Amphenol shares fell nearly 12% on Wednesday, despite Q1 growth guidance that topped expectations. The maker of connectors and fiber-optic cables forecast sales of between $6.9bn and $7bn, above the consensus of $6.53bn, with EPS of between 91 and 93 cents, versus 88 cents expected. The stock-market drop, after a strong run in 2025 and early this year, reflects investor disappointment at a slowdown in the pace of growth.

In Q4 2025, Amphenol posted a 49% rise in revenue to $6.44bn and EPS of 97 cents, both above forecasts. However, momentum has eased compared with previous quarters, including 57% growth in Q2 2025. With valuations elevated for companies tied to data centers and artificial intelligence, markets are now looking for tangible proof that this performance can last.

The group recently finalized the acquisition of CommScope's connectivity and cabling businesses for $10.5bn, aiming to strengthen its position in a market seeing strong demand. While the deal opens up growth opportunities, analysts note that investors' very high expectations mean even a perceived deceleration is seen as a warning sign.