APH

Earnings estimates for Corning Incorporated GLW for fiscal 2026 and fiscal 2027 have moved up 2.51% to $3.27 and 1.66% to $4.28, respectively, over the past 60 days. The positive estimate revision depicts bullish sentiment about the stock’s growth potential. Image Source: Zacks Investment Research Optical Communications has emerged as Corning’s major growth engine. In the second quarter, the segment’s sales increased 32% year over year to $2.07 billion, while segment net income jumped 77% to $438 million. The uptick is backed by rapid AI infrastructure buildout.Corning is expanding collaboration with some of the world’s largest tech companies. It has inked a multiyear, multibillion-dollar agreement with Amazon. Per the deal, Corning will provide optical fiber, cable and connectivity products for Amazon’s expanding U.S. data-center infrastructure. The company also announced a long-term partnership with NVIDIA to expand U.S.-based optical connectivity manufacturing capacity by 10 times and increase domestic fiber production capacity by more than 50%.Corning’s Glass Innovations business is benefiting from its premium positioning and product innovation. The company expects Gorilla Glass sales to outperform the broader handheld market despite pressure from higher memory prices. TV manufacturers and panel makers are increasingly shifting towards larger and higher-priced televisions. This is likely to create a favorable opportunity for Corning’s Display Business.Corning continues to enhance its financial profile under the Springboard initiative. The company has raised the ambition of its Springboard strategy, targeting an annualized sales run rate of $20 billion by the end of 2026, $30 billion by the end of 2028 and $40 billion by the end of 2030. Management expects sales to witness a 19% CAGR from the fourth quarter of 2026 through the fourth quarter of 2030, with earnings growing faster than sales. Demand softness in the handheld device market remains one of the key near-term challenges for the company. Management expects higher memory prices to push smartphone industry unit volumes down by a mid-teens percentage in 2026. Despite the company’s expectation of outperforming the market, demand for Gorilla Glass will likely be impacted by lower handset volume.Corning maintains a sizeable presence in China, which exposes the company to geopolitical tensions and tariff- related uncertainty. The Display and consumer electronics businesses remain dependent on Chinese panel makers and manufacturing ecosystems. Escalating trade restrictions, tariff increases or supply-chain disruptions between the United States and China could adversely affect operating margins, production efficiency and customer demand. Stiff competition can limit growth potential. Competition from companies such as Amphenol APH and Ciena Corporation CIEN may increase pressure on pricing.Corning's growing AI infrastructure exposure enhances growth but increases reliance on a small number of large customers. In second-quarter 2026, contract liabilities totaled $2.7B and included a $1B customer deposit tied to a long-term AI infrastructure supply agreement, highlighting concentration risk even as it supports near-term visibility. Corning shares have gained 104% in the past year compared with the communications components industry’s growth of 157.1%. The stock has outperformed the S&P 500 indexduring this period. Image Source: Zacks Investment Research It has underperformed its competitor, Ciena, but outperformed Amphenol. Ciena has gained 179.1%, while Amphenol has declined 28.4%. From a valuation standpoint, GLW is currently trading at a premium compared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 36.51 forward 12-month earnings, higher than 35.16 for the industry. Image Source: Zacks Investment Research Growing exposure to AI infrastructure and expanding optical content per AI system are major growth drivers for Corning. Focus on product diversification and exposure to various markets such as solar, automotive and display boost resiliency in the business model. Strong demand for Gorilla Glass is a positive. However, weakness in the smartphone market, high customer concentration risks and growing geopolitical volatility remain major concerns. With a Zacks Rank #3 (Hold), Corning seems to offer a balanced investment outlook, suggesting that investors may want to exercise caution when considering the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Corning Incorporated (GLW) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Palo Alto Networks, Inc. PANW delivered fourth-quarter fiscal 2026 non-GAAP earnings of $1.02 per share, which beat the Zacks Consensus Estimate by 4.1%. The figure improved 7.4% year over year. Revenues climbed 34% year over year to $3.41 billion and topped the consensus estimate by 1.8%. Broad-based strength across Network & AI Security, Cortex and Idira, along with record platformization adoption, drove the fourth-quarter results. Next-Generation Security ARR jumped 63% to $9.10 billion. Product revenues increased 28.6% year over year to $738 million from $574 million in the year-ago quarter, accounting for 21.6% of total revenues. Subscription and support revenues rose 36.2% to $2.672 billion from $1.962 billion, which represented 78.4% of total revenues. By platform, fourth-quarter revenues were $2.331 billion for Network & AI Security, $586 million for Cortex and $336 million for Idira. Other revenues, including Unit 42, professional services and financing income, totaled $157 million. Palo Alto Networks, Inc. price-consensus-eps-surprise-chart | Palo Alto Networks, Inc. Quote Remaining performance obligations rose 34% year over year to $21.2 billion. Net new NGS ARR reached approximately $970 million, up 98% year over year, reflecting the strongest quarterly addition reported by the company. Palo Alto Networks added roughly 220 net new platformizations in the quarter, up 44% year over year. Net retention among platformized customers exceeded 120%, while more than 65% of NGS ARR came from platformized customers. Prisma AIRS reached roughly $120 million in ARR within one year of general availability and had over 800 customers, more than doubling sequentially. Software firewall ARR grew 29% year over year, while SASE competitive displacements totaled about $450 million in fiscal 2026. Cortex momentum also remained strong. XSIAM ARR exceeded $700 million and grew about 70% year over year, while observability ARR surpassed $500 million and increased more than 2.5 times from the second quarter. CyberArk, now called Idira, generated more than 200 new-logo wins from PANW's installed base. Non-GAAP gross profit was $2.552 billion, with gross margin at 74.8%, down from 75.8% a year earlier. Management attributed the pressure to a mix shift toward faster-growing SaaS offerings that have not yet reached gross-margin maturity. Non-GAAP operating income was $1.011 billion, translating to a 29.6% margin compared with 30.3% a year ago. Adjusted free cash flow increased to $1.289 billion from $954 million, with margin edging up to 37.8% from 37.6%. Cash and cash equivalents stood at $2.514 billion, with $557 million in short-term investments. For the first quarter of fiscal 2027, Palo Alto Networks expects revenues of $3.300-$3.310 billion, indicating 33-34% growth. NGS ARR is projected to be in the range of $9.54-$9.56 billion, RPO in the band of $20.8-$20.9 billion and non-GAAP earnings per share between 96 cents and 98 cents. For fiscal 2027, revenues are forecast at $14.10-$14.20 billion, implying 23-24% growth. NGS ARR is expected to be in the range of $11.075-$11.175 billion, RPO in the band of $25.2-$25.4 billion and non-GAAP earnings per share between $4.16 and $4.19. The company targets a 29.5% non-GAAP operating margin and a 38.0% adjusted free cash flow margin. Management expects fiscal 2027 Network & AI Security revenues to grow in the low double digits, Cortex revenues to rise about 30%, and Idira revenues to reach approximately $1.5 billion, implying pro forma growth in the high teens to 20%. The company expects 60-61% of fiscal 2027 net new NGS ARR to arrive in the second half. Its outlook assumes the tail end of a large LLM customer's migration to Chronosphere continues through the first quarter, but contributes less net new ARR than it did in the fourth quarter. Palo Alto Networks has a Zacks Rank #2 (Buy) at present. Some other top-ranked stocks worth considering in the broader Zacks Computer and Technology sector are Applied Materials AMAT, Lam Research LRCX and Amphenol APH, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings is pegged at $12.76 per share, up by 3 cents over the past seven days, indicating a year-over-year increase of 35.5%. Applied Materials shares have surged 72.5% year to date (YTD). The Zacks Consensus Estimate for Lam Research’s fiscal 2027 earnings has moved northward by a penny to $9.33 per share over the past seven days and calls for a year-over-year jump of 60.6%. Lam Research shares have soared 69.8% YTD. The Zacks Consensus Estimate for Amphenol’s 2026 earnings has remained unchanged at $5.25 per share over the past 30 days, implying a year-over-year increase of 57.2%. Amphenol shares have rallied 20.8% YTD. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Amphenol (APH). Shares have added about 1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Amphenol due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Amphenol Corporation before we dive into how investors and analysts have reacted as of late. Amphenol reported second-quarter 2026 adjusted earnings of $1.35 per share, up 66.7% year over year. The figure beat the Zacks Consensus Estimate by 13%. Revenues surged 55% year over year to $8.76 billion and surpassed the consensus mark by 5.51%. Growth was driven by strong organic performance across most end markets, exceptional IT datacom demand and acquisition contributions. Orders reached a record $10.7 billion, resulting in a book-to-bill ratio of 1.23:1. Organic net sales increased 30% year over year, while constant-currency sales advanced 54%. Acquisitions contributed 24 percentage points to reported growth, underscoring the combined impact of internal expansion and portfolio additions.Communications Solutions led the performance with 42% organic growth. Harsh Environment Solutions and Interconnect and Sensor Systems delivered organic growth of 22% and 13%, respectively. Foreign currency movements added roughly one percentage point to consolidated growth. Communications Solutions revenues jumped 85% year over year to $5.38 billion. The segment remained the company’s largest business, benefiting from strong demand for high-speed connectivity applications, particularly in the IT datacom market.Harsh Environment Solutions sales increased 28.5% year over year to $1.86 billion. Interconnect and Sensor Systems revenues rose 17.2% year over year to $1.52 billion. The broad segment expansion reflected Amphenol’s diversified exposure to communications, industrial, defense, aerospace, automotive and other electronics markets.The company completed the acquisitions of El.Com and Wilder Technologies during the quarter. El.Com, which generates annual sales of approximately $150 million, expands Amphenol’s complex interconnect and high-voltage cable capabilities. Wilder Technologies contributes high-performance test and measurement solutions for IT datacom applications. Adjusted operating income was $2.61 billion, up 80.2% year over year. Adjusted operating margin improved 420 basis points (bps) year over year to 29.8%.Communications Solutions’ operating margin increased 300 bps to 33.6%. Harsh Environment Solutions’ margin expanded 490 bps to 30.1%, while the Interconnect and Sensor Systems margin rose 150 bps to 21%. Amphenol ended June with $4.73 billion in cash and cash equivalents. Including short-term investments, total cash and investments were $5.42 billion. Long-term debt, excluding the current portion, stood at $17.18 billion following the company’s acquisition activity. Operating cash flow totaled $1.56 billion, up from $1.42 billion in the prior-year quarter. Free cash flow increased to $1.21 billion from $1.12 billion, despite capital expenditures rising to $355.5 million.Capital returns remained substantial. APH repurchased 1.5 million shares for $208 million and paid $307 million in dividends, returning a combined $515 million to shareholders during the quarter. Amphenol raised its expectations for the acquired CommScope business following better-than-anticipated performance. The operation is now projected to generate full-year sales of $4.6 billion and contribute 30 cents to adjusted earnings per share in 2026.The revised outlook compares favorably with the previous expectations of $4.1 billion in revenues and 15 cents of adjusted earnings accretion. The improvement highlights the earnings leverage from the acquisition as Amphenol integrates the connectivity and cable operations. For the third quarter of 2026, Amphenol expects revenues between $9.3 billion and $9.4 billion. The range implies year-over-year growth of 50-52%, assuming current market conditions and constant exchange rates.Adjusted earnings are projected between $1.40 and $1.42 per share, representing growth of 51-53% from the prior-year quarter. The guidance excludes any additional tariff recoveries, making underlying demand and acquisition execution central to the upcoming quarter’s performance. It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 9.72% due to these changes. Currently, Amphenol has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Amphenol has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Autodesk ADSK is scheduled to release second-quarter fiscal 2027 results on Aug. 27.Autodesk projects fiscal second-quarter revenues between $2.005 billion and $2.015 billion. GAAP earnings per share are expected to be in the range of $1.84-$1.97, and non-GAAP earnings per share are anticipated between $3.10 and $3.14, excluding MaintainX.The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $2.01 billion, indicating 13.96% year-over-year growth.The consensus mark for the to-be-reported quarter’s earnings is pegged at $3.12 per share, unchanged over the past 30 days. The estimate indicates year-over-year growth of 19.08%.ADSK beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 7.07%.Let’s see how things have shaped up before this announcement. Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote Autodesk's fiscal second-quarter 2027 results are expected to reflect the continued rollout of its sales reorganization and transaction-model transition rather than any single external shock.Management had guided for new-subscription growth to remain pressured through the quarter as channel incentives shifted toward new-business capture, even as renewal rates are expected to have stayed strong. The new transaction model's revenue tailwind is expected to have narrowed to roughly two percentage points, down from 3.5 points in the fiscal first quarter, reducing one of the temporary boosts that flattered prior comparisons.Momentum in AECO, particularly construction, and in emerging markets is likely to have continued supporting the top line, while EMEA's growth rate was expected to have normalized after a strong prior-year comparison tied to earlier transaction-model timing.Ongoing reduction in multiyear contract discounting is expected to have continued weighing on unbilled deferred revenues even as it supported longer-term price realization. The pending MaintainX transaction remained unclosed and was excluded from guidance. It is not expected to have contributed to the reported figures, though integration planning and related costs might have been a modest drag.Segment-level developments through the quarter were concentrated in operations, manufacturing and small-business access. In Operations, Autodesk's May 28 agreement to acquire MaintainX for approximately $3.6 billion advanced its Autodesk Operations Solutions unit. MaintainX is anticipated to exceed $135 million of annualized recurring revenues in 2026, suggesting a rise of 50%, once the deal closes later in the fiscal year.In Manufacturing, a June 3 strategic collaboration agreement with Amazon Web Services made Fusion for Product Design and Fusion Manage available on AWS Marketplace beginning in the second quarter, aimed at broadening cloud-based customer access.Across AECO and AutoCAD-based offerings, a June 4 update lowered the minimum Autodesk Flex purchase to 33 tokens for $99 from 100 tokens for $300, intended to widen adoption among small businesses and solo practitioners. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.ADSK has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.Amphenol APH has an Earnings ESP of +1.06% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Amphenol shares have gained 13.8% in the year-to-date period. APH has a long-term earnings growth rate of 26.77%.Celestica CLS has an Earnings ESP of +5.27% and flaunts a Zacks Rank #1 at present.Celestica shares have dropped 0.2% in the year-to-date period. CLS has a long-term earnings growth rate of 43.27%.Vertiv VRT has an Earnings ESP of +0.06% and a Zacks Rank #2 at present.Vertiv shares have climbed 57.1% in the year-to-date period. VRT has a long-term earnings growth rate of 74.61%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Amphenol stock has delivered very strong gains over the past five years, yet the current valuation checks now point to a more cautious picture. The Discounted Cash Flow (DCF) intrinsic value estimate indicates the shares trade at a premium, while earnings-based multiples look closer to fair. Amphenol has returned 327.0% over the past five years, which puts extra focus on whether today’s price leaves much room for error. Recent coverage highlights robust growth expectations for earnings and cash flow, which can support the current share price. Any slowdown in that growth could quickly pressure a valuation that already screens rich on a DCF basis. The stock scores 3 out of 6 on the value checks, which is a mixed picture rather than a clear bargain or clear overvaluation. For investors, the debate is whether Amphenol’s strong track record and growth outlook are enough to justify a price that screens about right on multiples but above intrinsic value on a DCF view. Find out why Amphenol's 44.1% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model looks at the cash Amphenol can generate for shareholders over time. On this view, the company’s latest twelve month free cash flow of about $4.7b is projected to keep growing, which feeds into an estimated intrinsic value of around $135 per share. That compares with a current share price that implies the stock trades about 16.1% above this DCF estimate. The recent focus on strong expected EPS and cash flow growth helps explain why Amphenol’s price sits above the cash flow based value today, because the market appears willing to pay a premium for that growth profile. On this discounted cash flow view, Amphenol stock currently screens as overvalued relative to its estimated intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests Amphenol may be overvalued by 16.1%. Discover 48 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Amphenol. The P/E ratio is a useful way to assess Amphenol because earnings are a key focus for many investors watching this stock. Amphenol currently trades on a P/E of about 37.6x, which is above the Electronic industry average of roughly 30.3x but below a peer group average of around 83.0x. A tailored fair P/E for Amphenol that blends its growth profile, profitability, size and risk sits near 40.8x. That is only slightly above the current 37.6x level, which points to a modest discount relative to what this framework suggests could be reasonable. Taken together, the stock does not screen as especially cheap or stretched on earnings compared with this fair ratio and with the broader peer set. Overall, Amphenol appears roughly fairly valued on its P/E multiple, based on this framework. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Amphenol pick up where this valuation puzzle leaves off and explain what would need to happen with Amphenol's growth, margins and earnings for the stock to be worth materially more or less than today’s price, based on different viewpoints shared on the Community page. Rather than relying on a single multiple or model, each narrative sets out its own fair value assumptions so you can compare those expectations with actual results over time. Community narratives on Amphenol are split between a strong AI driven upside case and a more cautious view that focuses on technology shifts and rising costs. Bull case: 27% undervalued Read the full Bull Case to see why Amphenol could be undervalued Bear case: 6% overvalued Read the full Bear Case to see why Amphenol could be overvalued Do you think there's more to the story for Amphenol? Head over to our Community to see what others are saying! For Amphenol, the Discounted Cash Flow (DCF) intrinsic value estimate points to an overvalued stock, while the P/E based view suggests pricing that is roughly about right. The gap largely comes down to timing and sustainability of cash flows on one side and current growth expectations and sentiment on the other, especially after a very large move in the share price. The crux for investors is whether Amphenol can deliver on the earnings and cash flow profile that current multiples appear to assume, without the cash generation falling short of what the intrinsic value model implies is needed. 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. Companies discussed in this article include APH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

SentinelOne S is set to release second-quarter fiscal 2027 results on Aug. 27, 2026.   The company expects fiscal second-quarter revenues in the range of $289-$291 million and adjusted earnings between 6 cents and 8 cents per share. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at $290.03 million, suggesting growth of 19.76% from the figure reported in the year-ago quarter.The consensus mark for earnings has remained at 7 cents per share over the past 30 days, suggesting 75% growth from the figure reported in the year-ago quarter.SentinelOne’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 47.50%. SentinelOne, Inc. price-eps-surprise | SentinelOne, Inc. Quote Let us see how things are likely to have shaped up for this announcement. SentinelOne’s second-quarter fiscal 2027 performance is expected to have benefited from sustained momentum across endpoint, artificial intelligence (AI), data and cloud security. In the fiscal first quarter, annual recurring revenues (ARR) increased 23% year over year, while net new ARR rose 55% to a record $44 million. Customers generating ARR of $100,000 or more increased 17% and ARR per customer reached a company record. Remaining performance obligations increased 30% to a record $1.5 billion. Continued new-logo additions, improving net retention, and multiproduct expansion are likely to have supported top-line growth in the second quarter of fiscal 2027.The to-be-reported quarter’s results are likely to benefit from increasing adoption of SentinelOne’s AI-powered security portfolio. Prompt Security ARR nearly doubled in the fiscal first quarter, while Purple AI continued gaining traction through its autonomous investigation capabilities. The May launch of Singularity AI Red Teaming further broadened the company’s AI security offerings by helping customers identify vulnerabilities in AI applications before deployment. Prompt Security is also serving as an entry point for new customers and creating cross-selling opportunities across endpoint, cloud and AI SIEM solutions.Another key driver for the fiscal second quarter is the accelerated adoption of SentinelOne’s non-endpoint solutions, particularly in data and cloud security. In the first quarter of fiscal 2027, non-endpoint ARR approached 50% of total ARR, driven by robust growth in AI SIEM and cloud runtime security. Customer wins, such as a major luxury brand replacing Splunk with SentinelOne’s AI SIEM and a large private company expanding its cloud security footprint, demonstrate the platform’s appeal. This diversification of revenue streams is expected to provide resilience and incremental growth in the second quarter of fiscal 2027.SentinelOne’s profitability is likely to benefit from ongoing cost and productivity initiatives in the to-be-reported quarter. The company’s workforce optimization program is expected to generate approximately $45 million in annualized savings while allowing continued reinvestment in AI security, data and cloud. SentinelOne expects second-quarter fiscal 2027 operating income of $23-$25 million, implying an operating margin of about 8% at the midpoint. However, macroeconomic and geopolitical uncertainties could have affected enterprise spending, deal timing, and sales cycles, while a growing mix of larger and more back-end-loaded transactions may have created some quarterly variability. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here. SentinelOne has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases.Amphenol APH has an Earnings ESP of +1.06% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Amphenol shares have gained 13.8% in the year-to-date period. APH has a long-term earnings growth rate of 26.77%. Celestica CLS has an Earnings ESP of +5.27% and a Zacks Rank #1 at present. Celestica shares have dropped 0.2% in the year-to-date period. CLS has a long-term earnings growth rate of 43.27%. Vertiv VRT has an Earnings ESP of +0.06% and a Zacks Rank #2 at present. Vertiv shares have climbed 57.1% in the year-to-date period. VRT has a long-term earnings growth rate of 74.61%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fabrinet crashed 20% on decelerating Q1 guidance after running up 25% pre-earnings, dragging Marvell down 8% and Amphenol 7%. Coherent fell 12% and Lumentum dropped 10% despite posting datacenter revenue growth of 59% and 109% last quarter. Anthropic's $65 billion ARR missing $80 billion expectations and the 30-year Treasury hitting a 19-year high amplified selling across AI hardware. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn't make the cut. Grab the names FREE today. Shares of Fabrinet (NYSE:FN) are down roughly 20% at midday Tuesday, trading near $476 after the optical manufacturer posted a fiscal Q4 beat but disappointed a market already primed to sell AI infrastructure names. The move is dragging the whole optical and connectivity complex lower. Marvell Technology (NASDAQ:MRVL) is off nearly 8%, Amphenol (NYSE:APH) is down about 7%, Coherent (NYSE:COHR) is off about 12%, Lumentum (NASDAQ:LITE) has dropped roughly 10%, and Corning is down nearly 8%. After Monday's close, Fabrinet reported record Q4 revenue of $1.316 billion, up 45% year over year and above guidance. Non-GAAP EPS came in at $4.10 versus $2.65, an all-time high. Full-year revenue reached $4.64 billion, up 36%. CEO Seamus Grady called the quarter "exceptional, capping off a remarkable year of accelerating growth and strong momentum." View the 8-K filing here. The problem is positioning. FN ran up roughly 14% in the week and 25% in the month heading into the earnings report, and Q1 guidance of $1.375 billion to $1.425 billion implies a far more modest sequential step-up than the 45% YoY quarter just delivered. Add a disclosed $56.7 million loss on non-marketable equity securities and heavy capex that pushed Q4 free cash flow to negative $36.9 million, and a beat-and-raise turned into a "good but decelerating" setup. This is Fabrinet's largest earnings-day drop in the last six quarters, roughly 2.2x the typical post-earnings selloff. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn't make the cut. Grab the names FREE today. Fabrinet lit the fuse. Macro caught it. Over the weekend, Anthropic told investors ARR hit $65 billion at the end of July, huge growth but below the $80 billion-plus figures Gavin Baker had cited on The All In Podcast. Reuters then reported Anthropic's own 2028 revenue estimate of $190 billion to $200 billion, again below what some investors were modeling. The Wall Street Journal capped it, reporting that nine top tech companies carry roughly $3 trillion of off-balance-sheet commitments mostly related to AI, growing faster than traditional capex. The 30-Year Treasury hit a 19-year high today, and with the 10-year yield at 4.7%, near a 12-month high, long-duration AI hardware names are the natural fade. The Marvell and Amphenol declines reflect more than one contract manufacturer's guidance. Marvell just guided Q2 to $2.7 billion, implying 35% YoY growth, with CEO Matt Murphy citing "exceptional AI-related bookings." Coherent's fiscal Q4 datacenter revenue was up 59% YoY. Lumentum's Q4 revenue grew 109%. This is a positioning and sentiment reset landing on a red-hot cohort of optics, connectivity, and infrastructure suppliers behind the AI buildout (we profiled seven of these picks-and-shovels names, from power to cooling to networking, in a free report here: 7 Stocks Powering the AI Boom). Lumentum is still up roughly 736% over the past year, and Coherent 276%. Elevated expectations were the fuel; today they are the risk. Watch whether analyst targets Fabrinet, currently at a consensus $732, get trimmed into the close. NVIDIA reports next week, and its data center commentary will decide whether today is a shakeout or the start of something larger. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Marvell Technology didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

NuScale Power Corporation SMR reported a second-quarter 2026 loss of 13 cents per share, in line with the Zacks Consensus Estimate. Revenues of $0.1 million plunged 98.8% from $8.1 million a year ago and missed the consensus mark of $1 million by 92.5%. The revenue decline reflected the completion of Fluor’s front-end engineering and design Phase 2 work for the RoPower project in late 2025. That work contributed to the prior-year quarter but had no comparable activity in the second quarter of 2026. Operationally, NuScale continued advancing commercial readiness, supported by more than 60 specialized suppliers and over 30 executed agreements. Management expects product and services revenues to increase as project activity advances and additional commercial work moves forward. NuScale Power Corporation price-consensus-eps-surprise-chart | NuScale Power Corporation Quote NuScale continued preparing for future reactor construction by expanding its supplier network. The company said the detailed designs for many of its most important reactor components are largely complete, and that it has signed agreements with more than half of its supplier base. One key partner, Doosan Enerbility, has already started producing large steel components for NuScale Power Modules, helping reduce manufacturing delays for future projects. Other suppliers are also making progress. Framatome is developing nuclear fuel for NuScale's reactors, while Paragon is completing the final design of an important reactor safety and control system. NuScale also plans to use commercially available low-enriched uranium, making fuel sourcing simpler than relying on newer fuel types that are not yet widely available. NuScale's expenses increased during the quarter as it continued investing in future growth. Research and development expenses rose by $6.6 million, mainly because the company spent $7.1 million more on improving reactor designs and preparing its technology for commercial deployment. This was partly offset by $0.6 million of lower regulatory costs. General and administrative expenses increased by $4.4 million, driven by $1.2 million of higher employee and stock-based compensation costs, and $3.9 million of higher organizational expenses. These increases were partly offset by $1 million of lower legal costs. Other expenses rose by $8 million as more engineering and project teams focused on preparing future commercial projects instead of current customer work, reflecting NuScale's continued investment in building its technology, supply chain and workforce. ENTRA1 Energy continues discussions with the Tennessee Valley Authority toward a definitive power purchase agreement using NuScale technology. Management described the negotiations as active and progressing and said the company is prepared to begin licensing, front-end engineering and OEM contracting activities once agreements are finalized. In Romania, NuScale is working with Nuclearelectrica and RoPower to satisfy conditions for advancing a six-module project at Doicesti. Management expects the next pre-engineering, procurement and construction phase to run toward a final notice to proceed, while roughly 60% of prior combined operating license application work can be reused for another U.S. project. NuScale ended June with $766.5 million in cash and cash equivalents, $305.7 million in short-term investments and $820.8 million in long-term investments. The company characterized its liquidity strategy as preparation for commercialization, working-capital requirements and investments needed to reduce deployment timelines. Investment income increased $8.5 million year over year, reflecting the stronger cash position and larger holdings of cash equivalents and investments. Management also emphasized disciplined operating spending while continuing to fund supply-chain agreements, design finalization and fuel-system development. NuScale Power currently carries a Zacks Rank #4 (Sell). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Celestica CLS, Amphenol APH and Broadcom AVGO, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of Celestica have gained 6.4% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.61 per share, up 4.4% over the past 30 days, indicating an increase of 75.4% year over year. Amphenol shares have gone up 26.3% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up by 11.7% over the past 30 days, indicating an increase of 57.2% year over year. Shares of Broadcom have gained 21.5% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.74 per share, up by a penny over the past 30 days, indicating an increase of 72.1% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NuScale Power Corporation (SMR) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Celestica, Inc. (CLS) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 29, 2026 at 1:00 p.m. ET Chairman and Chief Executive Officer - Richard Adam Norwitt Chief Financial Officer - Craig A. Lampo Operator: Hello and welcome to the Second Quarter 2026 Earnings Conference Call for Amphenol Corporation. Until then, all lines will remain in a listen-only mode. At the request of the company, today's conference is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to introduce today's conference host, Mr. Craig A. Lampo. Sir, you may begin. Craig A. Lampo: Great. Thank you so much. Good afternoon, everyone. This is Craig A. Lampo, Amphenol's CFO, and I am here together with Adam Norwitt, our CEO. We would like to welcome you to our second quarter 2026 conference call. Our second quarter 2026 results were released this morning I will provide some financial commentary, and then Adam will give an overview of the business and current market trends, and then we will take your questions. As a reminder, during the call, we may refer to certain non-GAAP financial measures and make certain forward-looking statements. So please refer to the relevant disclosures in our press release for further information. The company closed the second quarter of 2026 with record sales of $8.8 billion and GAAP and adjusted diluted EPS of $1.37 and $1.35, respectively. Second quarter sales were up 55% in U.S. dollars, 54% in local currencies, and 30% organically compared to the second quarter of 2025. Sequentially, sales were up 15% in U.S. dollars and in local currencies, and up 13% organically. Adam will comment further on trends by market in a few minutes. Orders in the quarter were a record $10.7 billion up a strong 94% compared to the second quarter of 2025 and up 14% sequentially. Resulting in another very strong book-to-bill ratio of 1.23 to 1. This impressive book-to-bill was driven by robust bookings in all of our end markets, with every end market having a positive book-to-bill this quarter. GAAP operating income was $2.6 billion in the quarter, and GAAP operating margin was 29.5%. GAAP operating income included $24 million of non-cash of acquired backlog, related to the CommScope acquisition. Operating income also included an $80 million or $0.04 per share net benefit related to the recovery of AIPA tariffs. Excluding the acquisition-related costs, but including the tariff recovery benefit, adjusted operating income and adjusted operating margin, were $2.6 billion and 29.8%, respectively. On an adjusted basis, operating margin increased a strong 24 basis points from the prior year quarter and 250 basis points sequentially. The year-over-year increase in adjusted operating margin was primarily driven by robust operating leverage on significantly higher sales volumes and, to a lesser extent, the tariff recovery benefit. Which more than offset the margin dilutive impact of recent acquisitions. On a sequential basis, the increase in adjusted operating margin reflected the strong conversion on the higher sales levels as well as profit progress on profitability improvement actions at recent acquisitions, including, in particular, CommScope. And to a lesser extent, the tariff recovery benefit. I am very proud of the company's operating margin performance in the second quarter, which reflects continued strong execution by our team. Bringing down second quarter results by segment, compared to the second quarter of 2025, Sales in the Communication Solutions segment were $5.4 billion and increased by 85% in U.S. dollars and 42% organically. Segment operating margin was 33.6%. Sales in the Harsh Environment Solutions segment were $1.9 billion and increased by 28% in U.S. dollars and 22% organically. And segment operating margin was 30.1%. Sales in the Interconnect and Sensor Systems segment were $1.5 billion, an increase of 17% in U.S. dollars and 13% organically. And segment operating margin was 21%. The company's GAAP effective tax rate for the second quarter was 25.3% and the adjusted effective tax rate was 27%. Which compared to 18.3%, 24.5% in the second quarter of 2025, respectively. As is our typical practice, our adjusted tax rate excludes the tax effect of acquisition-related costs and the excess tax benefit from stock option compensation as well as other discrete tax items. GAAP diluted EPS was $1.37 in the second quarter, up 59% compared to the prior year period. On an adjusted basis, diluted EPS was a record $1.35 an increase by 67% compared to $0.81 in the second quarter of 2025. This was an outstanding result. Operating cash flow in the second quarter was $1.6 billion or 88% of net income, free cash flow was $1.2 billion or 68% of net income. Excellent result considering the growth we have experienced. From a working capital standpoint, inventory days sales outstanding, and payable days were all within our normal trend ranges. During the quarter, the company repurchased 1.5 million shares of common stock at an average price of $141. When combined with our normal quarterly dividend, total capital return to shareholders in the second quarter of 2026 was approximately $515 million. Total debt at June 30 was $18.8 billion and net debt was $13.4 billion. Total liquidity at the end of the second quarter was $8.4 billion which included cash and short-term investments on hand of $5.4 billion plus availability under our existing credit facilities. Second quarter 26 EBITDA was $3 billion and our net leverage ratio was 1.3 times at the end of the quarter. And we are very pleased with the company's financial position. I will now turn the call over to Adam, who will provide some commentary on current market trends. Richard Adam Norwitt: Well, thank you very much, Craig. And first, I hope that all of you on the call today, together with your family, friends, and colleagues, enjoying a wonderful summer so far. As Craig mentioned, I am going to highlight some of our achievements here in the second quarter. I will talk about our trends in our served markets. Make some comments on our outlook for the third quarter, and then, of course, we will have some time for questions at the end. With respect to the second quarter, I am just really proud of the Amphenol organization who drove excellent performance once again here in the second quarter of 2026. Our results were stronger than expected, exceeding the high end of guidance in sales and adjusted diluted earnings per share. As Craig mentioned, our sales grew from prior year by a very strong 55% in U.S. dollars and 54% in local currencies, reaching a new record for the company of $8.8 billion. On an organic basis, our sales also increased by a strong 30%. With all but 1 of our end markets experiencing robust organic growth. The company booked a record $10.7 billion in orders in the second quarter representing a book-to-bill of 1.23 to 1 Orders grew by a very strong 94% from prior year and were up 14% sequentially. And, with the significant acquisition of CommScope, I would also just point out that our orders also grew organically by 63% from prior year. Also very pleased to have delivered record adjusted operating margins of 29.8% in the quarter, which was an increase of 24 basis points from prior year and 250 basis points sequentially. Excluding the benefit of net tariff refunds, our operating margins still reached nearly 29%. This strong profitability is a direct result of the outstanding execution of the Amphenol team around the world. All of whom continue to manage well in a challenging environment. Adjusted diluted EPS grew 67% from prior year, reaching a new record of $1.35. And then finally, the company generated strong operating and free cash flow of $1.6 billion and $1.2 billion respectively, both clear reflections of the quality of the company's earnings. I just cannot overstate my pride in the Amphenol team. Our results this quarter once again reaffirmed the value of the drive discipline, and agility of our entrepreneurial organization. As we continue to perform well amidst a very dynamic environment. We are very excited that we completed 2 acquisitions during the second quarter, Elcom and Wilder Technologies. Elcom is based in Lecco, Italy, and has annual sales of $150 million and is a leading manufacturer of complex interconnect solutions, and high voltage cable assemblies for the industrial, defense, and commercial aerospace market. And Wilder Technologies is based in Washington state here in the US, and has relatively modest annual sales of approximately $15 million, but Wilder is a key supplier to Amphenol, for high-performance test and measurement solutions, for our high-speed interconnect applications for the IT datacom market and really helps us to strengthen our extraordinary capabilities in high-speed products. Also like to take this opportunity to congratulate the CommScope team on their outstanding performance so far. I am truly proud of what this team has achieved after now being part of the family for 2 full quarters. Indeed, we now expect CommScope to deliver $4.6 billion of sales and $0.30 of accretion for the full year 2026. And this represents a significant upgrade from our previous expectations of $4.1 billion and $0.15. I remain very confident that our acquisition program will continue to create great value for Amphenol. Our ability to identify and execute upon acquisitions and successfully bring these new companies into our family remains a core competitive advantage for the company. Now turning to our served markets, I would just comment that we are very proud of Amphenol's broad and balanced end market exposure. Our diversification continues to create great value for the company. Enabling us to participate across all areas of the global electronics industry each of which creates significant future opportunities for expansion. We remain committed to continuing to broaden our portfolio across markets, geographies, customers, applications, and products. As we build on the company's momentum to further strengthen the company's position long into the future. Turning first to the defense market. This market represented 8% of our sales in the quarter, Sales grew from prior year by a robust 37% in U.S. dollars, and 24% organically. And this was really driven by broad based growth across nearly all areas of the defense market. Sequentially, our sales increased by 7%, which was in line with our expectations coming into the quarter. As we look into the third quarter, we expect sales to increase in the low double digit range from these second quarter levels. We remain very encouraged by the company's leading position in the defense interconnect market. Where we continue to offer the industry's widest range of high technology interconnect solutions. Amidst the current dynamic geopolitical environment, there is no doubt that countries around the world are increasing their investment investments into both current and next generation defense technologies. With our expanded product offerings as well as the significant capacity expansions that we continue to make, we are positioned better than ever to capitalize on this long term demand trends. The commercial air market represented 4% of our sales in the quarter, Sales increased by 22% in U.S. dollars and 21% organically from prior year, a very strong performance. So we benefited from increased aircraft production volumes coupled with our company's continued progress in expanding content on next generation commercial aircraft. Sequentially, our sales grew by 6% from the first quarter which was actually significantly stronger than our expectations coming into the quarter for a slight moderation. Looking towards the third quarter, we expect sales to be up modestly from these second quarter levels. I am truly proud of our team working in the commercial air market. With the ongoing growth and demand for next generation aircraft, our efforts to expand our product offering both organically as well as through our acquisition program continue to pay real dividends. We look forward to further capitalizing on our expanded range of product solutions for the commercial air market long into the future. The industrial market represented 20% of our sales in the quarter. Sales increased 56% in U.S. dollars and 18% organically. As we saw continued strong demand across the diversified industrial market and as we benefited once again from the addition of CommScope's building connectivity business. On an organic basis, virtually all of our industrial segments grew in the quarter. We also saw double digit growth in all 3 geographies. On a sequential basis, sales grew by a much better than expected 13% from the first quarter. As we look into the third quarter, we do expect sales to be roughly at the same elevated levels as we saw here in the second quarter. We are very excited by the company's renewed strength across the many diversified segments of this important industrial market. With the acquisition of Elcom, we have further added to our value add interconnect capabilities for European industrial customers. And over the long term, I am confident in our strategy to expand our high technology interconnect antenna and sensor offerings both organically and through complementary acquisitions. This strategy has enabled the company to capitalize on the many electronic revolutions that continue to occur across the diversified industrial market. Thereby creating further opportunities for our outstanding team. The automotive market represented 10% of our sales in the quarter, Sales in automotive grew 9% in U.S. dollars and 6% organically, as we experienced growth in all regions and as we saw a pickup in demand for vehicles with electrified drivetrains. Sequentially, our sales grew by 9% from the first quarter which was much better than our expectations coming into Q2. For the third quarter, we expect sales to remain at these second quarter levels, and we would typically see some summer seasonality. I remain very proud of our team working in the global automotive market. And while there are clearly areas of demand uncertainty around this industry, our team continues to remain laser focused on driving new design wins with customers who are increasing the content of new electronics being integrated their next generation vehicles. We look forward to benefiting from our strengthened position in the automotive market for many years to come. The communications networks market represented 11% of our sales in the quarter, Sales grew from prior year by 55% in U.S. dollars driven primarily by the addition of CommScope. On an organic basis, sales actually moderated by 6% from prior year, due to demand moderations from both communications network operators and wireless equipment manufacturers. I would just note that CommScope actually grew on a year-over-year basis in communications networks. From prior year. Sequentially, our sales in the second quarter grew by 5% from the first quarter, which was a bit better than our expectations coming into the quarter. Looking to the third quarter, we do anticipate that sales will decline in the mid teens from the second quarter level. With our expanded range of technology offerings following the acquisitions of both CommScope and Andrew, We are better positioned than ever with both service provider and OEM customers across the communications networks market. Our deep and broad range of products, coupled with our global manufacturing footprint, have positioned us well to support communications networks customers around the world. As the accelerating volume of data traffic drives long term demand for expanded and upgraded networks, we look forward to enabling these systems. For many years to come. The mobile devices market represented 4% of our sales in the quarter, and our sales grew by 17% in U.S. dollars and a strong 14% organically. With growth really in smartphones, laptops, as well as wearable devices. Sequentially, our sales increased by 19%, which was much better than our expectations coming into the quarter We had actually expected sales to decline in this quarter on a sequential basis. As we look into the third quarter, we anticipate sales to increase roughly in the 20% range compared to the second quarter as we participate in the beginnings of a variety of new program launches for our customers. I am very proud of our team working in the always dynamic mobile devices market as their agility and reactivity have once again enabled us to significantly outperform our expectations in the quarter. I am confident that with our leading array of antennas, interconnect products, as well as advanced mechanisms, including hinges, that are designed in across a broad range of next generation mobile devices. We are positioned well for the long term. The IT datacom market represented 43% of our sales in the quarter, and we once again had a very strong quarter in IT datacom. Growing 89% in U.S. dollars and 63% organically. This was driven by continued acceleration in demand for our products used in artificial intelligence applications together with robust growth in our base IT datacom business. On a sequential basis, sales increased by 22% from the first quarter which was substantially better than our expectation. Virtually all of this growth was driven by sales of AI related products. Looking into the third quarter, we expect a further sequential sales increase in the mid teens from these second quarter levels. As investments in AI data centers continue to accelerate and as enterprise and cloud customers expand their demand for traditional IT datacom equipment. We are more encouraged than ever by the company's position in the global IT datacom market. Our team has done an outstanding job of both securing future business on next generation IT systems to the broad array of customers but also on executing on these exciting new programs. In addition, I would just comment that the team at CommScope continues to make great progress in further penetrating the IT datacom market with their advanced optical interconnect solutions. And we now expect that the IT datacom market will represent just a bit less than half of CommScope's total sales for the full year and that compares to about a third of their sales. In 2025. The revolution in AI has no doubt created a unique opportunity for Amphenol given our leading high-speed, fiber optic and power interconnect solutions. All of these high technology products are critical components. In our customers' current and next generation systems. This creates a continued long term growth opportunity for the company. Now turning to our outlook, and, of course, assuming current market conditions as well as constant currency exchange rates. For the third quarter, we now expect sales in the range of $9.3 billion to $9.4 billion and adjusted diluted EPS in the range of $1.40 to $1.42. This would represent sales growth of 50% to 52% and adjusted diluted EPS growth of 51% to 53%. Compared to the third quarter of prior year. I would just note that our guidance does not reflect any additional net tariff recoveries which we expect to be immaterial going forward. I remain confident in the ability of our outstanding management team to adapt to the many opportunities and challenges in the current environment and to continue to expand Amphenol's market position while driving sustainable and strong profitability over the long term. Finally, I would like to take this opportunity to thank our entire global team for what is no doubt just outstanding efforts here in the second quarter. And with that, operator, we would be very happy to take any questions. Operator: Thank you, Mr. Norwitt. The question and answer period will now begin. Please limit to 1 question per caller. To ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star one again. When preparing to ask your question, please ensure your device is unmuted locally. We have a question from Steven Volkmann from Jefferies. Please go ahead. Steven Volkmann: Hi. Good afternoon. Thank you for taking the question. Maybe I will just start with CommScope. Obviously, some nice upside there. I think the guidance raise you said was all basically IT datacom I am just wondering if we can sort of drill into that a little bit more. What types of projects are really they participating in? Is it more op optical? Is there anything happening in building or, broadband to call out Yeah. Richard Adam Norwitt: Thanks very much, Steven. I mean, did not say necessarily that all of the increases is IT datacom, but I can say that IT datacom is certainly driving the strength for them. I mean, they are growing really across the board. In their business, so we are seeing growth, as I mentioned, also in communications networks. We are seeing, as well, you know, meaningful growth with them in their industrial market or the what you what we refer to as the building connectivity market, But there is no doubt that they are making great progress in the IT datacom market. And in particular, making great progress in applications related to AI. I mean, in fact, if you look at their IT datacom business on a year-over-year basis, it is essentially double a year-over-year basis, which is really, really impressive. And you know, all of what they do in IT datacom, is in fact optics, advanced complex optical interconnect solutions, for customers doing a broad array of things. And, you know, we are seeing great growth there, and great progress with what they do. And I will just say as well that you know, now that CommScope is part of the Amphenol organization, you know, they are already taking good advantage of being part of Amphenol. The relationships that we have, which are obviously very long standing relationships, up and down through the stack of the companies that are both building out data centers, equipping those data centers with next generation systems, architecting the chips, and doing everything in between. And so there is no question that being part of Amphenol has been a great thing for CommScope as relates to their position in IT datacom specifically. Operator: We have a question from Joseph Cardoso from JPMorgan. Please go ahead. Joseph Cardoso: Hi. Thanks for the question here. Maybe just another follow-up on the CommScope, the raising guidance here. You are raising the revenue from $4.1 billion to $4.6 billion but the EPS outlook is more than doubling. So maybe can you just walk through what you are seeing in terms of the margin profile of the CommScope acquisition, potentially contextualizing where the upside coming from and essentially why you are seeing the better flow through there? Is it all operating leverage or is the gross margin profile of the business tracking better than what you had expected? When at least a couple of quarters ago when we had completed the acquisition? Thank you. Craig A. Lampo: Yeah. Thanks so much. Yeah. Richard Adam Norwitt: No. We are really happy with the kind of profitability progress, with the CommScope acquisition and the folks. I mean, the team's really done a great job of kind of embracing kind of the Amphenol culture, working with some of the other businesses. And I would not say it is just gross margin. I would say I mean, listen. They are they are certainly growing at a pretty good pace right now, and they are you know so I think that, you know, they achieved a just a bit over $1.2 billion here in the second quarter in sales. They have done a really good job of leveraging that growth. I would not say just on gross margin, but also in the SG&A and operating expenses. You know? And I think they did they really have just increased their profitability. I mean, they are they are essentially in the second quarter, operating, you know, over 20%. Including the amortization that we have kind of embedded in those numbers now from the acquisition. So they have done a great job, you know, in the factory, with their vendors. You know, with controlling costs on SG&A across the board. I would not say it really has come from pricing. To any extent. It really has more come from really just operational execution. Both in, you know, both in the factory as well on the in the operating expenses. And, look, I would just add 1 thing to that, which is we knew when we met these folks. Early on that this was an amazing team of people. I mean, from the leadership all the way down through the organization, I mean, I still remember you know, our very first kind of quote unquote management meeting, and, you know, there were some 30 people that we got interact with at the time. And each of them just passionate and you know, in many ways, they were a team of people whose capabilities and potential was maybe not necessarily being tapped into, given just the overall environment that surrounded CommScope in the past. And to no fault of CommScope, it is a great company, but you know, we do not need to talk about, you know, the different environment that they came into. As soon as they came to be part of Amphenol. And that is a team of people who are fighters. I mean, they have not been without challenges. They see know, every day in the market, there is lots of challenges that they have to manage through. At the same time, the aggressiveness with which they pursue opportunities the aggressiveness with which they pursue being part of Amphenol actually, the collaboration that they have embraced, being part of a broader organization of people who do interconnect for a living. Mean, that is what we have been doing for the entire history of this company. 94 years, we are an interconnect company. And being part of that and being a real leading light in that has, I think, been an energizing thing for the CommScope organization and that is clearly manifest in their numbers that we see today. And think that, you know, we are just getting started with CommScope. Operator: We have a question from Amit Daryanani from Evercore. Please go ahead. Amit Daryanani: Oh, yep. Thanks a lot, and congrats on some impressive numbers here. Adam, I think investors often sort of frame that AI interconnect opportunity as a copper versus fiber debate or a copper or fiber debate sometimes. You know, from your side, is that sort of the right way to think about the market? Is that what customers are telling you? I would love to just kinda understand what are you seeing from a growth basis across both copper and fiber. And any qualitative or quantitative framework you could provide in terms how big the fiber business is within the $10.5 billion to $11 billion AI revenue run rate you have right now would be really helpful. Thank you. Richard Adam Norwitt: Well, thanks very much, Amit. Look. I mean, we have we have had this discussion in the past. And what I can tell you is this. As we talk to our customers, and we talk to them about what is going on today, what they expect next year, what they expect the years thereafter, The 1 consistent thing we hear from our customers is they need more of everything. They need more of everything. More high-speed copper. More fiber optic solutions, and more power solutions. And there is no doubt about it that we see that reflected actually in the growth rates that we are experiencing today. Mean, if you look at our IT datacom overall growth, organically growing 63% in the quarter, You know, the AI is growing faster than that, and I mentioned that CommScope nearly doubled their AI business on a year-over-year basis. And we expect the IT datacom market to be you know, just under half of CommScope's total. And everything that CommScope does in IT datacom is really around AI and around optics. And so you can, you know, put a little framework around their business. We also have, as everybody knows, already a fiber optics business of significance before. Both the passive optical interconnect business as well as an active optics business. And so, you know, our without putting, you know, to the decimal point numbers behind it, I can tell you that today, have a very strong high-speed copper business. We have a very strong and significantly scaled, you know, 1 of the world leaders in optics in AI. And we also have a leadership position in power interconnect for AI as well. And so each of those are really significant pieces of that of that entire puzzle. Operator: We have a question from Luke Junk from Baird. Please go ahead. Luke Junk: Good afternoon. Thanks for taking my question. Adam, that is actually a great segue. Was hoping you could spend a little more time talking about your power portfolio. Clearly, that is an area of increased innovation within IT datacom. You mentioned that you are a global leader. Maybe more context there. And just how you see that innovation opportunity set both traditionally in the whitespace on the rack and what seems like some real opportunities looking out in the future in the grayspace in the medium term as well? Thank you. Richard Adam Norwitt: Thanks very much, Luke. I mean, look, know, when I talk about power interconnect, you know, this is part of the legacy of Amphenol. We have been involved in making our interconnect products for the vast majority of the history of this company, and it goes back to, you know, our legacy in the defense industry and industrial products where we develop leading interconnect technologies, leading contact technologies to drive safe and efficient transfer of power in all environments. We have expanded that over the years to board level power to bus bars, to complex power cable assemblies, and the like, you know, that go in a variety of places all the way from deep in the rack, you know, connecting directly to the chip all the way to where it comes into the data center. From, you know, from the switchgear and beyond. Today, we see a lot of advances in power technology, movements to higher voltages, implementation of things like liquid cooling, embedding of sensors into connectors, so that you can create smarter power connectors and the like. I mean, there is just a lot going on there. And, you know, at the end of the day, you know, I like to think in very simplistic terms in part because you know, I studied international politics, not engineering as a as an undergrad. But what AI is, is conversion of electrons into tokens. And everywhere along that phase, if you can make the conversion of electrons into tokens more efficient, then you are creating value for your customers. You are creating value for your direct You are creating value for your end customers. Well, on the electron side of that, our power interconnect having some of the safest most efficient technologies is creating true value by allowing our customers to use a few less electrons as they generate a few more tokens. And, you know, when you get then to the other side of high-speed, well, how do you get those tokens out as quickly as possible to create the models? You are doing that with both high-speeds copper as well as optics interconnect, and we do that as well. So everywhere along that equation of that electron token conversion, Amphenol is a partner for our customers. Operator: We have a question from William Stein from Truist Securities. Please go ahead. William Stein: Great. Thanks for taking my question. Congrats on another fantastic quarter. Adam, there has been a lot of discussion among some of the key infrastructure suppliers to the to the AI market. And debates about their approach to backplane design. And I believe Amphenol is very heavily involved in 1 in particular. I am sure you are in many or maybe all of them, but there is 1 where there is a cabled sort of spine backplane And a discussion that seems to have gone back and forth as to whether this may convert to a printed circuit board. And I think there had been an assumption that this would be a potential challenge to the growth in your business. But I wondered if perhaps the connectors used in such evolved architectures might be even more complex and more content and margin rich. So I am wondering if you can help sort of frame this for us. If we see in the supply chain that this conversion to PCB is happening, should we think this is a challenge, or a benefit or neither for your business? Richard Adam Norwitt: Yeah. Well, thank you very much, Will, and I appreciate your comments and the and the question. I mean, look. At the end of the day, there is lots of nuances of designs that are happening across the board. But the one constant is that there is more content. And so for us, our goal here is not to, you know, put all of our eggs in one basket of one type of architecture or another. it is to have the breadth of technologies available for our customers such that we can handle and help them handle the multitude of increasing content. Whether 1 or another decides to go to a backplane versus a versus a printed circuit board, this is really not the core question. The core question is, is there more overall content of interconnect? And with the breadth of our position, you know, by the way, a company who makes cable, who makes printed circuit boards, who makes printed circuit board assemblies, cable assemblies, mean, we are just trying to enable our customers in whichever way they go. And what our customers are trying to do is really, really hard things. And so us being at the table with them to do those really, really hard things with the leading engineers in the industry who understand all these moving parts, I mean, that is where we create value. And, you know, whichever one individual program or web service provider makes some decision or another, they are all moving in the direction of more content not less. And that creates a great opportunity for Amphenol. Operator: We have a question from Joe Giordano with TD Cowen. Please go ahead. Joe Giordano: Hey, guys. Thank you. Adam, there is a there is a lot of talk about, like, in the future, what is the right type of models that we need, whether it is frontier models versus open source models and where they are housed, whether it is here versus China. I mean, we talked a lot about the breadth of your portfolio, and you can kind of play everywhere. But what are the implications of how that mix ultimately plays out globally? Richard Adam Norwitt: Yeah. Look. I mean, we work with customers around the world. We work with customers who make GPU architectures, who make ASIC architectures, who make, you know, XPU architectures, you name it. Because no matter what architecture you are choosing, at the end of the day, to create an AI that really creates value for the end customer, You have to compare everything to everything else. And we see that what that means is you need interconnect. To do that. And so whether it is on training or actually on inference and to be honest, inference seems to grow at an even faster pace, Also requires an intensity of interconnect products that really is unprecedented. You know, we continue to enable customers in all ways. So you know, we are not, like, model dependent. We are not frontier training versus inference dependent. We are not geographically dependent. I guess the only thing we are dependent on is that people continue to invest in this thing, and it continues to have increases in content. We see that for a long time to go. Operator: We have a question from Asiya Merchant with Citigroup. Please go ahead. Asiya Merchant: Great. Thanks for taking my great. Thanks for taking my questions and great set of results here. impressive. It is very impressive, the CCS margins, that you are able to drive here. I think there were just some concerns about fiber supply and if that could potentially negatively impact the CommScope acquisition does not seem to be the case. So Adam and Craig, could you just talk a little bit about how you feel about the supply coming here for just given the growth that investors are expecting broadly just for the optical side of the portfolio as well? Thank you. Richard Adam Norwitt: Well, thank you, Asiya. Look, I mean, I think the results speak for themselves here. Yes. Of course. there is a lot of demand for lots of things, including demand for fiber optics. And the CCS team has done a fabulous job of managing their supply chain, expanding their supply chain, and making sure that they have ready source of availability for all the materials that they need in order to support their customers. And I think that is reflected in their results. that is reflected in the strong growth that they have in IT datacom, and it is reflected in our positive outlook for the company for the full year. I just cannot reiterate enough how impressed I am by this team. I mean, this is not an organization that came from, quote, an entrepreneurial culture. But they have embraced that entrepreneurial culture of Amphenol on day one And to the extent that they run into an impediment, they go out, they hammer it, down, they make it happen, and they drive success. And that is what they have been doing regardless of, you know, what impediment there may be, and that includes on the supply of fiber. Operator: We have a question from Wamsi Mohan with Bank of America. Please go ahead. Wamsi Mohan: Yes. Your CapEx is up 20% year on year to support obviously is very strong growth that you are delivering and guiding to. As you think about what is the right level that investors should think about from a perspective on an ongoing basis? And are you specifically targeting incremental CapEx for CommScope? Or is the forecast based on any incremental line adds for CommScope? Or is it just based on the capacity that you currently have as of now? Craig A. Lampo: Yeah. Thanks, Wamsi. I mean, I would think about CapEx, not specific. CommScope's CapEx is not necessarily much different as a percentage of sales basis as the overall company, actually maybe even know, modestly lower on a percentage of sales basis. You know, in the quarter, we were around, you know, just at the high end of our kinda 3% to 4% range. You know? And I would expect us to be running at the higher end of that as we are growing kinda at the you know, paces that, you know, that we are growing at right now. And I think as we look into kinda the latter half kind of this year, I would expect us to continue to be even maybe modestly higher than that, you know, that range. But, you know, we are we are continuing to grow pretty significantly. The capacity we are putting in place, I think, is prudent as you know, our general managers are making these decisions based on the specific programs they are on and, and we look at, you know, look at it from that perspective. And I think that is what, you know, you are seeing the output of that in terms driving some of these results. But from an overall capital perspective, I would continue to view it kind of at the high end of that range and, you know, maybe slightly over that. In the second half, but, certainly not, you know, not so far outside of our normal range. Operator: We have a question from Guy Hardwick from Barclays. Please go ahead. Guy Hardwick: Hi. Good afternoon. Adam, CommScope is generally known, correct me if I am wrong, as a scale out and scale across company and data center. Other signs of them entering the scale up market as well, Yeah. Richard Adam Norwitt: Well, thanks very much, Guy. I mean, I think they are known as the scale out scale across because that is where optics has been present. So far. But there is no question that, you know, to the extent, and I would say to the extent because this is still remains to be seen what the architectures of the future will be like. Clearly, there will be hybrid architectures. But to that extent, I can tell you that CommScope especially given Amphenol's unique relationship across the ecosystem of AI, has a great seat at the table to the extent that customers are thinking about integrating some degree of optics within their scale up architectures. And so being part of Amphenol has been a great thing for them, and they are certainly part of that discussion in a very significant way. Operator: We have a question from Andrew Buscaglia with BNP Paribas. Please go ahead. Andrew Buscaglia: Hey. Good morning, everyone. Good morning. I just wanted to check on risk of bottlenecks here. 1 question I often get just given the importance of fiber is your ability to secure enough raw fiber to meet demand If you could comment on that. And then secondly, just any internal or external things you are evaluating in terms of bottlenecks just given we have had a thermal equipment supplier report this morning with the it cited some of these issues and just want to make sure we are keeping an eye on that. If you could comment there. Richard Adam Norwitt: Yeah. Thanks very much, Andrew. I think I mentioned earlier that you know, we have there is no doubt about it that given the performance of CommScope, they have managed to secure all what they need, including fiber, to deliver these outstanding results In terms of other bottlenecks, I mean, look, we have 150 operations around Amphenol, each of them run by a general manager in empowered, with the authority to do what it takes to run their business, and we then hold those general managers accountable. What they deal with on a day-to-day basis. I mean, it is an enormous list of challenges and opportunities that they face every day. Do we see anything broadly in terms of you know, bottlenecks that are constraining our ability to satisfy our customers or deliver results. We do not. I mean, else we would not have produced 30% organic growth in the quarter or grown 13% sequentially on an organic basis. It does not mean there are not challenges. It just means that we have got 150 entrepreneurs who are embodying the unique culture of Amphenol out there managing these issues day in and day out, and also planning for that. You know, making investments internally when we think that in the future, there may be an opportunity, creating a multiplicity of sources for those things that you know, maybe the vendors could not keep up with this. We have grown the company in a 2 year period by double in its total size. And, you know, roughly a third of that has come through acquisitions, the additions of these great companies But, you know, 2 thirds of that is been organic growth over a 2 year period. And that means that we need, you know, that same amount of increase in capabilities and capacities from the thousands of companies that we work with as vendors. We do not manage that at headquarters. there is no central procurement organization. In our small little rundown headquarters building off the highway here in Wellingford, Connecticut, there is not a single person in our team who is in charge of, quote, unquote, procurement. Or sourcing or anything like that. Every general manager has their team and they work day in and day out, hand in hand with their sales team. Their engineering team, their operations team, their quality team. As a true entrepreneurial organization. And what they do is they just mow down the impediments that may be there for them to achieve what they want to achieve. So, you know, it is sorry for the long detour on the culture here, but at the end of the day, we do not see any significant bottleneck anything that has any meaningful impact on our ability to deliver the strong results that we delivered this quarter, or the results that are embedded and implied by the guidance that we gave for the third quarter and beyond. Operator: We have a question from Mark Delaney from Goldman Sachs. Please go ahead. Mark Delaney: Good afternoon. Thank you very much for taking my question. Adam, you cited hinges as a driver of the mobile devices business and some of the growth you expect for this quarter. I am hoping you can give more color on how impactful that product line may be going forward. Richard Adam Norwitt: Yes. Thanks very much, Mark. I mean, nice to have a question on mobile devices. I mean, I feel really proud of our team working in mobile devices. Growing 14% organically in the quarter. And we have talked for a long time about the fact that our product offering in mobile devices you know, running from antennas, interconnect products, mechanisms, including in particular hinges. I mean, we have been a hinge manufacturer for, gosh, more than 2 decades now. And that is something where our team is just a phenomenal capability. Actually, Craig and I were visiting some of our factories just a couple weeks ago and just to see the amazing vertical integration of what our team does and the unique array of products that they are working on. And so, you know, we continue to work on a range of products and you can imagine I am not gonna comment on any specific customer programs. But we remain a leader in the industry in creating advanced mechanisms for unique architectures that are coming. And I would just tell you that what we see in the mobile devices market is just the continued blossoming of the multitude of different things that are out there. I mean, whether it is wearables that humans have, I just got a dog and she now has a wearable on her, so I can see. I can pull up my phone and tell you where she is right now. Which is pretty darn cool. Her name is Luna. She's very cute. And that is that is something that you know, it never would have dreamed of that I could just see in real time where my dog is. But there is so many different things that you can do with mobile devices. You know, whether you put them in your ear, on your wrist, around your neck, whether you fold them or you hold them or they are big or they are little, they all require advanced technologies for antennas interconnect and also now increasingly the mechanisms Our team's done a great job building that capability up, and, you know, we are confident that is gonna create value for us long, long into the future. Operator: We have a question from Joe Spak from UBS. Please go ahead. Joe Spak: Hey, everyone. Adam I know it is not a large part of your business, but I believe you do converters on the defense side, and you do some DC converters on the auto side. I am just wondering about your interest in power electronics more broadly, either organically or inorganically, especially you know, in light of this ruling that power foreign power inverters might not be allowed in The US for you know, grid applications and other applications. So I am just curious about if that sort of you think that at all plays into some of your core competencies. Richard Adam Norwitt: Yeah. Thanks very much, Joe. I mean, look, To the extent that we do anything there, it is pretty modest. So I would not you know, I would not highlight anything that we do at all in that world. I mean, look, power in the broadest sense power interconnect, how you get a signal from place to place, is certainly a very, very important part of our business. Are we going to get into, you know, kind of active power management and inverters and things like that? I mean, you know, it is not something so far that we have done or that we have done in any meaningful way. But, you know, look. We are always looking at the kind of adjacencies of the future so much as they continue to be true to our strategy of being an interconnect company, and, you know, that is very important for us. So you know, like we got into sensors 14 years ago nearly, you know, as a way to interconnect physical phenomenon to the electronic systems where we already participate very strongly. But, look, power is very important. there is a lot going on in power. And, you know, our products are certainly enabler of that revolution. Operator: We have a final question from Scott Graham from Seaport Research. Please go ahead. Scott Graham: Hey, good afternoon. Thanks for taking my question. Congratulations on the quarter. I was just wondering if in the past, Adam, you have been able to been willing to call out specific industrial markets where you saw better success in sales. I was wondering if you can do the same for us today. Richard Adam Norwitt: Yeah. Thanks very much, Scott. It would be my pleasure, actually. I mean, we are really proud of our industrial market and the folks working in and around industrial. I mean, already a long time ago, but, you know, there were a couple of rough years in industrial. But now you know, we have strung together, I do not know, 2.5 straight years of really strong organic growth, and we see that accelerating here in the quarter growing 18% organically. And we see just growth really you know, across the board. I mean, there are some areas where, you would say, instrumentation growing very strongly. Not surprising given, you know, factories and the build out of semiconductors and the like. Factory automation growing very strongly. But at the same time, we see great growth in anything around electrification, and battery. We see strong growth in heavy equipment, alternative energy, and in the areas like safety, for example, as well. I mean, honestly, like, I go down the list of all of the of all of the end markets, or subsegments in the industrial market. I am hard pressed to find 1 that is not really for performing right now. And with the addition of CommScope, as I mentioned earlier, opening up the whole this whole new world for us, which is called construction, building connectivity, together with the distribution channel, which is so critical for that to service the tens of thousands of different customers that participate in the construction industry, you know, around the world. And CommScope sells their products through distribution into, I do not know, 150 to 180 different countries. Around the world. And now that we have those strategic relationships with those distributors, we also look forward to taking advantage of it with other Amphenol products both interconnect and sensor products, that can find a great home in that space. So industrial market is just a wonderful place for Amphenol. Know, 20% of sales, with great growth opportunities. And we see a lot of revolutions happening really across all of these really interesting segments of the industrial market. Operator: We currently have no further questions, so I will hand back to Mr. Norwitt for closing remarks. Richard Adam Norwitt: Well, thank you very much, everybody, for taking your time here on what is a sort of stormy summer day here in Connecticut. I hope all of you have a great summer. I hope you get a chance to take a little bit of time away and we look forward to seeing you all back here in 90 days in the fall. Thanks so much, and have a great rest of your summer. Take care. Operator: Thank you. This concludes today's call. Thank you for joining. You may now disconnect your lines. Before you buy stock in Amphenol, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amphenol wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Amphenol. The Motley Fool has a disclosure policy. Amphenol (APH) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Qnity Electronics, Inc. Q reported second-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. Qnity reported second-quarter non-GAAP earnings of $1.19 per share, which beat the Zacks Consensus Estimate by 11.2%. The bottom line increased 53% on a year-over-year basis. Net sales came in at $1.43 billion, which increased 22% from the year-ago quarter and beat the consensus estimate by 5.2%. Growth was supported by AI-driven demand, while advanced-node sales increased more than 20% and key Interconnect Solutions growth platforms expanded more than 50%. Qnity Electronics, Inc. price-consensus-eps-surprise-chart | Qnity Electronics, Inc. Quote Qnity’s Semiconductor Technologies revenues were $744 million (52.1% of the total revenues), up 15.5% year over year. The Zacks Consensus Estimate for Semiconductor Technologies revenues was pegged at $715 million. Management noted that fab utilization improved across the industry. Advanced logic utilization reached the mid-80% range, while mainstream logic was in the low 80s. DRAM utilization was in the high 80s, and NAND was in the low 80s, supporting demand for Qnity's consumable materials. In Interconnect Solutions, revenues were $685 million, comprising 47.9% of the total revenues. This marks an increase of 30.2% from the year-ago period. The Zacks Consensus Estimate for Interconnect Solutions revenues was pegged at $636 million. The company said the adoption of AI applications accelerated demand for advanced packaging and thermal products. Larger package formats and tighter geometries require more complex materials and greater material intensity, expanding Q's content opportunity across next-generation architectures. Customer capacity additions in high-value advanced packaging applications also supported management's long-term confidence. Qnity’s non-GAAP gross profit increased 22.9% on a year-over-year basis to $666 million. As a percentage of revenues, the non-GAAP gross margin expanded 30 basis points on a year-over-year basis to 46.6%. Q’s non-GAAP operating EBITDA increased 24.2% year over year to $431 million. As a percentage of revenues, the non-GAAP operating EBITDA margin expanded 50 basis points year over year to 30.2%. As of June 30, 2026, Qnity held $961 million in cash and cash equivalents, up from $857 million at the end of the prior quarter. The company generated an operating cash flow of $241 million in the second quarter of 2026. As of June 30, 2026, Qnity’s long-term debt was $3.997 billion, down marginally from the previous quarter’s $4 billion. For 2026, Qnity raised its outlook across key metrics. The company expects net sales in the range of $5.55-$5.65 billion, up from the prior guidance of $5.225-$5.375 billion. The Zacks Consensus Estimate is pegged at $5.38 billion, indicating a year-over-year increase of 13.2%. Qnity expects adjusted operating EBITDA of $1.675-$1.725 billion, up from the earlier guided range of $1.535-$1.625 billion. Adjusted EPS is projected to be in the band of $4.40-$4.60, up from the previously guided range of $3.80-$4.14. The Zacks Consensus Estimate for earnings is pegged at $4.16 per share, indicating a year-over-year increase of 24.2%. The adjusted free cash flow is expected to be in the band of $600-$700 million, up from the previous guidance of $500-$600 million. For the third quarter of 2026, Q expects net sales to grow in the low-single-digit range sequentially. The Zacks Consensus Estimate is pegged at $1.41 billion, indicating a year-over-year increase of 10.8%. Currently, Qnity carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are AppFolio APPF, Amkor Technology AMKR and Amphenol APH, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Shares of AppFolio have plunged 14.2% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.90 per share, up by 2.2% over the past 30 days, indicating an increase of 30.4% year over year. Shares of Amkor Technology have jumped 41.5% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.62 per share, up by 17.5% over the past seven days, indicating a rise of 74.7% year over year. Amphenol shares have surged 26.8% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $5.25 per share, up by 7.8% over the past seven days, indicating an increase of 57.2% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Qnity Electronics, Inc. (Q) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report AppFolio, Inc. (APPF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research