STMicroelectronics (NYSE:STM) Announces Quarterly Earnings Results

STMicroelectronics (NYSE:STM) released its quarterly earnings results on Thursday. The semiconductor producer reported $0.11 EPS for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.16), Zacks reports. The company had revenue of $3.33 billion for the quarter, compared to the consensus estimate of $3.29 billion. STMicroelectronics had a return on equity of 2.70% and a net margin of 1.41%.

Here are the key takeaways from STMicroelectronics’ conference call:

• ST posted a Q4 beat with $3.33B in revenue (above outlook midpoint), returned to year?over?year growth in Q4, and generated $257M of free cash flow in the quarter.
• Q4 and FY results included material one?time charges (?$141M in Q4, $376M FY) that contributed to a Q4 net loss and the company guided a sequential revenue decline of 8.7% for Q1 with a near?term gross?margin trough (~33.7%).
• Automotive momentum is improving with multiple design wins across EV and traditional vehicle domains, and the planned acquisition of NXP’s MEMS sensor business (expected to close H1?2026) is positioned to strengthen ST’s sensor footprint.
• Management highlights data?center/AI and Cloud Optical Interconnect as major growth drivers—securing design wins in silicon photonics, SiC/silicon power, and pluggable optics—and targets $500M in 2026 revenue toward a $1B goal before 2030.
• ST plans ~$2.2B net CapEx in 2026 to support capacity for growth drivers and manufacturing reshaping; management expects unused?capacity charges to decline during 2026 and gross margin to improve after Q1, but benefits are phased over 2026–2027.

STMicroelectronics Price Performance

STM stock opened at $27.91 on Friday. STMicroelectronics has a one year low of $17.25 and a one year high of $33.47. The firm has a 50-day moving average of $26.58 and a two-hundred day moving average of $26.69. The firm has a market capitalization of $25.06 billion, a PE ratio of 155.04, a P/E/G ratio of 3.57 and a beta of 1.56. The company has a current ratio of 3.22, a quick ratio of 2.28 and a debt-to-equity ratio of 0.11.

Wall Street Analyst Weigh In

A number of research firms have weighed in on STM. Mizuho set a $28.00 target price on STMicroelectronics in a research report on Friday, January 9th. Robert W. Baird set a $45.00 price objective on STMicroelectronics in a research note on Friday, October 24th. TD Cowen reaffirmed a “hold” rating on shares of STMicroelectronics in a research note on Friday, October 24th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of STMicroelectronics in a report on Wednesday, January 21st. Finally, Susquehanna upped their price target on shares of STMicroelectronics from $35.00 to $40.00 and gave the company a “positive” rating in a report on Wednesday, October 22nd. Seven research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $31.19.

Institutional Investors Weigh In On STMicroelectronics

Hedge funds have recently made changes to their positions in the company. Invesco Ltd. grew its position in STMicroelectronics by 67.1% during the 3rd quarter. Invesco Ltd. now owns 4,003,933 shares of the semiconductor producer’s stock worth $113,151,000 after purchasing an additional 1,608,029 shares in the last quarter. Two Sigma Investments LP grew its holdings in shares of STMicroelectronics by 135.0% during the third quarter. Two Sigma Investments LP now owns 2,322,540 shares of the semiconductor producer’s stock valued at $65,635,000 after buying an additional 1,334,192 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of STMicroelectronics by 43.9% during the second quarter. Bank of America Corp DE now owns 4,348,569 shares of the semiconductor producer’s stock valued at $132,240,000 after buying an additional 1,326,020 shares in the last quarter. BNP Paribas Financial Markets raised its position in STMicroelectronics by 138.9% during the third quarter. BNP Paribas Financial Markets now owns 2,205,234 shares of the semiconductor producer’s stock valued at $62,320,000 after buying an additional 1,282,343 shares during the period. Finally, Rafferty Asset Management LLC lifted its stake in STMicroelectronics by 50.7% in the 2nd quarter. Rafferty Asset Management LLC now owns 3,020,721 shares of the semiconductor producer’s stock worth $91,860,000 after acquiring an additional 1,016,035 shares in the last quarter. Hedge funds and other institutional investors own 5.05% of the company’s stock.

Key Headlines Impacting STMicroelectronics

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Company gave Q1 FY2026 revenue guidance above consensus (roughly $3.0–$3.1B vs. ~$2.9B consensus), which supports near-term top-line stability and helped limit the selloff. Article Title
• Positive Sentiment: Management said chip sales are improving with year-over-year growth in personal electronics, communications and industrial end markets — a demand signal investors can view as early recovery evidence. Article Title
• Neutral Sentiment: ST and NanoXplore secured space qualification for a European FPGA — a strategic technology win that diversifies long-term end markets but is unlikely to be a near-term revenue driver. Article Title
• Negative Sentiment: Q4 EPS materially missed expectations ($0.11 reported vs. $0.27 est.), signaling weaker profitability and raising concern on margin recovery. Revenue was roughly in line at $3.33B but couldn’t offset the profit miss. Article Title
• Negative Sentiment: Company reported significant impairment/restructuring charges (Q4 and FY items cited in the press release) and warned restructuring costs will continue to weigh on results — investors may be concerned about one-time and recurring cost pressure. Article Title
• Negative Sentiment: Some outlets flagged a swing to an operating loss or sequential revenue softness after adjusting for charges, which amplifies near-term uncertainty around profitability and margin recovery. Article Title

STMicroelectronics Company Profile

STMicroelectronics is a global semiconductor company headquartered in Geneva, Switzerland, formed through the 1987 merger of SGS Microelettronica and Thomson Semiconducteurs. The company designs, develops and manufactures a broad range of semiconductor products and solutions that serve multiple end markets worldwide. ST’s offerings span from basic components to integrated systems, emphasizing energy-efficient and high-performance devices for modern electronics.

Product categories include microcontrollers (notably the widely used STM32 family), analog and mixed-signal ICs, power MOSFETs and power-management devices, MEMS and sensors, image sensors, and discrete semiconductors.