The spin valve tunneling magnetoresistance (SV-TMR) sensor performance is analyzed using Stoner-Wohlfarth model for the detection of eddy current signals in nondestructive testing applications. The SV-TMR response in terms of the applied AC magnetic field dominantly generates the second harmonic amplitude in hard axis direction. The second harmonic eddy current signal detection using SV-TMR sensor shows higher performance than that of the coil sensor at lower frequencies. The SV-TMR sensor with high sensitivity gives a good solution to improve the low frequency performance in comparison with the inductive coil sensors. Therefore, the low frequency eddy current techniques based on SV-TMR sensors are specially useful in the detection of hidden defects, and it can be applied to detect the deeply embedded flaws or discontinuities in the conductive materials.