STM
STMicroelectronics Reports Q2 2026 Financial Results
Article Summary
HOLD- STMicroelectronics N.V. (NYSE: STM) reported strong Q2 2026 results with record revenue and margin growth across Analog, Power & Discrete, MEMS and Sensors, Power and Discrete products, and RF Optical Communications product groups.
- Revenue increased 26.0% year-over-year to $3.49 billion, driven by strong demand from OEMs and distribution, while gross margin increased 130 basis points to 34.8% due to lower unused capacity charges and better product mix.
- Operating income increased from an operating loss of $133 million in the year-ago quarter to $187 million, while operating margin increased to 5.4% from negative 4.8%.
- GAAP gross margin remained steady at 35.2% and operating income rose from $269 million to $291 million, with net income and diluted earnings per share rising from $97 million and $0.11 respectively in the previous quarter.
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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 ? | 95.5% | 25% | 100.0 ptsExceptional (95.5%) - Very high expectations |
| Target Price Upside ? | 21.6% | 20% | 70.0 ptsGood Upside (21.6%) - Target: $79.99 vs Current: $65.77 |
| Gross Margin % ? | 33.8% | 15% | 40.0 ptsModerate (33.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -19.2% | 15% | 40.0 ptsMild Pullback (-19.2%) - Light entry opportunity |
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.