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Sensata (ST) Up 27.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Sensata (ST - Free Report) . Shares have added about 27.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sensata due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Sensata Q1 Earnings Beat Estimates
Sensata reported first-quarter 2026 adjusted earnings per share (EPS) of 86 cents, up from 78 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.4%.
Revenues for the quarter reached $934.8 million, up 2.6% from a year ago. The figure came near to the upper end of management’s expectations ($917-$937 million) and beat the consensus estimate by 0.7%. Strength Aerospace, Defense and Commercial Equipment segments drove the top-line performance.
Management stated that the company’s first-quarter performance met or surpassed expectations across all key metrics, reinforcing the strong momentum it is building. Management also highlighted that disciplined execution across the organization, along with an effective productivity engine, is driving results. Additionally, the company’s strategic initiatives are gaining pace, while its growth opportunities remain solid and promising.
Segmental Results
Sensata has realigned its structure into three operating segments — Automotive, Industrials, and Aerospace, Defense and Commercial Equipment, which are now reflected as its new reporting segments.
Automotive revenues (56.1% of total revenues) decreased 0.8% (up 0.7% on an organic basis) year over year to $524.8 million. The Automotive segment outperformed overall market production by roughly 4%.
Segmental adjusted operating income was $123.2 million compared with $120.3 million in the prior-year quarter.
Industrials revenues (19.7% of total revenues) were $184.2 million, down 0.8% (up 0.7% on an organic basis) year over year. The Industrials segment delivered organic growth despite softness in its end markets.
Segmental adjusted operating income was $50 million compared with $48.5 million in the prior-year quarter.
Aerospace, Defense and Commercial Equipment revenues (24.2% of total revenues) were $225.8 million, up 14.8% (up 16.7% on an organic basis) year over year. The Aerospace, Defense and Commercial Equipment segment showed broad-based year-over-year strength, with both Aerospace & Defense and Commercial Equipment delivering double-digit growth.
Segmental adjusted operating income was $63.5 million compared with $50.1 million in the prior-year quarter.
Other Details
Adjusted operating income was $174 million, up 4.5% year over year from $166.5 million. Adjusted operating margin expanded 30 basis points to 18.6%.
Adjusted EBITDA totaled $206.5 million in the quarter, up from $200.2 million in the previous-year quarter.
Total operating expenses were $793.2 million, up 0.5% year over year.
Cash Flow & Liquidity
In the quarter under discussion, Sensata generated $122.5 million of net cash from operating activities compared with $119.2 million in the prior-year quarter.
Free cash flow was $104.6 million compared with $86.6 million a year ago.
As of March 31, 2026, the company had $635.1 million in cash and cash equivalents and $2,829.4 million of net long-term debt compared with $573 million and $2,828.6 million, respectively, as of Dec. 31, 2025.
In the first quarter of 2026, Sensata returned approximately $42.6 million to shareholders, including $17.5 million in quarterly dividends and $25.1 million through share repurchases.
Q2 Outlook
For the second quarter of 2026, Sensata expects revenue in the range of $950 million to $980 million, representing year-over-year growth of 1% to 4% compared with $943 million in the prior-year quarter. At the midpoint of this guidance, revenue includes approximately $8 million related to expected tariff recovery from customers.
Adjusted operating income is projected between $182 million and $190 million, reflecting an increase of 2% to 6% from $179 million a year ago. Adjusted operating margin is anticipated to improve to 19.2–19.4% from 19% in the second quarter of 2025, indicating an expansion of 20 to 40 basis points.
Adjusted net income is expected to be in the range of $131 million to $139 million, marking a 3% to 9% increase from $127 million in the prior-year period. Adjusted earnings per share are forecast between 89 and 95 cents, suggesting growth of 2% to 9% compared with 87 cents reported a year earlier.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Sensata has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Sensata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Sensata belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Badger Meter (BMI - Free Report) , has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Badger Meter reported revenues of $202.28 million in the last reported quarter, representing a year-over-year change of -9%. EPS of $0.93 for the same period compares with $1.30 a year ago.
For the current quarter, Badger Meter is expected to post earnings of $1.01 per share, indicating a change of -13.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
Badger Meter has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Sensata (ST) Up 27.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Sensata (ST - Free Report) . Shares have added about 27.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sensata due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Sensata Q1 Earnings Beat Estimates
Sensata reported first-quarter 2026 adjusted earnings per share (EPS) of 86 cents, up from 78 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.4%.
Revenues for the quarter reached $934.8 million, up 2.6% from a year ago. The figure came near to the upper end of management’s expectations ($917-$937 million) and beat the consensus estimate by 0.7%. Strength Aerospace, Defense and Commercial Equipment segments drove the top-line performance.
Management stated that the company’s first-quarter performance met or surpassed expectations across all key metrics, reinforcing the strong momentum it is building. Management also highlighted that disciplined execution across the organization, along with an effective productivity engine, is driving results. Additionally, the company’s strategic initiatives are gaining pace, while its growth opportunities remain solid and promising.
Segmental Results
Sensata has realigned its structure into three operating segments — Automotive, Industrials, and Aerospace, Defense and Commercial Equipment, which are now reflected as its new reporting segments.
Automotive revenues (56.1% of total revenues) decreased 0.8% (up 0.7% on an organic basis) year over year to $524.8 million. The Automotive segment outperformed overall market production by roughly 4%.
Segmental adjusted operating income was $123.2 million compared with $120.3 million in the prior-year quarter.
Industrials revenues (19.7% of total revenues) were $184.2 million, down 0.8% (up 0.7% on an organic basis) year over year. The Industrials segment delivered organic growth despite softness in its end markets.
Segmental adjusted operating income was $50 million compared with $48.5 million in the prior-year quarter.
Aerospace, Defense and Commercial Equipment revenues (24.2% of total revenues) were $225.8 million, up 14.8% (up 16.7% on an organic basis) year over year. The Aerospace, Defense and Commercial Equipment segment showed broad-based year-over-year strength, with both Aerospace & Defense and Commercial Equipment delivering double-digit growth.
Segmental adjusted operating income was $63.5 million compared with $50.1 million in the prior-year quarter.
Other Details
Adjusted operating income was $174 million, up 4.5% year over year from $166.5 million. Adjusted operating margin expanded 30 basis points to 18.6%.
Adjusted EBITDA totaled $206.5 million in the quarter, up from $200.2 million in the previous-year quarter.
Total operating expenses were $793.2 million, up 0.5% year over year.
Cash Flow & Liquidity
In the quarter under discussion, Sensata generated $122.5 million of net cash from operating activities compared with $119.2 million in the prior-year quarter.
Free cash flow was $104.6 million compared with $86.6 million a year ago.
As of March 31, 2026, the company had $635.1 million in cash and cash equivalents and $2,829.4 million of net long-term debt compared with $573 million and $2,828.6 million, respectively, as of Dec. 31, 2025.
In the first quarter of 2026, Sensata returned approximately $42.6 million to shareholders, including $17.5 million in quarterly dividends and $25.1 million through share repurchases.
Q2 Outlook
For the second quarter of 2026, Sensata expects revenue in the range of $950 million to $980 million, representing year-over-year growth of 1% to 4% compared with $943 million in the prior-year quarter. At the midpoint of this guidance, revenue includes approximately $8 million related to expected tariff recovery from customers.
Adjusted operating income is projected between $182 million and $190 million, reflecting an increase of 2% to 6% from $179 million a year ago. Adjusted operating margin is anticipated to improve to 19.2–19.4% from 19% in the second quarter of 2025, indicating an expansion of 20 to 40 basis points.
Adjusted net income is expected to be in the range of $131 million to $139 million, marking a 3% to 9% increase from $127 million in the prior-year period.
Adjusted earnings per share are forecast between 89 and 95 cents, suggesting growth of 2% to 9% compared with 87 cents reported a year earlier.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Sensata has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Sensata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Sensata belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Badger Meter (BMI - Free Report) , has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Badger Meter reported revenues of $202.28 million in the last reported quarter, representing a year-over-year change of -9%. EPS of $0.93 for the same period compares with $1.30 a year ago.
For the current quarter, Badger Meter is expected to post earnings of $1.01 per share, indicating a change of -13.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
Badger Meter has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.