Press Release: STMicroelectronics Reports Q1 2026 Financial Results
PR No: C3392C
STMicroelectronics Reports Q1 2026 Financial Results
-- Q126 net revenues at $3.10 billion -- U.S. GAAP Gross margin at 33.8%. Excluding the Purchase Price Allocation (PPA) effects from the acquisition of NXP's MEMS sensor business, non-U.S. GAAP1 gross margin at 34.1% -- U.S. GAAP operating income at $70 million (non-U.S. GAAP1 operating income at $171 million) -- Business outlook at mid-point: Q226 net revenues of $3.45 billion and U.S. GAAP gross margin of 34.8% (non-U.S. GAAP1 gross margin of 35.2%)
Geneva, April 23, 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 first quarter ended March 28, 2026. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported first quarter net revenues of $3.10 billion, gross margin of 33.8%, operating income of $70 million, and net income of $37 million or $0.04 diluted earnings per share (non-U.S. GAAP(1) gross margin of 34.1%, non-U.S. GAAP(1) operating income of $171 million, and non-U.S. GAAP(1) net income of $122 million or $0.13 diluted earnings per share).
Jean-Marc Chery, ST President & CEO, commented:
-- "Q1 net revenues, excluding the contribution of our acquisition of NXP's MEMS sensor business, came above the mid-point of our business outlook range, driven mainly by higher revenues in our engaged customer programs in Personal electronics and CECP. Gross margin was above the mid-point of our business outlook range mainly due to better product mix." -- "On a year-over-year basis, Q1 net revenues increased 23.0%; excluding the contribution of our acquisition of NXP's MEMS sensor business, they increased 21.4%. Q1 gross margin was 33.8%, operating margin was 2.3% and net income was $37 million. On a non-U.S. GAAP1 basis gross margin was 34.1%, operating margin was 5.5% and net income was $122 million." -- "In Q1, despite the macroeconomic uncertainty, we saw improving demand with strong booking and normalized inventory in distribution." -- "Our second quarter business outlook, at the mid-point, is for net revenues of $3.45 billion, increasing 11.6% sequentially and 24.9% year-over-year. Gross margin is expected to be about 34.8%, including about 100 basis points of unused capacity charges. Non-U.S. GAAP1 gross margin is expected to be about 35.2%." -- "ST is now strategically positioned to capture upside from new AI driven programs, leveraging specialized technologies to enable the evolving AI infrastructure, confirming our datacenters revenue expectation to be nicely above $500 million for 2026 and well above $1 billion for 2027."
Quarterly Financial Summary
U.S. GAAP Q1 Q1 (US$ m, except per share data) 2026 Q4 2025 2025 Q/Q Y/Y ---------------------------------- ------ ------- ------ ------- -------- Net Revenues $3,095 $3,329 $2,517 -7.0% 23.0% ---------------------------------- ------ ------- ------ ------- -------- Gross Profit $1,045 $1,172 $841 -10.9% 24.3% ---------------------------------- ------ ------- ------ ------- -------- Gross Margin 33.8% 35.2% 33.4% -140bps 40bps ---------------------------------- ------ ------- ------ ------- -------- Operating Income $70 $125 $3 -43.8% 2,327.6% ---------------------------------- ------ ------- ------ ------- -------- Operating Margin 2.3% 3.8% 0.1% -150bps 220bps ---------------------------------- ------ ------- ------ ------- -------- Net Income (Loss) $37 $(30) $56 - -33.7% ---------------------------------- ------ ------- ------ ------- -------- Diluted Earnings Per Share $0.04 $(0.03) $0.06 - -33.3% ---------------------------------- ------ ------- ------ ------- -------- Non-U.S. GAAP(1) Q1 Q1 (US$ m, except per share data) 2026 Q4 2025 2025 Q/Q Y/Y ---------------------------------- ------ ------- ------ ------- -------- Gross Profit 1,056 1,172 841 -10.0% 25.5% ---------------------------------- ------ ------- ------ ------- -------- Gross Margin 34.1% 35.2% 33.4% -110bps 70bps ---------------------------------- ------ ------- ------ ------- -------- Operating Income $171 $266 $11 -35.7% 1,454.5% ---------------------------------- ------ ------- ------ ------- -------- Operating Margin 5.5% 8.0% 0.4% -250bps 510bps ---------------------------------- ------ ------- ------ ------- -------- Net Income $122 $100 $63 22.0% 93.7% ---------------------------------- ------ ------- ------ ------- -------- Diluted Earnings Per Share $0.13 $0.11 $0.07 18.2% 85.7% ---------------------------------- ------ ------- ------ ------- --------
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(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
First Quarter 2026 Summary Review
Q1 Q4 Q1 Net Revenues by Reportable Segment(2) (US$ m) 2026 2025 2025 Q/Q Y/Y ---------------------------------------------------------- ------ ------ ------ ----- ----- Analog products, MEMS and Sensors (AM&S) segment 1,318 1,449 1,069 -9.1% 23.2% ---------------------------------------------------------- ------ ------ ------ ----- ----- Power and discrete products (P&D) segment 389 412 397 -5.4% -1.8% ---------------------------------------------------------- ------ ------ ------ ----- ----- Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,707 1,861 1,466 -8.3% 16.4% ---------------------------------------------------------- ------ ------ ------ ----- ----- Embedded Processing (EMP) segment 975 1,015 742 -4.0% 31.3% ---------------------------------------------------------- ------ ------ ------ ----- ----- RF & Optical Communications (RFOC) segment 409 449 306 -9.0% 33.9% ---------------------------------------------------------- ------ ------ ------ ----- ----- Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,384 1,464 1,048 -5.5% 32.1% ---------------------------------------------------------- ------ ------ ------ ----- ----- Others 4 4 3 - - ---------------------------------------------------------- ------ ------ ------ ----- ----- Total Net Revenues $3,095 $3,329 $2,517 -7.0% 23.0% ---------------------------------------------------------- ------ ------ ------ ----- -----
Net revenues totaled $3.10 billion, representing a year-over-year increase of 23.0%. Net revenues included about $40 million revenues associated with NXP's MEMS sensor business; excluding this contribution net revenues increased 21.4% on a year-over-year basis. Year-over-year net sales to OEMs and Distribution increased 24.5% and 19.2%, respectively. On a sequential basis, net revenues decreased 7.0% and 8.2% excluding NXP's MEMS sensor business contribution, 50 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.05 billion, representing a year-over-year increase of 24.3%. Gross margin of 33.8%, increased 40 basis points year-over-year, mainly due to lower unused capacity charges and better product mix. Gross profit included $11 million Purchase Price Allocation (PPA) effects from the acquisition of NXP's MEMS sensor business. Non-U.S. GAAP(1) Gross Margin, excluding this item, was 34.1%. Excluding the impact from NXP's MEMS sensor business and related PPA effects, gross margin stood at 33.9%, 20 basis points better than the mid-point of ST's guidance.
Operating income increased from $3 million in the year-ago quarter to $70 million. ST's operating margin increased on a year-over-year basis to 2.3% of net revenues, compared to 0.1% in the first quarter of 2025. Operating income included $71 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 and $30 million Purchase Price Allocation (PPA) effects from the acquisition of NXP's MEMS sensor business. Excluding these items, non-U.S. GAAP(1) Operating income stood at $171 million in the first quarter (or 5.5% non-U.S. GAAP(1) operating margin).
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)(2) segment:
-- Revenue increased 23.2% mainly due to Imaging and MEMS and, to a lesser extent, Analog. -- Operating profit increased by 95.8% to $161 million. Operating margin was 12.2% compared to 7.7%.
Power and Discrete products (P&D) segment:
-- Revenue decreased 1.8%. -- Operating result decreased from a loss of $28 million to a loss of $84 million. Operating margin was -21.5% compared to -6.9%.
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