Sensata Technologies Holding plc (ST): Results of Operations and Financial Condition
Sensata Technologies Holding plc (ST) filed an SEC Form 8-K — Results of Operations and Financial Condition. SENSATA TECHNOLOGIES REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS Swindon, United Kingdom – July 29, 2026 - Sensata Technologies (NYSE: ST) today announced financial results for its second quarter ended June 30, 2026. “Our second quarter results demonstrate that the successful e
How this was made
The 30-second read
Why it matters
Q2 showed revenue growth to $990.6M and operating income up to $165.4M, while Q3 guidance calls for $957-$987M revenue and adjusted EPS of $0.93-$0.97, with tariff costs offset by pass-through revenue.
Market read
This is a primary earnings-and-guidance disclosure with explicit Q3 ranges and cash-flow and debt-tender details that can drive same-day positioning and near-term estimates.
What to watch
Adjusted EPS and operating income are non-GAAP; investors may scrutinize reconciliation items and whether organic growth persists beyond the modeled tariff offset.
Sensata Technologies Reports Second Quarter 2026 Financial Results
Second-quarter revenue increased 5.0%, GAAP operating income increased 19.8%, adjusted operating income increased 8.0%, and free cash flow was $186.4 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $990.6 million | – | 5.0% |
| Organic revenue increasenon-GAAP | $41.1 million | – | 4.4% |
| Operating incomeGAAP | $165.4 million, or 16.7% of revenue | – | 19.8% |
| Adjusted operating incomenon-GAAP | $193.3 million, or 19.5% of revenue | – | 8.0% |
| Earnings per shareGAAP | $0.70 | – | 70.7% |
| Adjusted earnings per sharenon-GAAP | $0.98 | – | 12.6% |
| Net cash provided by operating activitiesGAAP | $210.0 million | – | – |
| Free cash flownon-GAAP | $186.4 million | – | – |
| Free cash flow conversionnon-GAAP | 130% | – | – |
| RevenueGAAP | $1,925.4 million | – | 3.8% |
| Organic revenue increasenon-GAAP | $79.1 million | – | 4.3% |
| Operating incomeGAAP | $307.0 million, or 15.9% of revenue | – | 18.0% |
| Adjusted operating incomenon-GAAP | $367.4 million, or 19.1% of revenue | – | 6.3% |
| Earnings per shareGAAP | $1.29 | – | 46.6% |
| Adjusted earnings per sharenon-GAAP | $1.84 | – | 11.5% |
| Net cash provided by operating activitiesGAAP | $332.5 million | – | – |
| Free cash flownon-GAAP | $291.0 million | – | – |
| Free cash flow conversionnon-GAAP | 108% | – | – |
third quarter of 2026 outlook
- Revenue$957 - $987 million
- NoteAdjusted Operating Income: $186 - $193 million
- NoteAdj. Operating Margin: 19.4% - 19.6%
- NoteAdjusted Net Income: $137 - $142 million
- NoteAdjusted EPS: $0.93 - $0.97
- NoteAt the midpoint of our guide, Revenue includes approximately $10 million related to expected tariff recovery from customers.
- NoteAdjusted Operating Income, Adjusted Net Income, and Adjusted EPS are not expected to be impacted by tariffs, as $10 million of expected tariff costs would be offset by $10 million in expected pass-through revenue.
- NoteThird quarter guidance excludes expected payments from a customer related to a program termination.
Capital returns
- During the second quarter of 2026, Sensata returned approximately $17.5 million to shareholders through its quarterly dividend.
- During the first six months of 2026, Sensata returned approximately $60.1 million to shareholders including $34.9 million through its quarterly dividends, and $25.1 million through share repurchases.
- During the second quarter of 2026, Sensata completed a $400 million cash tender offer to retire approximately $406 million of long-term debt.
- During the first six months of 2026, Sensata completed a $400 million cash tender offer to retire approximately $406 million of long-term debt.
What drove it
- Revenue increased $47.2 million, or 5.0%, compared to the second quarter of 2025.
- On an organic basis, revenue increased $41.1 million, or 4.4%, compared to the second quarter of 2025.
- The Company reorganized into three operating segments effective in the fourth quarter of 2025, and prior period results have been recast to be comparative to the current period.
- Third-quarter revenue guidance is inclusive of recovery of tariff costs.
Concerns
- Third-quarter tariff expectations reflect trade policies in effect as of July 28, 2026.
- Third-quarter guidance excludes expected payments from a customer related to a program termination.
- The filing did not provide segment-level financial results in the supplied text.
What to watch
- Third-quarter revenue guidance of $957 - $987 million, including approximately $10 million related to expected tariff recovery from customers at the midpoint of the guide.
- Third-quarter adjusted operating margin guidance of 19.4% - 19.6%.
- Third-quarter adjusted EPS guidance of $0.93 - $0.97.
- Execution of the tariff-cost pass-through, under which $10 million of expected tariff costs would be offset by $10 million in expected pass-through revenue.
Balance sheet and cash flow
- Cash on hand was $403.3 million at June 30, 2026.
- Net cash provided by operating activities was $210.0 million in the second quarter of 2026.
- Free cash flow was $186.4 million in the second quarter of 2026, representing free cash flow conversion of 130%.
- Net cash provided by operating activities was $332.5 million in the six months ended June 30, 2026.
- Free cash flow was $291.0 million in the six months ended June 30, 2026, representing free cash flow conversion of 108%.
- Sensata completed a $400 million cash tender offer to retire approximately $406 million of long-term debt.
Analysis
Sensata reported second-quarter revenue of $990.6 million, up 5.0% from $943.4 million in the second quarter of 2025. Organic revenue increased $41.1 million, or 4.4%, indicating that most of the reported revenue increase was organic under the company’s stated measure. The company also reported six-month revenue of $1,925.4 million, up 3.8%, while six-month organic revenue increased $79.1 million, or 4.3%.
Profitability improved materially on both reported and adjusted measures. Second-quarter GAAP operating income was $165.4 million, or 16.7% of revenue, versus $138.1 million, or 14.6% of revenue, a year earlier. Adjusted operating income was $193.3 million, or 19.5% of revenue, compared with $179.1 million, or 19.0% of revenue. GAAP EPS increased to $0.70 from $0.41, while adjusted EPS increased to $0.98 from $0.87.
Cash generation was substantial during the period. Net cash provided by operating activities was $210.0 million in the quarter and free cash flow was $186.4 million, representing free cash flow conversion of 130%. Cash on hand was $403.3 million at June 30, 2026. The company returned approximately $17.5 million through its quarterly dividend in the quarter and completed a $400 million cash tender offer to retire approximately $406 million of long-term debt.
For the third quarter, Sensata expects revenue of $957 - $987 million and adjusted EPS of $0.93 - $0.97. The revenue range is inclusive of tariff-cost recovery, with approximately $10 million of expected tariff recovery from customers at the midpoint. The company expects tariff costs and pass-through revenue to offset such that adjusted operating income, adjusted net income, and adjusted EPS are not expected to be impacted by tariffs. Guidance also excludes expected payments from a customer related to a program termination.
The key reported developments are organic growth, expansion in both GAAP and adjusted operating margins, and strong free-cash-flow conversion alongside debt retirement. Investors should focus on the guided adjusted operating-margin range of 19.4% - 19.6%, tariff pass-through execution under trade policies in effect as of July 28, 2026, and the absence of expected program-termination payments from the third-quarter outlook.
Management, verbatim
Our second quarter results demonstrate that the successful execution of our strategy is creating clear momentum across the business.
Stephan von Schuckmann, Chief Executive Officer
Not in the filing
stated, not guessed- Second-quarter GAAP net income
- Second-quarter adjusted net income
- Second-quarter gross profit and gross margin
- Second-quarter segment revenue, segment profitability, and segment growth
- Second-quarter prior-quarter comparisons for revenue, operating income, EPS, cash flow, and free cash flow
- Second-quarter capital expenditures or additions to property, plant and equipment and capitalized software
- Total debt, net debt, gross leverage ratio, and net leverage ratio at June 30, 2026
- Third-quarter gross-margin guidance
- Third-quarter operating-expense guidance
- Third-quarter tax-rate guidance
- Previous-quarter outlook for comparison with reported results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sensata reorganized into three operating segments effective Q4 2025, and the filing recasts prior periods for comparability.
Ticker impact
Sensata reported Q2 2026 revenue of $990.6M and raised Q3 2026 adjusted EPS guidance to $0.93-$0.97 amid tariff pass-through assumptions.
Likely positive near-term bias if investors focus on adjusted EPS range and margin expansion versus prior-year comparisons.
The filing includes fresh, specific Q2 results plus forward Q3 revenue and adjusted EPS ranges, which are direct inputs to valuation and near-term positioning.
Market effects
Industrial sensors and electrification supply-chain names may see read-across from Sensata’s margin and cash-flow conversion trends.
Limited direct regional spillover; company reports global operations and guidance rather than localized demand shocks.
Tariff pass-through modeling could influence investor expectations for other industrials exposed to similar trade-policy uncertainty.
Counterpoint
Tariff recovery is included in revenue guidance, but the company notes Q3 excludes a customer program termination payment, which could mask underlying demand softness.
Key entities
- issuerSensata Technologies Holding plc
Filed an 8-K with Q2 2026 results and Q3 2026 guidance, including tariff recovery assumptions and cash-flow actions.
- executiveStephan von Schuckmann
CEO quoted on strategy execution and momentum.
