Sensata Technologies (NYSE:ST) Issues Quarterly Earnings Results

Sensata Technologies (NYSE:ST) posted its earnings results on Tuesday. The scientific and technical instruments company reported $1.13 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.17, FiscalAI reports. Sensata Technologies had a net margin of 2.37% and a return on equity of 18.68%. The firm had revenue of $1 billion during the quarter, compared to the consensus estimate of $972.97 million. During the same period last year, the firm posted $0.89 EPS. The firm’s revenue for the quarter was up 7.7% on a year-over-year basis.

Here are the key takeaways from Sensata Technologies’ conference call:

• Sensata reported a strong third quarter, with revenue up 8% year over year to $1.004 billion, organic growth of 7%, adjusted EPS up 27% to $1.13, and free cash flow up 46% to $198 million. Excluding a $24 million electric-vehicle program termination payment, underlying results still met or exceeded guidance midpoints.
• Cash generation and deleveraging continued to improve: year-to-date free cash flow reached $489 million, net leverage fell to 2.1 times adjusted EBITDA, and the company repurchased $33 million of debt. Sensata expects full-year 2026 free-cash-flow conversion to exceed 100% of adjusted net income.
• Data centers remain a major growth opportunity, with related revenue expected to rise 76% to $48 million in 2026. Sensata has secured seven design wins across six hyperscalers, while liquid cooling, 800-volt architectures, and Dynapower power-management products could support further growth beginning around mid-2027.
• Growth was broad-based, with Industrials and Aerospace, Defense and Commercial Equipment each delivering approximately 13% organic revenue growth; automotive also outgrew global vehicle production despite weaker market conditions. Automotive margins improved through pricing discipline, productivity, and content gains.
• Fourth-quarter guidance reflects softer automotive production and China market dynamics, with revenue expected at $942 million-$972 million and adjusted EPS of $0.95-$0.99. Management does not expect sequential revenue growth into the first quarter of 2027 and cautioned that seasonal pricing and inventory effects may pressure first-quarter margins.

Sensata Technologies Trading Down 3.3%

NYSE ST opened at $40.90 on Thursday. The company has a market cap of $5.95 billion, a P/E ratio of 68.17, a P/E/G ratio of 1.22 and a beta of 1.25. Sensata Technologies has a 12 month low of $28.16 and a 12 month high of $53.89. The company has a debt-to-equity ratio of 0.83, a current ratio of 2.29 and a quick ratio of 1.58. The company has a 50-day moving average of $41.95 and a 200-day moving average of $41.79.

Sensata Technologies Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, November 11th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.2%. Sensata Technologies’s dividend payout ratio is currently 80.00%.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Truist Financial dropped their price target on Sensata Technologies from $58.00 to $57.00 and set a “buy” rating for the company in a research report on Wednesday. Weiss Ratings restated a “hold (c-)” rating on shares of Sensata Technologies in a research report on Wednesday. Bank of America upped their price objective on Sensata Technologies from $46.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, July 9th. Barclays increased their price objective on Sensata Technologies from $53.00 to $55.00 and gave the company an “equal weight” rating in a research note on Monday, August 3rd. Finally, Wall Street Zen cut Sensata Technologies from a “strong-buy” rating to a “buy” rating in a research report on Sunday, September 20th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $50.22.

Key Sensata Technologies News

Here are the key news stories impacting Sensata Technologies this week:

• Positive Sentiment: Sensata reported third-quarter adjusted earnings of $1.13 per share, well above the $0.96 analyst consensus, while revenue reached approximately $1.0 billion versus expectations of $972.97 million. Revenue increased 7.7% year over year, and earnings rose from $0.89 per share in the prior-year period. Sensata Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: UBS and Truist retained Buy ratings. Despite reducing their price targets to $51 and $57, respectively, both firms still imply substantial upside from recent trading levels. UBS Sensata Price Target
• Neutral Sentiment: The shares recently crossed above their 200-day moving average, a technical development that may attract momentum-focused investors, although it does not by itself change the company’s fundamentals. Sensata Stock Crosses Above 200-Day Moving Average
• Neutral Sentiment: Zacks highlighted Sensata as a strong value-stock candidate, potentially supporting investor interest, although the stock’s reported valuation metrics remain relatively demanding. Why Sensata Is a Strong Value Stock
• Negative Sentiment: Management’s fourth-quarter revenue guidance was viewed as weak, prompting concerns about near-term demand and contributing to the stock’s decline despite the third-quarter beat. Sensata Falls on Weak Q4 Revenue Guidance
• Negative Sentiment: The price-target reductions from UBS and Truist indicate that analysts see less near-term upside than previously expected, even though both remain bullish on Sensata. Truist Adjusts Sensata Price Target

Sensata Technologies Company Profile

Sensata Technologies Holding plc (NYSE: ST) is a global developer and manufacturer of sensing, control and protection solutions. The company supplies components that help monitor conditions, improve safety and efficiency, and support automated decision-making in vehicles, industrial equipment and other systems.

Its products include pressure, temperature, position, speed, force, current and fluid-level sensors, along with circuit breakers, controls and other protection devices. Sensata’s technologies are used in applications such as automotive systems, heavy-duty vehicles, industrial machinery, heating and air-conditioning equipment, aerospace and defense, energy infrastructure, and data centers.

Sensata serves original equipment manufacturers and other industrial customers across North America, Europe, Asia and additional international markets.