- Amphenol Drops 12% in a Month: Should You Buy the Stock on the Dip?
May 11, 2026
Amphenol APH shares have dropped 12.3% in the past month, underperforming the Zacks Computer and Technology sector’s return of 16.4%. The weakness reflects concerns over a challenging macroeconomic backdrop, rising geopolitical risks and elevated debt levels (total debt rose to about $18.7 billion at the end of Q1’26), following the acquisition of CommScope’s Connectivity and Cable Solutions (CCS) business, and growing tax-related headwinds. Investors have also been wary of potential integration risks tied to the CCS deal, while intensifying competition in optical interconnect and AI data-center connectivity markets remains a key concern.
Despite these challenges, APH continues to benefit from accelerating AI infrastructure spending, supported by a diversified business model and an expanding portfolio strengthened through multiple acquisitions. The company exited first-quarter 2026 with record orders of $9.4 billion and a book-to-bill ratio of 1.24x. Do these positives outweigh the risks, and does the recent pullback present a buying opportunity for investors? Let’s take a closer look.
Amphenol’s Strong Portfolio to Steer Off Competition
APH shares have lagged close competitors Broadcom AVGO and Coherent COHR year to date (YTD), but outperforms TE Connectivity TEL. While shares of TE Connectivity have declined 9.4%, Broadcom and Coherent returned 23.6% and 94.3%, respectively, YTD. In contrast, Amphenol shares have dropped 5.3%. The company’s expanding AI infrastructure portfolio and diversified business are expected to boost share price performance in 2026.
APH Stock’s Price PerformanceZacks Investment Research
Image Source: Zacks Investment Research
Amphenol has expanded its portfolio and market reach through targeted acquisitions across communications, medical and defense verticals. Plethora of acquisitions — Trexon, Rochester sensors, CIT, Lutze, CommScope’s Andrew business, LifeSync, Narda-MITEQ, XMA, Q Microwave, and others — have been driving Amphenol’s prospects. In fact, these acquisitions now allow Amphenol to offer high-speed copper, power interconnects, active and passive copper, active optics and fiber connectivity through CCS. On the first-quarter 2026 earnings call, management repeatedly emphasized that APH now has the “broadest range” of interconnect products across future AI architectures, and this creates a continued long-term growth opportunity.
Moreover, a diversified end-market bodes well for APH’s top-line growth prospects. IT datacom contributed 41% of sales in the first quarter of 2026, while industrial (20%), automotive (11%), defense (8%), commercial aerospace (4%), mobile devices (4%) and communications networks (12%) all contributed meaningfully to the quarterly revenues. This reduces APH’s reliance on any single end market as well as AI, as roughly 60% of sales came from non-IT datacom markets. Amphenol guided for another low teens sequential increase in Q2’26 for IT datacom as AI data center investments continue accelerating. Non-IT datacom markets like Defense and Industrial are now expected to grow high-single digit each for Q2’26.
Story Continues
Strong Liquidity to Boost APH’s Growth Trajectory
Amphenol generates solid cash flow, which allows management the opportunity to invest in product innovations, acquisitions and business development. As of March 31, 2026, Amphenol had $4.6 billion of cash, cash equivalents and short-term investments, down from $11.4 billion as of Dec. 31, 2025, mainly because cash and debt proceeds were used to fund the CCS acquisition.
The company also had no borrowings outstanding under either its revolving credit facility or commercial paper programs at quarter-end, giving APH additional liquidity flexibility. Total liquidity at the end of the first quarter of 2026 was $7.6 billion.
Cash generation remains strong with operating cash flow of $1.1 billion in the first quarter (120% of net income) and free cash flow of $831 million (89% of net income). Amphenol expects strong cash flow generation to continue in 2026.
APH’s 2Q’26 Earnings Estimate Revision Shows Rising Trend
Amphenol expects second-quarter 2026 earnings between $1.14 and $1.16 per share, indicating growth between 41% and 43% year over year. Revenues are anticipated between $8.1 billion and $8.2 billion, suggesting growth in the 43-45% range.
The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.15 per share, up 9.5% over the past 30 days and indicating 42% growth over the year-ago quarter’s reported figure. The consensus mark for second-quarter 2026 revenues is pegged at $8.18 billion, suggesting 44.8% growth from the year-ago quarter’s reported figure.
Amphenol Corporation Price and Consensus
Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote
APH Shares are Trading at a Premium
Amphenol has a stretched valuation as suggested by a Value Score of D.
In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 25.27X higher than the Zacks Electronics Connectors industry’s 25.27X and TE Connectivity’s 17.02X but lower than Coherent’s 46.46X and Broadcom’s 29.07X.
APH Stock’s ValuationZacks Investment Research
Image Source: Zacks Investment Research
Conclusion
Amphenol’s diversified end-market exposure, expanding interconnect portfolio and strong acquisition execution continue to support solid growth visibility. These factors justify a premium valuation despite a challenging macroeconomic environment and rising debt levels.
APH currently has a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. 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
Amphenol Corporation (APH) : Free Stock Analysis Report
TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Coherent Corp. (COHR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Amphenol Drops 12% in a Month: Should You Buy the Stock on the Dip?
May 11, 2026 · zacks.com
APH slides 12.3% in a month, yet records $9.4B orders and AI demand rises as CCS debt and integration risks mount.
- Cramer Says Don't Chase ASML After $75 Jump—Wait For A Dip To Buy This 'Great' Semi Play
May 11, 2026 · feeds.benzinga.com
Jim Cramer recommended buying Steel Dynamics (STLD) and Bloom Energy (BE). ASML and Amphenol (APH) reported strong earnings. Digi Power X (DGXX) upsized offering.
- How Do Amphenol’s (APH) Euro Notes and Dividend Moves Reflect Its Evolving Capital Strategy?
May 8, 2026
In late April and early May 2026, Amphenol reported record Q1 results, raised Q2 guidance, launched a €1.10 billion euro-denominated senior notes offering to refinance short-term debt, and declared a US$0.25 quarterly dividend payable on July 15, 2026. Taken together, stronger earnings, active balance sheet management, ongoing buybacks, and a maintained dividend highlight how Amphenol is using both equity and debt tools to support its capital structure. With these developments in mind, we’ll now examine how the euro-denominated notes and robust Q1 performance influence Amphenol’s investment narrative.
Uncover the next big thing with 25 elite penny stocks that balance risk and reward.
Amphenol Investment Narrative Recap
To own Amphenol, you need to believe its exposure to high‑growth connectivity markets can outweigh the risk that recent AI and datacenter demand was “pulled forward,” creating lumpier near term results. Right now, the key catalyst is continued strength in IT datacom and AI infrastructure, while the biggest risk lies in demand volatility and heavy capital needs for capacity and R&D. The latest euro debt raise, buybacks, and dividend do not materially change those underlying drivers.
The most relevant recent announcement is the €1.10 billion euro‑denominated senior notes issue, with maturities in 2029 and 2034 at fixed coupons of 3.375% and 3.875%. Using the proceeds to refinance commercial paper and a 364‑day loan while maintaining shareholder returns ties directly into the near term catalyst: Amphenol’s ability to keep funding AI and datacenter growth projects without letting higher debt levels or interest costs overwhelm free cash flow.
But despite these strong headlines, investors should be aware that heavy ongoing capex and rising R&D needs could still...
Read the full narrative on Amphenol (it's free!)
Amphenol's narrative projects $41.7 billion revenue and $8.7 billion earnings by 2029. This requires 17.2% yearly revenue growth and an earnings increase of about $4.2 billion from $4.5 billion today.
Uncover how Amphenol's forecasts yield a $178.39 fair value, a 31% upside to its current price.
Exploring Other PerspectivesAPH 1-Year Stock Price Chart
Some of the most pessimistic analysts, who were looking for revenue of about US$37.0 billion and earnings near US$6.9 billion by 2029, highlight how rising R&D and capex burdens could pressure margins and free cash flow even as Amphenol issues new euro debt, reminding you that opinions on the stock can differ widely and that both bullish and bearish narratives may shift as this latest financing and Q1 strength are digested.
Story Continues
Explore 6 other fair value estimates on Amphenol - why the stock might be worth 14% less than the current price!
Reach Your Own Conclusion
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
A great starting point for your Amphenol research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Amphenol research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Amphenol's overall financial health at a glance.
Ready For A Different Approach?
The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:
The latest GPUs need a type of rare earth metal called Terbium and there are only 33 companies in the world exploring or producing it. Find the list for free. AI is about to change healthcare. These 35 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them.
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 editorial-team@simplywallst.com
View Comments
- IREN Limited's Q3 Net Loss Widens Q/Q, Revenues Decline
May 8, 2026
IREN Limited IREN reported third-quarter fiscal 2026 net loss of $247.8 million, wider than the net loss of $155.4 million in the previous quarter.
Total revenues decreased 21.6% sequentially to $144.8 million. The Zacks Consensus Estimate for IREN’s third-quarter fiscal 2026 revenues was pegged at $213 million.
IREN’s Q3 Operating Details
In the fiscal third quarter, bitcoin revenues were $111.2 million, down 33.6% sequentially. AI Cloud Services revenues were $33.6 million compared with $17.3 million in the previous quarter, reflecting sequential growth of 94.2%. Adjusted EBITDA was $59.5 million compared with $75.3 million in the previous quarter. The adjusted EBITDA margin of 41% remained flat on a sequential basis.
IREN Limited Price, Consensus and EPS SurpriseIREN Limited Price, Consensus and EPS Surprise
IREN Limited price-consensus-eps-surprise-chart | IREN Limited Quote
Third-quarter fiscal 2026 operating expenses came in at $338.4 million, up from 253.3 million incurred in the previous quarter.
IREN’s third-quarter results were weighed down by several sizable non-cash items tied to the ongoing hardware transition and financial instruments. A $140.4 million impairment charge was recorded in the third quarter, primarily related to the decommissioning of mining hardware. The quarter also included $23.7 million of unrealized losses on financial instruments associated with capped calls tied to convertible notes.
Depreciation and amortization expenses in the third quarter increased to $121.2 million, up from $99.2 million incurred in the prior quarter, while selling, general and administrative expenses were $81.8 million, down from $100.8 million incurred in the prior quarter.
IREN’s Balance Sheet Details
IREN had $2.21 billion in cash and cash equivalents as of March 31, 2026, compared with $3.26 billion as of Dec. 31, 2025.
Net cash provided by operating activities was $75.3 million in the third quarter of fiscal 2026.
IREN's Customer Momentum Expands With NVIDIA Deal
A major strategic development during the quarter was a new 5-year, $3.4 billion AI Cloud contract with NVIDIA for air-cooled Blackwell GPUs. IREN expects deployment within 60MW of existing data centers at its Childress site, with a targeted ramp beginning in early 2027.
IREN also entered a broader 5GW strategic partnership with NVIDIA to support the deployment of NVIDIA-aligned infrastructure across the company’s global data center pipeline. As part of the partnership, IREN issued NVIDIA a 5-year right to purchase up to 30 million ordinary shares at an exercise price of $70 per share, representing potential investment capacity of up to $2.1 billion, subject to conditions including regulatory approvals.
Story Continues
Operationally, the company reiterated that its 2026 build program remains on track for 480MW by year-end, with Horizons 1-4 progressing at Childress. It also highlighted 2027 expansion plans targeting 1,210MW in build, including additional phases at Childress and the initial phase at Sweetwater 1.
IREN’s Zacks Rank & Stocks to Consider
Currently, IREN carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS and Amphenol APH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 19.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by 9 cents over the past 30 days, indicating an increase of 67.9% year over year.
Shares of Celestica have gained 30.3% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 3.4% over the past seven days, indicating an increase of 67.9% year over year.
Amphenol shares have jumped 1.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up by 11% over the past seven days, indicating an increase of 42.5% 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
Amphenol Corporation (APH) : Free Stock Analysis Report
Celestica, Inc. (CLS) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
IREN Limited (IREN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- nLight Shares Rise 15% on Q1 Earnings Beat, Revenues Up Y/Y
May 8, 2026
nLight LASR shares were up 14.8% in the after-market hours after the company reported better-than-expected first-quarter 2026 results on May 7.
nLight reported first-quarter 2026 earnings per share (EPS) of 20 cents. The company reported a loss of 4 cents in the year-ago quarter. LASR’s first-quarter EPS surpassed the Zacks Consensus Estimates of 8 cents.
LASR reported net revenues of $80.2 million, up 55.2% year over year. The figure surpassed the Zacks Consensus Estimate by 12.6%.
nLight Price, Consensus and EPS SurprisenLight Price, Consensus and EPS Surprise
nLight price-consensus-eps-surprise-chart | nLight Quote
LASR’s Revenues by End Market
nLight’s revenues from the Aerospace and Defense end market came in at $55.1 million (68.8% of the top line), up 68.6% from the prior-year quarter.
nLight’s revenues from the Industrial end market came in at $12 million (15% of the top line), up 35.8% from the prior-year quarter.
nLight’s revenues from the Microfabrication end market came in at $13 million (16.2% of the top line), up 28.9% from the prior-year quarter.
LASR’s Financials in Detail
Segment-wise, nLight’s Product sales were $58.2 million, which contributed 72.6% to its top line, reflecting an increase of 63.1% from the year-ago quarter.
nLight’s Development sales were $21.9 million (27.4% of the top line), up 37.5% from the prior-year quarter.
LASR’s gross margin was 34.4%, which expanded 660 basis points (bps) from the year-ago quarter.
Operating loss was $0.72 million, narrower than the year-ago quarter’s loss of $9.61 million.
LASR’s Balance Sheet & Cash Flow
As of March. 31, 2026, cash, cash equivalent balances and marketable securities were $332.6 million, up from $133.6 million as of Dec. 31, 2025.
In the first quarter of 2026, LASR generated an operating cash flow of approximately $9.68 million,
LASR Provides Guidance for Q2 2026
For the second quarter of 2026, LASR expects revenues between $75 million and $81 million. The Zacks Consensus Estimate is pegged at $70.41 million, indicating year-over-year growth of 14%.
The company anticipates a gross margin between 29% and 33%.
nLIGHT expects adjusted EBITDA to be in the range of $8 million to $12 million.
Zacks Rank and Stocks to Consider
Currently, LASR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS and Amphenol APH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 19.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by 9 cents over the past 30 days, indicating an increase of 67.9% year over year.
Story Continues
Shares of Celestica have gained 30.3% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 3.4% over the past seven days, indicating an increase of 67.9% year over year.
Amphenol shares have jumped 1.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up 11% over the past seven days, indicating an increase of 42.5% 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
Amphenol Corporation (APH) : Free Stock Analysis Report
Celestica, Inc. (CLS) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
nLight (LASR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- NuScale Power Shares Dip 5% as Q1 Earnings Miss, Revenues Fall Y/Y
May 8, 2026
NuScale Power SMR shares lost 5% on Thursday in the after-market hours after the company reported weaker-than-expected bottom-line results for the first quarter of 2026.
NuScale Power reported first-quarter 2026 loss of 14 cents per share, wider than the Zacks Consensus Estimate of a loss of 11 cents. The company had incurred a loss of 11 cents in the year-ago quarter.
The company reported revenues of $0.6 million for the first quarter, marking a significant decline from $13.4 million in the prior-year quarter, reflecting a tough comparison against RoPower technology license and prior engineering activity.
NuScale Power Corporation Price, Consensus and EPS SurpriseNuScale Power Corporation Price, Consensus and EPS Surprise
NuScale Power Corporation price-consensus-eps-surprise-chart | NuScale Power Corporation Quote
SMR’s Revenues Fall on RoPower Timing and Mix
The revenue decline largely stemmed from timing and project mix. Management attributed the year-over-year reduction to revenue recognized from the RoPower technology license agreement that was completed in the first quarter of 2025, as well as the completion of Fluor’s FEED Phase 2 engineering services in late 2025, with no comparable activity in the first quarter of 2026.
With RoPower-related services paused at a later stage in the development cycle, reported revenues reflected a quieter quarter on the commercial execution front. As projects move forward, management reiterated expectations to realize revenues and operating cash flow from the sale of products and services.
SMR’s Q1 Operating Details
SMR’s first-quarter 2026 gross margin declined significantly to 3.7% from 52.4% in the first quarter of 2025.
In the first quarter of 2026, SMR’s research & development expenses increased 40.2% year over year to $12.8 million. General & administrative expenses increased 6.8% year over year to $24.8 million. Other expenses increased to $19.9 million, rising significantly from the year-ago quarter’s 9.9 million.
The company reported an operating loss of $57.5 million, wider than the loss of $35.3 million reported in the year-ago quarter.
SMR’s Balance Sheet Details
As of March 31, 2026, NuScale Power had cash and cash equivalents and short-term investments of $890.1 million compared with $1.25 billion as of Dec. 31, 2025.
Zacks Rank & Other Stocks to Consider
NuScale Power currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS 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.
Story Continues
Shares of Broadcom have gained 19.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by 9 cents over the past 30 days, indicating an increase of 67.9% year over year.
Shares of Celestica have gained 30.3% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 3.4% over the past seven days, indicating an increase of 67.9% year over year.
Amphenol shares have jumped 1.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up by 11% over the past seven days, indicating an increase of 42.5% 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
Amphenol Corporation (APH) : Free Stock Analysis Report
Celestica, Inc. (CLS) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
NuScale Power Corporation (SMR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- RF Industries Gains From Diversification and Backlog Growth
May 8, 2026
RF Industries, Ltd. RFIL entered fiscal 2026 on a solid footing, supported by a broader customer mix, expanding product offerings and a rapidly growing backlog. Although first-quarter revenues of nearly $19 million were slightly below the prior-year period, management emphasized that the business is now far more diversified across products, customers and end markets, reducing reliance on large one-time telecom projects.
The company’s strategy of expanding beyond traditional wireless infrastructure is beginning to deliver meaningful results. RF Industries is seeing increasing traction in aerospace, industrial, medical, government and edge data center markets. Its direct air cooling (DAC) systems have emerged as a notable growth driver, particularly as operators seek energy-efficient cooling solutions for edge network infrastructure. Management noted that these systems can significantly reduce energy consumption while improving reliability, creating opportunities in cable, wireline and data center applications.
Another encouraging sign was the sharp increase in backlog, which climbed to $18.6 million from $12.4 million reported in January. The growth was supported by healthy demand across multiple product lines, including integrated systems, custom cabling and thermal cooling solutions. Management believes this stronger order pipeline provides improved visibility and supports expectations for growth acceleration in the second half of fiscal 2026.
Profitability also improved meaningfully during the quarter. Gross margin expanded 250 basis points to 32.3%, while adjusted EBITDA increased 22% year over year. The improvement reflected better pricing, operational efficiencies and the company’s asset-light operating structure, which allows it to scale production without major increases in overhead costs.
Competition Remains Strong in RF Connectivity Markets
Amphenol Corporation APH is one of the largest competitors to RF Industries in RF connectors, custom cable assemblies and wireless infrastructure solutions. The company serves telecom, aerospace, industrial and data-center markets globally, benefiting from a highly diversified business model and broad interconnect portfolio. Amphenol continues to gain from investments tied to AI infrastructure, edge computing and next-generation network deployments, making it a strong rival to RFIL’s expanding connectivity and thermal management operations.
TE Connectivity plc TEL is another major competitor, providing connectors, sensors and networking solutions across communications, industrial, aerospace and defense markets. TE Connectivity’s extensive product portfolio and engineering expertise position it well to benefit from the rising demand for high-speed data transmission and advanced network infrastructure. Its global scale and long-standing customer relationships create competitive pressure for RF Industries as the company expands its custom cabling, integrated systems and edge-network cooling businesses.
Story Continues
RFIL’s Price Performance, Valuation & Estimates
Shares of RF Industries have surged 111.4% over the past six months against the industry’s 1.6% decline.
RFIL 1-Year Price PerformanceZacks Investment Research
Image Source: Zacks Investment Research
From a valuation standpoint, RFIL trades at a forward price-to-earnings ratio of 30.41, higher than the industry’s average of 12.75.
P/E (F12M)Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RFIL’s 2026 sales and earnings implies a year-over-year uptick of 7.5% and 45%, respectively.Zacks Investment Research
Image Source: Zacks Investment Research
RFIL currently carries a Zacks Rank #2 (Buy). 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
Amphenol Corporation (APH) : Free Stock Analysis Report
TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
RF Industries, Ltd. (RFIL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Paycom's Q1 Earnings Surpass Expectations, Revenues Rise Y/Y (Revised)
May 8, 2026
Paycom Software, Inc. PAYC reported better-than-expected first-quarter 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate.
The online payroll and human resource technology provider reported non-GAAP earnings of $3.15 per share, which increased 12.5% year over year and beat the Zacks Consensus Estimate by 7.5%.
Paycom’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, the average surprise being 5.7%.
Revenues totaled $571.9 million, which rose 7.8% from the year-ago quarter and exceeded the consensus estimate of $565 million by 1.2%.
Paycom Software, Inc. Price, Consensus and EPS SurprisePaycom Software, Inc. Price, Consensus and EPS Surprise
Paycom Software, Inc. price-consensus-eps-surprise-chart | Paycom Software, Inc. Quote
Paycom’s Q1 in Detail
Paycom’s Recurring revenues (representing 95.1% of the total revenues) improved 8.8% to $544 million in the first quarter. Our estimate for the company’s Recurring revenues was pegged at $538.2 million.
Paycom’s revenues from the Interest on funds held for clients segment decreased to $27.8 million from $30.5 million in the year-ago quarter and contributed 4.9% to total sales. Our estimate for the segment’s revenues was pegged at $27.7 million.
Adjusted gross profits increased 8.4% from the year-ago period to $486.7 million. The adjusted gross margin expanded 50 basis points (bps) on a year-over-year basis to 85.1%.
Paycom’s adjusted EBITDA rose 8.8% year over year to $275.4 million. The adjusted EBITDA margin expanded 50 basis points to 48.2%.
Paycom’s Balance Sheet & Cash Flow
Paycom exited the first quarter with cash and cash equivalents of $153.9 million compared with $370 million recorded in the previous quarter. The company had long-term debt of $675 million as of March 31, 2026.
In the first quarter of 2026, PAYC generated operating cash flow of approximately $213.8 million, paid out $17.7 million in dividends and bought back $1.06 billion worth of its common stock.
The board also approved a new $2 billion buyback authorization. Earlier on May 4, Paycom declared its upcoming quarterly dividend of 37.5 cents per share, payable on May 26, 2026.
Paycom Reaffirms 2026 Guidance
Following the first-quarter performance, management reaffirmed full-year guidance ranges. For 2026, Paycom continues to expect total revenues of $2.175-$2.195 billion, implying year-over-year growth of 6-7%. The Zacks Consensus Estimate is pegged at $2.19 billion, indicating year-over-year growth of 6.8%.
The company projects recurring revenues to grow 7-8% year over year. PAYC forecasts revenues from Interest on funds held for clients to be $103 million.
Story Continues
Paycom expects its 2026 adjusted EBITDA to be between $950 million and $970 million, translating to an EBITDA margin of approximately 44% at the midpoint.
Paycom’s Zacks Rank & Stocks to Consider
Currently, PAYC carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom AVGO, Celestica CLS and Amphenol APH, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Broadcom have gained 19.2% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by 9 cents over the past 30 days, indicating an increase of 67.9% year over year.
Shares of Celestica have gained 30.3% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $10.16 per share, up 3.4% over the past seven days, indicating an increase of 67.9% year over year.
Amphenol shares have jumped 1.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.76 per share, up by 11% over the past seven days, indicating an increase of 42.5% year over year.
(We are reissuing this article to correct a mistake. The original article, issued on May 7, 2026, should no longer be relied upon.)
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
Celestica, Inc. (CLS) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Paycom Software, Inc. (PAYC) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
View Comments
- Assessing Amphenol (APH) Valuation After Strong Q1 2026 Results And Raised Q2 Guidance
May 7, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
Amphenol (APH) just posted Q1 2026 results that show higher sales and net income versus a year earlier, and it also lifted Q2 guidance, prompting analysts to raise earnings estimates for the stock.
See our latest analysis for Amphenol.
At a share price of $138.47, Amphenol’s recent 1 day share price return of 1.3% comes after a 7 day share price decline of 6.7%. Its 1 year total shareholder return of 72.5% and 5 year total shareholder return of 351.8% reflect strong longer term compounding as investors react to record Q1 results, raised Q2 guidance, recent euro bond issues and ongoing buybacks.
If strong earnings and capital returns at Amphenol have your attention, this is a useful moment to widen your radar and check out 38 AI infrastructure stocks
With Amphenol trading at $138.47, analysts’ average price target pointing higher and one intrinsic model suggesting a premium, the key question now is simple: is there still a buying opportunity here, or is future growth already priced in?
Most Popular Narrative: 22.4% Undervalued
Compared with the last close at $138.47, the most followed narrative pegs Amphenol’s fair value at $178.39 using an 8.65% discount rate.
Accelerating global deployment of AI driven data centers and adoption of next generation IT architecture is driving strong, sustained demand for Amphenol's high speed, high value interconnect solutions, as evidenced by exceptional growth in IT datacom revenue and continued multi quarter customer engagement, this is expected to support further top line growth and maintain higher incremental margins.
Read the complete narrative.
Want to see what underpins that valuation gap? The narrative leans on brisk revenue compounding, rising margins, and a premium earnings multiple that assumes Amphenol keeps executing.
Result: Fair Value of $178.39 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this depends on AI and data center demand not cooling and on acquisitions integrating cleanly, since weaker orders or deal execution could quickly pressure those assumptions.
Find out about the key risks to this Amphenol narrative.
Another Angle on Valuation
The popular narrative sees Amphenol as about 22% undervalued at a fair value of $178.39, yet the current P/E of 38.1x paints a tighter picture. That is richer than the US Electronic industry at 27.7x, but below peers at 52.6x and under the fair ratio of 43.7x, which suggests some valuation risk if growth expectations cool or opportunity if the market leans closer to that fair ratio.
Story Continues
For a closer look at what the numbers imply about this price level, check the valuation breakdown in our ratio based view. Then compare it with your own expectations for earnings and multiples over time, and consider which side of that gap you are more comfortable with.See what the numbers say about this price — find out in our valuation breakdown.NYSE:APH P/E Ratio as at May 2026
Next Steps
With sentiment split between strong recent results and the possibility of cooler expectations ahead, this is a good time to review the data yourself and weigh both sides of the story, then factor in the 3 key rewards and 1 important warning sign
Looking for more investment ideas?
If Amphenol has sharpened your focus, do not stop here. Cast a wider net with other stocks that fit different goals and risk levels.
Target powerful compounding potential by scanning for quality businesses trading below their estimated worth through the 44 high quality undervalued stocks. Strengthen income potential by focusing on companies with higher yields and resilient payouts using the 12 dividend fortresses. Prioritize resilience by zeroing in on companies that pair dependable fundamentals with lower risk profiles through the 74 resilient stocks with low risk scores.
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 editorial-team@simplywallst.com
View Comments
