Sensata Technologies (ST) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1,003.6M, up 7.7% reported and 6.8% organically; all three segments delivered organic growth.

• Adjusted EPS rose 27.0% to $1.13 and free cash flow increased 45.6% to $198.3M; underlying results met or exceeded guidance midpoints excluding a $24.0M termination payment.

• Priorities include cash conversion, balance-sheet improvement and capital-light organic growth through adjacent markets and product innovation.

Financial highlights

• Excluding the $24.0M EV-program termination payment, revenue was $979.6M, adjusted operating income was $191.3M and adjusted EPS was $0.97.

• Adjusted operating income rose 19.9% to $215.3M; adjusted operating margin was 21.5%, or 19.5% excluding the payment, up 20 bps YoY on that basis.

• Adjusted gross profit was $341.8M, up 16.4%; adjusted gross margin was 34.1% versus 31.5% a year earlier.

• GAAP operating income was $175.3M and net income was $114.2M, versus losses of $122.9M and $162.5M, respectively, in Q3 2025.

• Nine-month revenue rose 5.1% to $2,929.1M; adjusted operating income increased 10.9% to $582.7M and adjusted EPS rose 16.9% to $2.97.

Outlook and guidance

• Q4 revenue guidance is $942M–$972M; adjusted operating income is $185M–$192M, adjusted margin is 19.6%, adjusted net income is $140M–$145M and adjusted EPS is $0.95–$0.99.

• Q4 adjusted EPS growth is guided at 8%–13% YoY; guidance reflects trade policies effective October 26, 2026, includes tariff-cost recovery and excludes potential tariff refunds.

• Q4 outlook assumes global light vehicle production declines 4% YoY; expected auto outgrowth is ~1%.

• Q1 2027 revenue is not expected to rise sequentially from Q4; modest YoY margin expansion is expected, with 20 bps targeted for full-year 2027.