A Look At Sensata Technologies Holding (NYSE:ST) Valuation After Its 2025 Earnings And 2026 Guidance Update

Why Sensata Technologies Holding (NYSE:ST) is back in focus

Sensata Technologies Holding (NYSE:ST) has drawn fresh attention after reporting fourth quarter results that showed higher profitability on US$917.9 million in sales, alongside new 2026 guidance and an updated segment structure.

For the quarter ended December 31, 2025, Sensata reported net income of US$63.2 million on sales of US$917.9 million, with basic and diluted earnings per share from continuing operations of US$0.43, compared with US$0.04 a year earlier.

See our latest analysis for Sensata Technologies Holding.

The earnings beat and new 2026 guidance appear to have supported sentiment, with a 1-day share price return of 3.62% and a 90-day share price return of 20.90% taking Sensata to US$38.36. The 1-year total shareholder return of 32.12% contrasts with weaker 3 and 5 year total shareholder returns.

If this update has you watching for where momentum could build next, it may be worth scanning our screener of 24 power grid technology and infrastructure stocks as another way to source ideas in related infrastructure themes.

With the shares up 32.12% over the past year but still trading below some estimated value measures and price targets, the key question now is whether Sensata is still on sale or if the market is already pricing in potential developments.

Most Popular Narrative: 2% Undervalued

The most followed narrative pegs Sensata's fair value at $39.13, slightly above the last close at $38.36, which puts the current optimism into context.

Operational excellence and smart manufacturing initiatives are improving working capital efficiency and plant-level performance, enabling sustained gross margin improvement and margin resilience even in mixed end-market environments, with positive impact on net margins and free cash flow conversion.

Read the complete narrative.

Curious how that margin story feeds into the $39.13 fair value call? The narrative leans heavily on rising earnings power, steadier revenue growth, and a lower future valuation multiple to get there, plus a discount rate that matters more than you might think.

Result: Fair Value of $39.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still real swing factors here, including pressure from lower priced Chinese competitors and Sensata's higher leverage, which could squeeze margins and limit flexibility.

Find out about the key risks to this Sensata Technologies Holding narrative.

Next Steps

With sentiment looking mixed rather than one sided, this is a good moment to check the numbers yourself and move quickly on your own view. You can start with our look at 3 key rewards and 3 important warning signs.

Looking for more investment ideas?

If Sensata has sharpened your interest, do not stop here; you could miss other opportunities that better fit your goals and risk comfort.

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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.

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