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%
---------------------------------- ------- ------- ------- ------ -------
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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Press Release: STMicroelectronics Reports Q4 and -2-
Net Earnings and diluted Earnings Per Share decreased to a negative $30 million and a negative $0.03 respectively, including certain one-time non-cash income tax expenses of $163 million, compared to a positive $341 million and $0.37 respectively in the year-ago quarter. In the fourth quarter of 2025 non-U.S. GAAP(1) Net income stood at $100 million and non-U.S. GAAP(1) diluted Earnings Per Share stood at $0.11, including certain negative one-time tax expenses impact of $0.18 per share.
Cash Flow and Balance Sheet Highlights
Trailing 12 Months
---------------------- ------- ------- ------- ---------------------------
TTM
(US$ m) Q4 2025 Q3 2025 Q4 2024 Q4 2025 Q4 2024 Change
---------------------- ------- ------- ------- ------- ------- ---------
Net cash from
operating
activities 674 549 681 2,152 2,965 -27.5%
---------------------- ------- ------- ------- ------- ------- ---------
Free cash flow
(non-U.S. GAAP(1)
) 257 130 128 265 288 -8.0%
---------------------- ------- ------- ------- ------- ------- ---------
Net cash from operating activities was $674 million in the fourth quarter compared to $681 million in the year-ago quarter. For the full year 2025, net cash from operating activities decreased 27.4% to $2.15 billion, which represents 18.2% of total revenues.
Net Capex (non-U.S. GAAP(1) ), were $395 million in the fourth quarter and $1.79 billion for the full year 2025. In the respective year-ago periods, net Capex were $470 million and $2.53 billion.
Free cash flow (non-U.S. GAAP(1) ) was $257 million and $265 million in the fourth quarter and full year 2025, respectively, compared to $128 million and $288 million in the year-ago respective periods.
Inventory at the end of the fourth quarter was $3.14 billion, compared to $3.17 billion in the previous quarter and $2.79 billion in the year-ago quarter. Days sales of inventory at quarter-end was 130 days, compared to 135 days for the previous quarter and 122 days for the year-ago quarter.
In the fourth quarter, ST paid cash dividends to its stockholders totaling $87 million and executed a $92 million share buy-back, as part of its current share repurchase program.
ST's net financial position (non-U.S. GAAP(1) ) remained strong at $2.79 billion as of December 31, 2025, compared to $2.61 billion as of September 27, 2025, and reflected total liquidity of $4.92 billion and total financial debt of $2.13 billion. Adjusted net financial position (non-U.S. GAAP(1) ), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.46 billion as of December 31, 2025.
Corporate developments
On December 18, 2025, STMicroelectronics held an Extraordinary General Meeting of Shareholders in Amsterdam, the Netherlands. Shareholders approved the appointment of Armando Varricchio and Orio Bellezza as members of the Supervisory Board for a term expiring at the end of the 2028 AGM.
Business Outlook
ST's guidance, at the mid-point, for the 2026 first quarter is:
-- Net revenues are expected to be $3.04 billion, a decrease of 8.7% sequentially, plus or minus 350 basis points. -- Gross margin of 33.7%, plus or minus 200 basis points. -- This outlook is based on an assumed effective currency exchange rate of approximately $1.16 = EUR1.00 for the 2026 first quarter and includes the impact of existing hedging contracts. -- The first quarter will close on March 28, 2026.
This business outlook does not include any impact of potential further changes to global trade tariffs compared to the current situation.
Conference Call and Webcast Information
ST will conduct a conference call with analysts, investors and reporters to discuss its fourth quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST's website, https://investors.st.com, and will be available for replay until February 13, 2026.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP.
See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:
-- changes in global trade policies, including the continuation, adoption and expansion of tariffs and trade barriers and sanctions, that are affecting and could further affect the macro-economic environment and are adversely impacting and could further adversely impact the demand for our products; -- uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which are impacting and may further impact production capacity and end-market demand for our products; -- customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all; -- the ability to design, manufacture and sell innovative products in a rapidly changing technological environment; -- changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities; -- unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding; -- financial difficulties with any of our major distributors or significant curtailment of purchases by key customers; -- the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers; -- availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation); -- the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; -- theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation; -- the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions; -- changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets; -- variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations; -- the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant; -- product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts; -- natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate; -- increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable
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