Aptiv (APTV) Q3 2026 earnings summary

Executive summary

• Q3 revenue was a record $3.199B, up 2%; non-auto growth and bookings supported results amid automotive and European Intelligent Systems headwinds.

• GAAP net income from continuing operations was $194M; the prior-year Q3 loss included a $648M non-cash goodwill impairment.

Financial highlights

• Adjusted EBITDA was $567M, with a 17.7% margin, down 140 bps YoY; adjusted net income was $292M and adjusted EPS was $1.42 versus $1.48.

• Q3 operating cash flow from continuing operations was $320M and free cash flow was $194M; 9M free cash flow was $44M.

• 9M revenue rose 2% to $9.505B; adjusted EBITDA was $1.729B versus $1.754B, and adjusted net income was $897M versus $940M.

• Q3 gross margin was 21.6%, down from 23.0%; operating income was $281M versus an operating loss of $353M.

Outlook and guidance

• FY 2026 guidance: revenue $12.650B–$12.750B, adjusted EBITDA $2.310B–$2.370B at an 18.4% margin, adjusted EPS $5.60–$5.80, and free cash flow $625M–$675M.

• Q4 guidance: revenue $3.110B–$3.210B, adjusted EBITDA $582M–$642M at a 19.4% margin, and adjusted EPS $1.35–$1.55.

• Preliminary 2027 outlook embeds conservatism: adjusted growth ~4% against weighted global vehicle production down 2%, adjusted EBITDA margin ~17.2%, and a ~$300M EU headwind.

• 2027 semiconductor and material-inflation recoveries are estimated at ~$700M, primarily memory; recoveries lift revenue but dilute margins, with a 26%–27% incremental margin algorithm excluding recoveries.

• FY 2026 free cash flow midpoint was reduced $25M to $650M; separation costs and supply-chain resilience investments are expected to reduce 2026 cash flow by $500M.