{"success":true,"data":{"pressRelease":{"id":"96059","rtpr_id":"nGNE9RwKm6","ticker":"STM","exchange":"NYSE","all_tickers":["STM","STMPA"],"title":"REG-STMicroelectronics Reports Q2 2026 Financial Results","author":"Globe Newswire","published_at":"2026-07-23T05:00:00.736Z","article_body":"PR No: C3403C\n\nSTMicroelectronics Reports Q2 2026 Financial Results\n* Q226 net revenues at $3.49 billion\n* Gross margin at 34.8% (non-U.S. GAAP(1) gross margin at 35.2%)\n* Operating income at $187 million (non-U.S. GAAP(1) operating income at $269\nmillion) \n* Business outlook at mid-point: Q326 net revenues of $3.70 billion and gross\nmargin of 37.0%\nGeneva, July 23, 2026 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a\nglobal semiconductor leader serving customers across the spectrum of\nelectronics applications, reported U.S. GAAP financial results for the second\nquarter ended June 27, 2026. This press release also contains non-U.S. GAAP\nmeasures (see Appendix for additional information).\n\nST reported second quarter net revenues of $3.49 billion, gross margin of\n34.8%, operating income of $187 million, and net income of $222 million or\n$0.24 diluted earnings per share (non-U.S. GAAP(1) gross margin of 35.2%,\nnon-U.S. GAAP(1) operating income of $269 million, and non-U.S. GAAP(1) net\nincome of $291 million or $0.31 diluted earnings per share).\n\nJean-Marc Chery, ST President & CEO, commented:\n* “Q2 net revenues came above the mid-point of our business outlook range,\ndriven by higher revenues in CECP and Automotive. Gross margin was in line\nwith the mid-point of our business outlook range.”\n* “On a year-over-year basis, Q2 net revenues increased 26.0%. Q2 gross\nmargin was 34.8%, operating margin was 5.4% and net income was $222 million.\nOn a non-U.S. GAAP(1) basis gross margin was 35.2%, operating margin was 7.7%\nand net income was $291 million.”\n* “During the quarter demand increased further, with strong bookings in all\nend markets. We saw improved visibility and signs of tight supply in several\nproduct categories. Inventory in distribution is now below our standard\ntarget.”\n* “Our third quarter business outlook, at the mid-point, is for net revenues\nof $3.70 billion, increasing about 6.2% sequentially and about 16.2%\nyear-over-year. Gross margin is expected to be about 37.0%, including about 70\nbasis points of unused capacity charges.”\n* “We anticipate a revenue growth acceleration in Q4, mainly driven by our\nengaged customer programs in AI datacenters and LEO satellite communication.\nWe expect Q4 revenues to be above $4 billion, this translates into a H2 vs H1\ngrowth above our normal 15% seasonality.”\n* “Driven by continued strong demand in AI datacenters, we are raising our\nrevenue ambition for datacenters. Revenues are now expected above $1 billion\nin 2026 and, assuming the current dynamic continues and with the current\nengagements we have, well above $2 billion in 2027. This confirms ST’s\nstrong position in the evolving AI datacenters.”\nQuarterly Financial Summary\n\n U.S. GAAP (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y \n Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% \n Gross Profit $1,215 $1,045 $926 16.3% 31.1% \n Gross Margin 34.8% 33.8% 33.5% 100bps 130bps \n Operating Income (Loss) $187 $70 $(133) 165.5% - \n Operating Margin 5.4% 2.3% -4.8% 310bps 1,020bps \n Net Income (Loss) $222 $37 $(97) 496.8% - \n Diluted Earnings Per Share $0.24 $0.04 $(0.11) 500.0% - \n Non-U.S. GAAP (1) (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y \n Gross Profit $1,229 $1,056 $926 16.4% 32.7% \n Gross Margin 35.2% 34.1% 33.5% 110bps 170bps \n Operating Income $269 $171 $57 57.3% 371.9% \n Operating Margin 7.7% 5.5% 2.1% 220bps 560bps \n Net Income $291 $122 $57 138.5% 410.5% \n Diluted Earnings Per Share $0.31 $0.13 $0.06 138.5% 416.7% \n\nSecond Quarter 2026 Summary Review\n\n Net Revenues by Reportable Segment (2)(US$ m) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y \n Analog products, MEMS and Sensors (AM&S) segment 1,426 1,318 1,133 8.2% 26.0% \n Power and discrete products (P&D) segment 464 389 447 19.2% 3.7% \n Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,890 1,707 1,580 10.7% 19.6% \n Embedded Processing (EMP) segment 1,147 975 847 17.7% 35.5% \n RF Optical Communications (RFOC) segment 445 409 336 8.6% 32.0% \n Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,592 1,384 1,183 15.0% 34.5% \n Others 5 4 3 - - \n Total Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% \n\nNet revenues totaled $3.49 billion, representing a year-over-year increase of\n26.0%. Year-over-year net sales to OEMs and Distribution increased 23.3% and\n33.1%, respectively. On a sequential basis, net revenues increased 12.7%, 110\nbasis points better than the mid-point of ST’s guidance.\n\nGross profit totaled $1.22 billion, representing a year-over-year increase of\n31.1%. Gross margin of 34.8%, increased 130 basis points year-over-year,\nmainly due to lower unused capacity charges and better product mix. Non-U.S.\nGAAP(1) gross margin was 35.2%, in line with the mid-point of ST’s guidance.\n\nOperating income increased from an operating loss of $133 million in the\nyear-ago quarter to an operating income of $187 million. ST’s operating\nmargin increased on a year-over-year basis to 5.4% of net revenues, compared\nto negative 4.8% operating margin in the second quarter of 2025. Operating\nincome included $58 million impairment, restructuring charges and other\nrelated phase-out costs for the quarter, mainly reflecting charges related to\nthe execution of the previously announced company-wide program to reshape our\nmanufacturing footprint and resize our global cost base and $24 million PPA\neffects from the acquisition of NXP’s MEMS sensor business. Excluding these\nitems, non-U.S. GAAP(1) Operating income stood at $269 million in the second\nquarter (or 7.7% non-U.S. GAAP(1) operating margin).\n\nBy reportable segment, compared with the year-ago quarter:\n\nIn Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:\n\nAnalog products, MEMS and Sensors (AM&S)(2) segment:\n* Revenue increased 26.0% mainly due to Imaging and MEMS and, to a lesser\nextent, Analog.    \n* Operating profit increased by 69.2% to $144 million. Operating margin was\n10.1% compared to 7.5%.\nPower and Discrete products (P&D) segment:\n* Revenue increased 3.7%.\n* Operating result decreased from a loss of $56 million to a loss of $99\nmillion. Operating margin was -21.4% compared to -12.5%.\nIn Microcontrollers, Digital ICs and RF products (MDRF) Product Group:\n\nEmbedded Processing (EMP) segment:\n* Revenue increased 35.5% mainly due to General Purpose MCU and, to a lesser\nextent, Custom Processing and Connected Security. \n* Operating profit increased by 97.8% to $226 million. Operating margin was\n19.7% compared to 13.5%.\nRF Optical Communications (RFOC) segment:\n* Revenue increased 32.0%.\n* Operating profit increased by 56.3% to $94 million. Operating margin was\n21.2% compared to 17.9%.\nNet income and diluted Earnings Per Share increased to $222 million and $0.24\nrespectively, compared to a net loss of $97 million and a negative $0.11\nrespectively in the year-ago quarter. In the second quarter of 2026 non-U.S.\nGAAP(1) Net income stood at $291 million and non-U.S. GAAP(1) diluted Earnings\nPer Share stood at $0.31.\n\nCash Flow and Balance Sheet Highlights\n\n Trailing 12 Months \n (US$ m) Q2 2026 Q1 2026 Q2 2025 Q2 2026 Q2 2025 TTM Change \n Net cash from operating activities 502 534 354 2,259 2,332 -3.1% \n Free cash flow (non-U.S. GAAP (1)) 75 (723) (2) (152) (261) 142 -283.8% \n\nNet cash from operating activities was $502 million in the second quarter,\nafter approximately $44 million outflow related to restructuring, compared to\n$354 million in the year-ago quarter.\n\nNet Capex (non-U.S. GAAP(1)), was $409 million in the second quarter compared\nto $465 million in the year-ago quarter.\n\nFree cash flow (non-U.S. GAAP(1)) was positive at $75 million in the second\nquarter compared to negative $152 million in the year-ago quarter.\n\nInventory at the end of the second quarter was $3.19 billion, compared to\n$3.17 billion in the previous quarter and $3.27 billion in the year-ago\nquarter. Days sales of inventory at quarter-end was 126 days, compared to 140\ndays for the previous quarter and 166 days for the year-ago quarter.\n\nIn the second quarter, ST paid cash dividends to its stockholders totaling $75\nmillion.\n\nST’s net financial position (non-U.S. GAAP(3)) remained strong at $2.01\nbillion as of June 27, 2026, compared to $2.00 billion as of March 28, 2026,\nand reflected total liquidity of $6.03 billion and total financial debt of\n$4.02 billion. Adjusted net financial position (non-U.S. GAAP(1)), taking into\nconsideration the effect on total liquidity of advances from capital grants\nfor which capital expenditures have not been incurred yet, stood at $1.70\nbillion as of June 27, 2026.\n\nDuring the quarter, ST issued a new $1.5 billion dual-tranche senior unsecured\nconvertible bond (Tranche A and Tranche B for $750 million each) due 2031 and\n2033 and announced the early redemption of its $750 million convertible bond\ndue in 2027.\n\nCorporate developments\n\nOn May 27, 2026, STMicroelectronics held its 2026 Annual General Meeting of\nShareholders in Amsterdam, the Netherlands. All proposed resolutions were\napproved by the Shareholders.\n\nBusiness Outlook\n\nST’s guidance, at the mid-point, for the 2026 third quarter is:\n* Net revenues are expected to be $3.70 billion, an increase of 6.2%\nsequentially, plus or minus 350 basis points.\n* Gross margin of 37.0%, plus or minus 200 basis points. \n* This outlook is based on an assumed effective currency exchange rate of\napproximately $1.14 = €1.00 for the 2026 third quarter and includes the\nimpact of existing hedging contracts.\n* The third quarter will close on September 26, 2026.\nThis business outlook does not include any impact of potential further changes\nto global trade tariffs compared to the current situation.\n\nConference Call and Webcast Information\n\nST will conduct a conference call with analysts, investors and reporters to\ndiscuss its second quarter 2026 financial results and current business outlook\ntoday at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time\n(ET). A live webcast (listen-only mode) of the conference call will be\naccessible at ST’s website, https://investors.st.com, and will be available\nfor replay until August 7, 2026.\n\nUse of Supplemental Non-U.S. GAAP Financial Information\n\nThis press release contains supplemental non-U.S. GAAP financial information.\n\nReaders are cautioned that these measures are unaudited and not prepared in\naccordance with U.S. GAAP and should not be considered as a substitute for\nU.S. GAAP financial measures. In addition, such non-U.S. GAAP financial\nmeasures may not be comparable to similarly titled information from other\ncompanies. To compensate for these limitations, the supplemental non-U.S. GAAP\nfinancial information should not be read in isolation, but only in conjunction\nwith ST’s consolidated financial statements prepared in accordance with U.S.\nGAAP.\n\nSee the Appendix of this press release for a reconciliation of ST’s non-U.S.\nGAAP financial measures to their corresponding U.S. GAAP financial measures.\n\nForward-looking Information\n\nSome of the statements contained in this release that are not historical facts\nare statements of future expectations and other forward-looking statements\n(within the meaning of Section 27A of the Securities Act of 1933 or Section\n21E of the Securities Exchange Act of 1934, each as amended) that are based on\nmanagement’s current views and assumptions, and are conditioned upon and\nalso involve known and unknown risks and uncertainties that could cause actual\nresults, performance or events to differ materially from those anticipated by\nsuch statements due to, among other factors:\n* changes in global trade policies, including the continuation, adoption and\nexpansion of tariffs and trade barriers and sanctions, that are affecting and\ncould further affect the macro-economic environment and are adversely\nimpacting and could further adversely impact the demand for our products;\n* uncertain macro-economic and industry trends (such as inflation and\nfluctuations in supply chains), which are impacting and may further impact\nproduction capacity and end-market demand for our products;\n* customer demand that differs from projections which may require us to\nundertake transformation measures that may not be successful in realizing the\nexpected benefits in full or at all;\n* the ability to design, manufacture and sell innovative products in a rapidly\nchanging technological environment;\n* changes in economic, social, public health, labor, political, or\ninfrastructure conditions in the locations where we, our customers, or our\nsuppliers operate, including as a result of macro-economic or regional events,\ngeopolitical and military conflicts, social unrest, labor actions, or\nterrorist activities;\n* unanticipated events or circumstances, which may impact our ability to\nexecute our plans and/or meet the objectives of our research and development\nand manufacturing programs, which benefit from public funding;\n* financial difficulties with any of our major distributors or significant\ncurtailment of purchases by key customers;\n* the loading, product mix, and manufacturing performance of our production\nfacilities and/or our required volume to fulfill capacity reserved with\nsuppliers or third-party manufacturing providers;\n* availability and costs of equipment, raw materials, utilities, third-party\nmanufacturing services and technology, or other supplies required by our\noperations (including increasing costs resulting from inflation); \n* the functionalities and performance of our IT systems, which are subject to\ncybersecurity threats and which support our critical operational activities\nincluding manufacturing, finance and sales, and any breaches of our IT systems\nor those of our customers, suppliers, partners and providers of third-party\nlicensed technology;\n* theft, loss, or misuse of personal data about our employees, customers, or\nother third parties, and breaches of data privacy legislation; \n* the impact of intellectual property claims by our competitors or other third\nparties, and our ability to obtain required licenses on reasonable terms and\nconditions; \n* changes in our overall tax position as a result of changes in tax rules, new\nor revised legislation, the outcome of tax audits or changes in international\ntax treaties which may impact our results of operations as well as our ability\nto accurately estimate tax credits, benefits, deductions and provisions and to\nrealize deferred tax assets; \n* variations in the foreign exchange markets and, more particularly, the U.S.\ndollar exchange rate as compared to the Euro and the other major currencies we\nuse for our operations; \n* the outcome of ongoing litigation as well as the impact of any new\nlitigation to which we may become a defendant; \n* product liability or warranty claims, claims based on epidemic or delivery\nfailure, or other claims relating to our products, or recalls by our customers\nfor products containing our parts; \n* natural events such as severe weather, earthquakes, tsunamis, volcano\neruptions or other acts of nature, the effects of climate change, health risks\nand epidemics or pandemics in locations where we, our customers or our\nsuppliers operate; \n* increased regulation and initiatives in our industry, including those\nconcerning climate change and sustainability matters and our goal to become\ncarbon neutral in all direct and indirect emissions (scopes 1 and 2), product\ntransportation, business travel, and employee commuting emissions (our scope 3\nfocus), and to achieve our 100% renewable electricity sourcing goal by the end\nof 2027; \n* epidemics or pandemics, which may negatively impact the global economy in a\nsignificant manner for an extended period of time, and could also materially\nadversely affect our business and operating results;\n* industry changes resulting from vertical and horizontal consolidation among\nour suppliers, competitors, and customers;\n* the ability to successfully ramp up new programs that could be impacted by\nfactors beyond our control, including the availability of critical third-party\ncomponents and performance of subcontractors in line with our expectations;\nand \n* individual customer use of certain products, which may differ from the\nanticipated uses of such products and result in differences in performance,\nincluding energy consumption, may lead to a failure to achieve our disclosed\nemission-reduction goals, adverse legal action or additional research costs.\nSuch forward-looking statements are subject to various risks and\nuncertainties, which may cause actual results and performance of our business\nto differ materially and adversely from the forward-looking statements.\nCertain forward-looking statements can be identified by the use of\nforward-looking terminology, such as “believes”, “expects”, “may”,\n“are expected to”, “should”, “would be”, “seeks” or\n“anticipates” or similar expressions or the negative thereof or other\nvariations thereof or comparable terminology, or by discussions of strategy,\nplans or intentions.\n\nSome of these risk factors are set forth and are discussed in more detail in\n“Item 3. Key Information — Risk Factors” included in our Annual Report\non Form 20-F for the year ended December 31, 2025 as filed with the Securities\nand Exchange Commission (“SEC”) on February 26, 2026. Should one or more\nof these risks or uncertainties materialize, or should underlying assumptions\nprove incorrect, actual results may vary materially from those described in\nthis press release as anticipated, believed or expected. We do not intend, and\ndo not assume any obligation, to update any industry information or\nforward-looking statements set forth in this release to reflect subsequent\nevents or circumstances.\n\nUnfavorable changes in the above or other factors listed under “Item 3. Key\nInformation — Risk Factors” from time to time in our SEC filings, could\nhave a material adverse effect on our business and/or financial condition.\n\nAbout STMicroelectronics\n\nAt ST, we are 49,000 creators and makers of semiconductor technologies\nmastering the semiconductor supply chain with state-of-the-art manufacturing\nfacilities. An integrated device manufacturer, we work with more than 200,000\ncustomers and thousands of partners to design and build products, solutions,\nand ecosystems that address their challenges and opportunities, and the need\nto support a more sustainable world. Our technologies enable smarter mobility,\nmore efficient power and energy management, and the wide-scale deployment of\ncloud-connected autonomous things. We are on track to be carbon neutral in all\ndirect and indirect emissions (scopes 1 and 2), product transportation,\nbusiness travel, and employee commuting emissions (our scope 3 focus), and to\nachieve our 100% renewable electricity sourcing goal by the end of 2027.\nFurther information can be found at www.st.com.\n\nFor further information, please contact:\n\nINVESTOR RELATIONS:\nJérôme Ramel\nEVP Corporate Development & Integrated External Communication \nTel: +41 22 929 59 20 \njerome.ramel@st.com\n\nMEDIA RELATIONS:\nAlexis Breton\nCorporate External Communications\nTel: + 33 6 59 16 79 08\nalexis.breton@st.com\n\n STMicroelectronics N.V. \n CONSOLIDATED STATEMENTS OF INCOME \n (in millions of U.S. dollars, except per share data ($)) \n Three months ended \n June 27, June 28, \n 2026 2025 \n (Unaudited) (Unaudited) \n \n Net sales 3,481 2,745 \n Other revenues 6 21 \n NET REVENUES 3,487 2,766 \n Cost of sales (2,272) (1,840) \n GROSS PROFIT 1,215 926 \n Selling, general and administrative expenses (444) (420) \n Research and development expenses (551) (514) \n Other income and expenses, net 25 65 \n Impairment, restructuring charges and other related phase-out costs (58) (190) \n Total operating expenses (1,028) (1,059) \n OPERATING INCOME (LOSS) 187 (133) \n Interest income 41 60 \n Interest expense (15) (15) \n Other components of pension benefit costs (4) (5) \n Gain (loss) on financial instruments, net 46 (19) \n INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 255 (112) \n Income tax benefit (expense) (30) 18 \n NET INCOME (LOSS) 225 (94) \n Net income attributable to noncontrolling interest (3) (3) \n NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 222 (97) \n \n EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.25 (0.11) \n EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.24 (0.11) \n \n NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 928.0 893.9 \n \n\n\n\n STMicroelectronics N.V. \n CONSOLIDATED STATEMENTS OF INCOME \n (in millions of U.S. dollars, except per share data ($)) \n Six months ended \n June 27, June 28, \n 2026 2025 \n (Unaudited) (Unaudited) \n \n Net sales 6,570 5,257 \n Other revenues 12 26 \n NET REVENUES 6,582 5,283 \n Cost of sales (4,322) (3,516) \n GROSS PROFIT 2,260 1,767 \n Selling, general and administrative expenses (873) (810) \n Research and development expenses (1,071) (1,004) \n Other income and expenses, net 70 115 \n Impairment, restructuring charges and other related phase-out costs (129) (198) \n Total operating expenses (2,003) (1,897) \n OPERATING INCOME (LOSS) 257 (130) \n Interest income 80 122 \n Interest expense (28) (29) \n Other components of pension benefit costs (8) (9) \n Gain on financial instruments, net 7 6 \n INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 308 (40) \n Income tax benefit (expense) (40) 4 \n NET INCOME (LOSS) 268 (36) \n Net income attributable to noncontrolling interest (9) (5) \n NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 259 (41) \n \n EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.29 (0.05) \n EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.28 (0.05) \n \n NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 921.3 894.9 \n \n\n\n\n \n STMicroelectronics N.V. \n CONSOLIDATED BALANCE SHEETS \n As at June 27, March 28, December 31, \n In millions of U.S. dollars 2026 2026 2025 \n (Unaudited) (Unaudited) (Audited) \n ASSETS \n Current assets: \n Cash and cash equivalents 3,096 1,889 2,837 \n Short-term deposits 1,800 1,850 1,100 \n Marketable securities 1,136 832 985 \n Trade accounts receivable, net 2,067 1,820 1,745 \n Inventories 3,188 3,173 3,136 \n Other current assets 1,410 1,263 1,468 \n Total current assets 12,697 10,827 11,271 \n Goodwill 705 707 315 \n Other intangible assets, net 747 750 324 \n Property, plant and equipment, net 10,895 10,959 11,058 \n Non-current deferred tax assets 435 436 408 \n Long-term investments 144 113 152 \n Other non-current assets 1,409 1,338 1,272 \n 14,335 14,303 13,529 \n Total assets 27,032 25,130 24,800 \n \n LIABILITIES AND EQUITY \n Current liabilities: \n Short-term debt 1,063 319 298 \n Trade accounts payable 1,774 1,436 1,487 \n Other payables and accrued liabilities 1,406 1,438 1,440 \n Dividends payable to stockholders 265 18 89 \n Accrued income tax 62 57 37 \n Total current liabilities 4,570 3,268 3,351 \n Long-term debt 2,962 2,250 1,835 \n Post-employment benefit obligations 382 380 403 \n Long-term deferred tax liabilities 58 58 60 \n Other long-term liabilities 1,010 1,003 926 \n 4,412 3,691 3,224 \n Total liabilities 8,982 6,959 6,575 \n Commitment and contingencies \n Equity \n Parent company stockholders' equity \n Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 911,281,920 shares issued, 892,545,207 shares outstanding as of June 27, 2026) 1,157 1,157 1,157 \n Additional Paid-in Capital 3,373 3,331 3,281 \n Retained earnings 12,888 13,118 13,082 \n Accumulated other comprehensive income 732 798 945 \n Treasury stock (506) (636) (637) \n Total parent company stockholders' equity 17,644 17,768 17,828 \n Noncontrolling interest 406 403 397 \n Total equity 18,050 18,171 18,225 \n Total liabilities and equity 27,032 25,130 24,800 \n \n\n\n\n \n STMicroelectronics N.V. \n \n SELECTED CONSOLIDATED CASH FLOW DATA \n \n Cash Flow Data (in US$ millions) Q2 2026 Q1 2026 Q2 2025 \n \n Net Cash from operating activities 502 534 354 \n Net Cash used in investing activities (686) (1,874) (332) \n Net Cash from (used in) financing activities 1,392 398 (191) \n Net Cash increase (decrease) 1,207 (948) (165) \n \n Selected Cash Flow Data (in US$ millions) Q2 2026 Q1 2026 Q2 2025 \n \n Depreciation & amortization 492 454 464 \n Net payment for Capital expenditures (419) (379) (481) \n Payment for business acquisition - (895) - \n Net proceeds from issuance of convertible bonds 1,490 - - \n Dividends paid to stockholders (75) (71) (81) \n Change in inventories, net (42) (3) (140) \n \n\nAppendix\nST Supplemental Financial Information\n\n Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Net Revenues By Market Channel (%) \n Total OEM 70% 72% 73% 73% 72% \n Distribution 30% 28% 27% 27% 28% \n \n €/$ Effective Rate 1.16 1.16 1.14 1.14 1.09 \n \n Reportable Segment Data (US$ m) \n Analog products, MEMS and Sensors (AM&S) segment \n - Net Revenues 1,426 1,318 1,449 1,434 1,133 \n - Operating Income 144 161 235 221 85 \n Power and Discrete products (P&D) segment \n - Net Revenues 464 389 412 429 447 \n - Operating Income (Loss) (99) (84) (124) (67) (56) \n Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group \n - Net Revenues 1,890 1,707 1,861 1,863 1,580 \n - Operating Income 45 77 111 154 29 \n Embedded Processing (EMP) segment \n - Net Revenues 1,147 975 1,015 976 847 \n - Operating Income 226 164 195 161 114 \n RF Optical Communications (RFOC) segment \n - Net Revenues 445 409 449 345 336 \n - Operating Income 94 61 105 57 60 \n Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group \n - Net Revenues 1,592 1,384 1,464 1,321 1,183 \n - Operating Income 320 226 300 218 174 \n Others ((a)) \n - Net Revenues 5 4 4 3 3 \n - Operating Income (Loss) (178) (232) (286) (192) (336) \n Total \n - Net Revenues 3,487 3,095 3,329 3,187 2,766 \n - Operating Income (Loss) 187 70 125 180 (133) \n\n(a)   Net revenues of Others include revenues from sales of assembly\nservices and other revenues. Operating income (loss) of Others include items\nsuch as unused capacity charges, including incidents leading to power outage,\nimpairment, restructuring charges and other related phase-out costs,\nmanagement reorganization costs, start-up costs, and other unallocated income\n(expenses) such as: strategic or special research and development programs,\ncertain corporate-level operating expenses, patent claims and litigations, and\nother costs that are not allocated to reportable segments, operating earnings\nof other products as well as PPA effects from the acquisition of NXP’s MEMS\nsensor business. With additional cost elements included in the table below:\n\n (US$ m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Unused capacity charges 37 69 88 102 103 \n Impairment, restructuring charges and other related phase-out costs 58 71 141 37 190 \n PPA effects from the acquisition of NXP’s MEMS sensor business 24 30 - - - \n\n(Appendix – continued)\n\nST Supplemental Non-U.S. GAAP Financial Information\nU.S. GAAP – Non-U.S. GAAP Reconciliation\n\nThe supplemental non-U.S. GAAP information presented in this press release is\nunaudited and subject to inherent limitations. Such non-U.S. GAAP information\nis not based on any comprehensive set of accounting rules or principles and\nshould not be considered as a substitute for U.S. GAAP measures. Also, our\nsupplemental non-U.S. GAAP financial information may not be comparable to\nsimilarly titled non-U.S. GAAP measures used by other companies. Further,\nspecific limitations for individual non-U.S. GAAP measures, and the reasons\nfor presenting non-U.S. GAAP financial information, are set forth in the\nparagraphs below. To compensate for these limitations, the supplemental\nnon-U.S. GAAP financial information should not be read in isolation, but only\nin conjunction with our consolidated financial statements prepared in\naccordance with U.S. GAAP.\n\nST believes that these non-U.S. GAAP financial measures provide useful\ninformation for investors and management because they offer, when read in\nconjunction with ST’s U.S. GAAP financials, (i) the ability to make more\nmeaningful period-to-period comparisons of ST’s on-going operating results,\n(ii) the ability to better identify trends in ST’s business and perform\nrelated trend analysis, and (iii) to facilitate a comparison of ST’s results\nof operations against investor and analyst financial models and valuations,\nwhich may exclude these items.\n\nNon-U.S. GAAP Gross Profit, Non-U.S. GAAP Operating Income, Non-U.S. GAAP Net\nIncome and Non-U.S. GAAP Diluted Earnings Per Share (non-U.S. GAAP measures)\n\nOperating income before impairment, restructuring charges and other related\nphase-out costs, and other certain items, is used by management to help\nenhance an understanding of ongoing operations and to communicate the impact\nof the excluded items, such as impairment, restructuring charges and other\nrelated phase-out costs, and PPA effects. Non-U.S. GAAP gross profit is also\nused by management to communicate the impact of PPA effects on gross margin.\nAdjusted net earnings and earnings per share (EPS) are used by management to\nhelp enhance an understanding of ongoing operations and to communicate the\nimpact of the excluded items like impairment, restructuring charges and other\nrelated phase-out costs and other certain items, such as PPA effects, net of\nthe relevant tax impact.\n\n Q2 2026 (US$ m, except per share data) Gross Profit Operating Income Net Income Corresponding Diluted EPS \n U.S. GAAP 1,215 187 222 0.24 \n Impairment, restructuring charges and other related phase-out costs - 58 58 \n PPA effects of NXP’s MEMS sensor business acquisition 14 24 24 \n Estimated income tax effect - - (13) \n Non-U.S. GAAP 1,229 269 291 0.31 \n\n(Appendix – continued)\n\nNet Financial Position and Adjusted Net Financial Position (non-U.S. GAAP\nmeasures)\n\nNet Financial Position, a non-U.S. GAAP measure, represents the difference\nbetween our total liquidity and our total financial debt. Our total liquidity\nincludes cash and cash equivalents, restricted cash, if any, short-term\ndeposits, and marketable securities, and our total financial debt includes\nshort-term debt and long-term debt, as reported in our Consolidated Balance\nSheets. ST also presents adjusted net financial position as a non-U.S. GAAP\nmeasure, to take into consideration the effect on total liquidity of advances\nreceived on capital grants for which capital expenditures have not been\nincurred yet.\n\nST believes its Net Financial Position and Adjusted Net Financial Position\nprovide useful information for investors and management because they give\nevidence of our global position either in terms of net indebtedness or net\ncash by measuring our capital resources based on cash and cash equivalents,\nrestricted cash, if any, short-term deposits and marketable securities and the\ntotal level of our financial debt. Our definitions of Net Financial Position\nand Adjusted Net Financial Position may differ from definitions used by other\ncompanies, and therefore, comparability may be limited.\n\n (US$ m) Jun 27 2026 Mar 28 2026 Dec 31 2025 Sep 27 2025 Jun 28 2025 \n Cash and cash equivalents 3,096 1,889 2,837 1,999 1,616 \n Short term deposits 1,800 1,850 1,100 1,450 1,650 \n Marketable securities 1,136 832 985 1,327 2,363 \n Total liquidity ((a)) 6,032 4,571 4,922 4,776 5,629 \n Short-term debt ((b)()) (1,063) (319) (298) (256) (1,006) \n Long-term debt ((a)) ((b)()) (2,962) (2,250) (1,835) (1,910) (1,951) \n Total financial debt (4,025) (2,569) (2,133) (2,166) (2,957) \n Net Financial Position (non-U.S. GAAP) 2,007 2,002 2,789 2,610 2,672 \n Advances received on capital grants (306) (316) (333) (345) (361) \n Adjusted Net Financial Position (non-U.S. GAAP) 1,701 1,686 2,456 2,265 2,311 \n\n((a)  )Total liquidity and long-term debt increased following the issuance\nof a new $1.5 billion dual-tranche senior unsecured convertible bonds.\n((b)  )Long-term debt contains standard conditions but does not impose\nminimum financial ratios. Committed credit facilities for $1,191 million\nequivalent are currently undrawn. Short-term debt includes $750 million after\nthe announcement of the early redemption of the convertible bonds due 2027.\n\n(Appendix – continued)\n\nNet Capex and Free Cash Flow (non-U.S. GAAP measures)\n\nST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of\nour Free Cash Flow (non-U.S. GAAP measure), to take into consideration the\neffect of advances from capital grants received on prior periods allocated to\nproperty, plant and equipment in the reporting period.\n\nNet Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of\ntangible assets, as reported plus (ii) Proceeds from sale of tangible assets,\nas reported plus (iii) Proceeds from capital grants and other contributions,\nas reported plus (iv) Advances from capital grants allocated to property,\nplant and equipment in the reporting period.\n\nST believes Net Capex provides useful information for investors and management\nbecause annual capital expenditures budget includes the effect of capital\ngrants. Our definition of Net Capex may differ from definitions used by other\ncompanies, and therefore, comparability may be limited.\n\n (US$ m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Payment for purchase of tangible assets, as reported (453) (549) (518) (431) (574) \n Proceeds from sale of tangible assets, as reported - 3 - 3 4 \n Proceeds from capital grants and other contributions, as reported 34 167 111 11 89 \n Advances from capital grants allocated to property, plant and equipment 10 17 12 16 16 \n Net Capex (non-U.S. GAAP) (409) (362) (395) (401) (465) \n\nFree Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash\nfrom operating activities plus (ii) Net Capex plus (iii) payment for purchase\n(and proceeds from sale) of intangible and financial assets and (iv) net cash\npaid for business acquisitions, if any.\n\nST believes Free Cash Flow provides useful information for investors and\nmanagement because it measures our capacity to generate cash from our\noperating and investing activities to sustain our operations.\n\nFree Cash Flow reconciles with the total cash flow and the net cash increase\n(decrease) by including the payment for purchases of (and proceeds from\nmatured) marketable securities and net investment in (and proceeds from)\nshort-term deposits, the net cash from (used in) financing activities and the\neffect of changes in exchange rates, and by excluding the advances from\ncapital grants received on prior periods allocated to property, plant and\nequipment in the reporting period. Our definition of Free Cash Flow may differ\nfrom definitions used by other companies, and therefore, comparability may be\nlimited.\n\n (US$ m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Net cash from operating activities 502 534 674 549 354 \n Net Capex (409) (362) (395) (401) (465) \n Payment for purchase of intangible assets, net of proceeds from sale (31) (17) (20) (18) (41) \n Proceeds from (payment for) financial assets 13 17 (2) - - \n Payment for business acquisitions ((a)) - (895) - - - \n Free Cash Flow (non-U.S. GAAP) 75 (723) 257 130 (152) \n\n((a)   )Q126 Free cash flow includes $895 million cash-out related to the\nacquisition of NXP MEMS sensor business.\n\n(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and\ninformation explaining why the Company believes these measures are important.\n(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and\ninformation explaining why the Company believes these measures are important.\n(2) Q226 Analog products, MEMS and Sensors (AM&S) segment included revenues\nassociated with NXP’s MEMS sensor business.\n\n(3) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and\ninformation explaining why the Company believes these measures are important.\n(2) Q126 Free cash flow includes $895 million cash-out related to the\nacquisition of NXP MEMS sensor business.\n\nAttachment\n* C3403C - Q226 Earnings PR - STMICROELECTRONICS\n(https://ml-eu.globenewswire.com/Resource/Download/85238c93-d55e-47fb-b120-9470e22f79da)","article_body_html":"","raw_payload":{"data":{"id":"nGNE9RwKm6","title":"REG-STMicroelectronics Reports Q2 2026 Financial Results","author":"Globe Newswire","ticker":"STM","created":"2026-07-23T05:00:00.736Z","tickers":["STM","STMPA"],"exchange":"NYSE","article_body":"PR No: C3403C\n\nSTMicroelectronics Reports Q2 2026 Financial Results\n* Q226 net revenues at $3.49 billion\n* Gross margin at 34.8% (non-U.S. GAAP(1) gross margin at 35.2%)\n* Operating income at $187 million (non-U.S. GAAP(1) operating income at $269\nmillion) \n* Business outlook at mid-point: Q326 net revenues of $3.70 billion and gross\nmargin of 37.0%\nGeneva, July 23, 2026 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a\nglobal semiconductor leader serving customers across the spectrum of\nelectronics applications, reported U.S. GAAP financial results for the second\nquarter ended June 27, 2026. This press release also contains non-U.S. GAAP\nmeasures (see Appendix for additional information).\n\nST reported second quarter net revenues of $3.49 billion, gross margin of\n34.8%, operating income of $187 million, and net income of $222 million or\n$0.24 diluted earnings per share (non-U.S. GAAP(1) gross margin of 35.2%,\nnon-U.S. GAAP(1) operating income of $269 million, and non-U.S. GAAP(1) net\nincome of $291 million or $0.31 diluted earnings per share).\n\nJean-Marc Chery, ST President & CEO, commented:\n* “Q2 net revenues came above the mid-point of our business outlook range,\ndriven by higher revenues in CECP and Automotive. Gross margin was in line\nwith the mid-point of our business outlook range.”\n* “On a year-over-year basis, Q2 net revenues increased 26.0%. Q2 gross\nmargin was 34.8%, operating margin was 5.4% and net income was $222 million.\nOn a non-U.S. GAAP(1) basis gross margin was 35.2%, operating margin was 7.7%\nand net income was $291 million.”\n* “During the quarter demand increased further, with strong bookings in all\nend markets. We saw improved visibility and signs of tight supply in several\nproduct categories. Inventory in distribution is now below our standard\ntarget.”\n* “Our third quarter business outlook, at the mid-point, is for net revenues\nof $3.70 billion, increasing about 6.2% sequentially and about 16.2%\nyear-over-year. Gross margin is expected to be about 37.0%, including about 70\nbasis points of unused capacity charges.”\n* “We anticipate a revenue growth acceleration in Q4, mainly driven by our\nengaged customer programs in AI datacenters and LEO satellite communication.\nWe expect Q4 revenues to be above $4 billion, this translates into a H2 vs H1\ngrowth above our normal 15% seasonality.”\n* “Driven by continued strong demand in AI datacenters, we are raising our\nrevenue ambition for datacenters. Revenues are now expected above $1 billion\nin 2026 and, assuming the current dynamic continues and with the current\nengagements we have, well above $2 billion in 2027. This confirms ST’s\nstrong position in the evolving AI datacenters.”\nQuarterly Financial Summary\n\n U.S. GAAP (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y \n Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% \n Gross Profit $1,215 $1,045 $926 16.3% 31.1% \n Gross Margin 34.8% 33.8% 33.5% 100bps 130bps \n Operating Income (Loss) $187 $70 $(133) 165.5% - \n Operating Margin 5.4% 2.3% -4.8% 310bps 1,020bps \n Net Income (Loss) $222 $37 $(97) 496.8% - \n Diluted Earnings Per Share $0.24 $0.04 $(0.11) 500.0% - \n Non-U.S. GAAP (1) (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y \n Gross Profit $1,229 $1,056 $926 16.4% 32.7% \n Gross Margin 35.2% 34.1% 33.5% 110bps 170bps \n Operating Income $269 $171 $57 57.3% 371.9% \n Operating Margin 7.7% 5.5% 2.1% 220bps 560bps \n Net Income $291 $122 $57 138.5% 410.5% \n Diluted Earnings Per Share $0.31 $0.13 $0.06 138.5% 416.7% \n\nSecond Quarter 2026 Summary Review\n\n Net Revenues by Reportable Segment (2)(US$ m) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y \n Analog products, MEMS and Sensors (AM&S) segment 1,426 1,318 1,133 8.2% 26.0% \n Power and discrete products (P&D) segment 464 389 447 19.2% 3.7% \n Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,890 1,707 1,580 10.7% 19.6% \n Embedded Processing (EMP) segment 1,147 975 847 17.7% 35.5% \n RF Optical Communications (RFOC) segment 445 409 336 8.6% 32.0% \n Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,592 1,384 1,183 15.0% 34.5% \n Others 5 4 3 - - \n Total Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% \n\nNet revenues totaled $3.49 billion, representing a year-over-year increase of\n26.0%. Year-over-year net sales to OEMs and Distribution increased 23.3% and\n33.1%, respectively. On a sequential basis, net revenues increased 12.7%, 110\nbasis points better than the mid-point of ST’s guidance.\n\nGross profit totaled $1.22 billion, representing a year-over-year increase of\n31.1%. Gross margin of 34.8%, increased 130 basis points year-over-year,\nmainly due to lower unused capacity charges and better product mix. Non-U.S.\nGAAP(1) gross margin was 35.2%, in line with the mid-point of ST’s guidance.\n\nOperating income increased from an operating loss of $133 million in the\nyear-ago quarter to an operating income of $187 million. ST’s operating\nmargin increased on a year-over-year basis to 5.4% of net revenues, compared\nto negative 4.8% operating margin in the second quarter of 2025. Operating\nincome included $58 million impairment, restructuring charges and other\nrelated phase-out costs for the quarter, mainly reflecting charges related to\nthe execution of the previously announced company-wide program to reshape our\nmanufacturing footprint and resize our global cost base and $24 million PPA\neffects from the acquisition of NXP’s MEMS sensor business. Excluding these\nitems, non-U.S. GAAP(1) Operating income stood at $269 million in the second\nquarter (or 7.7% non-U.S. GAAP(1) operating margin).\n\nBy reportable segment, compared with the year-ago quarter:\n\nIn Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:\n\nAnalog products, MEMS and Sensors (AM&S)(2) segment:\n* Revenue increased 26.0% mainly due to Imaging and MEMS and, to a lesser\nextent, Analog.    \n* Operating profit increased by 69.2% to $144 million. Operating margin was\n10.1% compared to 7.5%.\nPower and Discrete products (P&D) segment:\n* Revenue increased 3.7%.\n* Operating result decreased from a loss of $56 million to a loss of $99\nmillion. Operating margin was -21.4% compared to -12.5%.\nIn Microcontrollers, Digital ICs and RF products (MDRF) Product Group:\n\nEmbedded Processing (EMP) segment:\n* Revenue increased 35.5% mainly due to General Purpose MCU and, to a lesser\nextent, Custom Processing and Connected Security. \n* Operating profit increased by 97.8% to $226 million. Operating margin was\n19.7% compared to 13.5%.\nRF Optical Communications (RFOC) segment:\n* Revenue increased 32.0%.\n* Operating profit increased by 56.3% to $94 million. Operating margin was\n21.2% compared to 17.9%.\nNet income and diluted Earnings Per Share increased to $222 million and $0.24\nrespectively, compared to a net loss of $97 million and a negative $0.11\nrespectively in the year-ago quarter. In the second quarter of 2026 non-U.S.\nGAAP(1) Net income stood at $291 million and non-U.S. GAAP(1) diluted Earnings\nPer Share stood at $0.31.\n\nCash Flow and Balance Sheet Highlights\n\n Trailing 12 Months \n (US$ m) Q2 2026 Q1 2026 Q2 2025 Q2 2026 Q2 2025 TTM Change \n Net cash from operating activities 502 534 354 2,259 2,332 -3.1% \n Free cash flow (non-U.S. GAAP (1)) 75 (723) (2) (152) (261) 142 -283.8% \n\nNet cash from operating activities was $502 million in the second quarter,\nafter approximately $44 million outflow related to restructuring, compared to\n$354 million in the year-ago quarter.\n\nNet Capex (non-U.S. GAAP(1)), was $409 million in the second quarter compared\nto $465 million in the year-ago quarter.\n\nFree cash flow (non-U.S. GAAP(1)) was positive at $75 million in the second\nquarter compared to negative $152 million in the year-ago quarter.\n\nInventory at the end of the second quarter was $3.19 billion, compared to\n$3.17 billion in the previous quarter and $3.27 billion in the year-ago\nquarter. Days sales of inventory at quarter-end was 126 days, compared to 140\ndays for the previous quarter and 166 days for the year-ago quarter.\n\nIn the second quarter, ST paid cash dividends to its stockholders totaling $75\nmillion.\n\nST’s net financial position (non-U.S. GAAP(3)) remained strong at $2.01\nbillion as of June 27, 2026, compared to $2.00 billion as of March 28, 2026,\nand reflected total liquidity of $6.03 billion and total financial debt of\n$4.02 billion. Adjusted net financial position (non-U.S. GAAP(1)), taking into\nconsideration the effect on total liquidity of advances from capital grants\nfor which capital expenditures have not been incurred yet, stood at $1.70\nbillion as of June 27, 2026.\n\nDuring the quarter, ST issued a new $1.5 billion dual-tranche senior unsecured\nconvertible bond (Tranche A and Tranche B for $750 million each) due 2031 and\n2033 and announced the early redemption of its $750 million convertible bond\ndue in 2027.\n\nCorporate developments\n\nOn May 27, 2026, STMicroelectronics held its 2026 Annual General Meeting of\nShareholders in Amsterdam, the Netherlands. All proposed resolutions were\napproved by the Shareholders.\n\nBusiness Outlook\n\nST’s guidance, at the mid-point, for the 2026 third quarter is:\n* Net revenues are expected to be $3.70 billion, an increase of 6.2%\nsequentially, plus or minus 350 basis points.\n* Gross margin of 37.0%, plus or minus 200 basis points. \n* This outlook is based on an assumed effective currency exchange rate of\napproximately $1.14 = €1.00 for the 2026 third quarter and includes the\nimpact of existing hedging contracts.\n* The third quarter will close on September 26, 2026.\nThis business outlook does not include any impact of potential further changes\nto global trade tariffs compared to the current situation.\n\nConference Call and Webcast Information\n\nST will conduct a conference call with analysts, investors and reporters to\ndiscuss its second quarter 2026 financial results and current business outlook\ntoday at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time\n(ET). A live webcast (listen-only mode) of the conference call will be\naccessible at ST’s website, https://investors.st.com, and will be available\nfor replay until August 7, 2026.\n\nUse of Supplemental Non-U.S. GAAP Financial Information\n\nThis press release contains supplemental non-U.S. GAAP financial information.\n\nReaders are cautioned that these measures are unaudited and not prepared in\naccordance with U.S. GAAP and should not be considered as a substitute for\nU.S. GAAP financial measures. In addition, such non-U.S. GAAP financial\nmeasures may not be comparable to similarly titled information from other\ncompanies. To compensate for these limitations, the supplemental non-U.S. GAAP\nfinancial information should not be read in isolation, but only in conjunction\nwith ST’s consolidated financial statements prepared in accordance with U.S.\nGAAP.\n\nSee the Appendix of this press release for a reconciliation of ST’s non-U.S.\nGAAP financial measures to their corresponding U.S. GAAP financial measures.\n\nForward-looking Information\n\nSome of the statements contained in this release that are not historical facts\nare statements of future expectations and other forward-looking statements\n(within the meaning of Section 27A of the Securities Act of 1933 or Section\n21E of the Securities Exchange Act of 1934, each as amended) that are based on\nmanagement’s current views and assumptions, and are conditioned upon and\nalso involve known and unknown risks and uncertainties that could cause actual\nresults, performance or events to differ materially from those anticipated by\nsuch statements due to, among other factors:\n* changes in global trade policies, including the continuation, adoption and\nexpansion of tariffs and trade barriers and sanctions, that are affecting and\ncould further affect the macro-economic environment and are adversely\nimpacting and could further adversely impact the demand for our products;\n* uncertain macro-economic and industry trends (such as inflation and\nfluctuations in supply chains), which are impacting and may further impact\nproduction capacity and end-market demand for our products;\n* customer demand that differs from projections which may require us to\nundertake transformation measures that may not be successful in realizing the\nexpected benefits in full or at all;\n* the ability to design, manufacture and sell innovative products in a rapidly\nchanging technological environment;\n* changes in economic, social, public health, labor, political, or\ninfrastructure conditions in the locations where we, our customers, or our\nsuppliers operate, including as a result of macro-economic or regional events,\ngeopolitical and military conflicts, social unrest, labor actions, or\nterrorist activities;\n* unanticipated events or circumstances, which may impact our ability to\nexecute our plans and/or meet the objectives of our research and development\nand manufacturing programs, which benefit from public funding;\n* financial difficulties with any of our major distributors or significant\ncurtailment of purchases by key customers;\n* the loading, product mix, and manufacturing performance of our production\nfacilities and/or our required volume to fulfill capacity reserved with\nsuppliers or third-party manufacturing providers;\n* availability and costs of equipment, raw materials, utilities, third-party\nmanufacturing services and technology, or other supplies required by our\noperations (including increasing costs resulting from inflation); \n* the functionalities and performance of our IT systems, which are subject to\ncybersecurity threats and which support our critical operational activities\nincluding manufacturing, finance and sales, and any breaches of our IT systems\nor those of our customers, suppliers, partners and providers of third-party\nlicensed technology;\n* theft, loss, or misuse of personal data about our employees, customers, or\nother third parties, and breaches of data privacy legislation; \n* the impact of intellectual property claims by our competitors or other third\nparties, and our ability to obtain required licenses on reasonable terms and\nconditions; \n* changes in our overall tax position as a result of changes in tax rules, new\nor revised legislation, the outcome of tax audits or changes in international\ntax treaties which may impact our results of operations as well as our ability\nto accurately estimate tax credits, benefits, deductions and provisions and to\nrealize deferred tax assets; \n* variations in the foreign exchange markets and, more particularly, the U.S.\ndollar exchange rate as compared to the Euro and the other major currencies we\nuse for our operations; \n* the outcome of ongoing litigation as well as the impact of any new\nlitigation to which we may become a defendant; \n* product liability or warranty claims, claims based on epidemic or delivery\nfailure, or other claims relating to our products, or recalls by our customers\nfor products containing our parts; \n* natural events such as severe weather, earthquakes, tsunamis, volcano\neruptions or other acts of nature, the effects of climate change, health risks\nand epidemics or pandemics in locations where we, our customers or our\nsuppliers operate; \n* increased regulation and initiatives in our industry, including those\nconcerning climate change and sustainability matters and our goal to become\ncarbon neutral in all direct and indirect emissions (scopes 1 and 2), product\ntransportation, business travel, and employee commuting emissions (our scope 3\nfocus), and to achieve our 100% renewable electricity sourcing goal by the end\nof 2027; \n* epidemics or pandemics, which may negatively impact the global economy in a\nsignificant manner for an extended period of time, and could also materially\nadversely affect our business and operating results;\n* industry changes resulting from vertical and horizontal consolidation among\nour suppliers, competitors, and customers;\n* the ability to successfully ramp up new programs that could be impacted by\nfactors beyond our control, including the availability of critical third-party\ncomponents and performance of subcontractors in line with our expectations;\nand \n* individual customer use of certain products, which may differ from the\nanticipated uses of such products and result in differences in performance,\nincluding energy consumption, may lead to a failure to achieve our disclosed\nemission-reduction goals, adverse legal action or additional research costs.\nSuch forward-looking statements are subject to various risks and\nuncertainties, which may cause actual results and performance of our business\nto differ materially and adversely from the forward-looking statements.\nCertain forward-looking statements can be identified by the use of\nforward-looking terminology, such as “believes”, “expects”, “may”,\n“are expected to”, “should”, “would be”, “seeks” or\n“anticipates” or similar expressions or the negative thereof or other\nvariations thereof or comparable terminology, or by discussions of strategy,\nplans or intentions.\n\nSome of these risk factors are set forth and are discussed in more detail in\n“Item 3. Key Information — Risk Factors” included in our Annual Report\non Form 20-F for the year ended December 31, 2025 as filed with the Securities\nand Exchange Commission (“SEC”) on February 26, 2026. Should one or more\nof these risks or uncertainties materialize, or should underlying assumptions\nprove incorrect, actual results may vary materially from those described in\nthis press release as anticipated, believed or expected. We do not intend, and\ndo not assume any obligation, to update any industry information or\nforward-looking statements set forth in this release to reflect subsequent\nevents or circumstances.\n\nUnfavorable changes in the above or other factors listed under “Item 3. Key\nInformation — Risk Factors” from time to time in our SEC filings, could\nhave a material adverse effect on our business and/or financial condition.\n\nAbout STMicroelectronics\n\nAt ST, we are 49,000 creators and makers of semiconductor technologies\nmastering the semiconductor supply chain with state-of-the-art manufacturing\nfacilities. An integrated device manufacturer, we work with more than 200,000\ncustomers and thousands of partners to design and build products, solutions,\nand ecosystems that address their challenges and opportunities, and the need\nto support a more sustainable world. Our technologies enable smarter mobility,\nmore efficient power and energy management, and the wide-scale deployment of\ncloud-connected autonomous things. We are on track to be carbon neutral in all\ndirect and indirect emissions (scopes 1 and 2), product transportation,\nbusiness travel, and employee commuting emissions (our scope 3 focus), and to\nachieve our 100% renewable electricity sourcing goal by the end of 2027.\nFurther information can be found at www.st.com.\n\nFor further information, please contact:\n\nINVESTOR RELATIONS:\nJérôme Ramel\nEVP Corporate Development & Integrated External Communication \nTel: +41 22 929 59 20 \njerome.ramel@st.com\n\nMEDIA RELATIONS:\nAlexis Breton\nCorporate External Communications\nTel: + 33 6 59 16 79 08\nalexis.breton@st.com\n\n STMicroelectronics N.V. \n CONSOLIDATED STATEMENTS OF INCOME \n (in millions of U.S. dollars, except per share data ($)) \n Three months ended \n June 27, June 28, \n 2026 2025 \n (Unaudited) (Unaudited) \n \n Net sales 3,481 2,745 \n Other revenues 6 21 \n NET REVENUES 3,487 2,766 \n Cost of sales (2,272) (1,840) \n GROSS PROFIT 1,215 926 \n Selling, general and administrative expenses (444) (420) \n Research and development expenses (551) (514) \n Other income and expenses, net 25 65 \n Impairment, restructuring charges and other related phase-out costs (58) (190) \n Total operating expenses (1,028) (1,059) \n OPERATING INCOME (LOSS) 187 (133) \n Interest income 41 60 \n Interest expense (15) (15) \n Other components of pension benefit costs (4) (5) \n Gain (loss) on financial instruments, net 46 (19) \n INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 255 (112) \n Income tax benefit (expense) (30) 18 \n NET INCOME (LOSS) 225 (94) \n Net income attributable to noncontrolling interest (3) (3) \n NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 222 (97) \n \n EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.25 (0.11) \n EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.24 (0.11) \n \n NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 928.0 893.9 \n \n\n\n\n STMicroelectronics N.V. \n CONSOLIDATED STATEMENTS OF INCOME \n (in millions of U.S. dollars, except per share data ($)) \n Six months ended \n June 27, June 28, \n 2026 2025 \n (Unaudited) (Unaudited) \n \n Net sales 6,570 5,257 \n Other revenues 12 26 \n NET REVENUES 6,582 5,283 \n Cost of sales (4,322) (3,516) \n GROSS PROFIT 2,260 1,767 \n Selling, general and administrative expenses (873) (810) \n Research and development expenses (1,071) (1,004) \n Other income and expenses, net 70 115 \n Impairment, restructuring charges and other related phase-out costs (129) (198) \n Total operating expenses (2,003) (1,897) \n OPERATING INCOME (LOSS) 257 (130) \n Interest income 80 122 \n Interest expense (28) (29) \n Other components of pension benefit costs (8) (9) \n Gain on financial instruments, net 7 6 \n INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST 308 (40) \n Income tax benefit (expense) (40) 4 \n NET INCOME (LOSS) 268 (36) \n Net income attributable to noncontrolling interest (9) (5) \n NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 259 (41) \n \n EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.29 (0.05) \n EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS 0.28 (0.05) \n \n NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 921.3 894.9 \n \n\n\n\n \n STMicroelectronics N.V. \n CONSOLIDATED BALANCE SHEETS \n As at June 27, March 28, December 31, \n In millions of U.S. dollars 2026 2026 2025 \n (Unaudited) (Unaudited) (Audited) \n ASSETS \n Current assets: \n Cash and cash equivalents 3,096 1,889 2,837 \n Short-term deposits 1,800 1,850 1,100 \n Marketable securities 1,136 832 985 \n Trade accounts receivable, net 2,067 1,820 1,745 \n Inventories 3,188 3,173 3,136 \n Other current assets 1,410 1,263 1,468 \n Total current assets 12,697 10,827 11,271 \n Goodwill 705 707 315 \n Other intangible assets, net 747 750 324 \n Property, plant and equipment, net 10,895 10,959 11,058 \n Non-current deferred tax assets 435 436 408 \n Long-term investments 144 113 152 \n Other non-current assets 1,409 1,338 1,272 \n 14,335 14,303 13,529 \n Total assets 27,032 25,130 24,800 \n \n LIABILITIES AND EQUITY \n Current liabilities: \n Short-term debt 1,063 319 298 \n Trade accounts payable 1,774 1,436 1,487 \n Other payables and accrued liabilities 1,406 1,438 1,440 \n Dividends payable to stockholders 265 18 89 \n Accrued income tax 62 57 37 \n Total current liabilities 4,570 3,268 3,351 \n Long-term debt 2,962 2,250 1,835 \n Post-employment benefit obligations 382 380 403 \n Long-term deferred tax liabilities 58 58 60 \n Other long-term liabilities 1,010 1,003 926 \n 4,412 3,691 3,224 \n Total liabilities 8,982 6,959 6,575 \n Commitment and contingencies \n Equity \n Parent company stockholders' equity \n Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 911,281,920 shares issued, 892,545,207 shares outstanding as of June 27, 2026) 1,157 1,157 1,157 \n Additional Paid-in Capital 3,373 3,331 3,281 \n Retained earnings 12,888 13,118 13,082 \n Accumulated other comprehensive income 732 798 945 \n Treasury stock (506) (636) (637) \n Total parent company stockholders' equity 17,644 17,768 17,828 \n Noncontrolling interest 406 403 397 \n Total equity 18,050 18,171 18,225 \n Total liabilities and equity 27,032 25,130 24,800 \n \n\n\n\n \n STMicroelectronics N.V. \n \n SELECTED CONSOLIDATED CASH FLOW DATA \n \n Cash Flow Data (in US$ millions) Q2 2026 Q1 2026 Q2 2025 \n \n Net Cash from operating activities 502 534 354 \n Net Cash used in investing activities (686) (1,874) (332) \n Net Cash from (used in) financing activities 1,392 398 (191) \n Net Cash increase (decrease) 1,207 (948) (165) \n \n Selected Cash Flow Data (in US$ millions) Q2 2026 Q1 2026 Q2 2025 \n \n Depreciation & amortization 492 454 464 \n Net payment for Capital expenditures (419) (379) (481) \n Payment for business acquisition - (895) - \n Net proceeds from issuance of convertible bonds 1,490 - - \n Dividends paid to stockholders (75) (71) (81) \n Change in inventories, net (42) (3) (140) \n \n\nAppendix\nST Supplemental Financial Information\n\n Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Net Revenues By Market Channel (%) \n Total OEM 70% 72% 73% 73% 72% \n Distribution 30% 28% 27% 27% 28% \n \n €/$ Effective Rate 1.16 1.16 1.14 1.14 1.09 \n \n Reportable Segment Data (US$ m) \n Analog products, MEMS and Sensors (AM&S) segment \n - Net Revenues 1,426 1,318 1,449 1,434 1,133 \n - Operating Income 144 161 235 221 85 \n Power and Discrete products (P&D) segment \n - Net Revenues 464 389 412 429 447 \n - Operating Income (Loss) (99) (84) (124) (67) (56) \n Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group \n - Net Revenues 1,890 1,707 1,861 1,863 1,580 \n - Operating Income 45 77 111 154 29 \n Embedded Processing (EMP) segment \n - Net Revenues 1,147 975 1,015 976 847 \n - Operating Income 226 164 195 161 114 \n RF Optical Communications (RFOC) segment \n - Net Revenues 445 409 449 345 336 \n - Operating Income 94 61 105 57 60 \n Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group \n - Net Revenues 1,592 1,384 1,464 1,321 1,183 \n - Operating Income 320 226 300 218 174 \n Others ((a)) \n - Net Revenues 5 4 4 3 3 \n - Operating Income (Loss) (178) (232) (286) (192) (336) \n Total \n - Net Revenues 3,487 3,095 3,329 3,187 2,766 \n - Operating Income (Loss) 187 70 125 180 (133) \n\n(a)   Net revenues of Others include revenues from sales of assembly\nservices and other revenues. Operating income (loss) of Others include items\nsuch as unused capacity charges, including incidents leading to power outage,\nimpairment, restructuring charges and other related phase-out costs,\nmanagement reorganization costs, start-up costs, and other unallocated income\n(expenses) such as: strategic or special research and development programs,\ncertain corporate-level operating expenses, patent claims and litigations, and\nother costs that are not allocated to reportable segments, operating earnings\nof other products as well as PPA effects from the acquisition of NXP’s MEMS\nsensor business. With additional cost elements included in the table below:\n\n (US$ m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Unused capacity charges 37 69 88 102 103 \n Impairment, restructuring charges and other related phase-out costs 58 71 141 37 190 \n PPA effects from the acquisition of NXP’s MEMS sensor business 24 30 - - - \n\n(Appendix – continued)\n\nST Supplemental Non-U.S. GAAP Financial Information\nU.S. GAAP – Non-U.S. GAAP Reconciliation\n\nThe supplemental non-U.S. GAAP information presented in this press release is\nunaudited and subject to inherent limitations. Such non-U.S. GAAP information\nis not based on any comprehensive set of accounting rules or principles and\nshould not be considered as a substitute for U.S. GAAP measures. Also, our\nsupplemental non-U.S. GAAP financial information may not be comparable to\nsimilarly titled non-U.S. GAAP measures used by other companies. Further,\nspecific limitations for individual non-U.S. GAAP measures, and the reasons\nfor presenting non-U.S. GAAP financial information, are set forth in the\nparagraphs below. To compensate for these limitations, the supplemental\nnon-U.S. GAAP financial information should not be read in isolation, but only\nin conjunction with our consolidated financial statements prepared in\naccordance with U.S. GAAP.\n\nST believes that these non-U.S. GAAP financial measures provide useful\ninformation for investors and management because they offer, when read in\nconjunction with ST’s U.S. GAAP financials, (i) the ability to make more\nmeaningful period-to-period comparisons of ST’s on-going operating results,\n(ii) the ability to better identify trends in ST’s business and perform\nrelated trend analysis, and (iii) to facilitate a comparison of ST’s results\nof operations against investor and analyst financial models and valuations,\nwhich may exclude these items.\n\nNon-U.S. GAAP Gross Profit, Non-U.S. GAAP Operating Income, Non-U.S. GAAP Net\nIncome and Non-U.S. GAAP Diluted Earnings Per Share (non-U.S. GAAP measures)\n\nOperating income before impairment, restructuring charges and other related\nphase-out costs, and other certain items, is used by management to help\nenhance an understanding of ongoing operations and to communicate the impact\nof the excluded items, such as impairment, restructuring charges and other\nrelated phase-out costs, and PPA effects. Non-U.S. GAAP gross profit is also\nused by management to communicate the impact of PPA effects on gross margin.\nAdjusted net earnings and earnings per share (EPS) are used by management to\nhelp enhance an understanding of ongoing operations and to communicate the\nimpact of the excluded items like impairment, restructuring charges and other\nrelated phase-out costs and other certain items, such as PPA effects, net of\nthe relevant tax impact.\n\n Q2 2026 (US$ m, except per share data) Gross Profit Operating Income Net Income Corresponding Diluted EPS \n U.S. GAAP 1,215 187 222 0.24 \n Impairment, restructuring charges and other related phase-out costs - 58 58 \n PPA effects of NXP’s MEMS sensor business acquisition 14 24 24 \n Estimated income tax effect - - (13) \n Non-U.S. GAAP 1,229 269 291 0.31 \n\n(Appendix – continued)\n\nNet Financial Position and Adjusted Net Financial Position (non-U.S. GAAP\nmeasures)\n\nNet Financial Position, a non-U.S. GAAP measure, represents the difference\nbetween our total liquidity and our total financial debt. Our total liquidity\nincludes cash and cash equivalents, restricted cash, if any, short-term\ndeposits, and marketable securities, and our total financial debt includes\nshort-term debt and long-term debt, as reported in our Consolidated Balance\nSheets. ST also presents adjusted net financial position as a non-U.S. GAAP\nmeasure, to take into consideration the effect on total liquidity of advances\nreceived on capital grants for which capital expenditures have not been\nincurred yet.\n\nST believes its Net Financial Position and Adjusted Net Financial Position\nprovide useful information for investors and management because they give\nevidence of our global position either in terms of net indebtedness or net\ncash by measuring our capital resources based on cash and cash equivalents,\nrestricted cash, if any, short-term deposits and marketable securities and the\ntotal level of our financial debt. Our definitions of Net Financial Position\nand Adjusted Net Financial Position may differ from definitions used by other\ncompanies, and therefore, comparability may be limited.\n\n (US$ m) Jun 27 2026 Mar 28 2026 Dec 31 2025 Sep 27 2025 Jun 28 2025 \n Cash and cash equivalents 3,096 1,889 2,837 1,999 1,616 \n Short term deposits 1,800 1,850 1,100 1,450 1,650 \n Marketable securities 1,136 832 985 1,327 2,363 \n Total liquidity ((a)) 6,032 4,571 4,922 4,776 5,629 \n Short-term debt ((b)()) (1,063) (319) (298) (256) (1,006) \n Long-term debt ((a)) ((b)()) (2,962) (2,250) (1,835) (1,910) (1,951) \n Total financial debt (4,025) (2,569) (2,133) (2,166) (2,957) \n Net Financial Position (non-U.S. GAAP) 2,007 2,002 2,789 2,610 2,672 \n Advances received on capital grants (306) (316) (333) (345) (361) \n Adjusted Net Financial Position (non-U.S. GAAP) 1,701 1,686 2,456 2,265 2,311 \n\n((a)  )Total liquidity and long-term debt increased following the issuance\nof a new $1.5 billion dual-tranche senior unsecured convertible bonds.\n((b)  )Long-term debt contains standard conditions but does not impose\nminimum financial ratios. Committed credit facilities for $1,191 million\nequivalent are currently undrawn. Short-term debt includes $750 million after\nthe announcement of the early redemption of the convertible bonds due 2027.\n\n(Appendix – continued)\n\nNet Capex and Free Cash Flow (non-U.S. GAAP measures)\n\nST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of\nour Free Cash Flow (non-U.S. GAAP measure), to take into consideration the\neffect of advances from capital grants received on prior periods allocated to\nproperty, plant and equipment in the reporting period.\n\nNet Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of\ntangible assets, as reported plus (ii) Proceeds from sale of tangible assets,\nas reported plus (iii) Proceeds from capital grants and other contributions,\nas reported plus (iv) Advances from capital grants allocated to property,\nplant and equipment in the reporting period.\n\nST believes Net Capex provides useful information for investors and management\nbecause annual capital expenditures budget includes the effect of capital\ngrants. Our definition of Net Capex may differ from definitions used by other\ncompanies, and therefore, comparability may be limited.\n\n (US$ m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Payment for purchase of tangible assets, as reported (453) (549) (518) (431) (574) \n Proceeds from sale of tangible assets, as reported - 3 - 3 4 \n Proceeds from capital grants and other contributions, as reported 34 167 111 11 89 \n Advances from capital grants allocated to property, plant and equipment 10 17 12 16 16 \n Net Capex (non-U.S. GAAP) (409) (362) (395) (401) (465) \n\nFree Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash\nfrom operating activities plus (ii) Net Capex plus (iii) payment for purchase\n(and proceeds from sale) of intangible and financial assets and (iv) net cash\npaid for business acquisitions, if any.\n\nST believes Free Cash Flow provides useful information for investors and\nmanagement because it measures our capacity to generate cash from our\noperating and investing activities to sustain our operations.\n\nFree Cash Flow reconciles with the total cash flow and the net cash increase\n(decrease) by including the payment for purchases of (and proceeds from\nmatured) marketable securities and net investment in (and proceeds from)\nshort-term deposits, the net cash from (used in) financing activities and the\neffect of changes in exchange rates, and by excluding the advances from\ncapital grants received on prior periods allocated to property, plant and\nequipment in the reporting period. Our definition of Free Cash Flow may differ\nfrom definitions used by other companies, and therefore, comparability may be\nlimited.\n\n (US$ m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 \n Net cash from operating activities 502 534 674 549 354 \n Net Capex (409) (362) (395) (401) (465) \n Payment for purchase of intangible assets, net of proceeds from sale (31) (17) (20) (18) (41) \n Proceeds from (payment for) financial assets 13 17 (2) - - \n Payment for business acquisitions ((a)) - (895) - - - \n Free Cash Flow (non-U.S. GAAP) 75 (723) 257 130 (152) \n\n((a)   )Q126 Free cash flow includes $895 million cash-out related to the\nacquisition of NXP MEMS sensor business.\n\n(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and\ninformation explaining why the Company believes these measures are important.\n(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and\ninformation explaining why the Company believes these measures are important.\n(2) Q226 Analog products, MEMS and Sensors (AM&S) segment included revenues\nassociated with NXP’s MEMS sensor business.\n\n(3) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and\ninformation explaining why the Company believes these measures are important.\n(2) Q126 Free cash flow includes $895 million cash-out related to the\nacquisition of NXP MEMS sensor business.\n\nAttachment\n* C3403C - Q226 Earnings PR - STMICROELECTRONICS\n(https://ml-eu.globenewswire.com/Resource/Download/85238c93-d55e-47fb-b120-9470e22f79da)"},"type":"article","timestamp":"2026-07-23T05:00:01.462133798Z","server_sent_at_ms":1784782801462},"received_at":"2026-07-23T05:00:01.516Z","source_url":null},"analysis":{"id":"85101","press_release_id":"96059","analysis_json":{"industry":{"label":"Semiconductors & Semiconductor Equipment","sector":"Information Technology"},"redFlags":["Power and Discrete products segment operating loss widened to $99 million from $56 million year-ago"],"eventType":"earnings","narrative":"STMicroelectronics delivered Q2 revenue of $3.49 billion, up 26% year-over-year, with operating income swinging to a $187 million profit compared to a loss in the prior year.\n\nThe company raised its Q3 outlook to $3.70 billion in revenue and a 37% gross margin, citing strong bookings and tight supply across product categories.\n\nManagement significantly raised its AI datacenter revenue ambitions to over $1 billion in 2026 and over $2 billion in 2027, highlighting an acceleration in growth driven by engaged customer programs.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Robust earnings beat and raised guidance underscore ST's leverage to the AI infrastructure build-out."},"keyFigures":{"eps":0.24,"revenue":3490000000,"guidance":"Q3 2026 Net Revenues $3.70 billion (+6.2% QoQ), Gross Margin ~37.0%","revenueYoy":"26.0%","customDimensions":{"fcf":75000000,"gross_margin":"34.8%","operating_income":187000000,"ai_revenue_ambition_2026":"> $1 billion","ai_revenue_ambition_2027":"> $2 billion"}},"quotedText":"Driven by continued strong demand in AI datacenters, we are raising our revenue ambition for datacenters.","namedEntities":{"people":[{"name":"Jean-Marc Chery","role":"President & CEO"}],"products":["NXP’s MEMS sensor business"],"companies":[{"name":"STMicroelectronics N.V.","ticker":"STM"},{"name":"NXP","relationship":"acquired company (MEMS sensor business)"}],"dollarAmounts":[{"amount":"$3.49 billion","context":"Q2 2026 net revenues"},{"amount":"$3.70 billion","context":"Q3 2026 business outlook (mid-point)"},{"amount":"$1 billion","context":"Expected datacenter revenues in 2026"},{"amount":"$2 billion","context":"Expected datacenter revenues in 2027"},{"amount":"$75 million","context":"Q2 2026 Free cash flow (non-U.S. GAAP)"},{"amount":"$1.5 billion","context":"Dual-tranche senior unsecured convertible bond issuance"}]},"materialImpact":{"score":4,"reasoning":"Strong quarterly performance with 26% YoY revenue growth and a swing to operating profitability. Management raised Q3 guidance and significantly increased long-term revenue ambitions for AI datacenters, signaling strong demand momentum."},"tickerRelevance":{"others":[],"primary":"STM"},"globalImportance":35,"audienceRelevance":25,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"large-cap","eventGravity":"earnings-beat-and-raise","sectorWeight":"high"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"STMicroelectronics delivered Q2 revenue of $3.49 billion, up 26% year-over-year, with operating income swinging to a $187 million profit compared to a loss in the prior year.\n\nThe company raised its Q3 outlook to $3.70 billion in revenue and a 37% gross margin, citing strong bookings and tight supply across product categories.\n\nManagement significantly raised its AI datacenter revenue ambitions to over $1 billion in 2026 and over $2 billion in 2027, highlighting an acceleration in growth driven by engaged customer programs.","key_figures":{"eps":0.24,"revenue":3490000000,"guidance":"Q3 2026 Net Revenues $3.70 billion (+6.2% QoQ), Gross Margin ~37.0%","revenueYoy":"26.0%","customDimensions":{"fcf":75000000,"gross_margin":"34.8%","operating_income":187000000,"ai_revenue_ambition_2026":"> $1 billion","ai_revenue_ambition_2027":"> $2 billion"}},"named_entities":{"people":[{"name":"Jean-Marc Chery","role":"President & CEO"}],"products":["NXP’s MEMS sensor business"],"companies":[{"name":"STMicroelectronics N.V.","ticker":"STM"},{"name":"NXP","relationship":"acquired company (MEMS sensor business)"}],"dollarAmounts":[{"amount":"$3.49 billion","context":"Q2 2026 net revenues"},{"amount":"$3.70 billion","context":"Q3 2026 business outlook (mid-point)"},{"amount":"$1 billion","context":"Expected datacenter revenues in 2026"},{"amount":"$2 billion","context":"Expected datacenter revenues in 2027"},{"amount":"$75 million","context":"Q2 2026 Free cash flow (non-U.S. GAAP)"},{"amount":"$1.5 billion","context":"Dual-tranche senior unsecured convertible bond issuance"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-07-23T05:06:25.117Z","global_importance":35,"audience_relevance":25,"importance_components":{"tickerTier":"large-cap","eventGravity":"earnings-beat-and-raise","sectorWeight":"high"}},"durationMs":92864,"modelName":"glm-4.7"}}