Press Release: STMicroelectronics Reports Q4 and FY 2025 Financial Results
PR No: C3383C
STMicroelectronics Reports Q4 and FY 2025 Financial Results
-- Q425 net revenues $3.33 billion; gross margin 35.2%; operating income of $125 million, including $141 million related to impairment, restructuring charges and other related phase-out costs -- FY25 net revenues $11.80 billion; gross margin 33.9%; operating income of $175 million, including $376 million related to impairment, restructuring charges and other related phase-out costs -- Business outlook at mid-point: Q126 net revenues of $3.04 billion and gross margin of 33.7%
Geneva, January 29, 2026 -- STMicroelectronics N.V. ("ST") (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the fourth quarter ended December 31, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported fourth quarter net revenues of $3.33 billion, gross margin of 35.2%, operating income of $125 million, and net loss of $30 million or -$0.03 diluted earnings per share (non-U.S. GAAP(1) operating income of $266 million, and non-U.S. GAAP(1) net income of $100 million or $0.11 diluted earnings per share, including certain negative one-time tax expenses impact of $0.18 per share).
Jean-Marc Chery, ST President & CEO, commented:
-- "Q4 net revenues came above the mid-point of our business outlook range, driven by higher revenues in Personal Electronics and, to a lesser extent, in CECP and Industrial, while Automotive was below expectations. Gross margin was above the mid-point of our business outlook range mainly due to better product mix. Q4 revenues marked the return to year-over-year growth." -- "FY25 revenues decreased 11.1% to $11.80 billion. Operating margin was 1.5% and net income was $166 million. Non-U.S. GAAP1 operating margin was 4.7% and non-U.S. GAAP1 net income was $486 million. We invested $1.79 billion in Net Capex (non-U.S. GAAP1) while delivering free cash flow (non-U.S. GAAP1) of $265 million." -- "Our first quarter business outlook, at the mid-point, is for net revenues of $3.04 billion, decreasing sequentially by 8.7%, better than average past seasonality, and accelerating the year-over-year growth dynamic that started in Q4. Gross margin is expected to be about 33.7%; including about 220 basis points of unused capacity charges." -- "For 2026, we plan to invest between $2.0 to $2.2 billion in Net Capex (non-U.S. GAAP1)." -- "Our strategic priorities remain to accelerate innovation; execute our company-wide program to reshape our manufacturing footprint and resize our global cost base and strengthen free cash flow generation."
Quarterly Financial Summary
U.S. GAAP
(US$ m, except per share data) Q4 2025 Q3 2025 Q4 2024 Q/Q Y/Y
---------------------------------- ------- ------- ------- ------ -------
Net Revenues $3,329 $3,187 $3,321 4.5% 0.2%
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Gross Profit $1,172 $1,059 $1,253 10.7% -6.5%
---------------------------------- ------- ------- ------- ------ -------
200 -250
Gross Margin 35.2% 33.2% 37.7% bps bps
---------------------------------- ------- ------- ------- ------ -------
Operating Income $125 $180 $369 -30.2% -66.0%
---------------------------------- ------- ------- ------- ------ -------
-180 -730
Operating Margin 3.8% 5.6% 11.1% bps bps
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Net Income (Loss) $(30) $237 $341 - -
---------------------------------- ------- ------- ------- ------ -------
Diluted Earnings Per Share $(0.03) $0.26 $0.37 - -
---------------------------------- ------- ------- ------- ------ -------
Non-U.S. GAAP(1)
(US$ m, except per share data) Q4 2025 Q3 2025 Q4 2024 Q/Q Y/Y
---------------------------------- ------- ------- ------- ------ -------
Operating Income $266 $217 $369 22.8% -27.8%
---------------------------------- ------- ------- ------- ------ -------
120 -310
Operating Margin 8.0% 6.8% 11.1% bps bps
---------------------------------- ------- ------- ------- ------ -------
Net Income $100 $267 $341 -62.7% -70.8%
---------------------------------- ------- ------- ------- ------ -------
Diluted Earnings Per Share $0.11 $0.29 $0.37 -62.1% -70.3%
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Fourth Quarter 2025 Summary Review
Reminder: on January 1, 2025, we made some adjustments to our segment reporting. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.
Q4 Q3 Q4 Net Revenues by Reportable Segment(2) (US$ m) 2025 2025 2024 Q/Q Y/Y ---------------------------------------------------------- ------ ------ ------ ----- ------ Analog products, MEMS and Sensors (AM&S) segment 1,449 1,434 1,348 1.1% 7.5% ---------------------------------------------------------- ------ ------ ------ ----- ------ Power and discrete products (P&D) segment 412 429 602 -3.9% -31.6% ---------------------------------------------------------- ------ ------ ------ ----- ------ Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,861 1,863 1,950 -0.1% -4.6% ---------------------------------------------------------- ------ ------ ------ ----- ------ Embedded Processing (EMP) segment 1,015 976 1,002 3.9% 1.2% ---------------------------------------------------------- ------ ------ ------ ----- ------ RF & Optical Communications (RF&OC) segment 449 345 366 30.5% 22.9% ---------------------------------------------------------- ------ ------ ------ ----- ------ Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,464 1,321 1,368 10.8% 7.0% ---------------------------------------------------------- ------ ------ ------ ----- ------ Others 4 3 3 - - ---------------------------------------------------------- ------ ------ ------ ----- ------ Total Net Revenues $3,329 $3,187 $3,321 4.5% 0.2% ---------------------------------------------------------- ------ ------ ------ ----- ------
Net revenues totaled $3.33 billion, representing a year-over-year increase of 0.2%. Year-over-year net sales to OEMs and Distribution increased 0.6% and decreased 0.7%, respectively. On a sequential basis, net revenues increased 4.5%, 160 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.17 billion, representing a year-over-year decrease of 6.5%. Gross margin of 35.2%, 20 basis points better than the mid-point of ST's guidance, decreased 250 basis points year-over-year, mainly due to lower manufacturing efficiencies and, to a lesser extent, negative currency effect, and lower level of capacity reservation fees.
Operating income decreased from $369 million in the year-ago quarter to $125 million. ST's operating margin decreased 730 basis points on a year-over-year basis to 3.8% of net revenues, compared to 11.1% in the fourth quarter of 2024. Operating income included $141 million impairment, restructuring charges and other related phase-out costs for the quarter, mainly reflecting charges related to the execution of the previously announced company-wide program to reshape our manufacturing footprint and resize our global cost base. Excluding these items, non-U.S. GAAP(1) Operating income stood at $266 million in the fourth quarter.
By reportable segment, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
-- Revenue increased 7.5% mainly due to Imaging. -- Operating profit increased by 6.6% to $235 million. Operating margin was 16.2% compared to 16.3%.
Power and Discrete products (P&D) segment:
-- Revenue decreased 31.6%. -- Operating result decreased from a profit of $45 million to a loss of $124 million. Operating margin was -30.2% compared to 7.5%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
-- Revenue increased 1.2% due to an increase in General Purpose MCU, partially offset by a decrease in Connected Security and Custom Processing. -- Operating profit increased by 7.5% to $195 million. Operating margin was 19.2% compared to 18.1%.
RF & Optical Communications (RF&OC) segment:
-- Revenue increased 22.9%. -- Operating profit increased by 11.0% to $105 million. Operating margin was 23.4% compared to 25.9%.
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