Amphenol Posts 65% Revenue Surge on AI Demand as ADP, Flex and Etsy Also Beat Estimates

Amphenol delivered a blockbuster third quarter for 2026, with net sales of $10.20 billion surging 65% year over year and easily topping the $9.46 billion consensus estimate. Organic sales grew 37%, led by a near-doubling of Communications Solutions segment revenue to $6.60 billion, fueled by AI datacenter interconnect demand. Adjusted EPS reached $0.80, up 74% year over year and above the $0.72 estimate, while adjusted operating margin expanded 270 basis points to 29.7%. The company booked a record $12.20 billion in orders, producing a book-to-bill ratio of 1.19:1, and raised full-year 2026 net sales guidance to $36.90 billion to $37.10 billion against a prior consensus of $35.63 billion. Amphenol also announced a new $4 billion, three-year share repurchase program and raised its dividend 20% to $0.15 per share. Shares rose roughly 6.8% in premarket trading.

Automatic Data Processing reported fiscal first-quarter 2027 revenue of $5.49 billion, up 6% year over year and just ahead of the $5.48 billion estimate, while adjusted EPS of $2.82 beat the $2.76 to $2.77 consensus by a meaningful margin and rose 13% from a year earlier. Adjusted EBIT grew 12% to $1.50 billion, expanding margin 130 basis points to 26.8%. Client funds interest revenue rose 15% to $329 million, and average PEO worksite employees reached 771,000. Management raised its full-year revenue growth outlook to approximately 6% and lifted adjusted EPS growth guidance to 10% to 12%, while maintaining its adjusted EBIT margin expansion target of 70 to 90 basis points.

Flex posted fiscal second-quarter 2027 revenue of $8.50 billion, up 25% year over year and above the $8.14 billion estimate, with adjusted EPS of $1.18 jumping 49% and beating the $1.05 consensus. The contract manufacturer raised its full-year adjusted EPS guidance to $4.84 to $5.16 from a prior range of $4.42 to $4.74, and lifted revenue guidance to $34.90 billion to $35.90 billion. Flex also named its planned cloud and power infrastructure spin-off "Axiom" and said its EPC Power acquisition would be immediately accretive in fiscal 2027.

Etsy reported third-quarter 2026 consolidated revenue of $692.50 million, up 10.9% year over year and ahead of the $668 million estimate, with gross merchandise sales of $2.60 billion rising 8.8%. Adjusted EBITDA grew 14.6% to $210.40 million, and the take rate expanded 50 basis points to 26.2%. The company closed the sale of Depop on July 30, generating an $839.70 million gain, and announced that CFO Lanny Baker will depart with a successor search underway. Full-year GMS growth is guided at approximately 7% with an adjusted EBITDA margin of about 30%.

American Electric Power beat third-quarter estimates with revenue of $6.83 billion, up 14% year over year, and operating EPS of $2.23, up 24% and above the $2.05 consensus. AEP said it expects full-year adjusted EPS at or above the high end of its $6.55 guidance and introduced a $100 billion, five-year capital investment plan targeting a 13%-plus rate base compound annual growth rate. The company said it signed 15 gigawatts of load commitments during the quarter and has 84 gigawatts committed through 2031, largely tied to data center and AI infrastructure buildout.

Wingstop was the outlier among the day's reporters, missing the $193 million revenue estimate with $185.10 million, up just 5.3% year over year. Domestic same-store sales fell 5.4% in the quarter, and the company deepened its full-year same-store sales guidance to negative 6.5% to negative 7%, though adjusted EPS of $1.08 edged past the $1.02 estimate. Management said early indicators from operational changes are encouraging but acknowledged improvement is taking time.