$STM · STMicroelectronics N.V.
STMicroelectronics reported Q3 2026 results with net revenues of $3.76 billion, up 17.9% YoY and 150 bps above the midpoint of guidance. Gross margin reached 37.3% (+410 bps YoY), operating income hit $367M (non-GAAP $429M), and diluted EPS was $0.31. The company guided Q4 revenue to $4.15B at the midpoint (+24.7% YoY) with gross margin of 39.0%, implying full-year 2026 revenue of ~$14.5B.
- Q3 net revenues of $3.76B beat the midpoint of guidance by 150 bps, up 17.9% YoY.
- Gross margin expanded 410 bps YoY to 37.3%, driven by lower unused capacity charges and better product mix.
- RF Optical Communications segment revenue surged 46.2% YoY to $504M; Embedded Processing up 24.1% YoY.
- Q4 guidance midpoint: $4.15B revenue (+24.7% YoY) and 39.0% gross margin.
- Full-year 2026 revenue expected at ~$14.5B, representing 22.8% YoY growth.
Stock up ~1% since filing, a modest reaction to a strong beat-and-raise quarter, suggesting the Q4 guidance was largely priced in or tempered by tariff uncertainty flagged in the outlook.
STMicro delivered a clean beat-and-raise quarter with broad-based strength across segments, confirming the semiconductor cycle recovery is accelerating into year-end.
STMicro's results confirm the ongoing semiconductor cyclical recovery, with distribution channel sales up 38.8% YoY and CEO commentary citing "demand well above supply." The AI datacenter and LEO satellite communications growth drivers align with broader industry secular trends.
The Q4 business outlook explicitly excludes "any impact of potential further changes to global trade tariffs compared to the current situation." P&D segment remains unprofitable with a -17.1% operating margin, though losses narrowed slightly from -15.6% a year ago.