AI Takeaway
APH delivered exceptional Q1 FY2026 results with revenue surging 58.4% YoY to $7.62B and operating income jumping 78.7% to $1.83B, driven largely by significant acquisition activity that nearly doubled total assets to $42.1B.
Revenue
$7.62B
++58.39% YoY
EPS (Basic)
$0.76
++24.59% YoY
Gross Margin
36.7%
++2.58% YoY
Operating Income
$1.83B
++78.75% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 58.4% YoY from $4.81B to $7.62B in Q1 FY2026, a substantial acceleration that reflects both organic demand across APH's diversified connector and interconnect product portfolio and the impact of recent acquisitions, as evidenced by total assets nearly doubling to $42.1B.
Source: Source: 10-Q Financial Data, Income Statement
Gross margin improved 257 basis points YoY to 36.7%, while operating margin expanded 274 basis points to 24.0%, indicating that revenue growth outpaced cost increases and that acquired businesses are being integrated at accretive margins.
Source: Source: 10-Q Financial Data, Key Ratios
Investing cash outflows surged to -$11.03B from -$2.35B in the prior year period, a 369% increase, signaling a major acquisition was completed during Q1 FY2026 that substantially reshaped the company's asset base and capital structure.
Source: Source: 10-Q Financial Data, Cash Flow Statement
2 more insights available
Upgrade to unlockThe debt-to-equity ratio rose sharply to 2.01x as total liabilities surged 123.8% YoY to $28.04B, reflecting significant debt taken on to finance acquisition activity. This elevated leverage increases APH's sensitivity to interest rate changes and could constrain financial flexibility if business conditions deteriorate.
Source: Source: 10-Q Financial Data, Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.06 versus the $0.95 analyst consensus — a +11.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $7.62B | $4.81B | +58.39% |
Cost of Revenue | $4.82B | $3.17B | +52.19% |
Gross Profit | $2.8B | $1.64B | +70.33% |
Operating Income | $1.83B | $1.02B | +78.75% |
Net Income | $933M | $737.8M | +26.46% |
EPS (Basic) | $0.76 | $0.61 | +24.59% |
EPS (Diluted) | $0.72 | $0.58 | +24.14% |
SG&A Expense | $851.5M | $575.2M | +48.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $42.13B | $22.9B | +83.97% |
Current Assets | $15.38B | $9.13B | +68.44% |
Total Liabilities | $28.04B | $12.53B | +123.81% |
Current Liabilities | $8.97B | $4.59B | +95.48% |
Stockholders' Equity | $13.98B | $10.3B | +35.68% |
Cash & Equivalents | $4.13B | $1.66B | +149.09% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.12B | $764.9M | +46.62% |
Investing Cash Flow | $-11.03B | $-2.35B | -368.88% |
Financing Cash Flow | $2.9B | $-88.6M | +3371.22% |
Share Buybacks | $178M | $180.9M | -1.60% |
D&A | $485.8M | $236.3M | +105.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 36.7% | 34.2% | +2.58% |
Operating Margin | 24.0% | 21.3% | +2.74% |
Net Margin | 12.2% | — | — |
ROE | 6.7% | — | — |
ROA | 2.2% | — | — |
Current Ratio | $1.714 | — | — |
Debt to Equity | $2.006 | — | — |
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APH's revenue grew 58.4% YoY to $7.62B in Q1 FY2026, up from $4.81B in the prior year period. This growth was driven by a combination of organic demand for interconnect and connector products and a major acquisition, as evidenced by investing cash outflows of $11.03B during the quarter.
The key takeaways from APH's Q1 FY2026 earnings are strong revenue growth of 58.4%, meaningful margin expansion (gross margin up to 36.7%, operating margin up to 24.0%), and a transformative acquisition that nearly doubled total assets to $42.1B. However, net income grew only 26.5% due to higher interest expense from acquisition-related debt, and the debt-to-equity ratio rose to 2.01x.
APH's operating profitability improved significantly in Q1 FY2026, with operating income rising 78.7% to $1.83B and operating margin expanding to 24.0%. However, net income grew at a much slower pace of 26.5% to $933M, as higher interest costs from acquisition financing weighed on bottom-line results.
Based on the financial data, the primary risks for APH in Q1 FY2026 include elevated financial leverage with a debt-to-equity ratio of 2.01x following a major acquisition, integration execution risk given that total assets nearly doubled to $42.1B, and the potential for sustained below-average return metrics (ROE of 6.7%, ROA of 2.2%) if the acquired assets take longer than expected to generate strong returns.
APH's near-term liquidity appears solid with a current ratio of 1.71x and cash of $4.13B, but its balance sheet leverage has increased materially with a debt-to-equity ratio of 2.01x and total liabilities of $28.04B. Operating cash flow of $1.12B provides a reasonable foundation for debt service, but investors should monitor the pace of deleveraging and integration progress in coming quarters.