Sensata Technologies (ST) Q1 2026 earnings summary

Executive summary

• Q1 2026 results met or exceeded guidance, with revenue of $935M (up 2.6–3% year-over-year) and strong free cash flow, reflecting operational excellence and transformation initiatives.

• All segments achieved organic revenue growth and margin expansion, supported by strategic execution and new leadership.

• Net income increased to $87.1M, with GAAP EPS of $0.59 and adjusted EPS of $0.86, both up year-over-year.

• Returned $43M to shareholders via dividends and share repurchases, and reduced net leverage to 2.65x.

Financial highlights

• Q1 2026 revenue was $935M, up 3% year-over-year; organic revenue grew 4.2% after adjusting for divestitures and FX.

• Adjusted operating income reached $174M (18.6% margin), up from $167M (18.3%) in Q1 2025.

• Adjusted EPS was $0.86, up $0.08 year-over-year, exceeding guidance.

• Free cash flow was $105M, up 21% year-over-year, with an 83% conversion rate.

• GAAP net income was $87.1M, up 24.6% year-over-year; GAAP diluted EPS was $0.59.

Outlook and guidance

• Q2 2026 guidance: revenue of $950M–$980M, adjusted operating income of $182M–$190M, margin of 19.2%–19.4%, adjusted EPS of $0.89–$0.95.

• Margin expansion of ~30 bps per quarter expected in the back half of 2026, contingent on stable end market demand.

• Sufficient liquidity to fund operations, capex, dividends, share repurchases, and debt service for at least the next twelve months.