A magnetostrictive sensor for outputting a signal representative of torque on a shaft includes one or more excitation coils that generate magnetic flux which permeates the shaft and pickup coils that detect the flux after the flux passes through the shaft. Torque on the shaft affects the magnetic flux passing through the shaft. A coupling member such as plural rollers or powder metal poles are disposed in the flux path and touch the shaft such that no air gap exists in the flux path. Consequently, the sensor is comparatively sensitive, and is not unduly effected by shaft run-out.