Press Release: STMicroelectronics Reports Q2 2026 Financial Results
PR No: C3403C
STMicroelectronics Reports Q2 2026 Financial Results
-- Q226 net revenues at $3.49 billion -- Gross margin at 34.8% (non-U.S. GAAP1 gross margin at 35.2%) -- Operating income at $187 million (non-U.S. GAAP1 operating income at $269 million) -- Business outlook at mid-point: Q326 net revenues of $3.70 billion and gross margin of 37.0%
Geneva, July 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 second quarter ended June 27, 2026. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported second quarter net revenues of $3.49 billion, gross margin of 34.8%, operating income of $187 million, and net income of $222 million or $0.24 diluted earnings per share (non-U.S. GAAP(1) gross margin of 35.2%, non-U.S. GAAP(1) operating income of $269 million, and non-U.S. GAAP(1) net income of $291 million or $0.31 diluted earnings per share).
Jean-Marc Chery, ST President & CEO, commented:
-- "Q2 net revenues came above the mid-point of our business outlook range, driven by higher revenues in CECP and Automotive. Gross margin was in line with the mid-point of our business outlook range." -- "On a year-over-year basis, Q2 net revenues increased 26.0%. Q2 gross margin was 34.8%, operating margin was 5.4% and net income was $222 million. On a non-U.S. GAAP1 basis gross margin was 35.2%, operating margin was 7.7% and net income was $291 million." -- "During the quarter demand increased further, with strong bookings in all end markets. We saw improved visibility and signs of tight supply in several product categories. Inventory in distribution is now below our standard target." -- "Our third quarter business outlook, at the mid-point, is for net revenues of $3.70 billion, increasing about 6.2% sequentially and about 16.2% year-over-year. Gross margin is expected to be about 37.0%, including about 70 basis points of unused capacity charges." -- "We anticipate a revenue growth acceleration in Q4, mainly driven by our engaged customer programs in AI datacenters and LEO satellite communication. We expect Q4 revenues to be above $4 billion, this translates into a H2 vs H1 growth above our normal 15% seasonality." -- "Driven by continued strong demand in AI datacenters, we are raising our revenue ambition for datacenters. Revenues are now expected above $1 billion in 2026 and, assuming the current dynamic continues and with the current engagements we have, well above $2 billion in 2027. This confirms ST's strong position in the evolving AI datacenters."
Quarterly Financial Summary
U.S. GAAP (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y -------------------------------- ------- ------- ------- ------ -------- Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% -------------------------------- ------- ------- ------- ------ -------- Gross Profit $1,215 $1,045 $926 16.3% 31.1% -------------------------------- ------- ------- ------- ------ -------- Gross Margin 34.8% 33.8% 33.5% 100bps 130bps -------------------------------- ------- ------- ------- ------ -------- Operating Income (Loss) $187 $70 $(133) 165.5% - -------------------------------- ------- ------- ------- ------ -------- Operating Margin 5.4% 2.3% -4.8% 310bps 1,020bps -------------------------------- ------- ------- ------- ------ -------- Net Income (Loss) $222 $37 $(97) 496.8% - -------------------------------- ------- ------- ------- ------ -------- Diluted Earnings Per Share $0.24 $0.04 $(0.11) 500.0% - -------------------------------- ------- ------- ------- ------ -------- Non-U.S. GAAP(1) (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y -------------------------------- ------- ------- ------- ------ -------- Gross Profit $1,229 $1,056 $926 16.4% 32.7% -------------------------------- ------- ------- ------- ------ -------- Gross Margin 35.2% 34.1% 33.5% 110bps 170bps -------------------------------- ------- ------- ------- ------ -------- Operating Income $269 $171 $57 57.3% 371.9% -------------------------------- ------- ------- ------- ------ -------- Operating Margin 7.7% 5.5% 2.1% 220bps 560bps -------------------------------- ------- ------- ------- ------ -------- Net Income $291 $122 $57 138.5% 410.5% -------------------------------- ------- ------- ------- ------ -------- Diluted Earnings Per Share $0.31 $0.13 $0.06 138.5% 416.7% -------------------------------- ------- ------- ------- ------ --------
Second Quarter 2026 Summary Review
Net Revenues by Reportable Segment(2) Q2 Q1 Q2 (US$ m) 2026 2026 2025 Q/Q Y/Y -------------------------------------------- -------- -------- -------- ------- ------- Analog products, MEMS and Sensors (AM&S) segment 1,426 1,318 1,133 8.2% 26.0% -------------------------------------------- -------- -------- -------- ------- ------- Power and discrete products (P&D) segment 464 389 447 19.2% 3.7% -------------------------------------------- -------- -------- -------- ------- ------- Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,890 1,707 1,580 10.7% 19.6% -------------------------------------------- -------- -------- -------- ------- ------- Embedded Processing (EMP) segment 1,147 975 847 17.7% 35.5% -------------------------------------------- -------- -------- -------- ------- ------- RF Optical Communications (RFOC) segment 445 409 336 8.6% 32.0% -------------------------------------------- -------- -------- -------- ------- ------- Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,592 1,384 1,183 15.0% 34.5% -------------------------------------------- -------- -------- -------- ------- ------- Others 5 4 3 - - -------------------------------------------- -------- -------- -------- ------- ------- Total Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% -------------------------------------------- -------- -------- -------- ------- -------
Net revenues totaled $3.49 billion, representing a year-over-year increase of 26.0%. Year-over-year net sales to OEMs and Distribution increased 23.3% and 33.1%, respectively. On a sequential basis, net revenues increased 12.7%, 110 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.22 billion, representing a year-over-year increase of 31.1%. Gross margin of 34.8%, increased 130 basis points year-over-year, mainly due to lower unused capacity charges and better product mix. Non-U.S. GAAP(1) gross margin was 35.2%, in line with the mid-point of ST's guidance.
Operating income increased from an operating loss of $133 million in the year-ago quarter to an operating income of $187 million. ST's operating margin increased on a year-over-year basis to 5.4% of net revenues, compared to negative 4.8% operating margin in the second quarter of 2025. Operating income included $58 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 $24 million PPA effects from the acquisition of NXP's MEMS sensor business. Excluding these items, non-U.S. GAAP(1) Operating income stood at $269 million in the second quarter (or 7.7% 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 26.0% mainly due to Imaging and MEMS and, to a lesser extent, Analog. -- Operating profit increased by 69.2% to $144 million. Operating margin was 10.1% compared to 7.5%.
Power and Discrete products (P&D) segment:
-- Revenue increased 3.7%. -- Operating result decreased from a loss of $56 million to a loss of $99 million. Operating margin was -21.4% compared to -12.5%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
-- Revenue increased 35.5% mainly due to General Purpose MCU and, to a lesser extent, Custom Processing and Connected Security. -- Operating profit increased by 97.8% to $226 million. Operating margin was 19.7% compared to 13.5%.
RF Optical Communications (RFOC) segment:
-- Revenue increased 32.0%. -- Operating profit increased by 56.3% to $94 million. Operating margin was 21.2% compared to 17.9%.
Net income and diluted Earnings Per Share increased to $222 million and $0.24 respectively, compared to a net loss of $97 million and a negative $0.11 respectively in the year-ago quarter. In the second quarter of 2026 non-U.S. GAAP(1) Net income stood at $291 million and non-U.S. GAAP(1) diluted Earnings Per Share stood at $0.31.
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