Sensata Technologies Holding plc ST 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.
Following the announcement, shares of ST lost around 3% in the after-market trading session yesterday. In the past year, shares have gained 97% compared with the Instruments-Control industry’s growth of 12.7%.
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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 of Sensata
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 of Sensata's Q1
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.
ST’s 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.
Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise
Sensata Technologies Holding N.V. price-consensus-eps-surprise-chart | Sensata Technologies Holding N.V. Quote
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.
Sensata’s 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.
ST’s Zacks Rank
Sensata currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances of Other Firms
Badger Meter, Inc. BMI reported EPS of 93 cents for first-quarter 2026, which missed the Zacks Consensus Estimate by 22.5%. The bottom line compared unfavorably with the year-ago quarter’s EPS of $1.30.
Quarterly net sales were $202.3 million, down 9% from $222.2 million in the year-ago quarter due to delayed project deployments and weaker-than-expected short-cycle order activity. The Zacks Consensus Estimate was pegged at $230.1 million.
SAP SE SAP reported first-quarter 2026 non-IFRS EPS of €1.72 ($2.01), which increased 20% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.92.
Driven by momentum in the cloud business, SAP reported total revenues on a non-IFRS basis of €9.56 billion ($11.2 billion), which increased 6% year over year (up 12% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.3 billion.
BlackBerry Limited BB reported fourth-quarter fiscal 2026 non-GAAP EPS of 6 cents. The figure beat the company’s estimate of 3-5 cents. In the year-ago quarter, it reported a non-GAAP EPS of 3 cents. The Zacks Consensus Estimate was pegged at 5 cents per share.
BlackBerry reported quarterly revenue of $156 million, surpassing the top end of its guidance ($138-$148 million), driven by stronger-than-expected sales across both its QNX and Secure Communications divisions. Revenue also increased 10% year over year.
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This article originally published on Zacks Investment Research (zacks.com).