Earnings

Sensata Now Has Seven Hyperscaler Design Wins, But Revenue From Them Starts In Mid-2027

Data center sales should hit $48 million in 2026 from $27 million, the CEO said, with the larger ramp still ahead.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Sensata Now Has Seven Hyperscaler Design Wins, But Revenue From Them Starts In Mid-2027

Sensata Technologies, which makes sensors and electrical protection components, now has seven design wins across six hyperscalers, CEO Stephan von Schuckmann said on the company's third-quarter earnings call Tuesday, but the revenue from those wins does not begin until mid-2027. Data center sales are projected at $48 million in 2026, up 76% from $27 million in 2025.

Small base, big promised ramp

Von Schuckmann said the $48 million figure comes largely from existing products and a bigger sales presence. It excludes both the hyperscaler wins and Dynapower, Sensata's power-conversion business.

The seven wins, one of them in China, compare with five a quarter ago and a single win at the start of the year. Asked by a Wolfe Research analyst whether data center revenue could reach triple digits by the end of 2027, von Schuckmann said revenue starts in mid-2027 and then grows gradually, and gave no figure.

He said new 800-volt and liquid-cooling designs lift Sensata's serviceable content per megawatt from one and a half times to two and a half times. The company launched an ultrasonic coolant flow sensor last week, with first shipments expected by mid-2027, subject to final customer timing.

Dynapower gets a new job

Asked by a Truist analyst about Dynapower, von Schuckmann called the refocus toward data center power a "deliberate strategic choice." The unit still pursues clean energy projects, and he said the data center opportunity is "orders of magnitude larger," arriving from mid-2027 onward.

The pitch rests on inverters, converters and rectifiers used for power and peak management as data centers compete for grid capacity.

The quarter behind the pitch

Third-quarter revenue was $1.004 billion, up 8% from $932 million a year earlier, and included a $24 million termination payment from a customer that cancelled an electric vehicle program. Without it, CFO Andrew Lynch said, revenue would have been $980 million, up 5%. Adjusted earnings per share were $1.13, up 27%.

Year-to-date free cash flow of $489 million already matches 2025's full-year $490 million, von Schuckmann said. Asked whether more such payments are coming, he said none are expected to recur.

For the fourth quarter, Sensata guided to revenue of $942 million to $972 million and adjusted EPS of 95 cents to 99 cents, citing softer auto production, especially in China.

Sensata executives are scheduled to appear at the RW Baird Global Industrial Conference on November 11 in Chicago and the UBS Global Industrials and Transportation Conference on December 2 in Florida.

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