APTV US S&P 500Russell 1000 Earnings call · transcribed from the recording
Aptiv (APTV) · Q3 2026 results and valuation
Share price: $39.41 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 6 Aug 2026
Net income down 21.8% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−21.8%
Net income vs Q2 2026
Outlook given
Net income 194.0M vs 248.0M
Revenue −2.3%
2 · How management spoke
Typical
Less upbeat than 64% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Key theme
Aptiv remained active in the fourth quarter and plan to repurchase at least $650 million by year end.
Valuation
Is Aptiv undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 5.3% growth a year (3-year revenue growth), the model's fair value is $13.28 a share — the stock trades 197% above it. Today's price assumes 20.1% growth a year.
Current price
$39.41
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+20.1% for 10 yrs
Fair value / share
$13.28
Buy below
$9.96
Price vs fair value
Overvalued 197%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Figure
Shifting to future business, Aptiv secured roughly $4 billion of new business
Source quote
“Shifting to future business, we secured roughly $4 billion of new business awards in the third quarter, bringing our year-to-date... And we remained active in the fourth quarter and plan to repurchase at least $650 million by year end, returning 100% of our free cash flow to shareholders during 2026. In China, we grew bookings by 30%, of which more than 20% are tied to export programs.”
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Guidance
For the full year, Aptiv is maintaining its income statement guidance from last quarter, with the key metrics unchanged at the midpoint, and the revenue range narrowed.
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Guidance
In Europe, revenue was down 5%, driven by a decline in the intelligence systems business, where revenue was impacted by weakness with two luxury German OEMs, which Aptiv expects to persist through the end...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“A zonal controller with up-integrated functionality from multiple premium electric vehicle brands at a leading Chinese OEM, and high-voltage interconnect solutions deployed across multiple leading OEMs and flagship EV platforms.”
“And 1% growth in China, driven by continued momentum in intelligent systems, which grew for the second consecutive quarter.”
“And in Asia Pacific, revenue increased 5%, including a 13% growth in Asia x China, mainly driven by growth in India.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.20B | 3.27B | −2.3% | 3.13B | +2.3% |
| Gross profit | 690.0M | 775.0M | −11.0% | 719.0M | −4.0% |
| Operating income | 281.0M | 367.0M | −23.4% | -353.0M | Turned profit |
| Net income | 194.0M | 248.0M | −21.8% | -355.0M | Turned profit |
| EPS | 0.94 | 1.17 | −19.7% | -1.63 | Turned profit |
| P/E today 10.9 | 11.9 | 55.3 | −43.4 | 65.3 | −53.4 |
Topics
Most discussed now
- Today's review of Aptiv's financials exclude amortization, restructuring, and other special items, and year-over-year comparisons are based…
- The momentum Aptiv has built in non-automotive markets has led to a significant revenue base that it is now leveraging to create...
- Starting on slide three, Aptiv delivered solid three-quarter financial results, including revenue growth of 2%, which was consistent with…
- Adjusted EBITDA totaled 567 million and adjusted EBITDA margin decreased 140 basis points due to product mix including lower software...
- The automotive business, which accounts for three quarters of Aptiv's revenues at this point of time, that essentially is the...
Faded since Q2 2026
- Fading It's at least for it, difficult to envision another year where the China local market is down 20% and production...
- Fading Aptiv continues to demonstrate progress diversifying its business, evidenced by double-digit non-auto revenue growth in the quarter and new…
- Fading During the second quarter, Aptiv generated 2% revenue growth and 10 basis points of EBITDA margin expansion.
- Fading In Europe, revenue was down 8%, primarily reflecting volume pressures with select luxury OEMs, predominantly in Intelligent Systems.
Latest announcements
Official filings, newest first.
- Results of operations; Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Other events · SEC 8-K
- Material agreement; Acquisition or disposal · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K