Aptiv (NYSE:APTV) Posts Earnings Results, Beats Expectations By $0.21 EPS

Aptiv (NYSE:APTV) posted its quarterly earnings results on Tuesday. The auto parts company reported $1.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.42 by $0.21, Zacks reports. The business had revenue of $3.27 billion for the quarter, compared to analysts’ expectations of $3.31 billion. Aptiv had a return on equity of 17.83% and a net margin of 1.77%.The firm’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter last year, the business earned $2.12 earnings per share. Aptiv updated its FY 2026 guidance to 5.600-5.800 EPS and its Q3 2026 guidance to 1.250-1.350 EPS.

Here are the key takeaways from Aptiv’s conference call:

• Aptiv lowered its 2026 guidance, reducing midpoint revenue expectations by $300 million to $12.7 billion and forecasting adjusted EPS of $5.70. The revisions reflect weaker China production schedules, delayed program launches and ramps, and timing of enterprise software sales.
• Second-quarter revenue rose 2% to $3.3 billion, while adjusted EBITDA margin expanded 10 basis points to 18.6%. North America and Asia-Pacific growth helped offset an 8% revenue decline in Europe and a 1% decline in automotive revenue.
• Non-automotive revenue grew 12%, with momentum in diversified industrials, aerospace and defense, software and services, energy storage, robotics, drones and data centers. Aptiv expects robotics and drone revenue to reach approximately $300 million annually over the next few years, and cited a drone award with more than $500 million in lifetime revenue potential.
• Aptiv reported $5 billion of second-quarter bookings and $10 billion year to date, keeping it on track toward its $20 billion full-year target. The company also repurchased $250 million of shares in the quarter and plans to exceed $600 million in repurchases for 2026.

Aptiv Price Performance

Shares of NYSE APTV opened at $47.81 on Wednesday. The firm has a market cap of $10.12 billion, a PE ratio of 28.29, a PEG ratio of 1.06 and a beta of 1.46. The company has a current ratio of 2.11, a quick ratio of 1.57 and a debt-to-equity ratio of 0.98. Aptiv has a 1-year low of $46.42 and a 1-year high of $88.93. The company has a fifty day moving average price of $61.90 and a 200 day moving average price of $66.29.

Analysts Set New Price Targets

APTV has been the topic of several recent research reports. Wells Fargo & Company reduced their target price on shares of Aptiv from $82.00 to $77.00 and set an “overweight” rating on the stock in a research note on Thursday, June 25th. Citigroup dropped their target price on shares of Aptiv from $92.33 to $77.00 and set a “buy” rating for the company in a research report on Monday, May 18th. Oppenheimer cut their price target on shares of Aptiv from $106.00 to $84.00 and set an “outperform” rating on the stock in a research report on Monday, April 13th. BNP Paribas Exane reduced their target price on Aptiv from $107.00 to $83.00 and set an “outperform” rating on the stock in a report on Tuesday, April 14th. Finally, TD Cowen reiterated a “buy” rating on shares of Aptiv in a research report on Friday, June 12th. Twenty investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $80.98.

Aptiv News Summary

Here are the key news stories impacting Aptiv this week:

• Positive Sentiment: Aptiv reported adjusted second-quarter earnings of $1.63 per share, above the $1.42 analyst consensus. Revenue rose 2.3% year over year to $3.27 billion, while adjusted EBITDA increased to $613 million from $547 million. Aptiv Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted margin improvements, new commercial awards and regional strength. Aptiv also repurchased 4.1 million shares for $250 million during the quarter, with $1.8 billion remaining under its authorization. Aptiv’s Q2 Earnings Beat Estimates
• Positive Sentiment: Aptiv is targeting approximately $300 million in 2026 revenue from robotics and drones, providing a potential growth avenue beyond traditional automotive demand. Aptiv 2026 Revenue and Robotics Outlook
• Neutral Sentiment: Analyst targets remain substantially above the current share price, with recent targets generally ranging from $73 to $90 and a reported six-month median of $80.50. However, these targets may not yet fully reflect the lower guidance.
• Negative Sentiment: Aptiv reduced full-year 2026 revenue guidance to $12.6 billion-$12.8 billion from $12.8 billion-$13.2 billion and adjusted EPS guidance to $5.60-$5.80 from $5.70-$6.10. Management cited customer-mix headwinds, primarily in China, that are expected to pressure second-half growth. Aptiv Outlook Reduction
• Negative Sentiment: Third-quarter guidance of $1.25-$1.35 EPS and $3.1 billion-$3.2 billion revenue is below consensus estimates of $1.61 EPS and $3.3 billion revenue, reinforcing concerns about near-term earnings momentum.
• Negative Sentiment: Cash generation was weak: second-quarter free cash flow was only $12 million, and year-to-date free cash flow was negative $196 million. Net income attributable to Aptiv also fell to $248 million from $393 million a year earlier.

Insider Activity

In other Aptiv news, EVP Katherine H. Ramundo sold 2,000 shares of Aptiv stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $78.30, for a total value of $156,600.00. Following the sale, the executive vice president owned 163,752 shares of the company’s stock, valued at $12,821,781.60. This trade represents a 1.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 0.06% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Geneos Wealth Management Inc. lifted its stake in Aptiv by 452.3% in the 1st quarter. Geneos Wealth Management Inc. now owns 486 shares of the auto parts company’s stock valued at $29,000 after acquiring an additional 398 shares in the last quarter. DV Equities LLC bought a new position in shares of Aptiv during the 4th quarter worth approximately $33,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Aptiv in the fourth quarter valued at approximately $33,000. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its holdings in shares of Aptiv by 60.0% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 480 shares of the auto parts company’s stock valued at $37,000 after purchasing an additional 180 shares during the last quarter. Finally, MUFG Securities EMEA plc bought a new stake in shares of Aptiv in the second quarter worth $44,000. 94.21% of the stock is currently owned by institutional investors.

Aptiv Company Profile

Aptiv plc is a global automotive technology company that develops safer, greener and more connected solutions for the mobility industry. The company designs and supplies advanced electrical architectures, electronic systems and software that enable vehicle connectivity, active safety, advanced driver-assistance systems (ADAS) and autonomous driving capabilities. Aptiv’s customers include major automakers and mobility service providers seeking to integrate higher levels of automation, electrification and software-defined features into production vehicles and mobility platforms.

Product and service offerings span vehicle electrical systems and wiring, connectors and harnesses, high-voltage electrification components, power electronics and charging solutions, sensors and compute platforms that support ADAS and autonomous functions, and the software and services required to integrate and manage these systems.