STMicroelectronics (NYSE:STM) Issues Earnings Results

STMicroelectronics (NYSE:STM) released its quarterly earnings data on Thursday. The semiconductor producer reported $0.31 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.05, Zacks reports. STMicroelectronics had a net margin of 1.19% and a return on equity of 3.01%. The firm had revenue of $3.49 billion during the quarter, compared to the consensus estimate of $3.46 billion.

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 STM traded down $11.44 during trading hours on Thursday, reaching $54.33. 20,043,990 shares of the company’s stock traded hands, compared to its average volume of 10,497,851. STMicroelectronics has a twelve month low of $21.11 and a twelve month high of $81.42. The business’s fifty day simple moving average is $70.54 and its two-hundred day simple 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. The firm has a market capitalization of $48.80 billion, a price-to-earnings ratio of 338.36 and a beta of 1.93.

Key STMicroelectronics News

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: STM posted Q2 EPS of $0.31, above the $0.26 consensus, and revenue of $3.49 billion, topping estimates and rising year over year. Management also pointed to improving demand in automotive, AI-related data-center optical, and consumer electronics markets. STMicroelectronics Reports Q2 2026 Financial Results
• Positive Sentiment: STMicroelectronics raised its AI data-center sales goal again, reinforcing the long-term growth story around artificial intelligence and high-performance computing. SpaceX Supplier STMicroelectronics Hikes AI Data-Center Sales Goal Again
• Neutral Sentiment: Management said manufacturing and supply-chain hurdles remain, even as revenue growth across key segments stayed strong. STMicroelectronics NV (STM) Q2 2026 Earnings Call Highlights: Strong Revenue Growth Amid …
• Neutral Sentiment: The company’s Q3 revenue guidance was roughly in line to slightly below expectations, which is tempering enthusiasm despite the better Q2 print. STMicro’s Q3 revenue view slightly lags estimates even as chip demand recovers
• Negative Sentiment: Investors are selling STM because the third-quarter sales outlook came in softer than hoped, overshadowing the earnings beat and signaling that the recovery may be gradual. STMicroelectronics Sinks On Soft Q3 Sales Outlook

Hedge Funds Weigh In On STMicroelectronics

Several large investors have recently bought and sold shares of STM. CIBC Private Wealth Group LLC increased its position in shares of STMicroelectronics by 3,746.2% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,000 shares of the semiconductor producer’s stock valued at $26,000 after purchasing an additional 974 shares during the period. Advisory Services Network LLC purchased a new stake in shares of STMicroelectronics during the third quarter valued at $52,000. Brown Brothers Harriman & Co. boosted its position in shares of 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 purchasing an additional 2,085 shares during the period. Rakuten Securities Inc. boosted its position in shares of 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 purchasing an additional 1,663 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in STMicroelectronics in the 4th quarter worth about $80,000. Institutional investors and hedge funds own 5.05% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on STM. Zacks Research upgraded shares of STMicroelectronics from a “hold” rating to a “strong-buy” rating in a research report on Friday, June 26th. Craig Hallum reaffirmed a “buy” rating and set a $70.00 price objective on shares of STMicroelectronics in a research report on Thursday. Morgan Stanley reissued an “overweight” rating on shares of STMicroelectronics in a report on Tuesday, June 30th. UBS Group set a $100.00 target price on STMicroelectronics in a research note on Wednesday, June 10th. Finally, TD Cowen reaffirmed a “hold” rating on shares of STMicroelectronics in a report on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, STMicroelectronics currently has an average rating of “Moderate Buy” and a consensus price target of $69.61.

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.