.0 Repayments of senior notes and other long-term debt (1,535.7) (400.9) Borrowings (repayments) under commercial paper programs, net — — Payment of costs related to debt financing (11.7) (9.1) Purchase of treasury stock (386.0) (341.0) Proceeds from exercise of stock options 200.6 333.8 Distributions to and purchases of noncontrolling interests (0.6) (1.9) Dividend payments (614.0) (399.1) Other, net 5.4 0.5 Net cash provided by financing activities 2,585.2 612.3 Effect of exchange rate changes on cash and cash equivalents 38.5 60.2 Net decrease in cash and cash equivalents (6,401.2) (110.0) Cash and cash equivalents balance, beginning of period 11,130.6 3,317.0 Cash and cash equivalents balance, end of period $ 4,729.4 $ 3,207.0 Cash paid for: Interest $ 375.8 $ 139.3 Income taxes, net 1,158.3 502.4 See accompanying notes to condensed consolidated financial statements.
Unaudited cash flow statement—cash generation, investment, financing and shareholder distributions · Filed 31/07/2026
From time to time, the Company experiences difficulty and unanticipated expenses associated with purchasing and assimilating acquisitions into the Company, and acquisitions do not always perform and deliver the financial benefits expected.
Risk factors—experienced acquisition difficulties and benefits falling short · Filed 11/02/2026
The following is a reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding, which were used to calculate the earnings per share (basic and diluted) for the three and six months ended June 30, 2026 and 2025: Three Months Ended Six Months Ended June 30, June 30, (dollars and shares in millions, except per share data) 2026 2025 2026 2025 Net income attributable to Amphenol Corporation stockholders $ 1,769.2 $ 1,091.3 $ 2,702.2 $ 1,829.1 Weighted average common shares outstanding — Basic 1,230.4 1,215.3 1,229.7 1,212.5 Effect of dilutive stock options 58.8 56.9 59.7 56.7 Weighted average common shares outstanding — Diluted 1,289.2 1,272.2 1,289.4 1,269.2 Net income attributable to Amphenol Corporation per common share — Basic $ 1.44 $ 0.90 $ 2.20 $ 1.51 Net income attributable to Amphenol Corporation per common share — Diluted $ 1.37 $ 0.86 $ 2.10 $ 1.44 Excluded from the computation above were anti-dilutive common shares (primarily related to outstanding stock options) of 4.3 million and 8.3 million for the three months ended June 30, 2026 and 2025, respectively.
Note 9—weighted average shares, option dilution and earnings per share · Filed 31/07/2026
All currently outstanding employee stock option grants have a five-year vesting period, with 20% vesting each year.
Compensation discussion—five-year vesting of outstanding employee option grants · Filed 08/04/2026
The other at-risk compensation is annual incentive-plan compensation which historically has not paid out if Adjusted Diluted EPS declines, and rewards the Chief Executive Officer when Company revenues and Adjusted Diluted EPS grow.
Compensation discussion—historical incentive payouts and growth measures · Filed 08/04/2026
PROHIBITION ON SHORT SALES, TRANSACTIONS IN DERIVATIVE SECURITIES AND HEDGING The Company has a written policy prohibiting officers and directors from engaging in (i) short sales of the Company’s securities, (ii) transactions in puts, calls or other derivative securities involving the Company’s securities, (iii) hedging transactions involving the Company’s securities, (iv) purchases of the Company’s securities on margin (other than a cashless exercise of stock options under the Company’s equity plans), and (v) any pledges of the Company’s securities to secure margin or other loans.
Governance—prohibition on hedging, short sales, margin purchases and pledges · Filed 08/04/2026
In 2025 the quantitative performance criteria for (i) participants with Company-wide responsibilities was based on Company revenue and Adjusted Diluted EPS growth in 2025 over 2024 and (ii) other participants was based on responsibility unit revenue and operating income growth in 2025 over 2024, adjusted for actual operating income in 2025 as compared to 2025 operating income budget.
Compensation discussion—actual 2025 incentive performance criteria · Filed 08/04/2026
The Board has determined that all the members of the Audit Committee, the Compensation Committee and the Nominating/Corporate Governance Committee are independent and satisfy the relevant SEC and New York Stock Exchange independence requirements for the members of such committees.
Board committees—independence determinations · Filed 08/04/2026
In prior years, the Company has taken a variety of other significant actions in response to investor feedback, such as adopting an 62 TABLE OF CONTENTS amendment to the By-Laws to implement “proxy access”, which, subject to the requirements of the By-Laws, permits stockholders to nominate candidates for election to the Board, lowering the threshold to call special meetings of stockholders from 50% to 25%, declassifying the Board and providing for the annual election of directors, allowing stockholders to act by written consent and eliminating supermajority voting requirements in the Company’s Certificate of Incorporation and By-Laws.
Investor outreach—implemented shareholder governance rights · Filed 08/04/2026
Following Mr. Loeffler’s announcement that he would not stand for re-election to the Board, the Board determined that implementing a combined Chairman/Chief Executive Officer and Lead Independent Director structure is the appropriate leadership structure at this time to balance between the most effective operation of the Board and independent oversight of management.
Leadership structure—announced combined chair and CEO transition · Filed 08/04/2026
In addition, for the three months ended March 31, 2026, the Company recorded an accrual of $130.0 resulting from unfavorable determinations received from relevant tax authorities in China regarding the previously disclosed tax inquiries into certain of the Company’s prior period tax positions, as well as $160.0 in additional tax obligations related to China resulting from the Company’s reassessment of certain tax rate assumptions applied to prior years’ results not subject to the tax inquiries as further discussed below.
Income taxes—unfavorable China determinations and reassessed prior-year obligations · Filed 01/05/2026
● Organic Net Sales Growth is defined as the period-over-period percentage change in net sales growth resulting from operating volume and pricing changes, and excludes the impact of (i) changes in foreign currency exchange rates (described above), which is outside the control of the Company, and (ii) acquisitions, both of which are taken as a percentage of the respective prior period(s) net sales.
Non-GAAP definitions—organic growth combines volume and pricing · Filed 31/07/2026
Items excluded in the presentation of such non-GAAP financial measures in any period may consist of, without limitation, acquisition-related expenses, refinancing-related costs, gains associated with bargain purchase acquisitions, the excess tax benefits related to stock-based compensation and certain other discrete tax items including but not limited to (i) the impact of tax audits relating to prior periods and (ii) significant changes in tax law.
Compensation discussion—items excluded from adjusted financial measures · Filed 08/04/2026
