Press Release: STMicroelectronics Reports Q3 2026 Financial Results
PR No: C3419C
STMicroelectronics Reports Q3 2026 Financial Results
-- Q326 net revenues at $3.76 billion -- Gross margin at 37.3% -- Operating income at $367 million (non-U.S. GAAP1 operating income at $429 million) -- Business outlook at mid-point: Q426 net revenues of $4.15 billion and gross margin of 39.0%
Geneva, October 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 third quarter ended September 26, 2026. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported third quarter net revenues of $3.76 billion, gross margin of 37.3%, operating income of $367 million, and net income of $291 million or $0.31 diluted earnings per share (non-U.S. GAAP(1) operating income of $429 million, and non-U.S. GAAP(1) net income of $344 million or $0.37 diluted earnings per share).
Jean-Marc Chery, ST President & CEO, commented:
-- "Q3 net revenues came above the mid-point of our business outlook range, driven by higher revenues in CECP and Personal Electronics. Gross margin was above the mid-point of our business outlook range." -- "On a year-over-year basis, Q3 net revenues increased 17.9%. Q3 gross margin was 37.3%, operating margin was 9.8% and net income was $291 million. On a non-U.S. GAAP1 basis operating margin was 11.4% and net income was $344 million." -- "During the quarter, demand increased further supported by strong bookings and improving visibility, while inventory in distribution continued to track below our standard target. Together, these indicators confirm the continued ongoing recovery and secular growth across the markets we serve." -- "Our fourth quarter business outlook, at the mid-point, is for net revenues of $4.15 billion, increasing about 10.5% sequentially and about 24.7% year-over-year. Gross margin is expected to be about 39.0%, including about 40 basis points of unused capacity charges." -- "The mid-point of this outlook translates into full year 2026 revenues of about $14.5 billion, representing a 22.8% year-over-year increase. Beyond the cyclical recovery across our end markets, the year-over-year growth is supported by ST's company specific growth drivers, including AI datacenters and LEO satellite communication. Gross margin is expected to be about 36.4%, non-U.S. GAAP1 gross margin is expected to be about 36.6%, representing an improvement of 270 basis points versus FY25." -- "In an environment where demand remains well above supply, we continue to expand capacity aligned with ST's strategic roadmap. We remain focused on improving profitability consistent with our intermediate financial model. This is driven by our company-specific growth drivers and the execution of our company-wide program to reshape our manufacturing footprint and resize our global cost base."
Quarterly Financial Summary
U.S. GAAP (US$ m, except per share data) Q3 2026 Q2 2026 Q3 2025 Q/Q Y/Y -------------------------------- ------- ------- ------- ------- ------- Net Revenues $3,757 $3,487 $3,187 7.7% 17.9% -------------------------------- ------- ------- ------- ------- ------- Gross Profit $1,401 $1,215 $1,059 15.3% 32.2% -------------------------------- ------- ------- ------- ------- ------- Gross Margin 37.3% 34.8% 33.2% 250 bps 410 bps -------------------------------- ------- ------- ------- ------- ------- Operating Income $367 $187 $180 96.4% 104.5% -------------------------------- ------- ------- ------- ------- ------- Operating Margin 9.8% 5.4% 5.6% 440 bps 420 bps -------------------------------- ------- ------- ------- ------- ------- Net Income $291 $222 $237 31.2% 22.8% -------------------------------- ------- ------- ------- ------- ------- Diluted Earnings Per Share $0.31 $0.24 $0.26 29.2% 19.2% -------------------------------- ------- ------- ------- ------- ------- Non-U.S. GAAP(1) (US$ m, except per share data) Q3 2026 Q2 2026 Q3 2025 Q/Q Y/Y -------------------------------- ------- ------- ------- ------- ------- Gross Profit $1,401 $1,229 $1,059 14.0% 32.2% -------------------------------- ------- ------- ------- ------- ------- Gross Margin 37.3% 35.2% 33.2% 210 bps 410 bps -------------------------------- ------- ------- ------- ------- ------- Operating Income $429 $269 $217 59.3% 98.0% -------------------------------- ------- ------- ------- ------- ------- Operating Margin 11.4% 7.7% 6.8% 370 bps 460 bps -------------------------------- ------- ------- ------- ------- ------- Net Income $344 $291 $267 17.9% 28.7% -------------------------------- ------- ------- ------- ------- ------- Diluted Earnings Per Share $0.37 $0.31 $0.29 19.4% 27.6% -------------------------------- ------- ------- ------- ------- -------
Third Quarter 2026 Summary Review
Net Revenues by Reportable Segment(2) Q3 Q2 Q3 (US$ m) 2026 2026 2025 Q/Q Y/Y -------------------------------------------- -------- -------- -------- ------- ------- Analog products, MEMS and Sensors (AM&S) segment 1,560 1,426 1,434 9.4% 8.8% -------------------------------------------- -------- -------- -------- ------- ------- Power and discrete products (P&D) segment 477 464 429 2.8% 11.3% -------------------------------------------- -------- -------- -------- ------- ------- Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 2,037 1,890 1,863 7.7% 9.4% -------------------------------------------- -------- -------- -------- ------- ------- Embedded Processing (EMP) segment 1,212 1,147 976 5.7% 24.1% -------------------------------------------- -------- -------- -------- ------- ------- RF Optical Communications (RFOC) segment 504 445 345 13.4% 46.2% -------------------------------------------- -------- -------- -------- ------- ------- Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,716 1,592 1,321 7.8% 29.9% -------------------------------------------- -------- -------- -------- ------- ------- Others 4 5 3 - - -------------------------------------------- -------- -------- -------- ------- ------- Total Net Revenues $3,757 $3,487 $3,187 7.7% 17.9% -------------------------------------------- -------- -------- -------- ------- -------
Net revenues totaled $3.76 billion, representing a year-over-year increase of 17.9%. Year-over-year net sales to OEMs and Distribution increased 10.2% and 38.8%, respectively. On a sequential basis, net revenues increased 7.7%, 150 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.40 billion, representing a year-over-year increase of 32.2%. Gross margin of 37.3%, increased 410 basis points year-over-year, mainly due to lower unused capacity charges and better product mix.
Operating income increased from $180 million in the year-ago quarter to $367 million. ST's operating margin increased on a year-over-year basis to 9.8% of net revenues, compared to 5.6% in the third quarter of 2025. Operating income included $55 million impairment, restructuring charges and other related phase-out costs for the quarter, mainly reflecting charges related to the execution of our company-wide program to reshape our manufacturing footprint and resize our global cost base and $7 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 $429 million in the third quarter (or 11.4% 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 8.8% mainly due to MEMS and, to a lesser extent, Analog and Imaging. -- Operating profit decreased by 0.6% to $219 million. Operating margin was 14.1% compared to 15.4%.
Power and Discrete products (P&D) segment:
-- Revenue increased 11.3%. -- Operating results decreased from a loss of $67 million to a loss of $81 million. Operating margin was -17.1% compared to -15.6%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
-- Revenue increased 24.1% mainly due to General Purpose MCU. -- Operating profit increased by 74.2% to $280 million. Operating margin was 23.1% compared to 16.5%.
RF Optical Communications (RFOC) segment:
-- Revenue increased 46.2%. -- Operating profit increased by 131.2% to $132 million. Operating margin was 26.2% compared to 16.6%.
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Press Release: STMicroelectronics Reports Q3 2026 -2-
Net income and diluted Earnings Per Share increased to $291 million and $0.31 respectively, compared to $237 million and $0.26 respectively in the year-ago quarter. In the third quarter of 2026 non-U.S. GAAP(1) Net income stood at $344 million and non-U.S. GAAP(1) diluted Earnings Per Share stood at $0.37.
Cash Flow and Balance Sheet Highlights
Trailing 12 Months
------------- -------- -------- --------- --------------------------------
Q3 Q2 TTM
(US$ m) 2026 2026 Q3 2025 Q3 2026 Q3 2025 Change
------------- -------- -------- --------- --------- --------- ----------
Net cash
from
operating
activities 1,020 502 549 2,730 2,158 26.5%
------------- -------- -------- --------- --------- --------- ----------
Free cash
flow
(non-U.S.
GAAP(1) ) 351 75 130 (40)(2) 136 -
------------- -------- -------- --------- --------- --------- ----------
Net cash from operating activities was $1.02 billion in the third quarter compared to $549 million in the year-ago quarter.
Net Capex (non-U.S. GAAP(1) ), was $643 million in the third quarter compared to $401 million in the year-ago quarter.
Free cash flow (non-U.S. GAAP(1) ) was positive at $351 million in the third quarter compared to positive $130 million in the year-ago quarter.
Inventory at the end of the third quarter was $3.25 billion, compared to $3.19 billion in the previous quarter and $3.17 billion in the year-ago quarter. Days sales of inventory at quarter-end was 126 days, same as the previous quarter and compared to 135 days for the year-ago quarter.
In the third quarter, ST paid cash dividends to its stockholders totaling $83 million and executed a $91 million share buyback, as part of its current share repurchase program.
ST's net financial position (non-U.S. GAAP(3) ) remained strong at $2.11 billion as of September 26, 2026, compared to $2.01 billion as of June 27, 2026, and reflected total liquidity of $5.31 billion and total financial debt of $3.21 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 $1.81 billion as of September 26, 2026.
Following the exercise of the call option for the early redemption of ST's convertible debt due in 2027, bondholders exercised their conversion rights on the total of $750 million convertible bonds. ST settled the bond on a net-share basis, delivering $750 million in cash and about 4.2 million shares from treasury stock.
Business Outlook
ST's guidance, at the mid-point, for the 2026 fourth quarter is:
-- Net revenues are expected to be $4.15 billion, an increase of 10.5% sequentially, plus or minus 350 basis points. -- Gross margin of 39.0%, plus or minus 200 basis points. -- This outlook is based on an assumed effective currency exchange rate of approximately $1.14 = EUR1.00 for the 2026 fourth quarter and includes the impact of existing hedging contracts. -- The fourth quarter will close on December 31, 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 third quarter 2026 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 November 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 research and development 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 intellectual property 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 electricity sourcing goal by the end of 2027; -- epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results; -- industry changes resulting from vertical and horizontal consolidation
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Press Release: STMicroelectronics Reports Q3 2026 -3-
among our suppliers, competitors, and customers; -- the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and -- individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as "believes", "expects", "may", "are expected to", "should", "would be", "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information -- Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission ("SEC") on February 26, 2026. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Item 3. Key Information -- Risk Factors" from time to time in our SEC filings, could have a material adverse effect on our business and/or financial condition.
About STMicroelectronics
At ST, we are 49,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloudconnected autonomous things. We are on track to be 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 electricity sourcing goal by the end of 2027. Further information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41 22 929 59 20
jerome.ramel@st.com
MEDIA RELATIONS:
Alexis Breton
Corporate External Communications
Tel: + 33 6 59 16 79 08
alexis.breton@st.com https://www.globenewswire.com/Tracker?data=1o0RD3FysQViJYHSzGGadqxF75z6huC5LYLnfflqrH_WSE5Hr_Xh-tCn1UkKbRvc9uSVgpt4mjmp3qGmNYqIx5if1r00HFjpqDbG2jxBFes=
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data
($))
Three months ended
September September
26, 27,
2026 2025
----------- -----------
(Unaudited) (Unaudited)
----------- -----------
Net sales 3,748 3,183
Other revenues 9 4
NET REVENUES 3,757 3,187
Cost of sales (2,356) (2,128)
GROSS PROFIT 1,401 1,059
Selling, general and administrative expenses (448) (395)
Research and development expenses (545) (502)
Other income and expenses, net 14 55
Impairment, restructuring charges and other related
phase-out costs (55) (37)
Total operating expenses (1,034) (879)
OPERATING INCOME 367 180
Interest income 51 51
Interest expense (17) (13)
Other components of pension benefit costs (4) (4)
Gain (loss) on financial instruments, net (39) 79
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 358 293
Income tax expense (66) (54)
----------- -----------
NET INCOME 292 239
Net income attributable to noncontrolling interest (1) (2)
----------- -----------
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 291 237
=========== ===========
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.33 0.27
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.31 0.26
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS 931.7 918.9
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data
($))
Nine months ended
September September
26, 27,
2026 2025
----------- -----------
(Unaudited) (Unaudited)
----------- -----------
Net sales 10,318 8,440
Other revenues 21 30
NET REVENUES 10,339 8,470
Cost of sales (6,678) (5,643)
GROSS PROFIT 3,661 2,827
Selling, general and administrative expenses (1,321) (1,205)
Research and development expenses (1,616) (1,506)
Other income and expenses, net 85 169
Impairment, restructuring charges and other related
phase-out costs (184) (235)
Total operating expenses (3,036) (2,777)
OPERATING INCOME 625 50
Interest income 131 173
Interest expense (45) (42)
Other components of pension benefit costs (13) (13)
Gain (loss) on financial instruments, net (32) 85
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 666 253
Income tax expense (106) (50)
----------- -----------
NET INCOME 560 203
Net income attributable to noncontrolling interest (10) (7)
----------- -----------
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 550 196
=========== ===========
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.62 0.22
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.60 0.21
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING
DILUTED EPS 924.8 927.8
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
September December
As at 26, June 27, 31,
In millions of U.S. dollars 2026 2026 2025
(Unaudited) (Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents 2,612 3,096 2,837
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Press Release: STMicroelectronics Reports Q3 2026 -4-
Short-term deposits 1,400 1,800 1,100
Marketable securities 1,300 1,136 985
Trade accounts receivable, net 2,190 2,067 1,745
Inventories 3,248 3,188 3,136
Other current assets 1,488 1,410 1,468
Total current assets 12,238 12,697 11,271
Goodwill 704 705 315
Other intangible assets, net 732 747 324
Property, plant and equipment, net 11,116 10,895 11,058
Non-current deferred tax assets 413 435 408
Long-term investments 111 144 152
Other non-current assets 1,350 1,409 1,272
14,426 14,335 13,529
Total assets 26,664 27,032 24,800
----------- ----------- ---------
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt 309 1,063 298
Trade accounts payable 1,840 1,774 1,487
Other payables and accrued liabilities 1,504 1,406 1,440
Dividends payable to stockholders 182 265 89
Accrued income tax 81 62 37
Total current liabilities 3,916 4,570 3,351
Long-term debt 2,897 2,962 1,835
Post-employment benefit obligations 386 382 403
Long-term deferred tax liabilities 55 58 60
Other long-term liabilities 1,126 1,010 926
4,464 4,412 3,224
Total liabilities 8,380 8,982 6,575
Commitment and contingencies
Equity
Parent company stockholders' equity
Common stock (preferred stock: 540,000,000
shares authorized, not issued; common
stock: Euro 1.04 par value, 1,200,000,000
shares authorized, 911,281,920 shares
issued, 895,970,755 shares outstanding
as of September 26, 2026) 1,157 1,157 1,157
Additional Paid-in Capital 3,333 3,373 3,281
Retained earnings 13,157 12,888 13,082
Accumulated other comprehensive income 702 732 945
Treasury stock (472) (506) (637)
----------- ----------- ---------
Total parent company stockholders'
equity 17,877 17,644 17,828
Noncontrolling interest 407 406 397
Total equity 18,284 18,050 18,225
Total liabilities and equity 26,664 27,032 24,800
----------- ----------- ---------
STMicroelectronics N.V.
SELECTED CONSOLIDATED CASH FLOW DATA
------------------------------------------------ ------- ------- -------
Cash Flow Data (in US$ millions) Q3 2026 Q2 2026 Q3 2025
------------------------------------------------ ------- ------- -------
Net Cash from operating activities 1,020 502 549
------------------------------------------------ ------- ------- -------
Net Cash from (used in) investing activities (462) (686) 815
------------------------------------------------ ------- ------- -------
Net Cash from (used in) financing activities (1,041) 1,392 (980)
------------------------------------------------ ------- ------- -------
Net Cash increase (decrease) (484) 1,207 383
------------------------------------------------ ------- ------- -------
Selected Cash Flow Data (in US$ millions) Q3 2026 Q2 2026 Q3 2025
------------------------------------------------ ------- ------- -------
Depreciation & amortization 504 492 482
------------------------------------------------ ------- ------- -------
Net payment for Capital expenditures (649) (419) (417)
------------------------------------------------ ------- ------- -------
Net proceeds from issuance of convertible bonds - 1,490 -
------------------------------------------------ ------- ------- -------
Settlement of issued convertible bonds (750) - (750)
------------------------------------------------ ------- ------- -------
Dividends paid to stockholders (83) (75) (81)
------------------------------------------------ ------- ------- -------
Change in inventories, net (61) (42) 98
------------------------------------------------ ------- ------- -------
Appendix
ST Supplemental Financial Information
Q3 Q2 Q1
2026 2026 2026 Q4 2025 Q3 2025
------------------------------------ ------ ------ ------ ------- -------
Net Revenues By Market Channel
(%)
------------------------------------ ------ ------ ------ ------- -------
Total OEM 68% 70% 72% 73% 73%
------------------------------------ ------ ------ ------ ------- -------
Distribution 32% 30% 28% 27% 27%
------------------------------------ ------ ------ ------ ------- -------
EUR/$ Effective Rate 1.15 1.16 1.16 1.14 1.14
------------------------------------ ------ ------ ------ ------- -------
Reportable Segment Data (US$
m)
------------------------------------ ------ ------ ------ ------- -------
Analog products, MEMS and Sensors
(AM&S) segment
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 1,560 1,426 1,318 1,449 1,434
------------------------------------ ------ ------ ------ ------- -------
- Operating Income 219 144 161 235 221
------------------------------------ ------ ------ ------ ------- -------
Power and Discrete products (P&D)
segment
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 477 464 389 412 429
------------------------------------ ------ ------ ------ ------- -------
- Operating Income (Loss) (81) (99) (84) (124) (67)
------------------------------------ ------ ------ ------ ------- -------
Subtotal: Analog, Power & Discrete,
MEMS and Sensors (APMS) Product
Group
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 2,037 1,890 1,707 1,861 1,863
------------------------------------ ------ ------ ------ ------- -------
- Operating Income 138 45 77 111 154
------------------------------------ ------ ------ ------ ------- -------
Embedded Processing (EMP) segment
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 1,212 1,147 975 1,015 976
------------------------------------ ------ ------ ------ ------- -------
- Operating Income 280 226 164 195 161
------------------------------------ ------ ------ ------ ------- -------
RF Optical Communications (RFOC)
segment
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 504 445 409 449 345
------------------------------------ ------ ------ ------ ------- -------
- Operating Income 132 94 61 105 57
------------------------------------ ------ ------ ------ ------- -------
Subtotal: Microcontrollers, Digital
ICs and RF products (MDRF) Product
Group
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 1,716 1,592 1,384 1,464 1,321
------------------------------------ ------ ------ ------ ------- -------
- Operating Income 412 320 226 300 218
------------------------------------ ------ ------ ------ ------- -------
Others (a)
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 4 5 4 4 3
------------------------------------ ------ ------ ------ ------- -------
- Operating Income (Loss) (183) (178) (232) (286) (192)
------------------------------------ ------ ------ ------ ------- -------
Total
------------------------------------ ------ ------ ------ ------- -------
- Net Revenues 3,757 3,487 3,095 3,329 3,187
------------------------------------ ------ ------ ------ ------- -------
- Operating Income 367 187 70 125 180
------------------------------------ ------ ------ ------ ------- -------
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Press Release: STMicroelectronics Reports Q3 2026 -5-
(a) Net revenues of Others include revenues from sales of assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment, restructuring charges and other related phase-out costs, management reorganization costs, start-up costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, operating earnings of other products as well as PPA effects from the acquisition of NXP's MEMS sensor business. With additional cost elements included in the table below:
(US$ m) Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 --------------------------------- ------- ------- ------- ------- ------- Unused capacity charges 23 37 69 88 102 --------------------------------- ------- ------- ------- ------- ------- Impairment, restructuring charges and other related phase-out costs 55 58 71 141 37 --------------------------------- ------- ------- ------- ------- ------- PPA effects from the acquisition of NXP's MEMS sensor business 7 24 30 - - --------------------------------- ------- ------- ------- ------- -------
(Appendix -- continued)
ST Supplemental Non-U.S. GAAP Financial Information
U.S. GAAP -- Non-U.S. GAAP Reconciliation
The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measures. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.
ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST's U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST's on-going operating results, (ii) the ability to better identify trends in ST's business and perform related trend analysis, and (iii) to facilitate a comparison of ST's results of operations against investor and analyst financial models and valuations, which may exclude these items.
Non-U.S. GAAP Gross Profit, Non-U.S. GAAP Operating Income, Non-U.S. GAAP Net Income and Non-U.S. GAAP Diluted Earnings Per Share (non-U.S. GAAP measures)
Operating income before impairment, restructuring charges and other related phase-out costs, and other certain items, is used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items, such as impairment, restructuring charges and other related phase-out costs, and PPA effects. Non-U.S. GAAP gross profit is also used by management to communicate the impact of PPA effects on gross margin. Adjusted net earnings and earnings per share (EPS) are used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items like impairment, restructuring charges and other related phase-out costs and other certain items, such as PPA effects, net of the relevant tax impact.
Q3 2026 Gross Operating Net Corresponding (US$ m, except per share data) Profit Income Income Diluted EPS ------------------------------------- -------- ----------- -------- --------------- U.S. GAAP 1,401 367 291 0.31 ------------------------------------- -------- ----------- -------- --------------- Impairment, restructuring charges and other related phase-out costs - 55 55 ------------------------------------- -------- ----------- -------- --------------- PPA effects of NXP's MEMS sensor business acquisition - 7 7 ------------------------------------- -------- ----------- -------- --------------- Estimated income tax effect - - (9) ------------------------------------- -------- ----------- -------- --------------- Non-U.S. GAAP 1,401 429 344 0.37 ------------------------------------- -------- ----------- -------- ---------------
(Appendix -- continued)
Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures)
Net Financial Position, a non-U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet.
ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited.
Sep 26 Jun 27 Mar 28 Dec 31 Sep 27 (US$ m) 2026 2026 2026 2025 2025 -------------------------------------------- ----------- ------------- --------- --------- --------- Cash and cash equivalents 2,612 3,096 1,889 2,837 1,999 -------------------------------------------- ----------- ------------- --------- --------- --------- Short term deposits 1,400 1,800 1,850 1,100 1,450 -------------------------------------------- ----------- ------------- --------- --------- --------- Marketable securities 1,300 1,136 832 985 1,327 -------------------------------------------- ----------- ------------- --------- --------- --------- Total liquidity 5,312 6,032 4,571 4,922 4,776 -------------------------------------------- ----------- ------------- --------- --------- --------- Short-term debt (309)((b) (1,063)((b) (319) (298) (256) -------------------------------------------- ----------- ------------- --------- --------- --------- Long-term debt (a) (2,897) (2,962) (2,250) (1,835) (1,910) -------------------------------------------- ----------- ------------- --------- --------- --------- Total financial debt (3,206) (4,025) (2,569) (2,133) (2,166) -------------------------------------------- ----------- ------------- --------- --------- --------- Net Financial Position (non-U.S. GAAP) 2,106 2,007 2,002 2,789 2,610 -------------------------------------------- ----------- ------------- --------- --------- --------- Advances received on capital grants (300) (306) (316) (333) (345) -------------------------------------------- ----------- ------------- --------- --------- --------- Adjusted Net Financial Position (non-U.S. GAAP) 1,806 1,701 1,686 2,456 2,265 -------------------------------------------- ----------- ------------- --------- --------- ---------
(a) Long-term debt contains standard conditions but does not impose minimum financial ratios. Committed credit facilities for $1,198 million equivalent are currently undrawn.
(b) During Q326 ST net settled its convertible bond due 2027 delivering $750 million in cash and about 4.2 million shares from treasury stock. Q226 short-term debt includes $750 million after the announcement of the early redemption of the convertible bonds due 2027.
(Appendix -- continued)
Net Capex and Free Cash Flow (non-U.S. GAAP measures)
ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-U.S. GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period.
Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period.
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ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies, and therefore, comparability may be limited.
Q3 Q2 Q1 Q4 Q3 (US$ m) 2026 2026 2026 2025 2025 -------------------------------------------------------- ------- ------- ------- ------- ------- Payment for purchase of tangible assets, as reported (683) (453) (549) (518) (431) -------------------------------------------------------- ------- ------- ------- ------- ------- Proceeds from capital grants and other contributions, as reported 31 34 167 111 11 -------------------------------------------------------- ------- ------- ------- ------- ------- Advances from capital grants allocated to property, plant and equipment 6 10 17 12 16 -------------------------------------------------------- ------- ------- ------- ------- ------- Proceeds from sale of tangible assets, as reported 3 - 3 - 3 -------------------------------------------------------- ------- ------- ------- ------- ------- Net Capex (non-U.S. GAAP) (643) (409) (362) (395) (401) -------------------------------------------------------- ------- ------- ------- ------- -------
Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.
ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.
Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies, and therefore, comparability may be limited.
Q3 Q2 Q1 Q4 Q3 (US$ m) 2026 2026 2026 2025 2025 ------------------------------------------------- ------- ------- ------- ------- ------- Net cash from operating activities 1,020 502 534 674 549 ------------------------------------------------- ------- ------- ------- ------- ------- Net Capex (643) (409) (362) (395) (401) ------------------------------------------------- ------- ------- ------- ------- ------- Payment for purchase of intangible assets, net of proceeds from sale (20) (31) (17) (20) (18) ------------------------------------------------- ------- ------- ------- ------- ------- Proceeds from (payment for) financial assets (6) 13 17 (2) - ------------------------------------------------- ------- ------- ------- ------- ------- Payment for business acquisitions(a) - - (895) - - ------------------------------------------------- ------- ------- ------- ------- ------- Free Cash Flow (non-U.S. GAAP) 351 75 (723) 257 130 ------------------------------------------------- ------- ------- ------- ------- -------
(a) Q126 Free cash flow includes $895 million cash-out related to the acquisition of NXP MEMS sensor business.
(Appendix -- continued)
Financial Calendar
The financial calendar for the remaining of 2026 is as follows:
December 16, 2026 -- January 28, 2027 Quiet period
January 28, 2027 Q4 2026 Financial Results
The financial calendar for 2027 is as follows:
March 16, 2027 -- April 22, 2027 Quiet period
April 22, 2027 Q1 2027 Financial Results
June 16, 2027 -- July 22, 2027 Quiet period
July 22, 2027 Q2 2027 Financial Results
September 16, 2027 -- October 21, 2027 Quiet period
October 21, 2027 Q3 2027 Financial Results
These dates are preliminary and are subject to final confirmation.
(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(2) Q326 Analog products, MEMS and Sensors (AM&S) segment included revenues associated with NXP's MEMS sensor business.
(3) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(2) Q126 Free cash flow includes $895 million cash-out related to the acquisition of NXP MEMS sensor business.
Attachment
-- C3419C - ST - Q326 Earnings PR - 29oct2026 https://ml-eu.globenewswire.com/Resource/Download/f196d12a-997e-4ce0-8f6b-ea0e07c6cf64
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