Sensata Technologies Q3 revenue beats, helped by termination payment

Sensata Technologies Holding

Yesterday 20:17

Overview
Industrial sensors maker's Q3 revenue rose 7.7% yr/yr, beating analyst expectations
Adjusted EPS for Q3 increased 27% yr/yr and beat analyst expectations
Company retired $32.6 mln of long-term debt in Q3

Outlook
Sensata expects Q4 revenue of $942 mln to $972 mln
Company sees Q4 adjusted EPS between $0.95 and $0.99
Guidance includes tariff costs based on trade policies as of October 26, 2026

Result Drivers
TERMINATION PAYMENT - Q3 revenue and adjusted EPS were boosted by a $24 mln termination payment from a customer after cancellation of an electric vehicle program
ORGANIC GROWTH - Sensata reported 6.8% organic revenue growth in Q3 compared to prior yr
SEGMENT CONTRIBUTIONS - Automotive, Industrials, and Aerospace segments all posted yr/yr revenue and operating income increases in Q3

Company press release: ID:nBw5vWJtWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.004 bln
$971.97 mln (10 Analysts)
Q3 Adjusted EPS
Beat
$1.13
$0.96 (10 Analysts)
Q3 EPS
 
$0.78
 
Q3 Adjusted operating income
Beat
$215.3 mln
$157.19 mln (5 Analysts)
Q3 Free Cash Flow
 
$198.3 mln
 
Q3 Operating income
 
$175.3 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Sensata Technologies Holding PLC is $53.00, about 30.3% above its October 26 closing price of $40.69
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 27 - Illinois Tool Works Inc beats Q3 EPS estimates, raises 2026 outlook
Oct 27 - Lincoln Electric Q3 sales beat on higher volumes
Oct 27 - Higher tariffs on Canadian imports would be 'catastrophic,' Honda exec says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)