Sensata Beats Q2 Estimates, Guides Q3 Above Consensus; Debt Tender Completed
ST sits 63% above its 52-week low of $28.16.
Summary
Sensata Technologies reported Q2 2026 results that beat consensus on both revenue and earnings, guided Q3 above expectations, and highlighted strong free cash flow and debt reduction.
Key Events · Earnings and Guidance · ST
-
Q2 Revenue and EPS Beat
Revenue of $990.6M exceeded the $970.3M consensus, and adjusted EPS of $0.98 beat the $0.93 estimate, driven by 4.4% organic growth.
-
Q3 Guidance Above Consensus
Q3 revenue guidance of $957-$987M and adjusted EPS of $0.93-$0.97 both came in above consensus, with the midpoint implying 4.5% revenue growth and 6.7% EPS growth year-over-year.
-
Free Cash Flow Surge
Free cash flow reached $186.4M in Q2, a 61.4% increase year-over-year, with a conversion rate of 130% of adjusted net income.
-
Debt Tender Completed
The company completed a $400M cash tender offer, retiring approximately $406M of long-term debt, reducing gross leverage to 2.9x from 3.4x at year-end.
Analysis · ST · Industrial Applications And Services
Sensata delivered a clean beat on both revenue and earnings, with Q2 revenue of $990.6M topping the $970.3M consensus and adjusted EPS of $0.98 sailing past the $0.93 estimate. The company also guided Q3 revenue and adjusted EPS above consensus, signaling continued momentum. Free cash flow surged to $186.4M, converting at 130%, and the balance sheet strengthened further with the completion of a $400M debt tender that retired $406M of long-term debt. This combination of operational outperformance, strong cash generation, and debt reduction materially improves the investment thesis.
At the time of this filing, ST was trading at $46.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $6.7B. The 52-week trading range was $28.16 to $53.89. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.