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A month has gone by since the last earnings report for Sensata (ST). Shares have lost about 11.5% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Sensata due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Sensata Technologies Holding N.V. before we dive into how investors and analysts have reacted as of late. Sensata Q2 Earnings Beat on Broad Growth and Productivity Gains Sensata reported second-quarter 2026 adjusted earnings of 98 cents per share, up 12.6% year over year. The figure beat the consensus estimate of 93 cents by 5.4%, supported by higher revenues and productivity gains. Revenues of $990.60 million increased 5.0% and surpassed the consensus estimate of $969.57 million by 2.2%. Organic growth was 4.4%, with all three segments expanding. On-road truck orders grew at a double-digit pace, reinforcing management’s view of a second-half recovery in North American truck builds. Operating Margin Advances on Productivity Adjusted operating income rose 8.0% year over year to $193.30 million. The adjusted operating margin expanded 50 basis points to 19.5%, reflecting stronger volumes and improved productivity. Adjusted gross profit increased 7.4% to $313.80 million, with the corresponding margin rising 70 basis points to 31.7%. Adjusted selling, general and administrative expenses climbed to $88.50 million from $80.60 million. Adjusted corporate operating expenses increased to $60.90 million from $51.10 million, mainly due to higher variable compensation tied to stronger performance. Research and development expenses declined to $31.90 million from $32.60 million. Automotive Portfolio Drives Outgrowth Automotive revenues increased 3.3% year over year to $544.80 million, while organic sales rose 1.8%. Content gains and production mix helped the segment outperform flat global vehicle production. Revenues from both internal-combustion and electric-vehicle applications outgrew production in North America and Europe. Segment operating income improved to $131.70 million from $121.10 million, lifting margin 120 basis points to 24.2%. India automotive revenues exceeded $20 million in the quarter and grew more than 40%, supported by local customer wins and the company’s localization strategy. Other Segments Deliver Organic Growth Aerospace, Defense and Commercial Equipment revenues advanced 11.5% to $233.70 million, including 10.9% organic growth. Operating income rose to $65.10 million from $51.20 million, and margin expanded 340 basis points to 27.8% on strong volume leverage. Revenue growth extended across aerospace, defense, on-road trucks and off-highway equipment. Industrials revenues grew 2.9% to $212.10 million and increased 4.2% organically, aided by share gains and stabilizing U.S. HVAC production. Operating income slipped to $57.50 million from $57.90 million, while margin contracted 100 basis points to 27.1%. Sensata invested roughly $1.50 million of incremental operating expenses in data center growth initiatives. Data Center Opportunity Expands The company secured three additional hyperscaler concept specifications in the quarter, bringing the year-to-date total to five across four major hyperscalers. Sensata was also named a preferred vetted vendor by a major hyperscaler. One specification led to an award for pressure and temperature sensors in coolant distribution units, with shipments expected to begin in the first quarter of 2027. Management expects the addressable market per megawatt to expand 1.5 to 2.5 times as data centers adopt higher-voltage architectures, liquid cooling and more on-site power generation. Revenue from related industrial components approximately doubled in the first half of 2026 from the prior-year period. Cash Generation Supports Deleveraging Net cash from operating activities increased 49.0% to $210.00 million. Free cash flow jumped 61.4% to $186.40 million, and conversion improved to 130% of adjusted net income from 91%. Working-capital initiatives reduced the cash conversion cycle by about 15 days over the past 18 months. ST used $400 million of cash to retire roughly $406 million of long-term debt. Gross debt ended the quarter at $2.46 billion, while net debt was $2.06 billion. Net leverage declined to 2.4 times trailing 12-month adjusted EBITDA from 3.0 times a year ago. Return on invested capital rose 120 basis points to 11.3%. Q3 Guidance Points to Growth For the third quarter of 2026, Sensata expects revenues of $957-$987 million, representing growth of 3-6% from $932 million a year earlier. Adjusted operating income is projected at $186-$193 million, with an adjusted operating margin of 19.4-19.6%. Adjusted earnings are forecast at 93-97 cents per share, up 4-9% from 89 cents. The outlook includes about $10 million each of tariff costs and customer pass-through revenues, leaving adjusted operating income, net income and earnings unaffected. Seasonal European automotive shutdowns are expected to weigh on sequential revenues. It turns out, fresh estimates have trended upward during the past month. Currently, Sensata has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Sensata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Sensata belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Badger Meter (BMI), has gained 6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Badger Meter reported revenues of $222.32 million in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $1.02 for the same period compares with $1.17 a year ago. Badger Meter is expected to post earnings of $1.21 per share for the current quarter, representing a year-over-year change of +1.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.2%. Badger Meter has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sensata Technologies Holding N.V. (ST) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sensata Technologies has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 12.3% to $42.18 per share while the index has gained 10.8%. Is now the time to buy Sensata Technologies, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. We’re passing on Sensata Technologies for now. Here are three reasons you should be careful with ST, plus one stock we’d rather own. A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, Sensata Technologies struggled to consistently increase demand as its $3.78 billion of sales for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Sensata Technologies’s revenue to rise by 4.5%. Although this projection implies its newer products and services will fuel better top-line performance, it is still below the sector average. Gross profit margin is a key metric to track because it shows how much money a semiconductor company gets to keep after paying for its raw materials, manufacturing, and other input costs. Sensata Technologies’s gross margin is one of the worst in the semiconductor industry, signaling it operates in a competitive market and lacks pricing power. As you can see below, it averaged a 29.1% gross margin over the last two years. That means Sensata Technologies paid its suppliers a lot of money ($70.93 for every $100 in revenue) to run its business. We cheer for all companies solving complex technology issues, but in the case of Sensata Technologies, we’ll be cheering from the sidelines. That said, the stock currently trades at 10.8× forward P/E (or $42.18 per share). This valuation tells us a lot of optimism is priced in - we think there are better stocks to buy right now. Let us point you toward a dominant aerospace business that has perfected its M&A strategy. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Looking back on analog semiconductors stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Sensata Technologies (NYSE:ST) and its peers. Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years. The 13 analog semiconductors stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 4.9% above. Thankfully, share prices of the companies have been resilient as they are up 5.3% on average since the latest earnings results. Originally a temperature sensor control maker and a subsidiary of Texas Instruments for 60 years, Sensata Technology Holdings (NYSE: ST) is a leading supplier of analog sensors used in industrial and transportation applications, best known for its dominant position in the tire pressure monitoring systems in cars. Sensata Technologies reported revenues of $990.6 million, up 5% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a very strong quarter for the company with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates. Sensata Technologies delivered the weakest guidance update among its peers. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $46.25. Is now the time to buy Sensata Technologies? Access our full analysis of the earnings results here, it’s free. Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Monolithic Power Systems reported revenues of $980.6 million, up 47.6% year on year, outperforming analysts’ expectations by 8.6%. The business had an incredible quarter with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates. Monolithic Power Systems scored the biggest analyst estimate beat, highest guidance raise, and fastest revenue growth in the group. The market seems happy with the results as the stock is up 6.6% since reporting. It currently trades at $1,403. Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it’s free. Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones. Himax reported revenues of $227.4 million, up 5.9% year on year, exceeding analysts’ expectations by 2%. Still, it was a slower quarter as it posted EPS in line with analysts’ estimates. Interestingly, the stock is up 13.2% since the results and currently trades at $15.12. Read our full analysis of Himax’s results here. Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications. Universal Display reported revenues of $152.2 million, down 11.4% year on year. This print came in 3.6% below analysts’ expectations. All in all, it was a mixed quarter for the company. Universal Display had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 10.7% since reporting and currently trades at $88.97. Read our full, actionable report on Universal Display here, it’s free. Result of a merger of Alpha Industries and the wireless communications division of Conexant, Skyworks Solutions (NASDAQ: SWKS) is a designer and manufacturer of chips used in smartphones, autos, and industrial applications to amplify, filter, and process wireless signals. Skyworks Solutions reported revenues of $934.8 million, down 3.1% year on year. This number beat analysts’ expectations by 0.9%. Aside from that, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but an increase in its inventory levels. The stock is up 7.2% since reporting and currently trades at $69.32. Read our full, actionable report on Skyworks Solutions here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 5 p.m. ET Senior Director of Investor Relations - James Entwistle Chief Executive Officer - Stephan Von Schuckmann Chief Financial Officer - Andrew Lynch Operator: Good afternoon, and welcome to the Sensata Technologies Second Quarter 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. James Entwistle, Senior Director of Investor Relations. Please go ahead. James Entwistle: Thank you, operator, and good afternoon, everyone. I'm James Entwistle, Senior Director of Investor Relations for Sensata, and I would like to welcome you to Sensata's Second Quarter 2026 Earnings Conference Call. Joining me on today's call are Stephan Von Schuckmann, Sensata's Chief Executive Officer; and Andrew Lynch, Sensata's Chief Financial Officer. In addition to the financial results press release we issued earlier today, we will reference a slide presentation during today's conference call. A PDF of this presentation can be downloaded from Sensata's Investor Relations website. This conference call is being recorded, and we will post a replay on our Investor Relations website shortly after today's call concludes. As we begin, I would like to reference Sensata's safe harbor statement on Slide 2. During this conference call, we will make forward-looking statements regarding future events or the financial performance of the company that involve certain risks and uncertainties. The company's actual results may differ materially from the projections described in those statements. Factors that might cause such differences include, but are not limited to, those discussed in our Forms 10-Q and 10-K as well as other filings with the SEC. We encourage you to review our GAAP financial statements in addition to today's presentation. Much of the information that we will discuss during today's call will relate to non-GAAP financial measures. Our GAAP and non-GAAP financials, including reconciliations, are included in our earnings release, in the appendices of our presentation materials and in our SEC filings. Stephan will begin today's call with comments on the overall business. Andrew will then cover our detailed results for the second quarter of 2026 and our financial outlook for the third quarter. Stephan will then return for closing remarks. After that, we will take your questions. Now I would like to turn the call over to Sensata's Chief Executive Officer, Stephan Von Schuckmann. Stephan Von Schuckmann: Thank you, James, and good afternoon, everyone. Let's begin on Slide 3, and I'll share a few highlights from the quarter. We are pleased to report exceptionally strong Q2 results with each of our key metrics exceeding expectations and demonstrating accelerating financial performance, both sequentially and year-over-year. Revenue grew 5% or 4.4% organically with organic growth in all 3 segments. Q2 is the fourth consecutive quarter of organic growth. Adjusted operating margin expanded 50 basis points year-over-year to 19.5% and adjusted earnings per share came in at $0.98, a year-over-year increase of over 12%. Free cash flow continues to strengthen as our structural improvements in working capital take hold in our business. The second quarter, we delivered free cash flow of $186 million and our year-to-date conversion is 108%. This strong cash flow enabled us to continue deleveraging the company with net leverage now at 2.4x trailing 12 months adjusted EBITDA, and we retired $406 million of debt in the quarter. Our second quarter results demonstrate that we continue to make efficiency gains in our business. As we become more efficient, we are systematically strengthening our balance sheet and our disciplined growth framework is working and growth is inflecting upwards. Let's turn to Slide 4 and take a closer look at these trends and what they mean as we look ahead. Since we laid out our key pillars and our associated performance metrics, we have demonstrated not only an ability to deliver on our commitments, but to compound gains and accelerate progress. Adjusted operating margins have consistently expanded and the magnitude of these margin gains is increasing. On a trailing 12-month basis, free cash flow conversion has accelerated every quarter since we made this a priority. Similarly, in the second quarter last year, we committed that we would deleverage the company with urgency with a target of getting below 2.5x net leverage in 2026, and we delivered that 2 quarters ahead of schedule. Additionally, we indicated that we would strengthen our balance sheet by reducing gross debt, which improves our earnings resilience through market cycles. We have now executed 2 debt retirement transactions and reduced gross indebtedness by more than $760 million. We also laid out a disciplined framework for how we would return Sensata to growth over time. This framework meant being patient and deliberate in the opportunities we pursue to ensure that we are delivering high-quality, sustainable growth that will compound value for our shareholders over time. We are pleased to report that a trend has emerged. In each of the last 4 quarters, year-over-year growth accelerated. And for the last 2 quarters, we have been in mid-single-digit territory. Importantly, earnings are growing faster than revenue, and we now have 3 consecutive quarters of double-digit year-over-year adjusted EPS growth. Simply put, there is a clear momentum in our business across every metric that we identified, and our progress on growth has the organization increasingly energized. Each site I visit, I see examples of our team proactively identifying emerging or unmet needs for sensing and electrical protection, engaging with customers and rapidly bringing products to market. There are countless examples of this across our business and in each of our segments. So with that, let's turn to Slide 5, and we can take a closer look at how our reorganized business is enabling growth, starting with automotive. In our automotive business, 3 key factors enable us to deliver market outgrowth. First, our diversified portfolio provides balanced exposure across ICE, EV and powertrain-agnostic applications, enabling growth across regions regardless of varying EV adoption trends. Second, product innovation allows us to adapt to evolving EV architectures, which create demand for customized solutions where we have developed differentiated products and won significant business with global OEMs. And third, localization. Our in-region, for-region strategy aligns with customer demand for local content, supporting conquest wins. In the second quarter, these factors enabled us to deliver market outgrowth of 2% and further reinforce our ability to grow across regions with different powertrain adoption trends. In fact, we outgrew both ICE and EV production in both North America and Europe. In North America, our EV revenues were approximately flat in a market where EV production decreased by more than 30% year-over-year. We expect electrification revenue to continue outperforming EV production in North America, supported by the new FaultBreak contactor, which launched in the second quarter and will ramp in future quarters. Outgrowth in North America was not limited to the EV category. We also outgrew ICE production with ICE revenue growth of approximately 14% against the market that increased 2% year-over-year. In aggregate, this represented double-digit net outgrowth in North America. In Europe, recent electrification wins have narrowed the content gap between ICE vehicles and EVs, and we outgrew EV production by 20%, delivering 30% growth in EV revenues against the market, which grew 10%. New business wins on ICE platforms enabled 5% ICE outgrowth in Europe and mid-single-digit net outgrowth for the region. In China, while the domestic market has softened, we continue to win local business that supports future growth. This quarter, more than 90% of our NBOs were again with local OEMs, helping offset mix headwinds from the share shift towards local Chinese OEMs. We're also gaining traction with Tier 1 battery manufacturers by integrating into their system designs, giving us broader access to multiple OEMs. Over time, we expect this to create a flywheel effect as our business ramps and OEMs converge around fewer battery supplier-defined architectures. Performance across the rest of Asia was exceptionally strong with broad growth supporting by increasing content with Japanese OEMs and a rapidly expanding presence in India. In fact, we saw over 40% revenue growth in India in the second quarter and over 50% revenue growth year-to-date. Earlier this quarter, I traveled to India along with most of our senior leadership team. We visited our engineering center in Pune, where we announced that we would be opening a new manufacturing facility in Chennai as we begin to localize production for this fast-growing market. Now let's turn to Slide 6. Our Aerospace, Defense and Commercial Equipment segment delivered exceptional performance in the quarter with double-digit growth for the second consecutive quarter. We're encouraged by the near-term momentum across this business and are continuing to invest in the medium- and long-term growth opportunities that can sustain that performance. In aerospace and defense, for example, we recently showcased a broad range of our high-power density motors at the Farnborough Airshow, and we are very encouraged by the customer response. We expect our expanded portfolio of motors, actuators and cockpit controls, including our digital flight inceptor to support continued growth and further strengthen our position against a favorable market backdrop for commercial and defense production over the next several years. Commercial equipment, robust North American on-road truck orders and our strong second quarter results reinforce our expectation for a second half recovery. We also saw sensors supporting on-site power generation for data centers contribute nearly 1 point of growth in the quarter, and we expect that contribution to continue in the second half and accelerate in 2027. As on-site power becomes more common in new data center builds, it is creating attractive demand for our diesel engine solutions, including cylinder pressure and high-temperature sensing. Next, let's turn to Slide 7 to discuss Industrials. In our Industrials business, we continue to navigate mixed end market conditions while building conviction around several attractive growth opportunities. We secured another HL gas leak detection win in North America supporting our line of sight to more than $100 million of annual HL revenue. Internationally, we see a similar structural opportunity developing, particularly in Europe with rising temperatures and low historical air condition penetration are increasing demand for efficient heating and cooling solutions. At the same time, Europe's transition to next-generation refrigerants increases the need for reliable leak detection and safety-critical HVAC sensing. Together, these trends create a meaningful long-term growth opportunity across our HVAC portfolio. Beyond HVAC, we are gaining traction in our data center business with a growing base of revenue in 2026 meaningfully contributing to organic growth in the year. With that growth comes increased conviction in our right to win future business. In fact, during the second quarter, we were specified into 3 additional new hyperscaler concepts for a total of 5 platform concept wins year-to-date. Additionally, we were named a preferred vetted vendor to a major hyperscaler. Each incremental specification win increases our credibility and improves our reach among hyperscalers, OEMs and EPCs, expanding our ability to win new business. This quarter, one hyperscaler spec in led to a significant award with an OEM for pressure and temperature sensors in our coolant distribution units with shipments expected to begin the first quarter of 2027. With that, let's turn to Slide 8, as I would like to elaborate on these data center opportunities and where we are gaining traction. We frame our data center opportunity in 3 categories. First is electrical protection inside the data center, including circuit breakers and high-voltage contactors that protect and control power across PDUs, sidecars, power conversion systems and next-generation racks. As architectures move towards 400- and 800-volt systems, demand for reliable switching interruption and protection increases. Our solutions are well positioned whether higher voltage DC is converted back to AC and sidecars or brought directly into server racks. Second is thermal management, including air and liquid cooling applications that use pressure, temperature, leak and flow sensors, along with protection components to operate safely and reliably. As rack power density rises, liquid cooling and cooling distribution units are becoming more common, increasing demand for precision sensing and protection in higher-density data centers. The interdependency of liquid cooling systems and high voltage goes beyond each enabling the other. The presence of liquids in high-voltage architecture raises the stakes regarding electrical protection requirements and plays further into Sensata's credibility as a supplier into safety critical and mission-critical automotive applications. Third is power and peak management. As AI workloads drive larger and faster swings in power demand, operators need resilient solutions to manage peak loads and use grid and on-site power more efficiently. Dynapower's converters, inverters and related technologies are well positioned for UPS systems, battery storage, peak shaving and on-site generation, helping data centers support high-intensity compute loads and deploy faster where grid interconnections are constrained. As our data center opportunities convert into design wins, we recognize the focus on the potential scale of this opportunity for Sensata. Ultimately, that scale will depend on both the size of our addressable market and our participation rate. While we are still early in the hyperscaler design and process and are not yet prepared to disclose expected market share or content per megawatt, we are increasingly confident in the opportunity. Let's turn to Slide 9, and I will elaborate on how we see this opportunity developing. As data center architecture shift towards higher voltage liquid cooling and more on-site power generation, we expect our addressable market to expand by 1.5 to 2.5x. This expectation for SAM expansion is on a per megawatt basis and is in addition to the expected market growth from capacity deployments. In addition to market growth and SAM expansion, we see the potential for higher participation as our differentiated sensing, protection and power conversion technologies become more relevant. This is clearly an exciting high-growth opportunity. However, as you have seen with EVs, the pace of change and market adoption can vary. We are focused on what we can control, securing design wins with high-quality hyperscalers and making use of our existing product portfolio and capacity to minimize at risk investments. The ability to participate in this growth vector without significant investment is a distinct advantage for Sensata. Our data center strategy does not require capital deployment for inorganic growth, capital-intense launches nor lengthy development cycles. We see ample opportunity to grow by leveraging existing products and developing derivative solutions from our core technology platforms. Data center architectures are evolving rapidly and the opportunity to secure specifications is unfolding in real time. Our recent wins demonstrate that our team is moving with urgency to accelerate development and sample delivery well ahead of the longer cycle timelines we see in other areas of the business. Now let me turn the call over to Andrew to provide greater detail on the second quarter and our guidance for the third quarter. Andrew Lynch: Thank you, Stephan. Let's turn to Slide 11. For clarity, unless otherwise specified, amounts are referenced in millions of U.S. dollars and growth percentages are approximate. We delivered outstanding results in the second quarter with revenue, adjusted operating income and adjusted earnings per share all above our expectations. We reported second quarter revenue of $991 million, an increase of $47 million or 5% from $943 million in the second quarter of 2025. On an organic basis, revenue grew 4% year-over-year as we had a 1% inorganic tailwind from foreign exchange. Adjusted operating income was $193 million and adjusted operating margin was 19.5% compared with $179 million and a margin of 19.0% in the prior year quarter. This year-over-year improvement of 50 basis points was attributable to stronger revenues and improved productivity. Adjusted earnings per share was $0.98, an increase of $0.11 or 12.6% year-over-year, which exceeded the high end of our second quarter guidance range by $0.03. Free cash flow was $186 million, an increase of $71 million or 61% year-over-year. Our free cash flow conversion rate was 130% of adjusted net income, an increase of 39 percentage points compared with 91% in the prior year period. Let's turn to Slide 12 to review our free cash flow journey over the past few years and to discuss the structural enhancements we have made that are driving sustainable improvements. Prior to 2025, 80% free cash flow conversion would have constituted a historically strong result for Sensata. In 2025, we redefined the cash generation power of our business and delivered 97% free cash flow conversion. Halfway through 2026, our year-to-date free cash flow conversion stands at 108%, putting us on track for a conversion rate, which meets or exceeds that which we delivered in 2025. Over the past 18 months, we have improved our cash conversion cycle by approximately 15 days, primarily through inventory reduction and supplier payment term optimization. We have also reduced capital intensity by better utilizing existing capacity, adding automation and deploying more flexible line concepts. As a result, capital expenditures decreased from a historical run rate above 4% of revenue to 3.5% last year. This year, capital expenditures are just over 2% of revenue year-to-date, and we expect capital spending to normalize to prior year run rates in the second half. Now let's briefly turn to Slide 13 to review capital allocation. In the second quarter, we deployed $400 million of cash to retire $406 million of long-term debt. We recorded a gain of approximately $4 million net of transaction fees. We excluded this gain from our non-GAAP results. We closed the quarter with $403 million of cash on hand and $650 million of capacity on our undrawn revolving credit facility. Our net leverage now stands at 2.4x trailing 12 months adjusted EBITDA compared with 3.0x in the prior year quarter. Gross leverage now stands at 2.9x trailing 12 months adjusted EBITDA and gross indebtedness is approximately $2.5 billion, a decrease of $762 million compared to June 30, 2025. In addition to retiring debt, we returned $18 million of capital to shareholders in the quarter through our quarterly dividend. Earlier this month, we announced our third quarter dividend of $0.12 per share payable on August 26 to shareholders of record as of August 12. Our capital allocation strategy continues to improve return on invested capital. For the 12 months ended June 30, 2026, ROIC increased by 120 basis points to 11.3% compared with 10.1% for the 12 months ended June 30, 2025. Now let's turn to Slide 14 to discuss our segments. All 3 segments delivered organic revenue growth in the second quarter, which is a testament to our new operating structure and each segment's commitment to delivering profitable growth through its respective mandate. Our Automotive segment delivered $545 million of revenue in the quarter, an increase of 3.3% year-over-year on a reported basis. Organic growth was 1.8% year-over-year, resulting in approximately 2% outgrowth compared with flat global auto production. We achieved broad market outgrowth through content gains and production mix as our diversified portfolio of ICE, EV and powertrain agnostic products is well positioned regardless of regional powertrain adoption trends. Automotive segment operating margin was 24.2%, a year-over-year increase of 120 basis points, driven by revenue growth and productivity. Our Industrial segment delivered $212 million of revenue in the quarter, a year-over-year increase of 2.9% on a reported basis and 4.2% on an organic basis. Organic growth was enabled by share gains and supported by stabilization in U.S. HVAC production. Industrial's operating margin was 27.1%, a year-over-year decrease of 100 basis points as we are reinvesting productivity from our Automotive segment to fund Industrial's growth investment. Our Aerospace, Defense and Commercial Equipment segment delivered $234 million of revenue in the quarter, an increase of 11.5% year-over-year or 10.9% on an organic basis. This was the segment's second consecutive quarter of double-digit growth, and we once again delivered revenue growth across every market vertical, including aerospace, defense, on-road trucks and off-highway equipment. Segment operating margin was 27.8%, a year-over-year increase of 340 basis points as we gained operating leverage from strong volume growth. Adjusted corporate operating expenses were $61 million, an increase of approximately $10 million year-over-year, primarily due to higher variable compensation expense, which was supported by stronger underlying performance. Now let's turn to Slide 15 to discuss what we are seeing in our end markets. Global auto production was approximately flat in the second quarter. For the full year, third-party forecasters expect production to decrease by approximately 2%. Despite these downward revisions, we remain optimistic on our ability to outgrow production and deliver modest organic growth for the year. In Aerospace, Defense and Commercial Equipment, multiyear commercial backlogs and higher defense spending continue to support our positive outlook for aerospace and defense. In North American on-road trucks, robust orders and third-party build projections support our view that a recovery begins in the second half despite the lower build rates in Q2. Our on-road truck orders grew double digits in the quarter, reinforcing that outlook given that our revenue typically leads truck builds. Off-road markets appear stable overall with construction strength from data center build-outs roughly offsetting softer agriculture conditions. In our industrial end market, U.S. residential HVAC shipments recovered modestly on a year-over-year basis, and we expect this to continue in the second half of 2026. U.S. PMI has been in expansion territory for several months, further pointing to stabilization. With that backdrop, let's move to Slide 16, and I will share our guidance for the third quarter of 2026. Currently, we expect third quarter revenue of $957 million to $987 million, adjusted operating income of $186 million to $193 million, adjusted operating margin of 19.4% to 19.6%. Adjusted net income of $137 million to $142 million and adjusted earnings per share of $0.93 to $0.97. Our third quarter guidance includes approximately $10 million in tariff costs and associated pass-through revenues. This is approximately similar to the level of tariffs we experienced in the second quarter as recently announced changes to global tariff rates are not expected to have a significant impact on our business. Our tariff expectations are based on trade policies in effect as of July 28, 2026. Our third quarter guidance does not include any potential tariff refunds related to the recent IEEPA tariff rulings nor does it reflect any possible pass-through of such refunds. With that, I would like to turn the call back to Stephan for closing remarks. Stephan Von Schuckmann: Thank you, Andrew. Before we move to Q&A, I would like to leave you with a few closing thoughts. Our second quarter results demonstrate that the successful execution of our strategy is creating clear momentum across the business. Our expanding margins give us greater flexibility to invest in the highest return growth opportunities. Our operational initiatives dramatically improved cash generation, which in turn allowed us to strengthen our balance sheet and improve resilience in our business. And most importantly, growth is now taking hold across all 3 segments, supported by disciplined execution, market outgrowth in Automotive, continued strength in Aerospace, Defense and Commercial Equipment and improving conviction around key industrial opportunities. Our data center strategy is maturing quickly with early specification wins and customer engagement, reinforcing our confidence that this end market can become one of several meaningful long-term growth platforms for Sensata. Thank you for your time today. I will now turn the call back over to James for Q&A. James Entwistle: Thank you, Stephan and Andrew. We will now begin Q&A. [Operator Instructions] Operator, please introduce the first question. Operator: The first question comes from Wamsi Mohan with Bank of America. Wamsi Mohan: It's nice to see the consistency in your results here and consistent improvement. Stephan, you spent a decent amount of time on this data center portfolio and the opportunity here. As we think about -- it's good to see the quantification in terms of conceptually where the SAM is going. But as you look at your product portfolio, can you help us think through when these products get qualified? And from a revenue standpoint, I think you mentioned that one of the hyperscaler opportunity could start to ramp, if I heard right, in Q1 of '27. So any parameters you can share with us that can give us some sense of materiality, whether it's '27 or '28 and overall from your progression standpoint, like how much more work needs to be done regarding qualification at a broader set of customers? Stephan Von Schuckmann: Thanks, Wamsi. That's a good question. And just give me a moment to elaborate that, and I'll explain our position. So we're continuing to see very good progress with our hyperscaler customers. But at the same time, customer designs are still maturing and the deployment timelines continue to evolve. Because of that, we don't think it's the right time to put a revenue or CAGR framework around the business. As those designs mature and timelines become clearer, we expect to provide more detail over the coming months. What I can say today, Wamsi, is that our confidence in the long-term opportunity has only increased. That's really driven by 3 things. And allow me to explain that once more in a bit more detail. The market is growing with a 14% CAGR of deployed capacity through 2029. SAM is growing from 1.5x to 2.5x, that predominantly through high-voltage architectures and that resulting in liquid cooling requirements. And then there's our participation and right to play, which is increasing. This is, again, a result of a shift to high-voltage data centers and liquid cooling. And then, Wamsi, additionally to that, and I think these are also really important points. During quarter 2, we've been specced into 3 additional hyperscaler concepts with a platform of -- with 5 platform concept wins year-to-date. And these 5 concepts, and this is also important, has been a big progress and a fantastic result of the team. They span over 4 major brand name hyperscalers. And then to give you a bit of an orientation around revenue, our industrial components have approximately doubled in revenue in the first half of 2026 compared to first half of 2025. So ultimately, that means we're moving from a component supplier to a system participant. That's how I'd sum it up. So just ask for a little bit more patience. And over the next couple of months, we'll be giving you more information, but it's just a little bit too early for that now. Operator: The next question comes from Mark Delaney with Goldman Sachs. Mark Delaney: Which is on the margin outlook for the second half of the year. 3Q margin guidance is flattish sequentially, but that's coming off of a better-than-expected 2Q result. So maybe you can talk about what led to the strength in margins in the second quarter. Any key puts and takes as you look into 3Q? And do you still think the 4Q margin can expand by the 30 bps you've previously been expecting? Andrew Lynch: Yes. Thanks for the question, Mark. We were definitely pleased with the margin result in the second quarter. And I'd categorize it as primarily driven by 2 factors, a little bit stronger volume than what we were expecting as the market came in a little stronger and then a head start on productivity. And so because part of it's a head start on productivity, I don't expect it to just represent a higher jump-off point off of which we would sequentially expand. If you look at the midpoint of our Q3 guide, it's basically the same level of year-on-year margin expansion as what we communicated last quarter as a framework for the back half. And then I'd say on Q4, we didn't guide the fourth quarter. We still expect margin expansion year-on-year, and we still expect margin expansion in the fourth quarter from a revenue standpoint, probably sequentially flattish from the third quarter and then margins expanding. Operator: The next question comes from William Stein with Truist Securities. William Stein: Perhaps even more nascent than your data center AI exposure. I wonder if you've begun to develop products or repurpose products and develop customer relationships and perhaps even design wins in physical AI, things like humanoid robotics and such? Stephan Von Schuckmann: So thanks, those are great question. Look, let me answer that question like that. So what we're currently doing is obviously monitoring the potentially evolving humanoid market and where this could take us. And yes, it's clear humanoids are packed full of sensors, and that could evolve into a nice opportunity for Sensata. So we're very well aware of that. And yes, we're focused, and we'll see where it takes us, and I'll elaborate more on that in the upcoming earnings calls. But definitely, if the market develops, and I'm focusing on if, then it could be a nice opportunity for Sensata. Operator: The next question comes from Joseph Spak with UBS. Joseph Spak: So Andrew, the leverage target's ahead of schedule. I remember when you sort of communicated to the market on sort of getting the leverage down, your view was that, that would sort of help the multiple and the valuation. And the multiple has expanded, but I'm curious sort of now how you sort of view future uses of cash and whether share repos are back on the table because as you've highlighted, I mean, the cash conversion is quite strong. So looks like 2.4x now, by our math, could be around 2 by the end of the year, so pretty below your target. So how are you sort of thinking about that going forward? Stephan Von Schuckmann: I'd sum it up like this. So first of all, for the company, for Sensata itself, it's important that we continuously focus on improving our operations. And yes, cash generation and cash conversion is good, but there is still an opportunity to improve. We've got programs and initiatives running around reducing or further reducing our inventory levels. I feel we've made fantastic progress or the team has made fantastic progress around supplier payment terms and other opportunities within working capital to improve our overall cash performance. So there is a next level that we're working on. And to your question, I further -- I think the direction of the company related to how we use that cash is to continuously to deleverage the company and strengthen the balance sheet going forward. There is no change in strategy related to that from end at least. Operator: The next question comes from Joe Giordano with TD Cowen. Joseph Giordano: I mean I guess it's probably a sign of where you're going that no one's asked a question on Automotive yet. So I think that's interesting. I'll jump there. You mentioned India. Just curious as to like sizing of that business and how large you think it can get? And curious, when you say India, is this like India local? Or is this India demand satisfied out of China exports? How should we think about that market? And then just a quick follow-up. Just curious what your outperformance was in China. I didn't catch that on the prepared remarks. Stephan Von Schuckmann: I'll -- Andrew will answer the question, Joe, to the outperformance in China. But let me start with India. So first of all, we're building a new facility there and deploying roughly $30 million of capital or capital expenditure. And the good thing about that is, and I'll get to the customers. The good thing about that is that it's mainly covered by -- offset by incentives. So nearly 100% of that is offset by incentives. And why are we building it there? Well, it's pretty simple. We've won a lot of business in the past with local Indian manufacturers and OEMs. And there is an expectation from these local guys to produce locally, and that's one of the reasons why we've decided to localize within India. So it's all local business. But there's a further opportunity, obviously, at a later stage as I'm speaking about Automotive OEMs now as a first step. And there's obviously a further opportunity then to use that site for export, but that's the plan for now. It's predominantly local. And then the other thing is that we want to leverage the opportunity of the broad market of suppliers in India, which could strengthen our competitiveness overall. There's an excellent supply base there, and that we'll also be using going forward. So I think it's a good next step in the region there for Sensata. And Andrew? Andrew Lynch: Yes. And Joe, in terms of sizing, so a little bit over $20 million of revenue in the quarter from India auto. Certainly, at the pace of growth that we're seeing and the growth rate in the quarter, it's getting to be sizable quickly here. It's still about 5% of our overall auto business, but growing rapidly, and it's a market that we think there's significant growth opportunity looking well out into the future. So I'm not going to provide sort of long-term outlook on the size of the business there, but definitely growthful and one that we're excited about. And I think embedded in your question, if I heard you correctly, was a question on China. Could you maybe just repeat that part? Joseph Giordano: Just curious what the outgrowth was there in the quarter. I'm just -- I'm trying to understand like with all these new customers and new wins with locals, like I'd expect you're probably doing pretty good there versus an overall market that's been sluggish. Andrew Lynch: Yes. The China market has been pretty nascent and sort of production mix varying from quarter-to-quarter based on changing OEM market share, et cetera. So we didn't outgrow in China this quarter. We've been outgrowing. We outgrew in total in our global auto business, and we expect to continue to gain share in China with local EVs. And certainly, the supplier-defined battery architectures is a big part of that strategy moving forward. So we're still pretty optimistic on the market and our position in it, but production is varying from quarter-to-quarter. Stephan Von Schuckmann: Joe, one more point I've forgotten to add to the automotive content in India, that's the first step. So we obviously want to use that plant or that facility as well for commercial equipment business and also potentially for industrial business that we might want to localize there as a next step. Operator: The next question comes from Christopher Glynn with Oppenheimer. Christopher Glynn: Yes. So just want to go a layer deeper on the margin expansion consistency that you're putting up. You gave sort of a state of play in the improvement pace for free cash flow. I wonder if we could do that on operations in terms of where are you with square footage plans versus processes and best practices sharing from some of your better facilities to some of the -- those with room for improvement? Stephan Von Schuckmann: So thanks for that question. I think we -- overall, in these last quarters, we've made great progress. We've got a -- so first of all, with Nicolas, I announced that we've got a very strong COO with us who is driving the change throughout Sensata. He's got a great team below him in operations. We've got clear initiatives. So when it gets to optimizing our footprint, which as an example, is one initiative that we're currently working on where we go through our entire Sensata production footprint and question the size of our plant, question the location of our plant and rechallenge ourselves in the end if we can improve that footprint. That's one area that we're working on. So I would say great progress done in that respect, but maybe not quite finished yet. There's still a level of improvement. Then let me give you another example. So each plant has the overall challenge to reduce costs per product. And we benchmark them against each other, especially plants that have similar products produced in different areas of the world. And also there, I think we've done great progress. And part of the result of that is what you see in our financials. But I wouldn't say that every plant is on benchmark level yet. We still have a level of improvement to go. So just based on those 2 examples, there's obviously a lot, lot more happening in the operations function. Good solid progress, but still a way to go. Christopher Glynn: And the other one was just curious about overall book-to-bill trends. It may be more or less meaningful by segment, maybe not too meaningful in auto, for instance, but with the overall global cycle starting to improve, and we're seeing that so far across the earnings reports in many cases. Just wondering even if you're not going to give a book-to-bill in the quarter, maybe how that book-to-bill trends have been developing? Andrew Lynch: Yes, Chris, thanks for the question. Book-to-bill is not a metric that we track across most of our business, just given the way our order book dynamics are, potentially relevant in the Dynapower business, which is a little more project-based, and we do look at it there, but that's just not a metric that we track broadly across our business. Operator: The next question comes from Guy Hardwick with Barclays. Guy Drummond Hardwick: Just wondering if you guys could give us a bit of an update on the overall content per vehicle trends, particularly as we go into the second half, it looks like global auto production could be down sort of 4% to 5% year-on-year in the second half. And in particular, China is expected to be down worse than that. So just a number of things happening in terms of mix, but also the benefit of some of the contract wins that you've won. So just wondering how the content per vehicle is going to look in the second half potentially after a nice outperformance by a couple of points in the first half? Andrew Lynch: Yes. Thanks for the question. So certainly, we're seeing content per vehicle growth and particularly in North America and Europe, where we shared we outgrew both production categories in both markets, ICE and EV. That's a function of content per vehicle growth. So to give you kind of the state of play of where we are on CPV right now, at least across the major regions. So we're mid-30s in terms of content per vehicle in North America, high 30s in Europe and then just under 20 in China. Operator: The next question comes from Amit Daryanani with Evercore ISI. Caden Dahl: This is Caden Dahl on for Amit. I guess just in the Industrial segment delivered 4.2% organic growth, but segment operating margin declined 100 basis points. I guess, could you maybe just explain what specifically was causing that contraction? Was it more mix or pricing centric? And then when should the margins for that segment start to improve a little bit? Andrew Lynch: Yes. Thanks for the question. So we invested about $1.5 million or so of operating expenses incrementally year-on-year in that business, primarily tied to the data center opportunity and the growth that we see longer term there. We've been very deliberate about how we do that and investing for growth, and we're only doing it as we generate productivity in other areas of our business to pay for it. And so while it shows up as margin contraction in Industrials, it's not driving margin headwinds at a company level. And we've been systematic and deliberate about funding that. In terms of margin expansion, so look, I think as revenue growth comes from our Industrials business, it should have a variable contribution margin in the high 20s and approaching 30%. And so as we get revenue growth, we'll have affordability to invest and still see margin growth. But for the near term here, we're making sure that we're making the right investments to secure that growth opportunity. Operator: The next question comes from Shreyas Patil with Wolfe Research. Shreyas Patil: Maybe turning to the revenue guidance for Q3. It looked like sequentially, you've got revenues down about 2.5% versus Q2. And I'm curious if you can expand on that. I know auto production is down seasonally. I think maybe that's down 2% to 3% weighted by your geographic mix. But given the acceleration in HVOR and maybe even HVAC, I was wondering if you can help us with some of the puts and takes there? Andrew Lynch: Yes, happy to. I mean that's fairly typical seasonality in our business, and it's primarily driven by auto, as you know. In the auto segment, we basically have all of our major regions producing at normal rates in the second quarter. As we enter the third quarter, we've got summer shutdowns in Europe and then in the fourth quarter, typically holiday shutdowns in the U.S. And so that drives the seasonality in our auto business. To your point around aerospace, defense and commercial equipment, yes, that market is quite strong, and we're expecting production to be up in the back half. But we've actually seen orders ahead of production, just given where we sit in the cycle for that segment. So typically, what we're seeing is if there's demand for truck builds in the third and fourth quarter, that's driving demand for sensors and components in the first half. And so we've been outgrowing production early in the year, and then we expect to basically grow in line with production through the cycle here. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to James Entwistle for any closing remarks. James Entwistle: Thanks, operator, and thank you to everyone who joined today's call. Before we conclude, I'd like to announce that we'll be attending the Goldman Sachs Technology Conference on Wednesday, September 9, in San Francisco. We look forward to connecting with many of you there. Operator, you may now conclude the call. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Sensata Technologies Plc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sensata Technologies Plc wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Sensata (ST) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Sensata Technologies Holding (NYSE:ST) is drawing investor attention after a strong second quarter, with revenue of US$990.6 million, higher adjusted earnings, richer free cash flow, and lower debt levels supporting a more flexible balance sheet. See our latest analysis for Sensata Technologies Holding. The latest Q2 update and dividend affirmation come after a strong run in Sensata Technologies Holding’s stock, with a year to date share price return of 32.67% and a 1 year total shareholder return of 56.79%, although the 5 year total shareholder return is down 16.33%. If you are comparing Sensata’s recent momentum with other industrial and infrastructure themes, this could be a useful moment to scan the market using Simply Wall St’s 35 power grid technology and infrastructure stocks Sensata Technologies Holding now trades at a discount to both analyst targets and an estimated fair value, even after the share price surge. Is that a genuine mismatch, or a reflection of the market’s caution around the business? The most followed narrative puts Sensata Technologies Holding’s fair value at about $52.73, above the last close of $46.29. This helps explain the current discount and sets up a detailed case for why some investors see more upside. Read the complete narrative. Read the complete narrative. Want to see what is behind that earnings and margin story? The narrative leans on faster profit growth, steadier margins and a future earnings multiple that has been carefully stress tested. This fair value view also leans on a specific set of analyst assumptions around Sensata Technologies Holding’s revenue growth path, margin recovery and share count. It applies a 10.09% discount rate and a future P/E that sits well below current levels. Together these elements frame the gap between the present share price and the narrative fair value. Result: Fair Value of $52.73 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Sensata Technologies Holding still faces meaningful risks, including intense price competition in China and elevated net leverage that could restrict flexibility if conditions become less supportive. Find out about the key risks to this Sensata Technologies Holding narrative. The earlier fair value story leans on future earnings and cash flows. A simple P/E check paints a sharper pricing picture. Sensata Technologies Holding trades on about 74.9x earnings, compared with 36.8x for the US Electrical industry and 38.7x for peers, while the fair ratio is closer to 36.5x. That gap suggests the market is paying a much richer price today than both sector averages and the fair ratio imply, even though other methods point to upside. For investors weighing these mixed signals, the key issue is which yardstick seems more appropriate for assessing Sensata’s performance over the next few years. See what the numbers say about this price — find out in our valuation breakdown. With both optimism and concern running through the Sensata Technologies Holding story, now is a good time to review the full picture and act on your own judgement using the 2 key rewards and 2 important warning signs. If Sensata Technologies Holding has sharpened your focus on valuations and quality, now is a smart time to broaden your watchlist using targeted screeners. Zero in on potential value opportunities by reviewing companies highlighted in the 55 high quality undervalued stocks that may trade below their underlying fundamentals. Strengthen your focus on financial resilience by checking stocks in the solid balance sheet and fundamentals stocks screener (45 results) that pair balance sheet support with established fundamentals. Aim to get ahead of the crowd by scanning the screener containing 19 high quality undiscovered gems that spotlight quality businesses which are not yet widely followed. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: $991 million, up 5% year-over-year (4.4% organic growth). Adjusted Operating Margin: 19.5%, expanding 50 basis points year-over-year. Adjusted Earnings Per Share (EPS): $0.98, a year-over-year increase of 12.6%. Free Cash Flow: $186 million, up 61% year-over-year, with a conversion rate of 130% of adjusted net income. Net Leverage: 2.4 times trailing 12-month adjusted EBITDA. Automotive Segment Revenue: $545 million, up 3.3% year-over-year (1.8% organic growth). Industrial Segment Revenue: $212 million, up 2.9% year-over-year (4.2% organic growth). Aerospace, Defense & Commercial Equipment Segment Revenue: $234 million, up 11.5% year-over-year (10.9% organic growth). Automotive Segment Operating Margin: 24.2%, up 120 basis points year-over-year. Industrial Segment Operating Margin: 27.1%, down 100 basis points year-over-year. Aerospace, Defense & Commercial Equipment Segment Operating Margin: 27.8%, up 340 basis points year-over-year. Third Quarter 2026 Revenue Guidance: $957 million to $987 million. Third Quarter 2026 Adjusted Operating Margin Guidance: 19.4% to 19.6%. Third Quarter 2026 Adjusted EPS Guidance: $0.93 to $0.97. Warning! GuruFocus has detected 10 Warning Signs with ST. Is ST fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sensata Technologies Holding PLC (NYSE:ST) reported exceptionally strong Q2 results with revenue growing 5% year-over-year and all three segments delivering organic growth. Adjusted operating margin expanded 50 basis points year-over-year to 19.5%, driven by stronger revenues and improved productivity. Free cash flow improved significantly to $186 million in Q2, with year-to-date conversion at 108%, reflecting structural improvements in working capital. Net leverage decreased to 2.4 times, two quarters ahead of schedule, and gross debt was reduced by over $760 million through debt retirements. The company is gaining traction in the data center market with five hyperscaler platform concept wins year-to-date and expanding addressable market opportunities. Sensata Technologies Holding PLC (NYSE:ST) did not outgrow the China automotive market in Q2 due to varying production mix and OEM market share shifts. Industrial segment operating margin decreased 100 basis points year-over-year to 27.1%, as productivity gains were reinvested into growth initiatives like data center. Third-quarter revenue guidance of $957 million to $987 million implies a sequential decline of about 2.5% from Q2, primarily due to typical auto seasonality. The company faces approximately $10 million in tariff costs in Q3, similar to Q2, with no expected refunds from recent tariff rulings included in guidance. Global auto production is forecasted to decrease by approximately 2% for the full year, creating headwinds for the automotive segment's growth. Here are the key highlights from the Sensata Technologies Holding PLC (NYSE:ST) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: Can you provide more detail on the data center opportunity, specifically regarding revenue materiality and qualification timelines? You mentioned a hyperscaler opportunity could start to ramp in Q1 of '27. A: (Stephan von Schuckmann, CEO) Our confidence in the long-term opportunity has increased, driven by market growth (14% CAGR through 2029), SAM expansion (1.5x to 2.5x due to high voltage and liquid cooling), and our increasing participation. In Q2, we were specified into three additional hyperscaler concepts, bringing us to five platform concept wins year-to-date across four major hyperscalers. Our industrial components revenue approximately doubled in the first half of 2026 vs. 2025. However, customer designs are still maturing, so it is too early to provide a revenue or CAGR framework. We expect to provide more detail in the coming months. Q: What drove the margin strength in Q2, and what is the margin outlook for the second half of the year? Do you still expect Q4 margin to expand by 30 bps?A: (Andrew Lynch, CFO) Q2 margins were driven by stronger-than-expected volume and a head start on productivity. The midpoint of our Q3 guide implies the same level of year-on-year margin expansion we previously communicated for the back half. For Q4, we still expect year-on-year margin expansion, with revenue likely flattish sequentially from Q3. Q: With leverage targets achieved ahead of schedule and strong cash conversion, how are you thinking about future uses of cash, including share repurchases?A: (Stephan von Schuckmann, CEO) Our focus remains on continuously improving operations and cash generation, with programs running to further reduce inventory and optimize working capital. There is no change in strategy; the direction is to continue deleveraging the company and strengthening the balance sheet. Q: Can you size the India automotive business and discuss the strategy there? Also, what was the outgrowth in China?A: (Stephan von Schuckmann, CEO & Andrew Lynch, CFO) India auto revenue was a bit over $20 million in the quarter (about 5% of auto business) and growing rapidly. We are building a new facility in Chennai with ~$30M in capex, nearly 100% offset by incentives, to localize production for local Indian OEMs. In China, we did not outgrow the market this quarter due to varying production mix, but we expect to continue gaining share with local EVs, particularly through supplier-defined battery architectures. Q: Can you elaborate on the operational improvements driving margin expansion, specifically regarding footprint optimization and best practices?A: (Stephan von Schuckmann, CEO) We have a strong COO driving initiatives. We are optimizing our production footprint by challenging plant size and location. We also benchmark plants against each other to reduce costs per product. Great progress has been made, but we are not finished; there is still a level of improvement to go. Q: What are the overall content per vehicle (CPV) trends, especially given the expected decline in global auto production in the second half?A: (Andrew Lynch, CFO) We are seeing CPV growth, particularly in North America and Europe where we outgrew both ICE and EV production. Current CPV is mid-30s in North America, high 30s in Europe, and just under 20 in China. Q: The Industrial segment delivered 4.2% organic growth, but margins declined 100 bps. What caused this, and when should margins improve?A: (Andrew Lynch, CFO) The margin decline was due to an incremental ~$1.5 million in operating expenses invested in the data center opportunity. This investment is deliberate and funded by productivity gains elsewhere, so it does not create a company-level headwind. As revenue growth comes, the business has a variable contribution margin in the high 20s, which should support margin expansion in the future. Q: Q3 revenue guidance is down ~2.5% sequentially from Q2. Can you explain the puts and takes?A: (Andrew Lynch, CFO) The sequential decline is typical seasonality, primarily driven by auto. Q2 had normal production rates, while Q3 includes summer shutdowns in Europe. While the Aerospace, Defense & Commercial Equipment market is strong, we have seen orders ahead of production, so we expect to grow in line with production through the cycle. Q: Have you begun to develop products or win business in physical AI, such as humanoid robotics?A: (Stephan von Schuckmann, CEO) We are monitoring the potential humanoid market. It is clear that humanoids are packed with sensors, which could be a nice opportunity for Sensata. We are focused on it, but it is still nascent. We will elaborate more in future calls if the market develops. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Sensata Technologies Holding N.V.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 5% to $991 million, organic growth reached 4.4%, adjusted operating margin expanded to 19.5%, and adjusted EPS increased 12.6% to $0.98. All three operating segments delivered organic growth, led by Aerospace, Defense and Commercial Equipment. Cash generation and deleveraging improved significantly: Free cash flow surged 61% to $186 million, while Sensata retired $406 million of debt and reduced net leverage to 2.4 times EBITDA, reaching its below-2.5-times target ahead of schedule. Growth opportunities remain broad: Sensata highlighted accelerating automotive growth in India and emerging data-center applications, including sensors, electrical protection and liquid cooling. The company expects third-quarter revenue of $957 million to $987 million and adjusted EPS of $0.93 to $0.97. Constellation Brands: Beer Growth and Buybacks Mask Stock's Slump Sensata Technologies (NYSE:ST) reported second-quarter 2026 results that exceeded its expectations, with revenue, adjusted operating income and adjusted earnings per share all rising from a year earlier. Chief Executive Officer Stephan von Schuckmann said the company recorded its fourth consecutive quarter of organic growth, with growth across each of its three operating segments. Second-quarter revenue increased 5% to $991 million from $943 million in the prior-year period. Organic revenue rose 4.4%, while foreign exchange provided a roughly 1% inorganic tailwind. Adjusted operating income totaled $193 million, producing an adjusted operating margin of 19.5%, up 50 basis points from 19.0% a year earlier. Adjusted EPS rose 12.6% year over year to $0.98. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 5 Reasons to Pony Up for Pony AI Stock—and 1 Reason to Wait “Growth is now taking hold across all three segments,” von Schuckmann said, citing automotive market outgrowth, continuing strength in aerospace, defense and commercial equipment, and emerging industrial opportunities. Free cash flow reached $186 million in the second quarter, up 61% from $115 million a year earlier. Free cash flow conversion was 130% of adjusted net income for the quarter, compared with 91% in the prior-year period. Year-to-date conversion stood at 108%. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Qualcomm's TikTok AI Chip Deal Rewrites the Rules Chief Financial Officer Andrew Lynch said the company has improved its cash conversion cycle by about 15 days over the past 18 months, primarily through lower inventories and supplier-payment-term optimization. Sensata also reduced capital intensity through greater use of existing capacity, automation and more flexible production lines. Capital expenditures were just over 2% of revenue year to date, though Lynch said spending is expected to normalize toward prior-year run rates during the second half. The company used about $400 million of cash during the quarter to retire $406 million of long-term debt. Net leverage declined to 2.4 times trailing-12-month adjusted EBITDA, from 3.0 times a year earlier, reaching the company’s below-2.5-times target two quarters ahead of schedule. Gross indebtedness was approximately $2.5 billion, down $762 million from June 30, 2025. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Sensata ended the quarter with $403 million in cash and $650 million available under its undrawn revolving credit facility. The company also returned $18 million to shareholders through its quarterly dividend and announced a third-quarter dividend of $0.12 per share, payable Aug. 26 to shareholders of record as of Aug. 12. Automotive: Revenue rose 3.3% to $545 million, including 1.8% organic growth. The segment outgrew flat global auto production by about 2%, supported by content gains and production mix. Operating margin expanded 120 basis points to 24.2%. Industrials: Revenue increased 2.9% to $212 million, or 4.2% organically, aided by share gains and stabilization in U.S. HVAC production. Operating margin declined 100 basis points to 27.1%, as Sensata reinvested productivity gains from Automotive into industrial growth initiatives, including data centers. Aerospace, Defense and Commercial Equipment: Revenue climbed 11.5% to $234 million, or 10.9% organically, marking the segment’s second consecutive quarter of double-digit growth. Revenue increased across aerospace, defense, on-road trucks and off-highway equipment. Operating margin rose 340 basis points to 27.8% on operating leverage from higher volumes. In Automotive, von Schuckmann said Sensata outgrew both internal-combustion-engine and electric-vehicle production in North America and Europe. North American ICE revenue increased about 14% against a market that grew 2%, while EV revenue was approximately flat despite EV production declining more than 30%. In Europe, EV revenue grew 30% while EV production increased 10%. India was a particular area of growth, with automotive revenue rising more than 40% in the second quarter and more than 50% year to date. Sensata plans to open a manufacturing facility in Chennai to localize production for Indian customers. Lynch said India automotive revenue exceeded $20 million in the quarter, representing about 5% of the company’s automotive business. Management highlighted data centers as a developing growth platform, with opportunities in electrical protection, thermal management, and power and peak-load management. The company is targeting applications including circuit breakers, high-voltage contactors, pressure and temperature sensors, liquid-cooling systems, converters and inverters. Von Schuckmann said changing data center architectures, including higher-voltage systems, liquid cooling and increased on-site generation, could expand Sensata’s addressable market by 1.5 times to 2.5 times on a per-megawatt basis, excluding capacity deployment growth. However, he said the company was not yet prepared to disclose expected market share, content per megawatt, or a revenue framework because customer designs and deployment timelines are still evolving. During the quarter, Sensata was specified into three additional hyperscaler concepts, bringing its year-to-date total to five platform concept wins across four major hyperscaler brands. The company was also named a preferred vetted vendor by a major hyperscaler. One specification led to an award with an original design manufacturer for pressure and temperature sensors used in coolant distribution units, with shipments expected to begin in the first quarter of 2027. Lynch said industrial components revenue tied to data centers approximately doubled in the first half of 2026 compared with the first half of 2025. For the third quarter, Sensata expects revenue of $957 million to $987 million, adjusted operating income of $186 million to $193 million, and adjusted operating margin of 19.4% to 19.6%. The company forecast adjusted net income of $137 million to $142 million and adjusted EPS of $0.93 to $0.97. The outlook includes approximately $10 million in tariff costs and associated pass-through revenue, similar to the level experienced in the second quarter. Management said tariff changes announced recently were not expected to have a significant impact on the business. The guidance does not include potential tariff refunds related to recent IEPA tariff rulings. Lynch said third-quarter revenue seasonality is primarily driven by automotive production shutdowns in Europe during the summer. The company expects fourth-quarter revenue to be roughly flat sequentially from the third quarter, while continuing to expect year-over-year margin expansion. Sensata Technologies Holdings N.V. is a global industrial technology company specializing in the design, development and manufacture of sensors and electrical protection solutions. The company's product portfolio includes pressure, temperature, position, speed, current and magnetic sensors, as well as circuit breakers and other protection devices. Sensata's offerings serve a wide array of end markets, with a particularly strong presence in automotive original equipment manufacturers (OEMs), industrial automation, heating, ventilation and air conditioning (HVAC), commercial aerospace and renewable energy sectors. Headquartered in Attleboro, Massachusetts, Sensata operates a network of manufacturing and engineering facilities across North America, Europe, Asia Pacific and Latin America. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sensata Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. 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SWINDON, United Kingdom, July 29, 2026--(BUSINESS WIRE)--Sensata Technologies (NYSE: ST) today announced financial results for its second quarter ended June 30, 2026. "Our second quarter results demonstrate that the successful execution of our strategy is creating clear momentum across the business," said Stephan von Schuckmann, Sensata's Chief Executive Officer. Operating Results - Second Quarter Operating results for the second quarter of 2026 compared to the second quarter of 2025 are summarized below. These results include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in this press release. As previously disclosed, the Company reorganized into three operating segments effective in the fourth quarter of 2025. Prior period results have been recast to be comparative to the current period. Revenue: Revenue was $990.6 million, an increase of $47.2 million, or 5.0%, compared to $943.4 million in the second quarter of 2025. On an organic basis, revenue increased $41.1 million, or 4.4%, compared to the second quarter of 2025. Operating income: Operating income was $165.4 million, or 16.7% of revenue, an increase of $27.3 million, or 19.8%, compared to operating income of $138.1 million, or 14.6% of revenue, in the second quarter of 2025. Adjusted operating income was $193.3 million, or 19.5% of revenue, an increase of $14.3 million, or 8.0%, compared to adjusted operating income of $179.1 million, or 19.0% of revenue, in the second quarter of 2025. Earnings per share: Earnings per share was $0.70, an increase of $0.29, or 70.7%, compared to earnings per share of $0.41 in the second quarter of 2025. Adjusted earnings per share was $0.98, an increase of $0.11, or 12.6%, compared to adjusted earnings per share of $0.87 in the second quarter of 2025. Cash Flow and Shareholder Returns: Net cash provided by operating activities was $210.0 million in the second quarter of 2026, and cash on hand was $403.3 million at June 30, 2026. Free cash flow was $186.4 million in the second quarter of 2026, representing free cash flow conversion of 130%. During the second quarter of 2026, Sensata returned approximately $17.5 million to shareholders through its quarterly dividend. During the second quarter of 2026, Sensata completed a $400 million cash tender offer to retire approximately $406 million of long-term debt. Operating Results - Six Months Operating results for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 are summarized below. These results include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in this press release. Revenue: Revenue was $1,925.4 million, an increase of $70.8 million, or 3.8%, compared to $1,854.6 million in the six months ended June 30, 2025. On an organic basis, revenue increased $79.1 million, or 4.3%, compared to the six months ended June 30, 2025. Operating income: Operating income was $307.0 million, or 15.9% of revenue, an increase of $46.7 million, or 18.0%, compared to operating income of $260.3 million, or 14.0% of revenue, in the six months ended June 30, 2025. Adjusted operating income was $367.4 million, or 19.1% of revenue, an increase of $21.8 million, or 6.3%, compared to adjusted operating income of $345.6 million, or 18.6% of revenue, in the six months ended June 30, 2025. Earnings per share: Earnings per share was $1.29, an increase of $0.41, or 46.6%, compared to earnings per share of $0.88 in the six months ended June 30, 2025. Adjusted earnings per share was $1.84, an increase of $0.19, or 11.5%, compared to adjusted earnings per share of $1.65 in the six months ended June 30, 2025. Cash Flow and Shareholder Returns: 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%. 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 first six months of 2026, Sensata completed a $400 million cash tender offer to retire approximately $406 million of long-term debt. Guidance For the third quarter of 2026, Sensata expects revenue of $957 to $987 million, inclusive of recovery of tariff costs, and adjusted EPS of $0.93 to $0.97. 1 – At the midpoint of our guide, Revenue includes approximately $10 million related to expected tariff recovery from customers. 2 – Adjusted 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. 3 – Tariff expectations included in guidance reflect trade policies in effect as of July 28, 2026. Third quarter guidance excludes expected payments from a customer related to a program termination. Conference Call and Webcast Sensata will conduct a conference call today at 5:00 p.m. Eastern Time to discuss its second quarter 2026 financial results and its outlook for the third quarter of 2026. The dial-in numbers for the call are 1-844-784-1726 or 1-412-380-7411. Callers should reference the "Sensata Technologies Q2 2026 Financial Results Conference Call." A live webcast of the conference call will also be available on the investor relations page of Sensata’s website at investors.sensata.com. Additionally, a replay of the call will be available until August 5, 2026. To access the replay, dial 1-855-669-9658 or 1-412-317-0088 and enter confirmation code: 2707202. About Sensata Technologies Sensata Technologies is a global industrial technology company striving to create a safer, cleaner, more efficient, and electrified world. Through its broad portfolio of mission-critical sensors, electrical protection components and sensor-rich solutions, Sensata helps its customers address increasingly complex engineering and operating performance requirements. With more than 16,000 employees and global operations in 13 countries, Sensata serves customers in the automotive, heavy vehicle & off-road, industrial, and aerospace markets. Learn more at www.sensata.com and follow Sensata on LinkedIn, Facebook, X and Instagram. Non-GAAP Financial Measures We supplement the reporting of our financial information determined in accordance with U.S. generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures. We use these non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance, and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures is useful for period-over-period comparisons of underlying business trends and our ongoing business performance. We also believe presenting these non-GAAP measures provides additional transparency into how management evaluates the business. Non-GAAP financial measures should be considered as supplemental in nature and are not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, our non-GAAP financial measures may not be the same as, or comparable to, similar non-GAAP measures presented by other companies. The non-GAAP financial measures referenced by Sensata in this release include: adjusted net income, adjusted earnings per share ("EPS"), adjusted operating income, adjusted operating margin, free cash flow, organic revenue growth, market outgrowth, adjusted corporate and other expenses, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), net debt, and gross and net leverage ratio. We also refer to changes in certain non-GAAP measures, usually reported either as a percentage or number of basis points, between two periods. Such changes are also considered non-GAAP measures. Adjusted net income (or loss) is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are detailed in the accompanying reconciliation tables. Adjusted EPS is calculated by dividing adjusted net income (or loss) by the number of diluted weighted-average ordinary shares outstanding in the period. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Adjusted operating income (or loss) is defined as operating income (or loss), determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are detailed in the accompanying reconciliation tables. Adjusted operating margin is calculated by dividing adjusted operating income (or loss) by net revenue. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment and capitalized software. Free cash flow conversion is defined as Free cash flow divided by Adjusted net income. We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, or accelerate the repayment of debt obligations. Organic revenue growth (or decline) is defined as the reported percentage change in net revenue calculated in accordance with U.S. GAAP, excluding the period-over-period impact of foreign exchange rate differences as well as the net impact of material acquisitions, divestitures, and product life-cycle management actions for the 12-month period following the respective transaction date(s). We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Adjusted EBITDA is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense, interest income, and provision for (or benefit from) income taxes, depreciation expense, amortization of intangible assets, and the following non-GAAP adjustments, if applicable: (1) restructuring related and other, (2) financing and other transaction costs, and (3) other, net. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Gross leverage ratio is defined as gross debt (total debt and finance lease obligations less unamortized issue costs) divided by last twelve months ("LTM") adjusted EBITDA. We believe that gross leverage ratio is a useful measure to management and investors in understanding trends in our overall financial condition. Net debt is defined as total debt, finance lease, and other financing obligations less cash and cash equivalents. We believe net debt is a useful measure to management and investors in understanding trends in our overall financial condition. Net leverage ratio is defined as net debt divided by LTM adjusted EBITDA. We believe that the net leverage ratio is a useful measure to management and investors in understanding trends in our overall financial condition. In discussing trends in our performance, we may refer to certain non-GAAP financial measures or the percentage change of certain non-GAAP financial measures in one period versus another, calculated on a constant currency basis. Constant currency is determined by stating revenues and expenses at prior period foreign currency exchange rates and excludes the impact of foreign currency exchange rates on all hedges and, as applicable, net monetary assets. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. Safe Harbor Statement This earnings release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as "may," "will," "could," "should," "expect," "anticipate," "believe," "estimate," "predict," "project," "forecast," "continue," "intend," "plan," "potential," "opportunity," "guidance," and similar terms or phrases. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business and market outlook, trends, priorities, growth, shareholder value, capital expenditures, cash flows, demand for products and services, share repurchases, and Sensata’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. These statements are subject to risks, uncertainties, and other important factors relating to our operations and business environment, and we can give no assurances that these forward-looking statements will prove to be correct. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements, including, but not limited to, risks related to instability and changes in the global markets, supplier interruption or non-performance, changes in trade-related tariffs and risks with uncertain trade environments, the acquisition or disposition of businesses, variability in metals pricing, cybersecurity, adverse conditions or competition in the industries upon which we are dependent, intellectual property, product liability, warranty, and recall claims, public health crises, market acceptance of new product introductions and product innovations, labor disruptions or increased labor costs and changes in existing environmental or safety laws, regulations, and programs. Investors and others should carefully consider the foregoing factors and other uncertainties, risks, and potential events including, but not limited to, those described in Item 1A: Risk Factors in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A: Risk Factors in our Quarterly Reports on Form 10-Q or other subsequent filings with the United States Securities and Exchange Commission. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law. Segment Performance (Unaudited) Revenue by Business and Geography (Unaudited) GAAP to Non-GAAP Reconciliations The following unaudited tables provide a reconciliation of the difference between each of the non-GAAP financial measures referenced herein and the most directly comparable U.S. GAAP financial measure. Amounts presented in these tables may not appear to recalculate due to the effect of rounding. Operating income and margin, income tax, net income, and earnings per share Non-GAAP adjustments by location in statements of operations Free cash flow Adjusted corporate and other expenses Adjusted EBITDA Gross and net debt and leverage Guidance View source version on businesswire.com: https://www.businesswire.com/news/home/20260729472140/en/ Contacts Media & Investors:James Entwistle+1(508) [email protected] [email protected]

Sensata (ST) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.38%. A quarter ago, it was expected that this maker of sensing, electrical protection, control and power management products would post earnings of $0.84 per share when it actually produced earnings of $0.86, delivering a surprise of +2.38%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Sensata, which belongs to the Zacks Instruments - Control industry, posted revenues of $990.6 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.76%. This compares to year-ago revenues of $943.38 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sensata shares have added about 40.4% since the beginning of the year versus the S&P 500's gain of 8.5%. While Sensata has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sensata was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.95 on $962 million in revenues for the coming quarter and $3.73 on $3.86 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Instruments - Control is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Transcat, Inc. (TRNS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -37.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Transcat, Inc.'s revenues are expected to be $86.42 million, up 13.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sensata Technologies Holding N.V. (ST) : Free Stock Analysis Report Transcat, Inc. (TRNS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research