Sensata tops Q3 profit estimates, in line on revenue

Sensata Technologies Holding plc (ST) topped third-quarter profit estimates, a regulatory filing showed on Oct. 27, 2026, and the company said a $24.0 million customer payment for a cancelled electric vehicle program helped the quarter.

Adjusted earnings per share were $1.13, above the $0.99 consensus estimate compiled by Finnhub. Revenue was $1,003.6 million, in line with the $1 billion estimate from the same source.

Here's how the company did:

• Revenue: $1,003.6 million vs. $932.0 million a year earlier
• Adjusted EPS: $1.13 vs. $0.99 expected, according to Finnhub; $0.89 a year earlier
• GAAP EPS: 78 cents vs. a loss of $1.12 per share a year earlier

The company is a global industrial technology company that makes sensors, electrical protection components and sensor-rich solutions. It has more than 16,000 employees and operations in 13 countries, and it sells into the automotive, heavy vehicle and off-road, industrial, and aerospace markets.

Revenue rose 7.7% from a year earlier. Organic revenue grew 6.8%, and the termination payment contributed 2.6% of that growth. Without the payment, revenue would have been $979.6 million.

Operating income was $175.3 million, or 17.5% of revenue, against an operating loss of $122.9 million a year earlier. Adjusted operating income was $215.3 million, or 21.5% of revenue, up 19.9% from $179.6 million.

"Our core business is stronger, and we have growing conviction in our ability to accelerate long-term organic growth," said Chief Executive Officer Stephan von Schuckmann. "While I am encouraged by the value we have unlocked so far, I am even more excited about the opportunity ahead of us."

Segment results

Automotive revenue was $555.8 million, up from $535.8 million, and operating income was $157.9 million, up from $127.0 million.

Industrials revenue was $209.8 million, up from $186.3 million. Operating income was $60.5 million, up from $50.7 million.

Aerospace, Defense, and Commercial Equipment revenue was $238.0 million, up from $209.9 million. Operating income was $63.5 million, up from $57.4 million.

Fourth-quarter guidance

The company expects fourth-quarter revenue of $942 million to $972 million, against $918 million a year earlier. It expects adjusted EPS of 95 cents to 99 cents, against 88 cents a year earlier.

The tariff expectations reflect trade policies in effect as of Oct. 26, 2026, and do not include any prospective tariff refunds.

According to its SEC filings, net income rose in each of the last three quarters, from a loss of $162.5 million in the third quarter of 2025 to $102.1 million in the second quarter of 2026.

Cash and capital returns

Operating cash flow was $225.3 million in the third quarter, and free cash flow was $198.3 million, a conversion rate of 119%. Cash on hand was $553.4 million at Sept. 30.

The company returned $17.5 million to shareholders through its quarterly dividend in the third quarter. It retired $32.6 million of long-term debt through open market repurchases.

For the first nine months, revenue was $2,929.1 million, up 5.1% from $2,786.6 million, and adjusted EPS was $2.97, up 16.9% from $2.54. The company completed a $400 million cash tender offer to retire about $406 million of long-term debt, and returned $77.5 million to shareholders, including $25.1 million through share repurchases.

The company will hold a conference call at 5:00 p.m. Eastern Time on Oct. 27 to discuss the results and its fourth-quarter outlook.