Sensata Technologies (NYSE:ST) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• EPS beat: Sensata reported Q1 EPS of $0.86, beating estimates by $0.02 with revenue of $934.8M, raised Q2 2026 guidance to $0.89–$0.95, and posted a record Q1 free cash flow of $105M while reducing net leverage to 2.65x.
• Clear growth drivers: Automotive outgrew production (~4%) with multiple design wins and contactor ramps, the company sees a medium‑term TAM from data center liquid‑cooling/high‑voltage DC (products now specced by two hyperscalers), and aerospace/defense delivered ~17% organic growth with a 28.1% operating margin.
• Market and shareholder signals: Shares dipped ~1.7% to $41.53, Sensata declared a $0.12 quarterly dividend (1.2% yield) despite a high payout ratio (~252.6%), insiders have recently sold shares, and the stock trades at a high P/E (~218.6) with ~99% institutional ownership.

Sensata Technologies (NYSE:ST - Get Free Report) announced its quarterly earnings data on Tuesday. The scientific and technical instruments company reported $0.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.84 by $0.02, FiscalAI reports. Sensata Technologies had a return on equity of 17.92% and a net margin of 0.83%.The firm had revenue of $934.80 million during the quarter, compared to the consensus estimate of $927.47 million. During the same period in the prior year, the business earned $0.78 EPS. The business's revenue for the quarter was up 2.6% on a year-over-year basis. Sensata Technologies updated its Q2 2026 guidance to 0.890-0.950 EPS.

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

• Strong Q1 financials: Revenue of $935M (organic +4%), adjusted operating margin of 18.6% (+30 bps YoY), EPS $0.86, and a record Q1 free cash flow of $105M (83% conversion), with net leverage reduced to 2.65x, showing tangible progress on the company's transformation and deleveraging goals.
• Automotive outgrowth and design wins: Automotive outgrew production by ~4% driven by content gains across regions (notably HEC and FaultBreak wins in Europe/U.S., China contactor ramp, and rising share in Korea/Japan/India), while management says contingency plans are in place for geopolitical or oil‑price risks.
• Data center opportunity primed: Sensata reports its products are now specced by two hyperscalers and expects liquid‑cooling/high‑voltage DC adoption to accelerate around mid‑2027, creating a medium‑term TAM for its contactors, sensors and Dynapower UPS offerings with limited incremental CapEx required.
• Aerospace, defense & commercial equipment momentum: The segment posted double‑digit organic growth (~17%) and 28.1% operating margin (+260 bps YoY), supported by stronger order books, defense wins and signs of a truck replenishment cycle for the back half of 2026.

Sensata Technologies Stock Down 1.7%

NYSE:ST traded down $0.72 during mid-day trading on Tuesday, reaching $41.53. The stock had a trading volume of 2,126,622 shares, compared to its average volume of 1,902,628. The stock has a market cap of $6.06 billion, a P/E ratio of 218.59, a PEG ratio of 1.22 and a beta of 1.14. The business's 50 day moving average is $36.72 and its 200 day moving average is $34.55. The company has a debt-to-equity ratio of 1.02, a current ratio of 2.57 and a quick ratio of 1.78. Sensata Technologies has a fifty-two week low of $20.57 and a fifty-two week high of $42.45.

Sensata Technologies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Wednesday, May 13th will be paid a $0.12 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $0.48 annualized dividend and a dividend yield of 1.2%. Sensata Technologies's payout ratio is presently 252.63%.

Insider Transactions at Sensata Technologies

In other Sensata Technologies news, EVP Lynne J. Caljouw sold 2,913 shares of the business's stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $34.71, for a total value of $101,110.23. Following the completion of the sale, the executive vice president directly owned 72,842 shares of the company's stock, valued at $2,528,345.82. The trade was a 3.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders have sold 7,889 shares of company stock valued at $280,345 in the last ninety days. 0.89% of the stock is owned by insiders.

Institutional Investors Weigh In On Sensata Technologies

A number of large investors have recently bought and sold shares of ST. Certuity LLC acquired a new stake in shares of Sensata Technologies in the third quarter worth about $281,000. United Services Automobile Association bought a new stake in shares of Sensata Technologies during the 1st quarter worth about $246,000. Quantum Portfolio Management LLC acquired a new position in shares of Sensata Technologies during the 4th quarter valued at about $209,000. Cresset Asset Management LLC acquired a new position in shares of Sensata Technologies during the 2nd quarter valued at about $207,000. Finally, Rehmann Capital Advisory Group bought a new position in shares of Sensata Technologies in the 3rd quarter valued at approximately $207,000. 99.42% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

ST has been the topic of a number of research reports. Wells Fargo & Company upped their target price on Sensata Technologies from $34.00 to $37.00 and gave the company an "equal weight" rating in a report on Monday, January 12th. UBS Group boosted their price objective on shares of Sensata Technologies from $43.00 to $45.00 and gave the company a "buy" rating in a research report on Tuesday, April 14th. Wall Street Zen upgraded shares of Sensata Technologies from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 4th. Robert W. Baird increased their target price on shares of Sensata Technologies from $39.00 to $40.00 and gave the stock a "neutral" rating in a research report on Friday, February 20th. Finally, Weiss Ratings raised shares of Sensata Technologies from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, March 2nd. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $40.80.

About Sensata Technologies

Sensata Technologies Holdings N.V. is a global industrial technology company specializing in the design, development and manufacture of sensors and electrical protection solutions. The company's product portfolio includes pressure, temperature, position, speed, current and magnetic sensors, as well as circuit breakers and other protection devices. Sensata's offerings serve a wide array of end markets, with a particularly strong presence in automotive original equipment manufacturers (OEMs), industrial automation, heating, ventilation and air conditioning (HVAC), commercial aerospace and renewable energy sectors.

Headquartered in Attleboro, Massachusetts, Sensata operates a network of manufacturing and engineering facilities across North America, Europe, Asia Pacific and Latin America.