Sensata Q4 Revenue Hits $917.9M with EPS of $0.88 and 10.9% Margin
Sensor specialist Sensata reported Q4 revenue of $917.9 million, beating estimates by 0.6% with 1.1% year-over-year growth, and non-GAAP EPS of $0.88, a 2.1% beat. Operating margin expanded to 10.9% from 8.1% last year and free cash flow margin rose to 16.5%, while Q1 revenue guidance centers on $927 million.
1. Q4 Financial Performance
Sensata delivered Q4 CY2025 revenue of $917.9 million, up 1.1% year-over-year and 0.6% ahead of consensus. Adjusted EPS was $0.88, surpassing the $0.86 estimate by 2.1%, while adjusted EBITDA reached $211.5 million for a 23% margin.
2. Margin Expansion and Cash Flow
Operating margin rose to 10.9% from 8.1% in the prior-year quarter, reflecting operational efficiencies. Free cash flow margin improved to 16.5% from 15.3%, supporting debt reduction and balance sheet strengthening.
3. Inventory and Balance Sheet Metrics
Days Inventory Outstanding held steady at 86 days, aligning with historical levels and suggesting balanced supply and demand. Sensata ended the period with a market capitalization of $5.34 billion and maintained stable working capital metrics.
4. Q1 CY2026 Guidance
Management projects Q1 revenue around $927 million and adjusted EPS of $0.83 at the midpoint, both in line with analyst estimates. The modest 1.7% year-over-year revenue growth outlook underscores cautious demand expectations for early 2026.