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STMicroelectronics
(NYSE:STM)
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Rating:56Neutral
Price Target:
$55.00
▲(6.71% Upside)
Action:Reiterated
Date:07/24/26
STM scores as neutral: financial fundamentals are supported by a conservative balance sheet but pressured by sharply lower profitability and uneven free cash flow. The latest earnings call improves the outlook with accelerating revenue guidance, better margin trajectory, strong bookings/backlog, and raised data-center targets, but technicals remain weak (below major moving averages with negative MACD) and valuation is challenging given the very high P/E and low yield.
Positive Factors
Data-center & AI-driven design wins
Raised data‑center targets and multiple design wins in optical connectivity and microcontrollers position the company to capture durable AI infrastructure demand. This can materially diversify revenue mix into higher-growth, higher-value segments and support multi-year top-line expansion and margin leverage.
Negative Factors
Sharply compressed profitability
A steep decline from prior-cycle margins signals structural pricing, mix or cost pressures that materially reduce cash available for reinvestment and returns. Sustained low operating margins limit ability to self-fund growth initiatives and make margin recovery critical to restoring long-term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center & AI-driven design wins
Raised data‑center targets and multiple design wins in optical connectivity and microcontrollers position the company to capture durable AI infrastructure demand. This can materially diversify revenue mix into higher-growth, higher-value segments and support multi-year top-line expansion and margin leverage.
Read all positive factors
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 (STM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.98B
Dividend Yield0.69%
Average Volume (3M)11.39M
Price to Earnings (P/E)99.4
Beta (1Y)1.59
Revenue Growth10.06%
EPS Growth-27.68%
CountryUS
Employees49,157
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.52
Shares Outstanding911,281,900
10 Day Avg. Volume13,941,651
30 Day Avg. Volume11,388,051
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$73.54Price Target Upside42.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)1.34
Revenue Forecast (FY)$14.36B
STMicroelectronics Business Overview & Revenue Model
Company Description
STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures, and markets a broad range of semiconductor products. Its offerings include analog chips, discrete power semiconductors, microcontrollers, and sensors, ...
How the Company Makes Money
STMicroelectronics primarily makes money by selling semiconductor products to customers that integrate these components into end products such as vehicles, factory automation equipment, power systems, consumer and personal electronics, and communi...
STMicroelectronics Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance with meaningful revenue acceleration, improving profitability, positive free cash flow and substantial design wins (notably in optical connectivity and data center applications). Management raised data center revenue ambitions and highlighted large addressable markets (LEO satellite, quantum collaboration). Offsetting factors include ongoing nonrecurring manufacturing reshaping costs, temporary underloading/unloading charges, a materially negative margin in Power & Discrete, and near-term supply/ramping constraints for legacy analog and some microcontroller lines. Overall, the positives around revenue growth, bookings, cash flow and upgraded data center outlook materially outweigh the transitory headwinds tied to restructuring and ramping.Positive Updates
Revenue Beat and Sequential Growth
Q2 net revenues of $3.49 billion came in above the midpoint of outlook; Q3 guidance midpoint implies revenues of $3.7 billion (up ~6.2% sequentially) and Q4 guidance above $4.0 billion. Year-over-year revenue increases by end market: Communications Equipment & Computer Peripherals +50% YoY, Industrial +34% YoY, Personal Electronics +20% YoY, Automotive +16% YoY.
Negative Updates
Manufacturing Reshaping Costs and Unused Capacity Charges
Q2 included ~$58 million impairment/restructuring/phase-out charges and ~60 basis points negative impact on gross margin from nonrecurring costs related to the manufacturing reshaping program. Company expects a similar level of nonrecurring cost impact for the rest of the year and 70 bps of unused capacity charges included in Q3 guidance.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Sequential Growth
Q2 net revenues of $3.49 billion came in above the midpoint of outlook; Q3 guidance midpoint implies revenues of $3.7 billion (up ~6.2% sequentially) and Q4 guidance above $4.0 billion. Year-over-year revenue increases by end market: Communications Equipment & Computer Peripherals +50% YoY, Industrial +34% YoY, Personal Electronics +20% YoY, Automotive +16% YoY.
Read all positive updates
Company Guidance
ST guided Q3 2026 revenues of $3.7 billion (±350 bps), implying +6.2% sequential and +16.2% year‑over‑year growth, with gross margin about 37% (±200 bps) including ~70 bps of unused capacity charges (Q2 GM was 34.8%, non‑U.S. GAAP 35.2%); non‑U.S. GAAP net OpEx is expected at roughly $980 million in Q3 (would be ~$920M excluding start‑up and employee share award headwinds) and full‑year non‑U.S. GAAP OpEx is guided slightly above $3.8 billion (up low double‑digit YoY; like‑for‑like up high single‑digit); 2026 net CapEx is expected at the high end of $2.0–$2.2 billion. Management also raised its data‑center ambition to >$1 billion in 2026 and well above $2 billion in 2027, expects Q4 revenues >$4 billion (H2 vs H1 growth above their normal ~15% seasonality), reported book‑to‑bill ~2 (well above 2 in optical/comm), backlog ≈4.5–5 quarters, Q2 inventory $3.19B (126 days), Q2 free cash flow +$75M, net financial position $2.01B (liquidity $6.03B; debt $4.02B), and noted issuance of a $1.5B dual‑tranche convertible bond.STMicroelectronics Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
72
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.08B | 11.84B | 13.27B | 17.29B | 16.13B | 12.76B |
| Gross Profit | 4.49B | 4.01B | 5.22B | 8.29B | 7.63B | 5.33B |
| EBITDA | 2.21B | 2.26B | 3.72B | 6.38B | 5.71B | 3.42B |
| Net Income | 465.00M | 166.51M | 1.56B | 4.21B | 3.96B | 2.00B |
Balance Sheet | ||||||
| Total Assets | 27.03B | 24.80B | 24.74B | 24.45B | 19.98B | 15.54B |
| Cash, Cash Equivalents and Short-Term Investments | 6.03B | 4.92B | 6.18B | 6.08B | 4.52B | 3.52B |
| Total Debt | 4.03B | 2.13B | 3.17B | 3.17B | 2.91B | 2.74B |
| Total Liabilities | 8.98B | 6.58B | 7.06B | 7.60B | 7.22B | 6.27B |
| Stockholders Equity | 17.64B | 17.83B | 17.45B | 16.73B | 12.69B | 9.21B |
Cash Flow | ||||||
| Free Cash Flow | 462.50M | -52.00M | -216.00M | 1.46B | 1.57B | 1.12B |
| Operating Cash Flow | 2.30B | 2.15B | 2.96B | 5.99B | 5.20B | 3.06B |
| Investing Cash Flow | -1.31B | -43.00M | -3.74B | -5.77B | -4.59B | -1.52B |
| Financing Cash Flow | 546.91M | -1.56B | -155.00M | -267.00M | -567.00M | -1.31B |
STMicroelectronics Technical Analysis
Negative
51.54
Price Trends
68.52
Negative
56.26
Negative
41.91
Positive
Market Momentum
-3.48
Positive
31.13
Neutral
19.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STM, the sentiment is Negative. The current price of 51.54 is below the 20-day moving average (MA) of 61.83, below the 50-day MA of 68.52, and above the 200-day MA of 41.91, indicating a neutral trend. The MACD of -3.48 indicates Positive momentum. The RSI at 31.13 is Neutral, neither overbought nor oversold. The STOCH value of 19.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $42.82B | 18.09 | 20.98% | 2.12% | 9.07% | 116.20% | |
65 Neutral | $18.98B | 106.09 | 13.19% | ― | 27.05% | ― | |
65 Neutral | $27.37B | 35.45 | 6.66% | 0.22% | 0.80% | ― | |
63 Neutral | $32.59B | 57.88 | 7.45% | ― | -9.04% | -4.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $46.98B | 99.40 | 2.66% | 0.70% | 10.06% | -27.68% | |
53 Neutral | $68.74B | 39.90 | 14.45% | 1.13% | 15.55% | 43.35% |
* Technology Sector Average
STM
STMicroelectronics
52.39
27.50
110.44%
ASX
ASE Technology Holding Co
35.17
25.26
255.04%
MTSI
MACOM Technology Solutions Holdings
251.44
111.44
79.60%
ON
ON Semiconductor
81.61
33.64
70.13%
UMC
United Micro
19.03
12.31
183.23%
GFS
GlobalFoundries Inc
49.99
13.86
38.37%
STMicroelectronics Corporate Events
STMicroelectronics Details Mid-July Share Buybacks Under Ongoing Repurchase Program
Jul 20, 2026
STMicroelectronics N.V., the global semiconductor group headquartered in the Netherlands, has been running a common share repurchase program approved by shareholders in May 2024 and detailed in June 2024. The company uses this program primarily to...
STMicroelectronics Details July Share Buybacks Under Ongoing Repurchase Program
Jul 13, 2026
On July 13, 2026, STMicroelectronics reported the latest activity under its ongoing common share repurchase program, originally approved by shareholders in May 2024. The program, executed via a broker on Euronext Paris, is intended primarily to sa...
STMicroelectronics Details Late-June Share Buybacks Under Ongoing Repurchase Program
Jul 6, 2026
STMicroelectronics N.V., a global semiconductor manufacturer with an integrated supply chain and a broad customer base across automotive, industrial and consumer electronics, continues to align its operations with long-term sustainability targets,...
STMicroelectronics Prices US$1.5 Billion Dual-Tranche Convertible Bond Offering
Jun 16, 2026
On June 16, 2026, STMicroelectronics priced a US$1.5 billion dual-tranche issuance of senior unsecured convertible bonds, split into US$750 million notes maturing in 2031 and US$750 million notes maturing in 2033. The 2031 bonds are zero-coupon, w...
STMicroelectronics Launches $1.5 Billion Dual-Tranche Convertible Bond Offering and Calls 2027 Notes Early
Jun 16, 2026
On June 16, 2026, STMicroelectronics N.V. launched a US$1.5 billion dual-tranche offering of senior unsecured convertible bonds, with new 5-year notes due 2031 and 7-year notes due 2033, both issued at par and carrying low coupon ranges. The bonds...
STMicroelectronics Lifts 2026 Data Center Revenue Target on Surging AI Demand
Jun 2, 2026
On June 2, 2026, STMicroelectronics raised its revenue ambition for data center products, citing continued strong demand for AI infrastructure and progress in ramping up production capacity. The company now expects about $1 billion in data center ...
STMicroelectronics Shareholders Approve All Resolutions and $0.36 Dividend at 2026 AGM
May 27, 2026
On May 27, 2026, STMicroelectronics held its Annual General Meeting of Shareholders in Amsterdam, where investors approved all resolutions on the agenda. The AGM validated the 2025 statutory accounts under IFRS, confirmed board governance items in...
STMicroelectronics Names New Chairman and Vice-Chairman After 2026 AGM
May 27, 2026
On May 27, 2026, STMicroelectronics’ Supervisory Board acted following the company’s Annual General Meeting of Shareholders in Amsterdam, appointing Armando Varricchio as Chairman and Nicolas Dufourcq as Vice-Chairman for a three-year ...
STMicroelectronics Posts Strong Year-on-Year Q1 2026 Revenue Growth Despite Sequential Dip
May 4, 2026
STMicroelectronics reported first-quarter 2026 results on May 4, 2026, filing a Form 6-K that includes its operating and financial review, unaudited interim consolidated financial statements, and Sarbanes-Oxley certifications. For the three months...
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.