Stmicroelectronics N.v Stock Earnings Reports

STMicroelectronics reported Q1 2026 revenue of $3.1B (including ~$40M from the newly acquired NXP MEMS business). Book-to-bill was well above 1 across end markets. Key trends: automotive returned to year-over-year growth (+15% YoY) despite a sequential decline, industrial and communications/compute peripherals showed strong YoY growth (26% and 41% respectively), while personal electronics declined sequentially (seasonal). ST completed the NXP MEMS sensor acquisition and sees that business as complementary and accretive to automotive sensors. ST reiterated a strategic pivot to AI/data-center related opportunities — confirming data-center revenues to be “nicely above $500M” for 2026 and “well above $1B” for 2027 and announced a multiyear, multibillion-dollar engagement with AWS. Gross margin in Q1 was 33.8% (34.1% ex-PPA); Q2 guidance: revenue $3.45B (+/-3.5%) and gross margin ~34.8% (non-GAAP ~35.2%). Non-GAAP EPS was $0.30 for Q1 after adjusting items. Free cash flow was negative (~$-720M) largely due to ~$895M cash out for the NXP MEMS acquisition. ST expects like-for-like (constant perimeter and FX) net OpEx to rise mid- to high-single digits in 2026 (low-double digits including NXP and FX), reflecting accelerated investment in new opportunities. Management expects sequential gross-margin improvement through H2 2026 as mix and utilization improve, with further benefits in 2027/2028 as manufacturing reshaping and capacity transitions complete. Key medium-term drivers: AI/data-center (photonics, power, microcontrollers), LEO satellites, silicon carbide (SiC) and automotive sensors (including NXP MEMS).