Aptiv PLC, a leader in automotive technology, announced its financial results for the fourth quarter, revealing performance metrics that outpaced analyst projections. The company posted U.S. GAAP revenue totaling $5.153 billion for the quarter, marking an increase from $4.907 billion in the same period of the previous year.
On an adjusted basis, Aptiv's revenue grew 3% compared to the prior year, underscored by robust growth of 8% in North America and 12% in South America. This positive regional momentum was offset by declines of 1% in both Europe and Asia, reflecting a mixed geographic performance that highlights contrasting market dynamics across the globe.
In terms of profitability, Aptiv delivered an adjusted earnings per share (EPS) figure of $1.86, narrowly surpassing analyst estimates of $1.85. Revenue also topped expectations slightly, with the reported $5.153 billion exceeding the $5.105 billion forecast. However, on a GAAP basis, earnings dipped compared to the previous year, a change the company attributed primarily to higher tax expenses during the period.
Looking ahead to 2026, Aptiv provided a cautiously optimistic outlook. The company projects first-quarter net sales in the range of $4.950 billion to $5.150 billion. For diluted GAAP EPS, guidance ranges from $0.60 to $0.80, noticeably below the consensus estimate of $1.77. Adjusted EPS guidance for the quarter stands between $1.55 and $1.75, compared with analyst expectations of $1.92.
For the full fiscal year 2026, Aptiv anticipates net sales between $21.120 billion and $21.820 billion, which aligns closely with the consensus forecast of $21.126 billion. The company forecasts GAAP diluted EPS within a range of $5.75 to $6.35, under the $7.21 estimate, while projecting adjusted EPS of $8.15 to $8.75, slightly above the consensus estimate of $8.46.
Highlighting corporate strategy, CEO and Chairman Kevin Clark emphasized ongoing efforts to segregate Aptiv's electrical distribution and safety (EDS) business by spinning it off under the name Versigent. This move is designed to establish two independent companies, each equipped to pursue distinct market opportunities and execute tailored capital allocation strategies, thereby enhancing operational flexibility.
Following the earnings announcement, Aptiv's stock price increased by approximately 2.6%, trading at $80.08 on the subsequent trading day, signaling a positive market reaction.
Analysts updated their evaluations in response to the earnings data. Colin Langan of Wells Fargo reaffirmed an Overweight rating on Aptiv and raised the price target from $99 to $102, reflecting increased confidence in the company's outlook. Similarly, Colin Rusch from Oppenheimer maintained an Outperform rating and increased the price target from $102 to $106, underscoring bullish sentiment among leading analysts.
The juxtaposition of stronger than expected revenue and adjusted earnings, alongside reduced GAAP earnings due to tax impacts and more conservative guidance, illustrates the complex operating environment Aptiv navigates. The forthcoming spin-off of the EDS business represents a significant structural change that investors and industry observers will be monitoring closely as it unfolds in 2026.