GET DAILY SIGNALSAptiv (APTV) Q3 2026 Earnings: Revenue +2.3% as Diversification Efforts Take Shape
Key Takeaways
- Aptiv reported third-quarter 2026 revenue of $3.20 billion, up 2.3% year over year, with adjusted growth of 2%.
- Adjusted earnings per share (EPS) came in at $1.42, beating consensus estimates of roughly $1.35.
- Non-automotive revenue climbed 11%, while automotive revenue slipped 1%, highlighting the company's diversification push.
- Adjusted EBITDA was $567 million, with margins down 140 basis points on product mix and lower software revenue.
- Management narrowed full-year 2026 guidance and modestly lowered its free cash flow midpoint, citing spin-off costs and inventory investments.
Why This Report Matters
Aptiv develops advanced vehicle electronics, software, and electrical systems, and it is executing a deliberate shift following the spin-off of its Electrical Distribution Systems business earlier in 2026. The company is directing more attention toward higher-margin intelligent systems and non-automotive markets including data centers, robotics, aerospace and defense, and energy storage. This quarter provides an early signal on whether that transition is gaining momentum while automotive demand, especially in Europe, stays uneven. Investors are tracking whether non-automotive gains can offset softness among certain luxury German OEMs and broader production challenges.
The Quarter in Numbers
Aptiv posted third-quarter 2026 net sales of $3.199 billion, compared with $3.127 billion a year earlier and reflecting 2% adjusted growth. Adjusted EPS reached $1.42, above consensus estimates near $1.35, though below the $1.48 recorded in the prior-year quarter. On a GAAP basis, net income attributable to APTV totaled $194 million, or $0.94 per share, a marked improvement from a net loss of $355 million, or $1.63 per share, in the year-ago period that included a large goodwill impairment.
Adjusted EBITDA stood at $567 million, with margins contracting 140 basis points to 17.7% due to unfavorable product mix, lower software revenues, and growth investments. Engineered Components revenue increased about 7% to $1.84 billion, while Intelligent Systems revenue fell about 3% to $1.40 billion. Free cash flow for the quarter was $194 million. The company also booked roughly $4 billion in new business awards, lifting year-to-date totals above $13 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction
Shares traded lower in pre-market activity despite the EPS beat, reflecting caution around the outlook and ongoing softness in Europe, where revenue declined 5% amid weakness linked to two luxury German OEMs. Management expects these pressures to continue through 2027 before easing in 2028. North America grew 5% and Asia-Pacific grew 5%, with Asia excluding China up 13%. The narrowed free cash flow guidance, with the midpoint reduced by $25 million to $650 million, also weighed on sentiment. From what I see, the regional divergence and guidance adjustments are the main points investors are weighing.
Looking Ahead
Aptiv kept its full-year income statement guidance but narrowed ranges and lowered the free cash flow midpoint due to separation costs from the spin-off and inventory builds for supply-chain resilience. Fourth-quarter revenue is projected between $3.11 billion and $3.21 billion, with adjusted EPS between $1.35 and $1.55. Full-year 2026 expectations are revenue of $12.65 billion to $12.75 billion and adjusted EPS of $5.60 to $5.80.
One thing that stands out is the push for more than $3 billion in 2026 revenue from aerospace and defense, telecom and datacom, and diversified industrials. The expanding NVIDIA partnership and recent wins in robotics, drones, and AI data-center applications point to diversification potential. Risks include continued weakness with the two luxury German OEMs, commodity inflation, tariff pressures, and vehicle-production disruptions. Management has signaled a more cautious stance on 2027, so the pace of new awards, pricing recoveries, and margin trends will be worth monitoring.
Integrating AI Tools Into My Process
When reviewing earnings like these, I find it helpful to cross-check sector trends and technical signals with Tickeron’s AI Screener. It lets me quickly filter for similar companies and see how APTV stacks up on fundamentals and patterns without spending hours on manual work. I also glance at the AI Daily Buy/Sell Signals to gauge broader sentiment around the name.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
APTV in upward trend: price may jump up because it broke its lower Bollinger Band on October 23, 2026
APTV may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 36 of 49 cases where APTV's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +1.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where APTV advanced for three days, in 164 of 266 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 38 of 51 cases where APTV's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 75%.
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on APTV as a result. In 74 of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where APTV declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
The Aroon Indicator for APTV entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. APTV’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 66 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.049) is normal, around the industry mean (0.753). P/E Ratio (40.209) is within average values for comparable stocks, (40.047). Projected Growth (PEG Ratio) (1.020) is also within normal values, averaging (1.494). Dividend Yield (0.020) settles around the average of (0.042) among similar stocks. P/S Ratio (0.454) is also within normal values, averaging (49.456).
The Tickeron PE Growth Rating for this company is 82 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 88 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. APTV’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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General Information
a developer of connected technologies and electrical systems for motor vehicles
Industry AutoPartsOEM
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