10-Q · April 28, 2026
Sensata Technologies reported a 2.6% increase in revenue for Q1 2026, achieving $934.8 million, which surpassed both consensus estimates and prior year results. Gross margin improved to 29.9% while operating income…
Earnings analysis · 10-Q
ST earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Sensata delivered strong Q3 performance, with revenue of $1,004.0 million, adjusted EPS of $1.13, adjusted operating margin of 21.5%, and free cash flow of $198.3 million. Revenue, operating margin, EPS, and free cash…
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Sensata delivered strong Q3 performance, with revenue of $1,004.0 million, adjusted EPS of $1.13, adjusted operating margin of 21.5%, and free cash flow of $198.3 million. Revenue, operating margin, EPS, and free cash flow all improved sequentially and year over year, while EPS and revenue exceeded consensus estimates. The principal offsets are a Q4 outlook for revenue of $942 million-$972 million and adjusted EPS of $0.95-$0.99, plus the planned December 31, 2026 departure of the Chief Growth and Transformation Officer.
Reported figures
- Earnings per share
- $1.13
- Operating margin
- 21.5%
What stood out
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Revenue Accelerated Year Over Year
Revenue was $1,004.0 million, up from $991 million in Q2 2026 and $932 million in Q3 2025, representing sequential growth of approximately 1.3% and year-over-year growth of approximately 7.7%.
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EPS Beat Estimates
Adjusted EPS was $1.13, versus $0.70 in Q2 2026 and negative $1.12 in Q3 2025. EPS exceeded the $0.96 consensus estimate by $0.17, or approximately 17.7%.
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Operating Margin Expanded
Adjusted operating margin was 21.5%, up from 16.7% in Q2 2026, an improvement of 4.8 percentage points sequentially.
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Free Cash Flow Remained Strong
Free cash flow was $198.3 million, up from $186 million in Q2 2026 and $136 million in Q3 2025. The year-over-year increase was approximately 45.8%.
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Repurchase Capacity Preserved
The company had $257.3 million remaining under its publicly announced share-repurchase authorization at September 30, 2026; no shares were repurchased under the program during the quarter.
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Controls Remained Effective
Management concluded that disclosure controls were effective and reported no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter ended September 30, 2026.
What to watch
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Chief Growth Officer Departure
Executive transition risk increased as Patrick Hertzke, Executive Vice President and Chief Growth and Transformation Officer, agreed to depart effective December 31, 2026. His responsibilities are being integrated into operating segments, and the company will provide 12 months of base-salary severance plus 100% of his target bonus, subject to the release agreement.
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Q4 Revenue and EPS Step Down
The Q4 outlook implies a sequential revenue decline from $1,004.0 million in Q3 to $942 million-$972 million, while adjusted EPS is forecast at $0.95-$0.99 versus $1.13 in Q3. The outlook also references recovery of tariff costs and excludes prospective tariff refunds, creating potential sensitivity to trade-policy outcomes.
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Tariff Recovery Remains Uncertain
The filing states that no material changes were made to the risk factors in the 2025 Annual Report, but tariff and trade-policy exposure remains relevant because the Q4 outlook includes recovery of tariff costs and excludes prospective tariff refunds.
Management's outlook
Q4 2026 outlook calls for revenue of $942 million-$972 million and adjusted EPS of $0.95-$0.99. The filing does not provide a prior outlook for comparison; the outlook includes recovery of tariff costs and excludes prospective tariff refunds.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.