Sensata (ST) AI Stock Analysis

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Sensata

(NYSE:ST)

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Rating:70Outperform

Price Target:$47.00▲(21.89% Upside)

Action:upgraded

Date:10/28/26

ST scores well primarily on improving fundamentals (profitability rebound and strong/free-cash-flow generation) and a notably positive earnings call with upbeat guidance and continued deleveraging. The score is tempered by mixed technical momentum (negative MACD and only neutral trend positioning) and only moderate valuation support given a modest dividend yield and a mid-teens P/E.

Positive Factors

Strong cash generationRobust operating and free cash flow demonstrates strong earnings quality and gives Sensata internal funding for debt reduction, investment, and shareholder returns. High conversion should support financial resilience and strategic flexibility over the next several quarters.

Negative Factors

Automotive market weaknessAutomotive remains a major end market, so lower vehicle production can pressure component volumes and factory utilization. Although Sensata expects outgrowth, prolonged weakness—especially in China—could constrain near-term revenue and dilute operating leverage.

Sensata (ST) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $5.61B
Dividend Yield: 1.24%
Average Volume (3M): 1.46M
Price to Earnings (P/E): 15.4
Beta (1Y): 1.58
Revenue Growth: 3.84%
EPS Growth: ―
Country: US
Employees: 16,700
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

Sensata Business Overview & Revenue Model

Company Description

Sensata Technologies Holding plc is a global enterprise specializing in the design, production, and distribution of sensing devices, integrated sensor solutions, control systems, and associated technologies. Its market reach extends across the Americ...

How the Company Makes Money

Sensata makes money primarily by selling engineered components—most commonly sensors, switches, and circuit protection devices—into high-volume OEM and industrial applications under long-term platform wins. Revenue is largely generated from: (1) Auto...

Sensata Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:-8.61%|Next Earnings Date:Feb 02, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Sensata reported broad-based organic growth, better-than-expected earnings, substantial free cash flow, continued deleveraging, expanding returns and significant data center and aerospace growth opportunities. The main challenges were weaker automotive production, pronounced China automotive pressure, Q4 and Q1 seasonality, a modest aerospace and defense growth shortfall versus market trends, and inflation in boards and electronics. Management stated that the underlying Q3 results met or exceeded guidance without the one-time termination payment and expects continued margin expansion despite the market challenges.

Positive Updates

Q3 Revenue and Earnings Exceeded Guidance

Third-quarter revenue was $1.004 billion, up $72 million or 8% year-over-year, with organic revenue growth of 7%. Adjusted operating income was $215 million versus $180 million a year ago, adjusted operating margin was 21.5% versus 19.3%, and adjusted EPS was $1.13, up $0.24 or 27% year-over-year. Revenue, adjusted operating income and adjusted EPS exceeded the high end of guidance, and adjusted EPS delivered a fourth consecutive quarter of double-digit growth.

Negative Updates

Q3 Results Included a Non-Recurring Termination Payment

Third-quarter results included a $24 million termination payment from a customer related to the cancellation of an electric vehicle program. Management said it does not expect a recurrence of a payment of that dimension, and the payment has no impact on the revenue outlook.

Company Guidance

For the fourth quarter, Sensata expects revenue of $942 million to $972 million, adjusted operating income of $185 million to $192 million, adjusted operating margin of 19.6% to 19.8%, adjusted net income of $140 million to $145 million and adjusted earnings per share of $0.95 to $0.99; at the midpoint, this implies approximately 5% year-over-year revenue growth and 10% adjusted EPS growth. The company expects the automotive market down about 4%, revenue down 3-ish and net outgrowth of about 1%, with a 4% year-over-year contraction in fourth-quarter global light vehicle production and approximately 2% lower global production for the full year; full-year automotive outgrowth is expected to be approximately 2%, industrials is expected to grow 15% this year and aerospace, defense and commercial equipment is expected to grow 8%. Full-year 2026 free cash flow conversion is expected to exceed 100% of adjusted net income; Q1 revenue is not expected to increase sequentially from Q4, operating margins are expected to expand modestly year-over-year, and the full-year operating model will target 20 basis points of full-year margin expansion.

Sensata Financial Statement Overview

Summary

Financials are improving, led by a clear TTM profitability rebound (net margin ~9.5%, EBIT margin ~13.1%, EBITDA margin ~22.0%) and expanding gross margin (~30.3%). Free cash flow is robust and improving (TTM FCF ~$641M; strong conversion vs earnings), supporting quality of results. Key offsets are uneven multi-year revenue momentum and lingering leverage-related uncertainty despite debt reduction.

Income Statement

72Positive

Balance Sheet

66Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.85B	3.70B	3.94B	4.07B	4.08B	3.81B
Gross Profit	1.17B	1.00B	989.00M	1.08B	1.20B	1.11B
EBITDA	906.46M	528.80M	456.83M	506.99M	856.49M	852.30M
Net Income	366.60M	31.30M	128.48M	-3.91M	310.69M	363.58M
Balance Sheet
Total Assets	6.69B	6.75B	7.14B	7.68B	8.76B	8.61B
Cash, Cash Equivalents and Short-Term Investments	553.40M	573.00M	593.67M	508.10M	1.23B	1.71B
Total Debt	2.41B	2.92B	3.26B	3.44B	4.28B	4.30B
Total Liabilities	3.62B	3.97B	4.25B	4.68B	5.65B	5.52B
Stockholders Equity	3.07B	2.79B	2.89B	3.00B	3.11B	3.09B
Cash Flow
Free Cash Flow	641.22M	490.30M	392.99M	272.07M	310.53M	409.75M
Operating Cash Flow	759.33M	621.50M	551.55M	456.68M	460.59M	554.15M
Investing Cash Flow	-115.09M	-95.80M	-98.55M	-165.00M	-590.57M	-882.09M
Financing Cash Flow	-887.99M	-550.60M	-363.41M	-1.02B	-353.46M	174.92M

Sensata Technical Analysis

Technical Analysis SentimentNegative

Last Price38.56

Price Trends

50DMA41.42Negative

100DMA43.11Negative

200DMA41.93Negative

Market Momentum

MACD-0.62Positive

RSI39.61Neutral

STOCH33.82Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ST, the sentiment is Negative. The current price of 38.56 is below the 20-day moving average (MA) of 40.54, below the 50-day MA of 41.42, and below the 200-day MA of 41.93, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ST.

Sensata Risk Analysis

Sensata disclosed 32 risk factors in its most recent earnings report. Sensata reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.Global tax reforms-including the OECD Pillar Two global minimum tax and related local implementations-may increase our tax compliance costs and ETR and create additional uncertainty in our financial results.Q4, 2025

2.Changes in U.S. federal tax laws and regulations-including modifications to international tax rules-could increase our tax liabilities, compliance costs, and earnings volatility and adversely affect our financial results.Q4, 2025

3.Our global effective tax rate ("ETR") may be volatile and could increase due to changes in our geographic mix of earnings, tax laws and rates, and the outcome of tax audits, which could adversely affect our results of operations, cash flows, and financial condition.Q4, 2025

Sensata Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

ST against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITRI	76Outperform	$4.23B	15.30	16.85%	―	-3.63%	10.84%
CTS	71Outperform	$1.74B	23.43	13.02%	0.27%	7.47%	29.54%
ST	70Outperform	$5.74B	15.36	12.57%	1.24%	3.84%	―
LFUS	65Neutral	$10.08B	287.14	1.47%	0.79%	18.72%	-74.52%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
VPG	53Neutral	$705.05M	-203.60	-1.00%	―	11.58%	-142.22%
MEI	48Neutral	$443.07M	-11.39	-5.46%	1.69%	1.36%	32.69%

* Technology Sector Average

Performance Comparison

ST and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ST	Sensata Technologies	38.56	10.08	35.40%
CTS	CTS Corporation	60.21	19.29	47.15%
ITRI	Itron Inc	96.06	-1.15	-1.18%
LFUS	Littelfuse	387.64	153.72	65.72%
MEI	Methode Electronics	11.83	4.80	68.21%
VPG	Vishay Precision	50.90	20.48	67.32%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

Sensata AI Stock Analysis