STMicroelectronics (NYSE:STM) Posts Earnings Results, Misses Estimates By $0.09 EPS

STMicroelectronics (NYSE:STM) issued its quarterly earnings data on Thursday. The semiconductor producer reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.09), Zacks reports. The company had revenue of $3.10 billion for the quarter, compared to analyst estimates of $3.11 billion. STMicroelectronics had a net margin of 1.41% and a return on equity of 2.70%.

Here are the key takeaways from STMicroelectronics’ conference call:

• Q1 revenues $3.1B with book‑to‑bill well above 1 across all end markets; company guides Q2 revenues to $3.45B (±350bp), implying +11.6% sequential growth and reiterates double‑digit revenue growth for 2026.
• ST is positioning for a major AI/data‑center ramp — expects data‑center revenues “nicely above $500M” in 2026 and “well above $1B” in 2027, has started high‑volume production of the PIC100 silicon‑photonics platform and secured a multi‑year, multibillion‑dollar engagement with Amazon Web Services.
• Completed the acquisition of NXP’s MEMS sensor business (≈$40M contribution in Q1) and says integration is on track to strengthen automotive sensor design wins, though it brings PPA effects and incremental OpEx.
• Q1 profitability and cash flow were impacted by restructuring and acquisition payments — reported net income $37M (non‑GAAP EPS $0.13), free cash flow ≈‑$720M including $895M acquisition cash out, plus $71M of impairment/restructuring and ongoing manufacturing reshaping costs that weigh on near‑term gross margin.

STMicroelectronics Stock Performance

STMicroelectronics stock traded up $5.65 during trading hours on Thursday, hitting $50.51. The stock had a trading volume of 14,751,761 shares, compared to its average volume of 8,853,112. The company has a 50-day moving average of $35.19 and a two-hundred day moving average of $29.60. The company has a quick ratio of 2.43, a current ratio of 3.36 and a debt-to-equity ratio of 0.10. The company has a market cap of $45.37 billion, a PE ratio of 280.63 and a beta of 1.51. STMicroelectronics has a fifty-two week low of $21.11 and a fifty-two week high of $50.68.

Trending Headlines about STMicroelectronics

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Management raised the Q2 outlook: mid‑point revenue guidance of ~$3.45B (company release) — above recent street consensus — and a stronger gross‑margin outlook, suggesting demand and pricing trends improve into Q2. STMicroelectronics Reports Q1 2026 Financial Results
• Positive Sentiment: Analyst upgrade: Craig Hallum bumped STM from “hold” to “buy” with a $58 target (implies upside vs. prior levels), which can drive momentum and buy interest. Finviz Analyst Note
• Positive Sentiment: Company highlighted secular demand drivers (AI, personal electronics, communications) and reported strong YoY revenue growth — press coverage cites AI-driven sales gains that support longer‑term growth narratives. Apple Supplier STMicroelectronics Logs Higher Sales on Strong AI Demand
• Positive Sentiment: ST plans an investor webcast on May 4 to discuss the LEO (low‑Earth orbit) opportunity — signaling management is promoting new addressable markets that could drive multiple expansion. STMicroelectronics to host investor call on the LEO opportunity
• Neutral Sentiment: Company published the Q1 slide deck and conference‑call materials for detail on segment trends and margins — useful for modeling but not an immediate catalyst by itself. Q1 Slide Deck
• Neutral Sentiment: Earnings call transcript is available for detail on product mix and end‑market momentum — worth reviewing for conviction but neutral until new facts emerge. Q1 2026 Earnings Call Transcript
• Negative Sentiment: GAAP EPS disappointed: Q1 GAAP EPS $0.13 vs. consensus ~$0.22 (miss of ~$0.09); net margin and ROE remain low on a GAAP basis — a short‑term concern for earnings‑focused investors. STMicroelectronics Q1 Earnings Summary

Hedge Funds Weigh In On STMicroelectronics

Large investors have recently added to or reduced their stakes in the company. CIBC Private Wealth Group LLC raised its holdings in STMicroelectronics by 3,746.2% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,000 shares of the semiconductor producer’s stock valued at $26,000 after acquiring an additional 974 shares in the last quarter. Advisory Services Network LLC acquired a new position in STMicroelectronics in the 3rd quarter valued at approximately $52,000. Brown Brothers Harriman & Co. raised its holdings in STMicroelectronics by 350.4% in the 4th quarter. Brown Brothers Harriman & Co. now owns 2,680 shares of the semiconductor producer’s stock valued at $70,000 after acquiring an additional 2,085 shares in the last quarter. Rakuten Securities Inc. raised its holdings in STMicroelectronics by 132.7% in the 2nd quarter. Rakuten Securities Inc. now owns 2,916 shares of the semiconductor producer’s stock valued at $89,000 after acquiring an additional 1,663 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in STMicroelectronics in the 4th quarter valued at approximately $80,000. Institutional investors and hedge funds own 5.05% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on STM shares. Craig Hallum raised STMicroelectronics from a “hold” rating to a “buy” rating and set a $58.00 price objective on the stock in a report on Thursday. Weiss Ratings downgraded STMicroelectronics from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, March 6th. Susquehanna increased their target price on STMicroelectronics from $35.00 to $40.00 and gave the company a “positive” rating in a research note on Monday, February 23rd. Mizuho set a $48.00 target price on STMicroelectronics and gave the company an “outperform” rating in a research note on Thursday, April 16th. Finally, Morgan Stanley upgraded STMicroelectronics from an “equal weight” rating to an “overweight” rating in a research note on Thursday, March 26th. Nine equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, STMicroelectronics currently has an average rating of “Moderate Buy” and an average target price of $39.07.

About STMicroelectronics

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.