$STM · STMicroelectronics N.V.
STMicroelectronics reported Q3 2026 (ended Sept 26) net revenues of $3,757M, up 7.7% sequentially and 17.9% YoY, beating the midpoint of its outlook by 150bps. Gross margin reached 37.3% (up 250bps QoQ, 410bps YoY); GAAP diluted EPS was $0.31 and non-GAAP diluted EPS $0.37. Operating income nearly doubled sequentially to $367M (9.8% margin). The company guided Q4 2026 revenue up ~10.5% sequentially and gross margin ~39.0%.
- Net revenues $3,757M, +17.9% YoY and +7.7% sequentially.
- Gross margin 37.3%, up 410bps YoY on lower unused capacity charges and better mix.
- Non-GAAP operating income $429M vs $269M prior quarter and $217M year-ago.
- Free cash flow positive at $351M vs $75M prior quarter.
- RFOC segment revenue +46.2% YoY; EMP +24.1% YoY.
Shares fell 6.06% in the regular session to $45.60, with extended-hours trading at $45.00 (-1.32% vs close), suggesting the strong beat and guidance did not offset broader selling pressure.
A broad-based semiconductor recovery is visible in STM's 17.9% revenue growth and 410bps margin expansion, with Q4 guidance implying continued acceleration.
Strong double-digit revenue growth and margin expansion across analog, power, embedded and RF segments signal a broad semiconductor cyclical recovery, led by RFOC (+46.2% YoY).
Q4 outlook excludes any impact from potential further changes to global trade tariffs; restructuring/phase-out charges of $55M in Q3 reflect ongoing manufacturing-footprint reshaping.