CommScope (COMM) stock skyrocketed 84.98% in pre-market trading on Monday following the announcement of a definitive agreement to sell its Connectivity and Cable Solutions (CCS) segment to Amphenol Corporation for $10.5 billion in cash. This strategic move, coupled with strong Q2 earnings results, has sparked a significant rally in CommScope's shares.

The sale of the CCS segment, which is CommScope's largest division by sales and operating income, marks a transformative step for the company. The transaction is expected to close in the first half of 2026, subject to customary closing conditions. CommScope plans to use the net proceeds, estimated at around $10 billion after taxes and expenses, to repay debt, redeem preferred equity, and distribute excess cash to shareholders as a dividend within 60 to 90 days post-closing.

Adding to the positive momentum, CommScope reported impressive Q2 2025 financial results. The company's net sales reached $1.39 billion, marking a 31.7% increase from the same quarter last year. Non-GAAP adjusted earnings per share surged to $0.44, significantly beating the analyst estimate of $0.23. The strong performance was driven by growth across all segments, with non-GAAP adjusted EBITDA margin increasing to 24.3% from 17.9% in Q2 2024.

CEO Chuck Treadway expressed enthusiasm for the deal, highlighting its potential to unlock equity value and strengthen CommScope's remaining businesses. The company also raised its 2025 adjusted EBITDA guidance to a range of $1.15 to $1.20 billion, indicating a strong position for future growth. This strategic divestiture, combined with robust financial performance, has instilled investor confidence in CommScope's future prospects, leading to the substantial pre-market surge in its stock price.