Q2 2026 Amphenol Corp Earnings Call

July 29, 2026

Operator 3: To the second quarter 2026 earnings conference call for Amphenol Corporation. Following today's presentation, there will be a formal question and answer session. 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 Lampo. Sir, you may begin.

Operator: To the Second Quarter 2026 earnings conference call for Amphenol Corporation. Following today's presentation, there will be a formal question and answer session. 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 Lampo. Sir, you may begin.

Speaker #2: 2026, earnings conference call for AMPHENOL CORPORATION. Following today's presentation, there will be a formal question-and-answer session. Until then, all lines will remain in a listen-only mode.

Speaker #2: 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 Lampo. Sir, you may begin.

Speaker #3: Great, thank you so much. Good afternoon, everyone. This is Craig Lampo, Amphenol CFO, and I'm here together with Adam Norwitt, our CEO. We would like to welcome you to our second quarter 2026 conference call.

Craig Lampo: Great. Thank you so much. Good afternoon, everyone. This is Craig Lampo, Amphenol's CFO, and I'm here together with Adam Norwitt, our CEO. We would like to welcome you to our Q2 2026 conference call. Our Q2 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'll 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 Q2 2026 with record sales of $8.8 billion in GAAP and diluted EPS of $1.37 and $1.35, respectively.

Speaker #3: 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.

Speaker #3: As a reminder, during the call we may refer to certain non-GAAP financial measures and make certain forward-looking statements. Please refer to the relevant disclosures in our press release for further information.

Speaker #3: The company closed the second quarter of 2026 with record sales of $8.8 billion and GAAP and diluted EPS of $3.7 and $3.5, respectively.

Speaker #3: 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.

Craig Lampo: Q2 sales were up 55% in USD, 54% in local currencies, and 30% organically compared to Q2 2025. Sequentially, sales were up 15% in USD 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 $10.732 billion, up a strong 94% compared to Q2 2025, and up 14% sequentially, resulting in another very strong book-to-bill ratio of 1.23:1. 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 amortization of acquired backlog related to the CommScope acquisition.

Speaker #3: Adam will comment further on trends by market in a few minutes. Orders in the quarter were a record $10.732 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.

Speaker #3: 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%.

Speaker #3: GAAP operating income included $24 million of non-cash amortization of acquired backlog related to the ComScope acquisition. Operating income also included an $80 million, or $0.04 per share, net benefit related to the recovery of AIPA tariffs.

Craig Lampo: Operating income also included an $80 million, or $0.04 per share net benefit related to the recovery of IEEPA 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 420 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 progress on profitability improvement actions at recent acquisitions, including, in particular, CommScope, and to a lesser extent, the tariff recovery benefit.

Speaker #3: 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 420 basis points from the prior year quarter and 250 basis points sequentially.

Speaker #3: 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.

Speaker #3: This 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, Comscope.

Speaker #3: 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.

Craig Lampo: I'm very proud of the company's operating margin performance in Q2, which reflects continued strong execution by our team. Bringing down Q2 results by segment compared to Q2 2025. Sales in the Communications Solutions segment were $5.4 billion and increased by 85% in US dollars and 42% organically. Segment operating margin was 33.6%. Sales in the Harsh Environment Solutions segment were $1.9 billion, increased by 28% in US 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 by 17% in US dollars and 13% organically, and segment operating margin was 21%. The company's GAAP effective tax rate for Q2 was 25.3%, and the adjusted effective tax rate was 27%, which compared to 18.3% and 24.5% in Q2 2025, respectively.

Speaker #3: 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 US dollars and 42% organically.

Speaker #3: 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.

Speaker #3: And segment operating margin was 30.1%. Sales in the Interconnect and Sensor Systems segment were $1.5 billion and increased by 17% in US dollars and 13% organically.

Speaker #3: 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 compares to 18.3% and 24.5% in the second quarter of 2025, respectively.

Speaker #3: As is our typical practice, our adjusted tax rate excludes the tax effect of acquisition-related costs, the excess tax benefit from stock option compensation, as well as other discrete tax items.

Craig Lampo: 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 Q2, 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 Q2 2025. This was an outstanding result. Operating cash flow in Q2 was $1.6 billion, or 88% of net income, and free cash flow was $1.2 billion, or 68% of net income. An 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 ranges.

Speaker #3: GAAP diluted EPS was dollar 37 in the second quarter, up 59% compared to the prior year. On an adjusted basis, diluted EPS was a record 1 dollar and 35 cents and increased by 67% compared to 81 cents in the second quarter of 2025.

Speaker #3: This was an outstanding result. Operating cash flow in the second quarter was $1.6 billion, or 88% of net income, and free cash flow was $1.2 billion, or 68% of net income.

Speaker #3: An 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 ranges.

Speaker #3: During the quarter, the company repurchased 1.5 million shares of common stock at an average price of $1.41. When combined with our normal quarterly dividend, total capital returned to shareholders in the second quarter of 2026 was approximately $515 million.

Craig Lampo: 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 Q2 2026 was approximately $515 million. Total debt at 30 June was $18.8 billion, and net debt was $13.4 billion. Total liquidity at the end of Q2 was $8.4 billion, which included cash and short-term investments on hand of $5.4 billion, plus availability under our existing credit facilities. Q2 2026 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.

Speaker #3: Total debt at June 30th 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.

Speaker #3: Second quarter 2026 EBITDA was $3 billion, and our net leverage ratio was 1.3 times at the end of the quarter. We are very pleased with the company's financial position.

Speaker #3: I will now turn the call over to Adam, who will provide some commentary on current market trends.

Speaker #2: Well, thank you very much, Craig. First, I hope that all of you on the call today, together with your family, friends, and colleagues, are enjoying a wonderful summer so far.

R. Adam Norwitt: Well, thank you very much, Craig. First, I hope that all of you on the call today, together with your family, friends, and colleagues, are enjoying a wonderful summer so far. As Craig mentioned, I'm going to highlight some of our achievements here in Q2. I'll talk about our trends in our served markets, make some comments on our outlook for Q3, then, of course, we'll have some time for questions at the end. With respect to Q2, I'm just really proud of the Amphenol organization, who drove excellent performance once again here in Q2 2026. Our results were stronger than expected, exceeding the high end of guidance in sales and adjusted diluted earnings per share.

Adam Norwitt: Well, thank you very much, Craig. First, I hope that all of you on the call today, together with your family, friends, and colleagues, are enjoying a wonderful summer so far. As Craig mentioned, I'm going to highlight some of our achievements here in Q2. I'll talk about our trends in our served markets, make some comments on our outlook for Q3, then, of course, we'll have some time for questions at the end. With respect to Q2, I'm just really proud of the Amphenol organization, who drove excellent performance once again here in Q2 2026. Our results were stronger than expected, exceeding the high end of guidance in sales and adjusted diluted earnings per share.

Speaker #2: As Craig mentioned, I'm going to highlight some of our achievements here in the second quarter. I'll talk about our trends in our served markets, make some comments on our outlook for the third quarter, and then, of course, we'll have some time for questions at the end.

Speaker #2: With respect to the second quarter, I'm just really proud of the Amphenol organization, who drove excellent performance once again here in the second quarter of 2026.

Speaker #2: 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 the prior year by a very strong 55% in US dollars and 54% in local currencies, reaching a new record for the company of $8.8 billion.

R. Adam Norwitt: As Craig mentioned, our sales grew from prior year by a very strong 55% in US 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 one of our end markets experiencing robust organic growth. The company booked a record $10.7 billion in orders in Q2, representing a book-to-bill of 1.23 to one. Orders grew by a very strong 94% from prior year and were up 14% sequentially. With the significant acquisition of CommScope, I'd also just point out that our orders also grew organically by 63% from prior year. We're also very pleased to have delivered record adjusted operating margins of 29.8% in the quarter, which was an increase of 420 basis points from prior year and 250 basis points sequentially.

Adam Norwitt: As Craig mentioned, our sales grew from prior year by a very strong 55% in US 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 one of our end markets experiencing robust organic growth. The company booked a record $10.7 billion in orders in Q2, representing a book-to-bill of 1.23 to one. Orders grew by a very strong 94% from prior year and were up 14% sequentially. With the significant acquisition of CommScope, I'd also just point out that our orders also grew organically by 63% from prior year. We're also very pleased to have delivered record adjusted operating margins of 29.8% in the quarter, which was an increase of 420 basis points from prior year and 250 basis points sequentially.

Speaker #2: On an organic basis, our sales also increased by a strong 30%, with all but one 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.

Speaker #2: Orders grew by a very strong 94% from the prior year and were up 14% sequentially. And with the significant acquisition of CommScope, I'd also just point out that our orders also grew organically by 63% from the prior year.

Speaker #2: We're also very pleased to have delivered record adjusted operating margins of 29.8% in the quarter, which was an increase of 420 basis points from the prior year and 250 basis points sequentially.

Speaker #2: 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.

R. Adam Norwitt: 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 delivered EPS grew 67% from prior year, reaching a new record of $1.35. 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 can't 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're very excited that we completed two acquisitions during Q2, El.Com and Wilder Technologies.

Adam Norwitt: 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 delivered EPS grew 67% from prior year, reaching a new record of $1.35. 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 can't 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're very excited that we completed two acquisitions during Q2, El.Com and Wilder Technologies.

Speaker #2: Adjusted diluted EPS grew 67% from the 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.

Speaker #2: I just can't 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.

Speaker #2: We're very excited that we completed two acquisitions during the second quarter: ELCOM and Wilder Technologies. ELCOM is based in Leno, Italy, and has annual sales of approximately $150 million.

R. Adam Norwitt: El.Com is based in Leno, Italy, and has annual sales of approximately $150 million, it's a leading manufacturer of complex interconnect solutions and high voltage cable assemblies for the industrial defense and commercial aerospace market. Wilder Technologies is based in Washington State here in the US and has relatively modest annual sales of approximately $15 million. 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. I'd also like to take this opportunity to congratulate the CommScope team on their outstanding performance so far. I'm truly proud of what this team has achieved after now being part of the Amphenol family for two full quarters.

Adam Norwitt: El.Com is based in Leno, Italy, and has annual sales of approximately $150 million, it's a leading manufacturer of complex interconnect solutions and high voltage cable assemblies for the industrial defense and commercial aerospace market. Wilder Technologies is based in Washington State here in the US and has relatively modest annual sales of approximately $15 million. 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. I'd also like to take this opportunity to congratulate the CommScope team on their outstanding performance so far. I'm truly proud of what this team has achieved after now being part of the Amphenol family for two full quarters.

Speaker #2: It's a leading manufacturer of complex interconnect solutions and high-voltage cable assemblies for the industrial, defense, and commercial aerospace markets. Wilder Technologies is based in Washington State here in the U.S. and has relatively modest annual sales of approximately $15 million.

Speaker #2: But Wilder is a key supplier to Amphenol for high-performance test and measurement solutions for our high-speed interconnect applications in the IT datacom market.

Speaker #2: And really, it helps us to strengthen our extraordinary capabilities in high-speed products. I'd also like to take this opportunity to congratulate the CommScope team on their outstanding performance so far.

Speaker #2: I'm truly proud of what this team has achieved after now being part of the Amphenol family for two 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.

R. Adam Norwitt: Indeed, we now expect CommScope to deliver $4.6 billion of sales and $0.30 of accretion for the full year 2026, 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. Turning to our served markets, I would just comment that we're 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.

Adam Norwitt: Indeed, we now expect CommScope to deliver $4.6 billion of sales and $0.30 of accretion for the full year 2026, 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. Turning to our served markets, I would just comment that we're 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.

Speaker #2: 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.

Speaker #2: Now, turning to our served markets, I would just comment that we're 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.

Speaker #2: 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.

R. Adam Norwitt: 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 US dollars and 24% organically. 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 Q3, we expect sales to increase in the low double-digit range from these Q2 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.

Adam Norwitt: 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 US dollars and 24% organically. 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 Q3, we expect sales to increase in the low double-digit range from these Q2 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.

Speaker #2: Turning first to the defense market, this market represented 8% of our sales in the quarter. Sales grew from the prior year by a robust 37% in U.S. dollars and 24% organically.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: We continue to offer the industry's widest range of high-technology interconnect solutions. Amidst the current dynamic geopolitical environment, there's no doubt that countries around the world are increasing their investments in both current and next-generation defense technologies.

R. Adam Norwitt: Amidst the current dynamic geopolitical environment, there's no doubt that countries around the world are increasing their 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're positioned better than ever to capitalize on this long-term demand trend. The commercial air market represented 4% of our sales in the quarter. Sales increased by 22% in US dollars and 21% organically from prior year. A very strong performance. 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 Q1, which was actually significantly stronger than our expectations coming into the quarter for a slight moderation. Looking towards Q3, we expect sales to be up modestly from these Q2 levels.

Adam Norwitt: Amidst the current dynamic geopolitical environment, there's no doubt that countries around the world are increasing their 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're positioned better than ever to capitalize on this long-term demand trend. The commercial air market represented 4% of our sales in the quarter. Sales increased by 22% in US dollars and 21% organically from prior year. A very strong performance. 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 Q1, which was actually significantly stronger than our expectations coming into the quarter for a slight moderation. Looking towards Q3, we expect sales to be up modestly from these Q2 levels.

Speaker #2: With our expanded product offerings, as well as the significant capacity expansions that we continue to make, we're positioned better than ever to capitalize on this long-term demand trend.

Speaker #2: The commercial air market represented 4% of our sales in the quarter. Sales increased by 22% in US dollars and 21% organically from the prior year—a very strong performance.

Speaker #2: So, we benefited from increased aircraft production volumes, coupled with our company's continued progress in expanding content on 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.

Speaker #2: Looking toward the third quarter, we expect sales to be up modestly from these second-quarter levels. I'm truly proud of our team working in the commercial air market.

R. Adam Norwitt: I'm 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 to the commercial air market long into the future. The industrial market represented 20% of our sales in the quarter. Sales in this market grew 56% in US 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 three geographies.

Adam Norwitt: I'm 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 to the commercial air market long into the future. The industrial market represented 20% of our sales in the quarter. Sales in this market grew 56% in US 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 three geographies.

Speaker #2: 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.

Speaker #2: 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 in this market grew 56% in US dollars and 18% organically.

Speaker #2: 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.

Speaker #2: On an organic basis, virtually all of our industrial segments grew in the quarter. We also saw double-digit growth in all three geographies. On a sequential basis, sales grew by a much better-than-expected 13% from the first quarter.

R. Adam Norwitt: On a sequential basis, sales grew by a much better than expected 13% from Q1. As we look into Q3, we do expect sales to be roughly at the same elevated levels as we saw here in Q2. We're very excited by the company's renewed strength across the many diversified segments of this important industrial market. With the acquisition of El.Com, we have further added to our value-add interconnect capabilities for European industrial customers. Over the long term, I'm 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.

Adam Norwitt: On a sequential basis, sales grew by a much better than expected 13% from Q1. As we look into Q3, we do expect sales to be roughly at the same elevated levels as we saw here in Q2. We're very excited by the company's renewed strength across the many diversified segments of this important industrial market. With the acquisition of El.Com, we have further added to our value-add interconnect capabilities for European industrial customers. Over the long term, I'm 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.

Speaker #2: 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.

Speaker #2: We're 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.

Speaker #2: And over the long term, I'm confident in our strategy to expand our high-technology interconnect, antenna, and sensor offerings, both organically and through complementary acquisitions.

Speaker #2: 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.

Speaker #2: 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 saw a pickup in demand for vehicles with electrified drivetrains.

R. Adam Norwitt: Sales in automotive grew 9% in US dollars and 6% organically as we experienced growth in all regions and as we saw pickup in demand for vehicles with electrified drivetrains. Sequentially, our sales grew by 9% from Q1, which was much better than our expectations coming into Q2. For Q3, we expect sales to remain at these Q2 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 into their next-generation vehicles. We look forward to benefiting from our strengthened position in the automotive market for many years to come.

Adam Norwitt: Sales in automotive grew 9% in US dollars and 6% organically as we experienced growth in all regions and as we saw pickup in demand for vehicles with electrified drivetrains. Sequentially, our sales grew by 9% from Q1, which was much better than our expectations coming into Q2. For Q3, we expect sales to remain at these Q2 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 into their next-generation vehicles. We look forward to benefiting from our strengthened position in the automotive market for many years to come.

Speaker #2: 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.

Speaker #2: 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 into their next-generation vehicles.

Speaker #2: 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 the prior year by 55% in U.S. dollars, driven primarily by the addition of CommScope.

R. Adam Norwitt: The communications networks market represent 11% of our sales in the quarter. Sales grew from prior year by 55% in US 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 Q2 grew by 5% from Q1, which was a bit better than our expectations coming into the quarter. Looking to Q3, we do anticipate that sales will decline in the mid-teens from these Q2 levels.

Adam Norwitt: The communications networks market represent 11% of our sales in the quarter. Sales grew from prior year by 55% in US 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 Q2 grew by 5% from Q1, which was a bit better than our expectations coming into the quarter. Looking to Q3, we do anticipate that sales will decline in the mid-teens from these Q2 levels.

Speaker #2: On an organic basis, sales actually moderated by 6% from the prior year, due to demand moderation from both communications network operators and wireless equipment manufacturers.

Speaker #2: I would just note that CommScope actually grew on a year-over-year basis in Communications Networks from the 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.

Speaker #2: Looking to the third quarter, we do anticipate that sales will decline in the mid-teens from these second-quarter levels. With our expanded range of technology offerings following the acquisitions of both ComScope and Andrew, we are better positioned than ever with both service provider and OEM customers across the communications networks market.

R. Adam Norwitt: 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 US 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.

Adam Norwitt: 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 US 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.

Speaker #2: Our deep and broad range of products, coupled with our global manufacturing footprint, has positioned us well to support communications networks customers around the world.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

R. Adam Norwitt: We had actually expected sales to decline in this quarter on a sequential basis. As we look into Q3, we anticipate sales to increase roughly in the 20% range compared to Q2 as we participate in the beginnings of a variety of new program launches for our customers. I'm 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'm 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're positioned well for the long term.

Adam Norwitt: We had actually expected sales to decline in this quarter on a sequential basis. As we look into Q3, we anticipate sales to increase roughly in the 20% range compared to Q2 as we participate in the beginnings of a variety of new program launches for our customers. I'm 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'm 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're positioned well for the long term.

Speaker #2: 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.

Speaker #2: I'm 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.

Speaker #2: I'm 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're positioned well for the long term.

Speaker #2: 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.

R. Adam Norwitt: The IT Datacom market represented 43% of our sales in the quarter. We once again had a very strong quarter in IT Datacom, growing 89% in US dollars and 63% organically. This was driven by continued acceleration and 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 Q1, which was substantially better than our expectation. Virtually all of this growth was driven by sales of AI-related products. Looking into the Q3, we expect a further sequential sales increase in the mid-teens from these Q2 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're more encouraged than ever by the company's position in the global IT Datacom market.

Adam Norwitt: The IT Datacom market represented 43% of our sales in the quarter. We once again had a very strong quarter in IT Datacom, growing 89% in US dollars and 63% organically. This was driven by continued acceleration and 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 Q1, which was substantially better than our expectation. Virtually all of this growth was driven by sales of AI-related products. Looking into the Q3, we expect a further sequential sales increase in the mid-teens from these Q2 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're more encouraged than ever by the company's position in the global IT Datacom market.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: We're 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 a broad array of customers, but also on executing on these exciting new programs.

R. Adam Norwitt: Our team has done an outstanding job of both securing future business on next-generation IT systems with a 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. 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. 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.

Adam Norwitt: Our team has done an outstanding job of both securing future business on next-generation IT systems with a 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. 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. 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.

Speaker #2: In addition, I would just comment that the team at Comscope continues to make great progress in further penetrating the IT datacom market with their advanced optical interconnect solutions.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

R. Adam Norwitt: Now turning to our outlook. Of course, assuming current market conditions as well as constant currency exchange rates. For the Q3, we now expect sales in the range of $9.3 billion to $9.4 billion. 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 Q3 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.

Adam Norwitt: Now turning to our outlook. Of course, assuming current market conditions as well as constant currency exchange rates. For the Q3, we now expect sales in the range of $9.3 billion to $9.4 billion. 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 Q3 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.

Speaker #2: 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%.

Speaker #2: Compared to the third quarter of the 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.

Speaker #2: 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.

Speaker #2: Finally, I'd like to take this opportunity to thank our entire global team for what is, no doubt, just outstanding efforts here in the second quarter.

R. Adam Norwitt: Finally, I'd like to take this opportunity to thank our entire global team for what is no doubt just outstanding efforts here in the Q2. With that operator, we'd be very happy to take any questions.

Adam Norwitt: Finally, I'd like to take this opportunity to thank our entire global team for what is no doubt just outstanding efforts here in the Q2. With that operator, we'd be very happy to take any questions.

Speaker #2: And with that, operator, we'd be very happy to take any questions.

Speaker #1: Thank you, Mr. Norwitt. The question-and-answer period will now begin. Please limit yourself to one question per caller. To ask a question, please press star, followed by 1 on your telephone keypad.

Operator 3: Thank you, Mr. Norwitt. The question and answer period will now begin. Please limit to one 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 Stephen Volkmann from Jefferies. Please go ahead.

Operator: Thank you, Mr. Norwitt. The question and answer period will now begin. Please limit to one 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 Stephen Volkmann from Jefferies. Please go ahead.

Speaker #1: If you change your mind, please press star 1 again. When preparing to ask your question, please ensure your device is unmuted locally. We have a question from Steve Volkman from Jefferies.

Speaker #1: Please go ahead.

Speaker #3: Hi, good afternoon. Thank you for taking the question. Maybe I'll just start with CommScope. Obviously, some nice upside there. I think the guidance raise, you said, was all basically IT DataCom. I'm just wondering if we can sort of drill into that a little bit more.

Stephen Volkmann: Hi. Good afternoon. Thank you for taking the question. Maybe I'll just start with CommScope, obviously, some nice upside there. I think the guidance raise you said was all basically IT Datacom. I'm 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 optical? Is there anything happening in building or broadband to call out?

Steve Volkmann: Hi. Good afternoon. Thank you for taking the question. Maybe I'll just start with CommScope, obviously, some nice upside there. I think the guidance raise you said was all basically IT Datacom. I'm 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 optical? Is there anything happening in building or broadband to call out?

Speaker #3: What types of projects are they really participating in, and is it more optical? Is there anything happening in building or broadband to call out?

Speaker #2: Yeah, thanks very much, Steve. I mean, I didn't say necessarily that all of the increase is IT DataCom, but I can say that IT DataCom is certainly driving the strength for them.

R. Adam Norwitt: Yeah. Thanks very much, Steve. I didn't say necessarily that all of the increase is IT Datacom, but I can say that IT Datacom is certainly driving the strength for them. They're growing really across the board in their business. We're seeing growth, as I mentioned, also in communications networks. We are seeing as well meaningful growth with them in their industrial market or what we refer to as the building connectivity market. There's no doubt that they're making great progress in the IT Datacom market and in particular, making great progress in applications related to AI. In fact, if you look at their IT Datacom business on a year-over-year basis, it's essentially doubled on a year-over-year basis, which is really impressive.

Adam Norwitt: Yeah. Thanks very much, Steve. I didn't say necessarily that all of the increase is IT Datacom, but I can say that IT Datacom is certainly driving the strength for them. They're growing really across the board in their business. We're seeing growth, as I mentioned, also in communications networks. We are seeing as well meaningful growth with them in their industrial market or what we refer to as the building connectivity market. There's no doubt that they're making great progress in the IT Datacom market and in particular, making great progress in applications related to AI. In fact, if you look at their IT Datacom business on a year-over-year basis, it's essentially doubled on a year-over-year basis, which is really impressive.

Speaker #2: I mean, they're growing really across the board in their business, so we're seeing growth, as I mentioned, also in communications networks. We are seeing as well meaningful growth with them in their industrial market, or what we refer to as the building connectivity market.

Speaker #2: But there's no doubt that they're making great progress in the IT DataCom market, and in particular, making great progress in applications related to AI.

Speaker #2: I mean, in fact, if you look at their IT DataCom business on a year-over-year basis, it's essentially doubled, which is really, really impressive.

Speaker #2: And 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.

R. Adam Norwitt: 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 we're seeing great growth there and great progress with what they do. I will just say as well that now that CommScope is part of the Amphenol organization, they are already taking good advantage of being part of Amphenol and 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. There's no question that being part of Amphenol has been a great thing for CommScope as it relates to their position in IT Datacoms specifically.

Adam Norwitt: 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 we're seeing great growth there and great progress with what they do. I will just say as well that now that CommScope is part of the Amphenol organization, they are already taking good advantage of being part of Amphenol and 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. There's no question that being part of Amphenol has been a great thing for CommScope as it relates to their position in IT Datacoms specifically.

Speaker #2: And we're seeing great growth there, and great progress with what they do. And I will just say as well that now that ComScope is part of the Amphenol organization, they are already taking good advantage of being part of Amphenol and the relationships that we have, which are obviously very longstanding relationships up and down through the stack of the companies that are both building out data centers and equipping those data centers with next-generation systems, architecting the chips, and doing everything in between.

Speaker #2: And so there’s no question that being part of Amphenol has been a great thing for CommScope as it relates to their position in IT DataCom specifically.

Speaker #1: We have a question from Joseph Cardoso from JP Morgan. Please go ahead.

Operator 3: We have a question from Joseph Cardoso from J.P. Morgan. Please go ahead.

Operator: We have a question from Joseph Cardoso from J.P. Morgan. Please go ahead.

Speaker #4: Hi, thanks for the question here. Maybe just another follow-up on the ComScope, regarding the raised guidance. You're raising the revenue from $4.1 billion to $4.6 billion, but the EPS outlook is more than doubling.

Joseph Cardoso: Hi. Thanks for the question here. Maybe just another follow-up on the CommScope, the raising guidance here. You're raising the revenue from $4.1 billion to $4.6 billion, but the EPS outlook is more than doubling. Maybe can you just walk through what you're seeing in terms of the margin profile of the CommScope acquisition, particularly contextualizing where the upside's coming from and essentially why you're 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 you had completed the acquisition? Thank you.

Speaker #4: So, maybe can you just walk through what you're seeing in terms of the margin profile, the CommScope acquisition, potentially contextualizing where the upside's coming from, and essentially why you're seeing the better flow-through there?

Speaker #4: Is it all operating leverage, or is the gross margin profile of the business tracking better than what you had expected—at least a couple of quarters ago, when we had completed the acquisition?

Speaker #4: Thank you.

Speaker #2: Yeah, thanks so much. No, we're 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 embracing the Amphenol culture and working with some of the other businesses.

R. Adam Norwitt: Yeah. Thanks so much. Yeah, no, we're really happy with the kind of profitability progress with the CommScope acquisition and the folks. The team's really done a great job of kind of embracing the Amphenol culture, working with some of the other businesses. I wouldn't say it's just gross margin. I would say, listen, they're certainly growing at a pretty good pace right now. I think that they achieved just a bit over $1.2 billion here in the Q2 in sales.

Craig Lampo: Yeah. Thanks so much. Yeah, no, we're really happy with the kind of profitability progress with the CommScope acquisition and the folks. The team's really done a great job of kind of embracing the Amphenol culture, working with some of the other businesses. I wouldn't say it's just gross margin. I would say, listen, they're certainly growing at a pretty good pace right now. I think that they achieved just a bit over $1.2 billion here in the Q2 in sales.

Speaker #2: And I wouldn't say it's just gross margin. I would say, I mean, listen, they are certainly growing at a pretty good pace right now, and so I think that they achieved just a bit over $1.2 billion.

Speaker #2: Here in the second quarter, in sales, they've done a really good job of leveraging that growth. I wouldn't say just on gross margin, but also in SG&A and operational expenses.

Craig Lampo: They've done a really good job of leveraging that growth. I wouldn't say just on gross margin, but also in the SG&A and operational expenses. I think they really have just increased their profitability. They're essentially in the Q2, operating over 20%, including the amortization that we have embedded in those numbers now from the acquisition. They've done a great job in the factory, with their vendors, with controlling costs on SG&A, kind of across the board. I wouldn't say it really has come from pricing, to any extent. It really has more come from really just operational execution, both in the factory as well, and the operating expenses.

Speaker #2: And I think they really have just increased their profitability. I mean, they're essentially in the second quarter operating over 20%. Including amortization that we have kind of embedded in those numbers now from the acquisition.

Speaker #2: So they've done a great job in the factory, with their vendors, with controlling costs on SG&A — kind of across the board. I wouldn't say it really has come from pricing.

Speaker #2: To any extent, it really has come more from just operational execution, both in the factory as well as the operating expenses.

Speaker #3: And look, I would just add one thing to that, which is, we knew when we met these folks early on that this was an amazing team of people.

R. Adam Norwitt: Look, I would just add one thing to that, which is we knew when we met these folks early on that this was an amazing team of people. From the leadership all the way down through the organization. I still remember our very first kind of quote, unquote, management meeting, and there were some 30 people that we got to interact with at the time, and each of them just passionate. 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. To no fault of CommScope, it's a great company, but we don't need to talk about the different environments that they came into as soon as they came to be part of Amphenol. That's a team of people who are fighters.

Adam Norwitt: Look, I would just add one thing to that, which is we knew when we met these folks early on that this was an amazing team of people. From the leadership all the way down through the organization. I still remember our very first kind of quote, unquote, management meeting, and there were some 30 people that we got to interact with at the time, and each of them just passionate. 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. To no fault of CommScope, it's a great company, but we don't need to talk about the different environments that they came into as soon as they came to be part of Amphenol. That's a team of people who are fighters.

Speaker #3: I mean, from the leadership all the way down through the organization. I still remember our very first kind of "management meeting," and there were some 30 people that we got to interact with at the time.

Speaker #3: And each of them just passionate, and in many ways, they were a team of people whose capabilities and potential were maybe not necessarily being tapped into, given just the overall environment that surrounded CommScope in the past.

Speaker #3: And to no fault of CommScope—it's a great company—but we don't need to talk about the different environments that they came into as soon as they became part of Amphenol.

Speaker #3: And that's a team of people who are fighters. I mean, they have not been without challenges. Every day in the market, they see lots of challenges that they have to manage through.

R. Adam Norwitt: They have not been without challenges. They see every day in the market, there's 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've embraced, being part of a broader organization of people who do interconnect for a living. That's what we've been doing for the entire history of this company, 94 years. We're an interconnect company. 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. We think that we're just getting started with CommScope.

Adam Norwitt: They have not been without challenges. They see every day in the market, there's 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've embraced, being part of a broader organization of people who do interconnect for a living. That's what we've been doing for the entire history of this company, 94 years. We're an interconnect company. 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. We think that we're just getting started with CommScope.

Speaker #3: 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've embraced in being part of a broader organization of people who do interconnect for a living.

Speaker #3: I mean, that's what we've been doing for the entire history of this company—94 years. We're 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.

Speaker #3: And that is clearly manifest in their numbers that we see today. And we think that we're just getting started with CommScope.

Speaker #1: We have a question from Amit Daryanani from Evercore. Please go ahead.

Operator 3: We have a question from Amit Daryanani from Evercore. Please go ahead.

Operator: We have a question from Amit Daryanani from Evercore. Please go ahead.

Amit Daryanani: Yep. Thanks a lot, congrats on some impressive numbers here. Adam, I think investors often sort of frame the AI connectivity opportunity as a copper versus fiber debate or a copper or fiber debate sometimes. From your side, is that sort of the right way to think about the market? Is that what customers are telling you? I'd love to just kind of 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 of how big the fiber business is within the $10.5, $11 billion AI revenue run rate you have right now would be really helpful. Thank you.

Speaker #4: If thanks a lot and congrats on some impressive numbers here. Adam, I think investors often sort of frame the AI connectivity opportunity as a copper versus fiber debate or a copper or fiber debate sometimes.

Speaker #4: From your side, is that sort of the right way to think about the market? Is that what customers are telling you? I'd love to just kind of understand what you are seeing from a growth basis across both copper and fiber, and any qualitative or quantitative framework you could provide in terms of how big the fiber business is within the $10.5, $11 billion AI revenue run that you have right now would be really helpful.

Speaker #4: Thank you.

Speaker #3: Well, thanks very much, Amit. Look, I mean, we've 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's going on today, what they expect next year, what they expect in the years thereafter, the one consistent thing we hear from our customers is they need more of everything.

R. Adam Norwitt: Well, thanks very much, Amit. Look, we've 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's going on today, what they expect next year, what they expect the years thereafter, the one consistent thing we hear from our customers is they need more of everything. More high-speed copper, more fiber optic solutions, and more power solutions. There's no doubt about it that we see that reflected actually in the growth rates that we're experiencing today. If you look at our IT Datacom overall growth organically growing 63% in the quarter. The AI is growing faster than that. I mentioned that CommScope nearly doubled their AI business on a year-over-year basis. We expect the IT Datacom market to be just under half of CommScope's total.

Adam Norwitt: Well, thanks very much, Amit. Look, we've 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's going on today, what they expect next year, what they expect the years thereafter, the one consistent thing we hear from our customers is they need more of everything. More high-speed copper, more fiber optic solutions, and more power solutions. There's no doubt about it that we see that reflected actually in the growth rates that we're experiencing today. If you look at our IT Datacom overall growth organically growing 63% in the quarter. The AI is growing faster than that. I mentioned that CommScope nearly doubled their AI business on a year-over-year basis. We expect the IT Datacom market to be just under half of CommScope's total.

Speaker #3: They need more of everything—more high-speed copper, more fiber optic solutions, and more power solutions. And there’s no doubt about it; we see that reflected, actually, in the growth rates that we’re experiencing today.

Speaker #3: I mean, if you look at our IT DataCom overall growth, we organically grew 63% in the quarter, and AI is growing faster than that. I mentioned that CommScope nearly doubled their AI business on a year-over-year basis.

Speaker #3: And we expect the IT DataCom market to be just under half of ComScope's total. And everything that ComScope does in IT DataCom is really around AI and around optics.

R. Adam Norwitt: Everything that CommScope does in IT Datacom is really around AI and around optics. You can put a little framework around their business. We also have, as everybody knows, already a fiber optics business of significance before, both a passive optical interconnect business as well as an active optics business. Without putting to the decimal point numbers behind it, I can tell you that today, we have a very strong high-speed copper business. We have a very strong and significantly scaled, one of the world leaders in optics in AI, and we also have a leadership position in power interconnect for AI as well. Each of those are really significant pieces of that entire puzzle.

Adam Norwitt: Everything that CommScope does in IT Datacom is really around AI and around optics. You can put a little framework around their business. We also have, as everybody knows, already a fiber optics business of significance before, both a passive optical interconnect business as well as an active optics business. Without putting to the decimal point numbers behind it, I can tell you that today, we have a very strong high-speed copper business. We have a very strong and significantly scaled, one of the world leaders in optics in AI, and we also have a leadership position in power interconnect for AI as well. Each of those are really significant pieces of that entire puzzle.

Speaker #3: And so you can put a little framework around their business. We also have, as everybody knows, already a fiber optics business of significance from before.

Speaker #3: Both a passive optical interconnect business, as well as an active optics business. And so, without putting to-the-decimal-point numbers behind it, I can tell you that today, we have a very strong high-speed copper business.

Speaker #3: We have a very strong and significantly scaled—one of the world leaders—in optics in AI. And we also have a leadership position in power interconnect for AI as well.

Speaker #3: And so, each of those are really significant pieces of that entire puzzle.

Speaker #1: We have a question from Luke Junk from Baird. Please go ahead.

Operator 3: We have a question from Luke Junk from Baird. Please go ahead.

Operator: We have a question from Luke Junk from Baird. Please go ahead.

Speaker #5: Good afternoon. Thanks, sir, for taking the question. Adam, that's actually a great segue. I was hoping you could spend a little more time talking about your power portfolio.

Luke Junk: Good afternoon. Thanks for taking the question. Adam, that's actually a great segue. I was hoping you could spend a little more time talking about your power portfolio. Clearly, that's an area of increased innovation within IT Datacom. You mentioned that you're a global leader, maybe more context there, and just how you see that innovation opportunity set, both traditionally in the white space on the rack and what seems like some real opportunities looking out into the future in the gray space in the medium term as well. Thank you.

Speaker #5: Clearly, that's an area of increased innovation within IT DataCom. You mentioned that you're a global leader—maybe you could give more context there, and just how you see that innovation opportunity set, both traditionally in the white space on the rack and, what seems like, some real opportunities looking out into the future in the gray space in the medium term as well.

Speaker #5: Thank you.

Speaker #3: Thanks very much, Luke. I mean, look, when I talk about power interconnect, this is part of the legacy of Amphenol. We've been involved in making power interconnect products for the vast majority of the history of this company.

R. Adam Norwitt: Thanks very much, Luke. When I talk about power interconnect, this is part of the legacy of Amphenol. We've been involved in making power interconnect products for the vast majority of the history of this company, and it goes back to our legacy in the defense industry and in industrial products, where we developed leading interconnect technologies, leading contact technologies to drive safe and efficient transfer of power in all environments. We've expanded that over the years to board-level power, to bus bars, to complex power cable assemblies, and the like, that go in a variety of places, all the way from deep in the rack, connecting directly to the chip, all the way to where it comes into the data center From the switchgear and beyond.

Adam Norwitt: Thanks very much, Luke. When I talk about power interconnect, this is part of the legacy of Amphenol. We've been involved in making power interconnect products for the vast majority of the history of this company, and it goes back to our legacy in the defense industry and in industrial products, where we developed leading interconnect technologies, leading contact technologies to drive safe and efficient transfer of power in all environments. We've expanded that over the years to board-level power, to bus bars, to complex power cable assemblies, and the like, that go in a variety of places, all the way from deep in the rack, connecting directly to the chip, all the way to where it comes into the data center From the switchgear and beyond.

Speaker #3: And it goes back to our legacy in the defense industry and industrial products, where we developed leading interconnect technologies, leading contact technologies to drive safe and efficient transfer of power in all environments.

Speaker #3: We've expanded that over the years to board-level power, to busbars, to complex power cable assemblies, and the like, that go in a variety of places—all the way from deep in the rack connecting directly to the chip, all the way to where it comes into the data center.

Speaker #3: 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, and embedding of sensors into connectors so that you can create smarter power connectors and the like.

R. Adam Norwitt: 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. There's just a lot going on there. At the end of the day, I like to think in very simplistic terms, in part because I studied international politics, not engineering as an undergrad. What AI is conversion of electrons into tokens. Everywhere along that phase, if you can make the conversion of electrons into tokens more efficient, then you're creating value for your customers. You're creating value for your direct customers, you're creating value for your end customers.

Adam Norwitt: 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. There's just a lot going on there. At the end of the day, I like to think in very simplistic terms, in part because I studied international politics, not engineering as an undergrad. What AI is conversion of electrons into tokens. Everywhere along that phase, if you can make the conversion of electrons into tokens more efficient, then you're creating value for your customers. You're creating value for your direct customers, you're creating value for your end customers.

Speaker #3: I mean, there's just a lot going on there. And at the end of the day, I like to think in very simplistic terms, in part because I studied international politics, not engineering, as an undergrad.

Speaker #3: But what AI is, is the conversion of electrons into tokens. And everywhere along that phase, if you can make the conversion of electrons into tokens more efficient, then you're creating value for your customers.

Speaker #3: You're creating value for your direct customers, and you're creating value for your end customers. 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.

R. Adam Norwitt: 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. 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're doing that with both high-speed copper as well as optics interconnect, and we do that as well. Everywhere along that equation of that electrons token conversion, Amphenol is a partner for our customers.

Adam Norwitt: 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. 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're doing that with both high-speed copper as well as optics interconnect, and we do that as well. Everywhere along that equation of that electrons token conversion, Amphenol is a partner for our customers.

Speaker #3: And 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're doing that with both high-speed copper as well as optics interconnect?

Speaker #3: And we do that as well. So, everywhere along that equation of that electrons-to-token conversion, Amphenol is a partner for our customers.

Speaker #1: We have a question from William Stein from Truist Securities. Please go ahead.

Operator 3: We have a question from William Stein from Truist Securities. Please go ahead.

Operator: We have a question from William Stein from Truist Securities. Please go ahead.

Speaker #2: Great, thanks for taking my question, and congrats on another fantastic quarter. Adam, there's been a lot of discussion among some of the key infrastructure suppliers to the AI market.

William Stein: Great. Thanks for taking my question and congrats on another fantastic quarter. Adam, there's been a lot of discussion among some of the key infrastructure suppliers to the AI market, and debates about their approach to backplane design, and I believe Amphenol is very heavily involved in one in particular. I'm sure you're in many or maybe all of them, but there's one 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. I think there had been an assumption that this would be a potential challenge to the growth in your business. I wondered if perhaps the connectors used in such evolved architectures might be even more complex and more content and margin rich.

Speaker #2: And there are debates about their approach to backplane design. I believe Amphenol is very heavily involved in one in particular. I'm sure you're in many, or maybe all, of them.

Speaker #2: But there’s one where there is a cableized 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.

Speaker #2: 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'm wondering if you can help sort of frame this for us.

William Stein: I'm 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?

Speaker #2: If we see in the supply chain that this conversion to PCB is happening, should we think this is a challenge, a benefit, or neither for your business?

Speaker #3: Yeah. Well, thank you very much, Will, and I appreciate your comments and the question. I mean, look, at the end of the day, there's lots of nuances of designs that are happening across the board.

R. Adam Norwitt: Yeah. Well, thank you very much, Will, and appreciate your comments and the question. Look, at the end of the day, there's lots of nuances of designs that are happening across the board. The one constant is that there's more content. For us, our goal here is not to put all of our eggs in one basket of one type of architecture or another. It's 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 one or another decides to go to a backplane versus a cable versus a printed circuit board, this is really not the core question. The core question is: Is there more overall content of interconnect?

Adam Norwitt: Yeah. Well, thank you very much, Will, and appreciate your comments and the question. Look, at the end of the day, there's lots of nuances of designs that are happening across the board. The one constant is that there's more content. For us, our goal here is not to put all of our eggs in one basket of one type of architecture or another. It's 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 one or another decides to go to a backplane versus a cable versus a printed circuit board, this is really not the core question. The core question is: Is there more overall content of interconnect?

Speaker #3: But the one constant is that there's more content. So, for us, our goal here is not to put all of our eggs in one basket of one type of architecture or another.

Speaker #3: It's to have the breadth of technologies available for our customers, such that we can handle, and help them handle, the multitude of increasing content.

Speaker #3: Whether one or another decides to go to a backplane versus a cable versus a printed circuit board, this is really not the core question.

Speaker #3: The core question is, is there more overall content of interconnect? And with the breadth of our position—by the way, a company who makes cable, who makes printed circuit boards, who makes printed circuit board assemblies, cable assemblies—I mean, we're just trying to enable our customers to use every way they go.

R. Adam Norwitt: With the breadth of our position, by the way, a company who makes cable, who makes printed circuit boards, who makes printed circuit board assemblies, cable assemblies, we're just trying to enable our customers in whichever way they go. What our customers are trying to do is really, really hard things. 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, that's where we create value. Whichever one individual program or web service provider makes some decision or another, they're all moving in the direction of more content, not less. That creates a great opportunity for Amphenol.

Adam Norwitt: With the breadth of our position, by the way, a company who makes cable, who makes printed circuit boards, who makes printed circuit board assemblies, cable assemblies, we're just trying to enable our customers in whichever way they go. What our customers are trying to do is really, really hard things. 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, that's where we create value. Whichever one individual program or web service provider makes some decision or another, they're all moving in the direction of more content, not less. That creates a great opportunity for Amphenol.

Speaker #3: What our customers are trying to do is really, really hard things. 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's where we create value.

Speaker #3: And whichever individual program or web service provider makes some decision or another, they're all moving in the direction of more content, not less.

Speaker #3: And that creates a great opportunity for Amphenol.

Speaker #1: We have a question from Joe Giordano with TD Cowen. Please go ahead.

Operator 3: We have a question from Joseph Giordano with TD Cowen. Please go ahead.

Operator: We have a question from Joseph Giordano with TD Cowen. Please go ahead.

Speaker #4: Hey, guys, thank you. Adam, there's a lot of talk about, in the future, what's the right type of models that we need, whether it's frontier models versus open-source models, and where they're housed—whether it's here versus China.

Joseph Giordano: Hey, guys. Thank you. Adam, there's a lot of talk about in the future, what's the right type of models that we need, whether it's frontier models versus open source models and where they're housed, whether it's here versus China. We talked a lot about the breadth of your portfolio, and you can kind of play everywhere. What are the implications of how that mix ultimately plays out globally?

Joe Giordano: Hey, guys. Thank you. Adam, there's a lot of talk about in the future, what's the right type of models that we need, whether it's frontier models versus open source models and where they're housed, whether it's here versus China. We talked a lot about the breadth of your portfolio, and you can kind of play everywhere. What are the implications of how that mix ultimately plays out globally?

Speaker #4: I mean, we talked a lot about the breadth of your portfolio and how you can kind of play everywhere, but what are the implications of how that mix ultimately plays out globally?

Speaker #3: 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 XPU architectures—you name it.

R. Adam Norwitt: Yeah, look, we work with customers around the world. We work with customers who make GPU architectures, who make ASIC architectures, who make XPU architectures, you name it, because no matter what architecture you're 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. We see that what that means is you need interconnect to do that. Whether it's 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. We continue to enable customers in all ways. We are not model-dependent. We're not frontier training versus inference-dependent. We're not geographically dependent.

Adam Norwitt: Yeah, look, we work with customers around the world. We work with customers who make GPU architectures, who make ASIC architectures, who make XPU architectures, you name it, because no matter what architecture you're 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. We see that what that means is you need interconnect to do that. Whether it's 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. We continue to enable customers in all ways. We are not model-dependent. We're not frontier training versus inference-dependent. We're not geographically dependent.

Speaker #3: Because no matter what architecture you’re 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.

Speaker #3: And we see that what that means is you need interconnect to do that. And so whether it's on training or actually on inference—and to be honest, inference seems to grow at an even faster pace—it also requires an intensity of interconnect products that really is unprecedented.

Speaker #3: We continue to enable customers in all ways, so we are not model-dependent. We're not frontier, training versus inference dependent. We're not geographically dependent.

Speaker #3: 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.

R. Adam Norwitt: 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.

Adam Norwitt: 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.

Speaker #3: We see that for a long time to come.

Speaker #1: We have a question from Ossia Merchant with Citigroup. Please go ahead.

Operator 3: We have a question from Asiya Merchant with Citigroup. Please go ahead.

Operator: We have a question from Asiya Merchant with Citigroup. Please go ahead.

Speaker #5: Great. Thanks for taking my great. Thanks for taking my questions and great set of results here. It's very impressive the CCS margins that you're able to drive here.

Asiya Merchant: Great. Thanks for taking my questions, great set of results here. It's very impressive, the CCS margins that you're able to drive here. I think there were just some concerns about fiber supply and if that could potentially negatively impact the CommScope acquisition. Doesn't seem to be the case. Andrew and Craig, could you just talk a little bit about how you feel about the supply coming here just given the growth that investors are expecting broadly just for the optical side of the portfolio as well? Thank you.

Speaker #5: I think there were just some concerns about fiber supply and if that could potentially negatively impact the Commscope acquisition. Doesn't seem to be the case.

Speaker #5: So, Andrew and Craig, could you just talk a little bit about how you feel about the supply coming here, given the growth that investors are expecting broadly, and just for the optical side of the portfolio as well?

Speaker #5: Thank you.

Speaker #3: Well, thank you, Ossia. Look, I mean, I think the results speak for themselves here. Yes, of course, there's a lot of demand for lots of things, including demand for fiber optics.

R. Adam Norwitt: Well, thank you, Asiya. Look, I think the results speak for themselves here. Yes, of course, there's a lot of demand for lots of things, including demand for fiber optics. 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. I think that that's reflected in their results, that's reflected in the strong growth that they have in IT Datacom, and it's reflected in our positive outlook for the company for the full year. I just can't reiterate enough how impressed I am by this team. This is not an organization that came from, quote, "an entrepreneurial culture," but they have embraced that entrepreneurial culture of Amphenol on day one.

Adam Norwitt: Well, thank you, Asiya. Look, I think the results speak for themselves here. Yes, of course, there's a lot of demand for lots of things, including demand for fiber optics. 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. I think that that's reflected in their results, that's reflected in the strong growth that they have in IT Datacom, and it's reflected in our positive outlook for the company for the full year. I just can't reiterate enough how impressed I am by this team. This is not an organization that came from, quote, "an entrepreneurial culture," but they have embraced that entrepreneurial culture of Amphenol on day one.

Speaker #3: And the CCS team has done a fabulous job of managing their supply chain and expanding their supply chain, and making sure that they have a ready source of availability for all the materials that they need in order to support their customers.

Speaker #3: And I think that that's reflected in their results. That's reflected in the strong growth that they have in IT Data Comm, and it's reflected in our positive outlook for the company for the full year.

Speaker #3: I just can't reiterate enough how impressed I am by this team. I mean, this is not an organization that came from an entrepreneurial culture, but they have embraced that entrepreneurial culture of Amphenol from day one.

Speaker #3: 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.

R. Adam Norwitt: To the extent that they run into an impediment, they go out, they hammer it down, they make it happen, and they drive success. That's what they've been doing regardless of what impediment there may be, and that includes on the supply of fiber.

Adam Norwitt: To the extent that they run into an impediment, they go out, they hammer it down, they make it happen, and they drive success. That's what they've been doing regardless of what impediment there may be, and that includes on the supply of fiber.

Speaker #3: And that's what they've been doing, regardless of what impediment there may be. And that includes on the supply of fiber.

Speaker #1: We have a question from Wamzi Mohan with Bank of America. Please go ahead.

Operator 3: We have a question from Wamsi Mohan with Bank of America. Please go ahead.

Operator: We have a question from Wamsi Mohan with Bank of America. Please go ahead.

Speaker #6: Yes. Thank you. Your CapEx is up 20%. Your support, obviously, is very strong given the growth that you're delivering and guiding to. As you think about what's the right level that investors should consider from a CapEx perspective on an ongoing basis, are you specifically targeting incremental CapEx for comms scope, or is the forecast based on any incremental line adds for comms scope, or is it just based on the capacity that you currently have as of now?

Wamsi Mohan: Yes. Thank you. Your CapEx is up 20% year on year to support, obviously, this very strong growth that you're delivering and guiding to. As you think about what's the right level that investors should think about from a CapEx perspective on an ongoing basis, 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?

Speaker #3: Yeah. Thanks, Wamzi. I mean, I would think about CapEx—not specific. Comms scope's CapEx isn’t necessarily much different, as a percentage of sales basis, as the overall company.

Craig Lampo: Yeah. Thanks, Wamsi. I would think about CapEx, not specific. CommScope's CapEx isn't necessarily much different as a percentage of sales basis as the overall company. Actually, maybe even modestly lower on a percentage of sales basis. In the quarter, we were around just at the high end of our 3% to 4% range. I would expect us to be running at the higher end of that as we're growing at the significant paces that we're growing at right now. I think as we look into the latter half of this year, I would expect us to continue to be even maybe modestly higher than that range. We're continuing to grow pretty significantly. The capacity we're putting in place, I think, is prudent. As you know, our general managers are making these decisions based on the specific programs they're on.

Speaker #3: It actually may be even modestly lower on a percentage of sales basis. In the quarter, we were right at the high end of our kind of 3% to 4% range.

Speaker #3: And I would expect us to be running at the higher end of that as we're growing at the significant pace that we're growing at right now.

Speaker #3: And I think as we look into kind of the latter half of this year, I would expect us to continue to be even maybe modestly higher than that range.

Speaker #3: But we're continuing to grow pretty significantly. The capacity we're putting in place, I think, is prudent, as you know. Our general managers are making these decisions.

Speaker #3: Based on the specific programs they're on, and when we look at it from that perspective, I think that's what you're seeing—the output of that in terms of driving some of these results.

Craig Lampo: We look at it from that perspective, and I think that's what you're seeing the output of that in terms of driving some of these results. From an overall capital perspective, I would continue to view it at the high end of that range and maybe slightly over that in the second half, but certainly not so far outside of our normal range.

Speaker #3: But from an overall capital perspective, I would continue to view it kind of at the high end of that range, and maybe slightly over that, in the second half.

Speaker #3: But certainly not so far outside of our normal range.

Speaker #1: We have a question from Guy Hardwick from Barclays. Please go ahead.

Operator 3: We have a question from Guy Hardwick from Barclays. Please go ahead.

Operator: We have a question from Guy Hardwick from Barclays. Please go ahead.

Speaker #7: Hi, good afternoon, Adam. CommScope is generally known—and correct me if I'm wrong—as a scale-out and scale-across company in data centers.

Guy Hardwick: Hi. Good afternoon. Adam, CommScope's generally known, and correct me if I'm wrong, as a scale-out and scale-across company in data center. Are there signs of them entering the scale-up market as well?

Speaker #7: Are there signs of them entering the scale-up market as well?

Speaker #3: Yeah. Well, thanks very much, Guy. I mean, look, I think they're known as "scale out, scale across" because that's where optics has been present so far.

R. Adam Norwitt: Well, thanks very much, Guy. Look, I think they're known as a scale-out, scale-across because that's where optics has been present so far. There's no question that to the extent, and I would say to the extent, because this still remains to be seen what the architectures of the future will be like. Clearly, there'll be hybrid architectures. To that extent, I can tell you that CommScope, especially given Amphenol's unique relationships 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. Being part of Amphenol has been a great thing for them, and they are certainly part of that discussion in a very significant way.

Adam Norwitt: Well, thanks very much, Guy. Look, I think they're known as a scale-out, scale-across because that's where optics has been present so far. There's no question that to the extent, and I would say to the extent, because this still remains to be seen what the architectures of the future will be like. Clearly, there'll be hybrid architectures. To that extent, I can tell you that CommScope, especially given Amphenol's unique relationships 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. Being part of Amphenol has been a great thing for them, and they are certainly part of that discussion in a very significant way.

Speaker #3: But there's no question that, to the extent—and I would say to the extent because this still remains to be seen—what the architectures of the future will be like.

Speaker #3: Clearly, there will be hybrid architectures. But to that extent, I can tell you that Commscope, especially given Amphenol's unique relationships 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.

Speaker #3: 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.

Speaker #1: We have a question from Andrew Buscaglia with BNP Paribas. Please go ahead.

Operator 3: We have a question from Andrew Buscaglia with BNP Paribas. Please go ahead.

Operator: We have a question from Andrew Buscaglia with BNP Paribas. Please go ahead.

Speaker #6: Hey. Good morning, everyone.

Andrew Buscaglia: Hey, good morning, everyone.

Speaker #3: Good morning.

R. Adam Norwitt: Good morning.

Adam Norwitt: Good morning.

Speaker #6: I just wanted to check on the risk of bottlenecks here. One question I often get, given the importance of fiber, is your ability to secure enough raw fiber to meet demand.

Andrew Buscaglia: Just wanted to check on risk of bottlenecks here. One 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. Secondly, just any internal or external things you're evaluating in terms of bottlenecks, just given we've had a thermal equipment tiered report this morning which cited some of these issues, and just want to make sure we're keeping an eye on that, if you could comment there.

Speaker #6: If you could comment on that. And then, secondly, are there any internal or external factors you're evaluating in terms of bottlenecks? Just given we've had a thermal equipment tiered report this morning which highlighted some of these issues, and I just want to make sure we're keeping an eye on that. If you could comment there.

Speaker #3: Yeah. Thanks very much, Andrew. I think I mentioned earlier that there’s 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.

R. Adam Norwitt: Thanks very much, Andrew. I think I mentioned earlier that there's 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, look, we have 150 operations around Amphenol, each of them run by a general manager, 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, it's an enormous list of challenges and opportunities that they face every day. Do we see anything broadly in terms of bottlenecks that are constraining our ability to satisfy our customers or deliver results? We don't. Else we wouldn't have produced 30% organic growth in the quarter or grown 13% sequentially on an organic basis. It doesn't mean there aren't challenges.

Adam Norwitt: Thanks very much, Andrew. I think I mentioned earlier that there's 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, look, we have 150 operations around Amphenol, each of them run by a general manager, 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, it's an enormous list of challenges and opportunities that they face every day. Do we see anything broadly in terms of bottlenecks that are constraining our ability to satisfy our customers or deliver results? We don't. Else we wouldn't have produced 30% organic growth in the quarter or grown 13% sequentially on an organic basis. It doesn't mean there aren't challenges.

Speaker #3: In terms of other bottlenecks, I mean, look, we have 150 operations around Amphenol, each of them run by a general manager empowered with the authority to do what it takes to run their business.

Speaker #3: And we then hold those general managers accountable. What they deal with on a day-to-day basis—it's an enormous list of challenges and opportunities that they face every day.

Speaker #3: Do we see anything broadly in terms of bottlenecks that are constraining our ability to satisfy our customers or deliver results? We don't. I mean, otherwise we wouldn't have produced 30% organic growth in the quarter or grown 13% sequentially on an organic basis.

Speaker #3: It doesn't mean there aren't challenges. It just means that we've got 150 entrepreneurs who are embodying the unique culture of Amphenol out there, managing these issues day in and day out.

R. Adam Norwitt: It just means that we've 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. Making investments internally when we think that in the future there may be an opportunity. Creating a multiplicity of sources for those things that maybe the vendors couldn't keep up with us. We have grown the company in a two-year period by double in its total size, and roughly a third of that has come through acquisitions, the additions of these great companies. Two-thirds of that's been organic growth over a two-year period. That means that we need that same amount of increase in capabilities and capacities from the thousands of companies that we work with as vendors. We don't manage that at headquarters. There's no central procurement organization.

Adam Norwitt: It just means that we've 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. Making investments internally when we think that in the future there may be an opportunity. Creating a multiplicity of sources for those things that maybe the vendors couldn't keep up with us. We have grown the company in a two-year period by double in its total size, and roughly a third of that has come through acquisitions, the additions of these great companies. Two-thirds of that's been organic growth over a two-year period. That means that we need that same amount of increase in capabilities and capacities from the thousands of companies that we work with as vendors. We don't manage that at headquarters. There's no central procurement organization.

Speaker #3: And also planning for that, making investments internally when we think that in the future there may be an opportunity. Creating a multiplicity of sources for those things that maybe the vendors couldn't keep up with us.

Speaker #3: I mean, we have grown the company over a two-year period by doubling its total size. And roughly a third of that has come through acquisitions—the additions of these great companies.

Speaker #3: But two-thirds of that has been organic growth over a two-year period. And that means that we need that same amount of increase in capabilities and capacities from the thousands of companies that we work with as vendors.

Speaker #3: We don't manage that at headquarters. There's no central procurement organization. In our small, rundown headquarters building off the highway here in Wallingford, Connecticut, there's not a single person on our team who is in charge of, quote-unquote, "procurement" or "sourcing" or anything like that.

R. Adam Norwitt: In our small little rundown headquarters building off the highway here in Wallingford, Connecticut, there's not a single person in our team who is in charge of "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. What they do is they just mow down the impediments that may be there for them to achieve what they want to achieve.

Adam Norwitt: In our small little rundown headquarters building off the highway here in Wallingford, Connecticut, there's not a single person in our team who is in charge of "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. What they do is they just mow down the impediments that may be there for them to achieve what they want to achieve.

Speaker #3: 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, and their quality team.

Speaker #3: As a true entrepreneurial organization, what they do is they just mow down the impediments that may be there for them to achieve what they want to achieve.

Speaker #3: Sorry for the long detour onto the culture here, but at the end of the day, we don't see any significant bottlenecks—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.

R. Adam Norwitt: Sorry for the long detour onto the culture here, at the end of the day, we don't see any significant bottlenecks, 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 Q3 and beyond.

Adam Norwitt: Sorry for the long detour onto the culture here, at the end of the day, we don't see any significant bottlenecks, 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 Q3 and beyond.

Speaker #1: We have a question from Mark Delaney from Goldman Sachs. Please go ahead.

Operator 3: We have a question from Mark Delaney from Goldman Sachs. Please go ahead.

Operator: We have a question from Mark Delaney from Goldman Sachs. Please go ahead.

Speaker #5: Good afternoon. Thank you very much for taking my question. Adam, you said it hinges as a driver of the mobile devices business and some of the growth you expect for this quarter.

Mark Delaney: Good afternoon. Thank you very much for taking my question. Adam, you said it hinges as a driver of the mobile devices business and some of the growth you expect for this quarter. I'm hoping you can give more color on how impactful that product line may be going forward.

Speaker #5: I'm hoping you can give more color on how impactful that product line may be going forward.

Speaker #3: Yeah, thanks very much, Mark. I mean, nice to get a question on mobile devices. I mean, I feel really proud of our team working in mobile devices.

R. Adam Norwitt: Yeah. Thanks very much, Mark. Nice to get a question on mobile devices. I feel really proud of our team working in mobile devices, growing 14% organically in the quarter. We've talked for a long time about the fact that our product offering in mobile devices, running from antennas, interconnect products, and mechanisms, including in particular hinges. We've been a hinge manufacturer for, gosh, more than 2 decades now. That's something where our team is just a phenomenal capability. Actually, Craig and I were visiting some of our factories just a couple of weeks ago, just to see the amazing vertical integration of what our team does and the unique array of products that they're working on.

Adam Norwitt: Yeah. Thanks very much, Mark. Nice to get a question on mobile devices. I feel really proud of our team working in mobile devices, growing 14% organically in the quarter. We've talked for a long time about the fact that our product offering in mobile devices, running from antennas, interconnect products, and mechanisms, including in particular hinges. We've been a hinge manufacturer for, gosh, more than 2 decades now. That's something where our team is just a phenomenal capability. Actually, Craig and I were visiting some of our factories just a couple of weeks ago, just to see the amazing vertical integration of what our team does and the unique array of products that they're working on.

Speaker #3: Growing 14% organically in the quarter. And we've talked for a long time about the fact that our product offering in mobile devices runs from antennas, interconnect products, and mechanisms, including, in particular, hinges.

Speaker #3: I mean, we've been a hinge manufacturer for, gosh, more than two decades now. And that's something where our team has just a phenomenal capability. Actually, Craig and I were visiting some of our factories just a couple of weeks ago, and just to see the amazing vertical integration of what our team does and the unique array of products that they're working on.

Speaker #3: And so we continue to work on a range of products. And as you can imagine, I'm not going to comment on any specific customer programs, but we remain a leader in the industry in creating advanced mechanisms for unique architectures that are coming.

R. Adam Norwitt: We continue to work on a range of products, and you can imagine I'm not going to comment on any specific customer programs, but we remain a leader in the industry in creating advanced mechanisms for unique architectures that are coming. I would just tell you that what we see in the mobile devices market is just a continued blossoming of the multitude of different things that are out there. Whether it's 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. That's something that I never would have dreamed of, that I could just see in real-time where my dog is.

Adam Norwitt: We continue to work on a range of products, and you can imagine I'm not going to comment on any specific customer programs, but we remain a leader in the industry in creating advanced mechanisms for unique architectures that are coming. I would just tell you that what we see in the mobile devices market is just a continued blossoming of the multitude of different things that are out there. Whether it's 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. That's something that I never would have dreamed of, that I could just see in real-time where my dog is.

Speaker #3: And I would just tell you that what we see in the mobile devices market is just a continued blossoming of the multitude of different things that are out there.

Speaker #3: I mean, whether it's wearables that humans have—I just got a dog, and she now has a wearable on her. So I can pull up my phone and tell you where she is right now, which is pretty darn cool.

Speaker #3: Her name is Luna. She’s very cute, and that’s something that I never would have dreamed of—that I could just see in real time where my dog is.

Speaker #3: But there are so many different things that you can do with mobile devices. Whether you put them in your ear, on your wrist, around your neck; whether you fold them or you hold them, or they're big or they're little, they all require advanced technologies for antennas, interconnect, and also now, increasingly, the mechanisms.

R. Adam Norwitt: There's so many different things that you can do with mobile devices. Whether you put them in your ear, on your wrist, around your neck, whether you fold them or you hold them or they're big or they're 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. We're confident that that's going to create value for us long into the future.

Adam Norwitt: There's so many different things that you can do with mobile devices. Whether you put them in your ear, on your wrist, around your neck, whether you fold them or you hold them or they're big or they're 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. We're confident that that's going to create value for us long into the future.

Speaker #3: Our team's done a great job building that capability up, and we're confident that it's going to create value for us long into the future.

Speaker #1: We have a question from Joe Spack from UBS. Please go ahead.

Operator 3: We have a question from Joseph Spak from UBS. Please go ahead.

Operator: We have a question from Joseph Spak from UBS. Please go ahead.

Joseph Spak: Hey, everyone. Adam, I know it's not a large part of your business, but I believe you do inverters on the defense side, and you do some DC-DC converters on the auto side. I'm just wondering about your interest in power electronics more broadly, either organically or inorganically, especially in light of this ruling that foreign power inverters might not be allowed in the US for grid applications and other applications. I'm just curious about if you think that at all plays into some of your core competencies.

Joe Spak: Hey, everyone. Adam, I know it's not a large part of your business, but I believe you do inverters on the defense side, and you do some DC-DC converters on the auto side. I'm just wondering about your interest in power electronics more broadly, either organically or inorganically, especially in light of this ruling that foreign power inverters might not be allowed in the US for grid applications and other applications. I'm just curious about if you think that at all plays into some of your core competencies.

Speaker #6: Hey, everyone. Adam, I know it's not a large part of your business, but I believe you do inverters on the defense side, and you do some DC-DC converters on the auto side.

Speaker #6: And I'm just wondering about your interest in power electronics more broadly, either organically or inorganically, especially in light of this ruling that foreign power inverters might not be allowed in the US for grid applications and other applications.

Speaker #6: So, I'm just curious if you think that, at all, plays into some of your core competencies.

Speaker #3: Yeah, thanks very much, Joe. I mean, look, to the extent that we do anything there, it's pretty modest. So I wouldn't—I wouldn't highlight anything that we do at all in that world.

R. Adam Norwitt: Yeah. Thanks very much, Joe. Look, to the extent that we do anything there, it's pretty modest. I wouldn't highlight anything that we do at all in that world. Look, power in the broadest sense, power interconnect, how you get a signal from place to place is certainly a very important part of our business. Are we going to get into kind of active power management and inverters and things like that? It's not something so far that we have done or that we have done in any meaningful way. Look, we're 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. That's very important for us.

Adam Norwitt: Yeah. Thanks very much, Joe. Look, to the extent that we do anything there, it's pretty modest. I wouldn't highlight anything that we do at all in that world. Look, power in the broadest sense, power interconnect, how you get a signal from place to place is certainly a very important part of our business. Are we going to get into kind of active power management and inverters and things like that? It's not something so far that we have done or that we have done in any meaningful way. Look, we're 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. That's very important for us.

Speaker #3: 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.

Speaker #3: Are we going to get into kind of active power management and inverters and things like that? I mean, it's not something so far that we have done, or that we have done in any meaningful way.

Speaker #3: But look, we're 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.

Speaker #3: And that's very important for us. Just like we got into sensors nearly 14 years ago as a way to interconnect physical phenomena to the electronic systems where we already participate very strongly.

R. Adam Norwitt: Like we got into sensors 14 years ago nearly, as a way to interconnect physical phenomenon to the electronic systems where we already participate very strongly. Look, power is very important. There's a lot going on in power. Our products are certainly an enabler of that revolution.

Adam Norwitt: Like we got into sensors 14 years ago nearly, as a way to interconnect physical phenomenon to the electronic systems where we already participate very strongly. Look, power is very important. There's a lot going on in power. Our products are certainly an enabler of that revolution.

Speaker #3: But look, power is very important. There's a lot going on in power, and our products are certainly an enabler of that revolution.

Operator 3: We have a final question from Scott Graham from Seaport Research. Please go ahead.

Operator: We have a final question from Scott Graham from Seaport Research. Please go ahead.

Speaker #1: We have a final question from Scott Graham from Seaport Research. Please go ahead.

Speaker #7: Hey, good afternoon. Thanks for taking my question. Congratulations on the quarter. I was just wondering if in the past, Adam, you've been willing to call out specific industrial markets where you saw better success in sales.

Scott Graham: Hey, good afternoon. Thanks for taking my question. Congratulations on the quarter. I was just wondering if, in the past, Adam, you've 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.

Speaker #7: I was wondering if you can do the same for us today.

Speaker #3: Yeah, thanks very much, Scott. It'd be my pleasure, actually. I mean, we're really proud of our industrial market and the folks working in and around industrial.

R. Adam Norwitt: Yeah. Thanks very much, Scott. It'd be my pleasure, actually. I mean, we're really proud of our industrial market, and the folks working in and around industrial. It's already a long time ago, but there were a couple rough years in industrial. Now, we've strung together, I don't know, two and a half straight years of really strong organic growth. We see that accelerating here in the quarter, growing 18% organically. We see just growth really across the board. There are some areas where you say, okay, instrumentation growing very strongly, not surprising given factories and the build-out of semiconductors and the like. Factory automation growing very strongly. At the same time, we see great growth in anything around electrification, battery storage. We see strong growth in heavy equipment, alternative energy, and into areas like safety, for example, as well.

Adam Norwitt: Yeah. Thanks very much, Scott. It'd be my pleasure, actually. I mean, we're really proud of our industrial market, and the folks working in and around industrial. It's already a long time ago, but there were a couple rough years in industrial. Now, we've strung together, I don't know, two and a half straight years of really strong organic growth. We see that accelerating here in the quarter, growing 18% organically. We see just growth really across the board. There are some areas where you say, okay, instrumentation growing very strongly, not surprising given factories and the build-out of semiconductors and the like. Factory automation growing very strongly. At the same time, we see great growth in anything around electrification, battery storage. We see strong growth in heavy equipment, alternative energy, and into areas like safety, for example, as well.

Speaker #3: I mean, it was already a long time ago, but there were a couple of rough years in Industrial. But now we've strung together, I don't know, two and a half straight years of really strong organic growth.

Speaker #3: And we see that accelerating here in the quarter, growing 18% organically. And we see just growth really across the board. I mean, there are some areas where you say, okay, instrumentation growing very strongly.

Speaker #3: Not surprising given factories and the build-out of semiconductors and the like. Factory automation is growing very strongly. But at the same time, we see great growth in anything around electrification, battery storage.

Speaker #3: We see strong growth in heavy equipment, alternative energy, and in the areas like safety, for example, as well. I mean, honestly, I go down the list of all of the of all of the end markets or subsegments in the industrial market.

R. Adam Norwitt: Honestly, I go down the list of all of the end markets or subsegments in the industrial market, I'm hard-pressed to find one that's not really performing right now. With the addition of CommScope, as I mentioned earlier, opening up this whole new world for us, which is called construction and 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 around the world. CommScope sells their products through distribution into, I don't know, 150, 180 different countries around the world. 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.

Adam Norwitt: Honestly, I go down the list of all of the end markets or subsegments in the industrial market, I'm hard-pressed to find one that's not really performing right now. With the addition of CommScope, as I mentioned earlier, opening up this whole new world for us, which is called construction and 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 around the world. CommScope sells their products through distribution into, I don't know, 150, 180 different countries around the world. 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.

Speaker #3: I'm hard-pressed to find one that's not really performing right now. And with the addition of CommScope, as I mentioned earlier, opening up this whole new world for us, which is called construction and 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 around the world.

Speaker #3: And CommScope sells their products through distribution into, I don't know, 150, 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.

Speaker #3: So the industrial market is just a wonderful place for Amphenol—20% of sales—with great growth opportunities. And we see a lot of revolutions happening across all of these really interesting segments of the industrial market.

R. Adam Norwitt: The industrial market is just a wonderful place for Amphenol, 20% of sales with great growth opportunities. We see a lot of revolutions happening, really across all of these really interesting segments of the industrial market.

Adam Norwitt: The industrial market is just a wonderful place for Amphenol, 20% of sales with great growth opportunities. We see a lot of revolutions happening, really across all of these really interesting segments of the industrial market.

Speaker #1: We currently have no further questions, so I will hand it back to Mr. Norwitt for closing remarks.

Operator 3: We currently have no further questions, so I will hand back to Mr. Norwitt for closing remarks.

Operator: We currently have no further questions, so I will hand back to Mr. Norwitt for closing remarks.

Speaker #3: Well, thank you very much, everybody, for taking your time here on what’s a sort of stormy summer day here in Connecticut. But I hope all of you have a great summer.

R. Adam Norwitt: Well, thank you very much, everybody, for taking your time here on what's 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.

Adam Norwitt: Well, thank you very much, everybody, for taking your time here on what's 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.

Speaker #3: 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.

Speaker #3: Thanks so much, and have a great rest of your summer.

Speaker #2: Take care. Thank you.

Craig Lampo: Take care. Thank you.

Speaker #1: This concludes today's call. Thank you for joining. You may now disconnect your lines. This event has now concluded. Thank you for joining AMPHENOL Corporation's second quarter 2026 earnings.

Operator 3: This concludes today's call. Thank you for joining. You may now disconnect your lines. This event has now concluded. Thank you for joining Amphenol Corporation Q2 2026 Earnings. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for joining. You may now disconnect your lines. This event has now concluded. Thank you for joining Amphenol Corporation Q2 2026 Earnings. The line will disconnect automatically.

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