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STMicroelectronics ( (STM) ) has issued an update.
On January 29, 2026, STMicroelectronics reported that fourth-quarter 2025 net revenues were essentially flat year on year at $3.33 billion, with gross margin slipping to 35.2% and operating income falling to $125 million as the group booked $141 million in impairment, restructuring and phase-out charges tied to a company-wide program to reshape its manufacturing footprint and reduce its global cost base. The quarter nonetheless marked a return to year-on-year revenue growth, driven notably by stronger Personal Electronics, imaging-related gains within analog, MEMS and sensors, and robust RF & Optical Communications, even as automotive and power and discrete products underperformed and the company posted a small net loss. For full-year 2025, revenue declined 11.1% to $11.80 billion and operating margin dropped to 1.5%, reflecting softer demand and significant restructuring costs, while ST maintained capital spending of $1.79 billion and generated $265 million of free cash flow; management guided for first-quarter 2026 revenues of about $3.04 billion with a gross margin of 33.7% and plans to lift 2026 net capex to $2.0–$2.2 billion, underscoring an ongoing strategic focus on innovation, manufacturing realignment and improved cash generation despite near-term margin pressure.
The most recent analyst rating on (STM) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on STMicroelectronics stock, see the STM Stock Forecast page.
Spark’s Take on STM Stock
According to Spark, TipRanks’ AI Analyst, STM is a Neutral.
The score is held back primarily by mixed financial performance (pressure on revenue growth and margins) and expensive valuation (high P/E with modest yield). Technicals show an uptrend but are overextended, increasing pullback risk. Earnings call signals modest near-term growth and improving cash generation, but ongoing margin/segment headwinds keep the outlook balanced.
To see Spark’s full report on STM stock, click here.
More about STMicroelectronics
STMicroelectronics N.V. is a global semiconductor manufacturer serving a broad range of electronics markets, including personal electronics, automotive, industrial, communications equipment and consumer products. Its portfolio spans analog and power semiconductors, MEMS and sensors, microcontrollers, digital ICs, and RF and optical communication components, supplying both OEMs and distributors worldwide.
Average Trading Volume: 5,715,868
Technical Sentiment Signal: Buy
Current Market Cap: $26.07B
For a thorough assessment of STM stock, go to TipRanks’ Stock Analysis page.