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    How Investors May Respond To Amphenol (APH) Rapid EPS Growth And Robust Free Cash Flow Trends

    Simply Wall St·01/04/2026 22:27:08
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    • In recent years, Amphenol (NYSE: APH) has delivered approximately 29.7% annual revenue growth and 40.2% annual earnings-per-share growth, supported by strong free cash flow that can be used for reinvestment or returning capital to shareholders.
    • This combination of faster profit growth than sales and solid cash generation suggests Amphenol has been improving efficiency while expanding its position in key end markets.
    • We’ll now examine how Amphenol’s rapid earnings growth and strong free cash flow profile may influence its existing investment narrative.

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    Amphenol Investment Narrative Recap

    To own Amphenol, you generally need to believe its strong position in high‑performance interconnects can keep turning solid revenue growth into even faster earnings and free cash flow growth. The recent figures reinforce that story but do not materially change the key near term catalyst, which is sustained AI and data center demand, or the main risk that this demand could slow after recent “pulled forward” orders.

    Among recent announcements, Amphenol’s sizeable multi tranche senior notes issuance in late 2025 stands out in this context, as it expands the company’s funding capacity for ongoing investment and acquisitions. While this supports its ability to pursue growth aligned with AI and high speed datacom trends, it also ties into concerns that elevated capital spending could weigh on future free cash flow if end market growth moderates or projects underperform expectations.

    However, investors should also be aware that if AI and datacenter demand normalizes after this period of accelerated growth, then...

    Read the full narrative on Amphenol (it's free!)

    Amphenol's narrative projects $26.9 billion revenue and $5.1 billion earnings by 2028.

    Uncover how Amphenol's forecasts yield a $148.60 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    APH 1-Year Stock Price Chart
    APH 1-Year Stock Price Chart

    Five members of the Simply Wall St Community currently see Amphenol’s fair value between US$89.94 and US$148.60, reflecting a wide spread of individual expectations. When you set these views against the recent pattern of demand being pulled forward in AI and datacom, it underlines why many market participants are thinking carefully about how sustainable current growth trends really are.

    Explore 5 other fair value estimates on Amphenol - why the stock might be worth 36% less than the current price!

    Build Your Own Amphenol Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.