EarningsQ2 2026 Earnings Report
MX:STN Q2 2026 EPS Results
Actual EPS$17.80
Consensus EPS$16.94
Beat/MissBeat by +$0.85
One Year Ago EPS$15.80
MX:STN Q2 2026 Revenue Results
Actual Revenue$17.99B
Expected Revenue$17.62B
Beat/MissBeat by +$367.11M
YoY Revenue Growth+5.09%
Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeAfter Close
Conference CallWednesday, July 29, 2026
MX:STN Upcoming Earnings
Sensata's next earnings date is estimated for October 27, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:STN Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a strongly positive operational and financial trajectory: revenue, margins, EPS, free cash flow and deleveraging all improved with broad-based segment growth (notably aerospace/defense and automotive outgrowth). Management highlighted accelerating momentum, structural cash conversion gains, and a growing data center opportunity backed by multiple hyperscaler specifications. Near-term challenges include softness and mix variability in China, a deliberate reinvestment that compressed Industrials margin, typical seasonal Q3 headwinds, and uncertainty around the timing and scale of data center revenue. Overall, the positives (sustained growth, margin expansion, strong cash generation and rapid deleveraging) materially outweigh the limited near-term headwinds.Company Guidance
Revenue Growth Above Expectations
Q2 revenue of $991 million, up $47 million or 5% year-over-year (4% organic), representing the fourth consecutive quarter of organic growth and accelerating year-over-year growth across all three segments.
Margin Expansion and EPS Strength
Adjusted operating margin expanded 50 basis points year-over-year to 19.5%; adjusted earnings per share were $0.98, up 12.6% year-over-year and $0.03 above the high end of Q2 guidance.
Strong Free Cash Flow and Conversion
Delivered Q2 free cash flow of $186 million (up 61% year-over-year); free cash flow conversion in Q2 was 130% of adjusted net income and year-to-date conversion was 108%, reflecting ~15 days improvement in cash conversion cycle versus 18 months ago.
Balance Sheet Deleveraging
Net leverage reduced to 2.4x trailing-12-month adjusted EBITDA (from 3.0x prior-year quarter); retired $406 million of debt in the quarter and reduced gross indebtedness by approximately $762 million year-over-year to ~$2.5 billion.
Segment Performance — Aerospace, Defense & Commercial Equipment
Aerospace, Defense & Commercial Equipment revenue of $234 million, up 11.5% year-over-year (10.9% organic), marking the second consecutive quarter of double-digit growth; segment operating margin increased 340 basis points to 27.8%.
Automotive Outgrowth and Content Gains
Automotive revenue of $545 million, up 3.3% year-over-year (1.8% organic) and delivered approximately 2% outgrowth versus flat global auto production; automotive operating margin improved 120 basis points to 24.2%. Notable outperformance in North America (double-digit net outgrowth) and EV revenue resilience (EV revenues ~flat while EV production decreased >30% YoY in North America).
Industrial Segment Organic Growth and Data Center Traction
Industrial revenue of $212 million, up 2.9% reported and 4.2% organic year-over-year; data center-related industrial components roughly doubled revenue in H1 2026 vs H1 2025, and Sensata secured multiple hyperscaler specifications (5 platform concept wins YTD, 3 additional in Q2).
Operational and Capital Efficiency Improvements
Capital expenditures reduced to just over 2% of revenue year-to-date (versus historical >4%); ROIC increased 120 basis points to 11.3% for the 12 months ended June 30, 2026; ongoing initiatives reduced inventory and optimized supplier terms.
MX:STN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed