STMicroelectronics (STM)
NYSE:STM
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STMicroelectronics
(NYSE:STM)
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Rating:56Neutral
Price Target:
$40.00
▲(2.20% Upside)
Action:ReiteratedDate:03/04/26
The score is held back primarily by weakened financial performance (sharp margin compression and negative free cash flow) and an expensive P/E, partially offset by a strong balance sheet, improving/constructive technical trend, and an earnings-call narrative showing late-2025 stabilization but cautious near-term guidance.
Positive Factors
Balance sheet strength
ST’s materially strengthened equity base and low leverage provide durable financial flexibility to fund capital-intensive shifts (silicon photonics, cloud optical interconnect), sustain shareholder returns and absorb cyclic earnings volatility, reducing refinancing and solvency risk over the medium term.
Negative Factors
Margin erosion
Sharp, sustained margin compression has weakened intrinsic profitability and reduces cash-generation per revenue dollar. Lower gross and net margins reflect structural mix shifts and competitive pressure, limiting reinvestment capacity and making recovery dependent on slow manufacturing reshaping.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
ST’s materially strengthened equity base and low leverage provide durable financial flexibility to fund capital-intensive shifts (silicon photonics, cloud optical interconnect), sustain shareholder returns and absorb cyclic earnings volatility, reducing refinancing and solvency risk over the medium term.
Read all positive factors
STMicroelectronics (STM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.17B
Dividend Yield1.28%
Average Volume (3M)8.61M
Price to Earnings (P/E)136.1
Beta (1Y)1.45
Revenue Growth-17.33%
EPS Growth-76.71%
CountryUS
Employees49,602
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.11
Shares Outstanding911,281,900
10 Day Avg. Volume8,661,401
30 Day Avg. Volume8,610,189
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.27
Price to Sales (P/S)1.91
P/FCF Ratio-435.83
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.93
Enterprise Value/Gross Profit8.67
Enterprise Value/Ebitda15.23
Forecast
1Y Price Target
$35.40Price Target Upside-9.56% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.17
Revenue Forecast (FY)$13.23B
STMicroelectronics Business Overview & Revenue Model
Company Description
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 Automotive and Discrete...
How the Company Makes Money
STMicroelectronics makes money primarily by selling semiconductor products (integrated circuits and discrete components) to OEMs and electronics manufacturers, recognized as revenue when products are shipped/accepted under customer terms. Its reve...
STMicroelectronics Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Data provided by:
The Fly
The FlySTMicroelectronics Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: Q4 showed tangible signs of stabilization and operational progress (revenue beat, sequential margin improvement, positive free cash flow, inventory normalization, strong RF/optical and industrial momentum, and meaningful design wins). However, the company reported a difficult full year with double-digit revenue decline, significant margin erosion versus 2024, sizeable impairment and restructuring charges, and a cautious Q1 2026 guide (revenue down ~8.7% sequential and margin pressure from unused capacity charges). Management articulated clear medium-term growth drivers (SiC recovery, NXP MEMS acquisition, MCU roadmap, data center/opto momentum) and a reshaping plan whose efficiency gains are expected later, but near-term challenges and charges keep the picture balanced.Positive Updates
Q4 Revenue Beat and Return to YoY Growth
Q4 2025 revenue of $3.33 billion came in above the midpoint of guidance and marked a return to year-over-year growth versus prior year.
Negative Updates
Full-Year Revenue and Margin Declines
Full-year 2025 net revenues decreased 11.1% to $11.8 billion; full-year gross margin fell to 33.9% from 39.3% in 2024 (down ~540 basis points).
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Revenue Beat and Return to YoY Growth
Q4 2025 revenue of $3.33 billion came in above the midpoint of guidance and marked a return to year-over-year growth versus prior year.
Read all positive updates
Company Guidance
ST guided Q1 2026 revenues of $3.04 billion (down 8.7% sequentially, ±350 bps) and a gross margin of about 33.7% (±200 bps), which includes ~220 bps of unused‑capacity charges; Q1 net OpEx is expected to be ~$860 million (down quarter‑on‑quarter). For full‑year 2026 management plans ~ $2.2 billion of net CapEx to support cloud optical interconnect and manufacturing reshaping, expects unused‑capacity charges to decline through the year, anticipates gross margin to rise after Q1 (with Q4 2026 expected to be above Q4 2025), and sees inventory normalizing (end‑Q1 inventory days ~140 vs 130 today). Guidance excludes any additional tariff impacts, and the company reiterated confidence in organic growth and specific targets such as ~$500 million in data‑center/optical revenue in 2026.STMicroelectronics Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
80
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.84B | 13.27B | 17.29B | 16.13B | 12.76B |
| Gross Profit | 4.01B | 5.22B | 8.29B | 7.63B | 5.33B |
| EBITDA | 401.24M | 3.72B | 6.38B | 5.71B | 3.42B |
| Net Income | 166.51M | 1.56B | 4.21B | 3.96B | 2.00B |
Balance Sheet | |||||
| Total Assets | 24.80B | 24.74B | 24.45B | 19.98B | 15.54B |
| Cash, Cash Equivalents and Short-Term Investments | 4.92B | 6.18B | 6.08B | 4.52B | 3.52B |
| Total Debt | 2.13B | 3.17B | 3.17B | 2.91B | 2.74B |
| Total Liabilities | 6.58B | 7.06B | 7.60B | 7.22B | 6.27B |
| Stockholders Equity | 17.83B | 17.45B | 16.73B | 12.69B | 9.21B |
Cash Flow | |||||
| Free Cash Flow | -52.00M | -216.00M | 1.46B | 1.57B | 1.12B |
| Operating Cash Flow | 2.15B | 2.96B | 5.99B | 5.20B | 3.06B |
| Investing Cash Flow | -43.00M | -3.74B | -5.77B | -4.59B | -1.52B |
| Financing Cash Flow | -1.56B | -155.00M | -267.00M | -567.00M | -1.31B |
STMicroelectronics Technical Analysis
Positive
39.14
Price Trends
32.81
Positive
29.33
Positive
28.41
Positive
Market Momentum
1.24
Negative
71.15
Negative
93.81
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STM, the sentiment is Positive. The current price of 39.14 is above the 20-day moving average (MA) of 33.73, above the 50-day MA of 32.81, and above the 200-day MA of 28.41, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 71.15 is Negative, neither overbought nor oversold. The STOCH value of 93.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STM.
STMicroelectronics Risk Analysis
STMicroelectronics disclosed 35 risk factors in its most recent earnings report. STMicroelectronics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
STMicroelectronics Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $23.76B | 14.74 | 11.36% | 6.06% | 5.87% | -20.93% | |
69 Neutral | $27.10B | 21.96 | 7.68% | ― | 0.25% | -106.22% | |
66 Neutral | $18.58B | 67.11 | 12.60% | ― | 32.58% | -173.04% | |
64 Neutral | $26.99B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $53.99B | 26.78 | 12.81% | 2.29% | 8.01% | 10.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $34.17B | 136.11 | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
STM
STMicroelectronics
39.14
18.91
93.45%
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UMC
United Micro
9.53
2.97
45.27%
GFS
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48.70
15.37
46.11%
STMicroelectronics Corporate Events
STMicroelectronics Sets 2026 AGM Agenda with Dividend Plan and Capital Authority Renewals
Mar 27, 2026
STMicroelectronics announced on March 26, 2026, the set of resolutions it will submit to shareholders at its Annual General Meeting in Amsterdam on May 27, 2026, including adoption of its IFRS statutory accounts for 2025, which were filed the same...
STMicroelectronics Files 2025 Dutch Statutory Annual Report with U.S. SEC
Mar 26, 2026
STMicroelectronics has filed a Form 6-K for March 2026 with the U.S. Securities and Exchange Commission, furnishing its 2025 Dutch statutory annual report and IFRS statutory accounts. The extensive document details the group’s organizational...
STMicroelectronics Schedules March Investor Webcasts on Cloud AI and Intelligent Sensing
Mar 2, 2026
STMicroelectronics announced on March 2, 2026, that it will host two investor and analyst webcasts this month focused on its strategy and offerings in artificial intelligence. The first call, “ST for Cloud AI,” will take place on March...
STMicroelectronics Files 2025 Form 20-F with U.S. SEC
Feb 27, 2026
On February 26, 2026, STMicroelectronics published its Annual Report on Form 20-F for the year ended December 31, 2025 and filed it with the U.S. Securities and Exchange Commission. The U.S. GAAP-based filing, which includes complete audited finan...
STMicroelectronics Deepens Multi‑Billion‑Dollar AWS Chip Supply Deal for AI Data Centers
Feb 9, 2026
On February 9, 2026, STMicroelectronics announced a multi‑year, multi‑billion‑dollar expansion of its strategic collaboration with Amazon Web Services, under which ST becomes a key supplier of advanced semiconductor technologies ...
STMicroelectronics Closes Acquisition of NXP’s MEMS Sensors Unit to Bolster Automotive and Industrial Portfolio
Feb 2, 2026
On February 2, 2026, STMicroelectronics completed its acquisition of NXP Semiconductors’ MEMS sensors business, a deal first announced in July 2025 and now fully cleared by regulators. The acquired portfolio, focused on automotive safety and...
STMicroelectronics Posts Flat Q4 Revenue, Lower 2025 Profit as Restructuring Weighs on Margins
Jan 29, 2026
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 m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.