STM
STMicroelectronics NV (NYSE: STM) reported strong Q2 2026 revenue growth driven by strong automotive,...
Article Summary
HOLD- STMicroelectronics NV (NYSE: STM) reported strong Q2 2026 revenue growth driven by strong automotive, industrial automation, and AI data-center demand, with automotive revenue rising 14% sequentially and 16% year-over-year, industrial revenue up 20%, and communications equipment and peripherals up 13% and 50% respectively.
- ST Microelectronics posted positive free cash flow and maintained a positive free-cash-flow position, supported by strong inventory management and strong inventory levels.
- Margins were pressured by non-recurring costs from ST Microelectronics's manufacturing reshaping program, which continues to impact efficiency and gross margin expectations.
- Guidance for Q3 and Q4 remains cautious, with revenue growth moderating due to legacy analog technology ramp-up delays and supply constraints in general-purpose microcontrollers.
- Management raised revenue expectations for 2026 and 2027, citing strong demand in data centers and automotive sensor integration progress.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 0.8% | 25% | 20.0 ptsMinimal (0.8%) - Very weak |
| EPS Growth Next 5Y ? | 95.7% | 25% | 100.0 ptsExceptional (95.7%) - Very high expectations |
| Target Price Upside ? | 50.0% | 20% | 100.0 ptsMassive Upside (50.0%) - Target: $80.16 vs Current: $53.44 |
| Gross Margin % ? | 33.8% | 15% | 40.0 ptsModerate (33.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -34.4% | 15% | 80.0 ptsSolid Dip (-34.4%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About STM
- STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific.
- The company operates through Analog products, MEMS and Sensors Group (AM&S); Power and Discrete products (P&D); Embedded Processing (“EMP”); and RF Products (D&RF) segments.
- It offers industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); power management solutions; custom analog ICs, wireless charging solutions; galvanic isolated gate and LED drivers; converters, transistors, intelligent power switches, clocks and timers, comparators, and current-sense amplifiers; micro-electro-mechanical systems (MEMS) sensors, including accelerometers, gyroscopes, magnetic sensors, pressure, temperature, presence detection, biosensors, machine learning, and edge AI processing smart sensors, as well as thermal and piezoelectric actuators; and optical sensing solutions.
- The company also provides silicon MOSFETs, SiC MOSFETs, IGBTs, thyristors, rectifiers, and power modules and bipolar transistors; microcontrollers, and automotive microcontrollers and secured; radio frequency (RF) communications and ASICs; car infotainment products; ultra-wide band and radar systems; and Connected Security Products; and automotive driver assistance systems.
- It serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets.
- STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Schiphol, the Netherlands.