STMicroelectronics (NYSE:STM) Issues Earnings Results

Posted by Brenda Bartman on Jul 23rd, 2026

STMicroelectronics (NYSE:STM – Get Free Report) issued its quarterly earnings results on Thursday. The semiconductor producer reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.05, Zacks reports. STMicroelectronics had a return on equity of 3.01% and a net margin of 1.19%.

Here are the key takeaways from STMicroelectronics’ conference call:

ST reported Q2 revenue of $3.49 billion, above the midpoint of guidance, with strong demand across automotive, industrial, and communications-related markets. Management said bookings were robust and book-to-bill was close to 2 overall, signaling improved visibility.
AI data center exposure is becoming a larger growth driver: ST raised its 2026 data center revenue target to above $1 billion and now sees it well above $2 billion in 2027, driven mainly by optical connectivity and silicon photonics. Management also said this business should be accretive to gross margin over time.
Automotive and industrial both accelerated, with automotive revenue up 14% sequentially and industrial up 20% sequentially. The company highlighted design wins in ADAS, powertrain, sensors, industrial automation, and power systems.
Q3 guidance points to $3.7 billion in revenue at the midpoint and gross margin of about 37%, with management expecting further gross margin improvement in Q4. However, they warned that manufacturing reshaping costs and underloading charges will continue to weigh on margins.
Cash generation improved, with positive free cash flow of $75 million in Q2, inventory days falling to 126, and the net financial position remaining solid at $2.01 billion. Management also said it expects 2026 net capex at the high end of the $2.0 billion-$2.2 billion range to support growth investments.

STMicroelectronics Stock Performance

Shares of NYSE STM traded down $11.04 during trading hours on Thursday, reaching $54.73. The stock had a trading volume of 17,330,762 shares, compared to its average volume of 10,480,520. The company has a market cap of $49.15 billion, a price-to-earnings ratio of 342.05 and a beta of 1.93. STMicroelectronics has a twelve month low of $21.11 and a twelve month high of $81.42. The business’s fifty day moving average is $70.54 and its two-hundred day moving average is $48.24. The company has a debt-to-equity ratio of 0.12, a current ratio of 3.31 and a quick ratio of 2.34.

Institutional Investors Weigh In On STMicroelectronics

Several institutional investors and hedge funds have recently bought and sold shares of STM. CIBC Private Wealth Group LLC raised its stake in shares of 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 buying an additional 974 shares in the last quarter. Advisory Services Network LLC acquired a new stake in shares of STMicroelectronics during the 3rd quarter valued at about $52,000. Brown Brothers Harriman & Co. increased its stake in STMicroelectronics by 350.4% in the fourth 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 during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in STMicroelectronics in the fourth quarter valued at about $80,000. Finally, Rakuten Securities Inc. raised its position in STMicroelectronics by 132.7% in the second quarter. Rakuten Securities Inc. now owns 2,916 shares of the semiconductor producer’s stock worth $89,000 after purchasing an additional 1,663 shares in the last quarter. Institutional investors own 5.05% of the company’s stock.

Analysts Set New Price Targets

STM has been the topic of a number of recent research reports. Barclays upgraded STMicroelectronics from an “underweight” rating to an “equal weight” rating in a report on Monday, June 29th. Morgan Stanley reiterated an “overweight” rating on shares of STMicroelectronics in a report on Tuesday, June 30th. Mizuho boosted their price objective on shares of STMicroelectronics from $68.00 to $84.00 and gave the company an “outperform” rating in a research report on Wednesday, June 3rd. Zacks Research upgraded shares of STMicroelectronics from a “hold” rating to a “strong-buy” rating in a research report on Friday, June 26th. Finally, Citigroup restated a “buy” rating on shares of STMicroelectronics in a report on Sunday, April 26th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $68.28.

Read Our Latest Report on STM

STMicroelectronics Company Profile

(Get Free Report)

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.