PR No: C3383C
STMicroelectronics Reports Q4 and FY 2025 Financial Results
-- Q425 net revenues $3.33 billion; gross margin 35.2%; operating income of
$125 million, including $141 million related to impairment, restructuring
charges and other related phase-out costs
-- FY25 net revenues $11.80 billion; gross margin 33.9%; operating income of
$175 million, including $376 million related to impairment, restructuring
charges and other related phase-out costs
-- Business outlook at mid-point: Q126 net revenues of $3.04 billion and
gross margin of 33.7%
Geneva, January 29, 2026 -- STMicroelectronics N.V. ("ST") $(STM)$, a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the fourth quarter ended December 31, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported fourth quarter net revenues of $3.33 billion, gross margin of 35.2%, operating income of $125 million, and net loss of $30 million or -$0.03 diluted earnings per share (non-U.S. GAAP(1) operating income of $266 million, and non-U.S. GAAP(1) net income of $100 million or $0.11 diluted earnings per share, including certain negative one-time tax expenses impact of $0.18 per share).
Jean-Marc Chery, ST President & CEO, commented:
-- "Q4 net revenues came above the mid-point of our business outlook range,
driven by higher revenues in Personal Electronics and, to a lesser extent,
in CECP and Industrial, while Automotive was below expectations. Gross
margin was above the mid-point of our business outlook range mainly due
to better product mix. Q4 revenues marked the return to year-over-year
growth."
-- "FY25 revenues decreased 11.1% to $11.80 billion. Operating margin was
1.5% and net income was $166 million. Non-U.S. GAAP1 operating margin was
4.7% and non-U.S. GAAP1 net income was $486 million. We invested $1.79
billion in Net Capex (non-U.S. GAAP1) while delivering free cash flow
(non-U.S. GAAP1) of $265 million."
-- "Our first quarter business outlook, at the mid-point, is for net
revenues of $3.04 billion, decreasing sequentially by 8.7%, better than
average past seasonality, and accelerating the year-over-year growth
dynamic that started in Q4. Gross margin is expected to be about 33.7%;
including about 220 basis points of unused capacity charges."
-- "For 2026, we plan to invest between $2.0 to $2.2 billion in Net Capex
(non-U.S. GAAP1)."
-- "Our strategic priorities remain to accelerate innovation; execute our
company-wide program to reshape our manufacturing footprint and resize
our global cost base and strengthen free cash flow generation."
Quarterly Financial Summary
U.S. GAAP (US$ m, except per share data) Q4 2025 Q3 2025 Q4 2024 Q/Q Y/Y ------------------------------- ------- ------- ------- -------- -------- Net Revenues $3,329 $3,187 $3,321 4.5% 0.2% ------------------------------- ------- ------- ------- -------- -------- Gross Profit $1,172 $1,059 $1,253 10.7% -6.5% ------------------------------- ------- ------- ------- -------- -------- Gross Margin 35.2% 33.2% 37.7% 200 bps -250 bps ------------------------------- ------- ------- ------- -------- -------- Operating Income $125 $180 $369 -30.2% -66.0% ------------------------------- ------- ------- ------- -------- -------- Operating Margin 3.8% 5.6% 11.1% -180 bps -730 bps ------------------------------- ------- ------- ------- -------- -------- Net Income (Loss) $(30) $237 $341 - - ------------------------------- ------- ------- ------- -------- -------- Diluted Earnings Per Share $(0.03) $0.26 $0.37 - - ------------------------------- ------- ------- ------- -------- -------- Non-U.S. GAAP(1) (US$ m, except per share data) Q4 2025 Q3 2025 Q4 2024 Q/Q Y/Y ------------------------------- ------- ------- ------- -------- -------- Operating Income $266 $217 $369 22.8% -27.8% ------------------------------- ------- ------- ------- -------- -------- Operating Margin 8.0% 6.8% 11.1% 120 bps -310 bps ------------------------------- ------- ------- ------- -------- -------- Net Income $100 $267 $341 -62.7% -70.8% ------------------------------- ------- ------- ------- -------- -------- Diluted Earnings Per Share $0.11 $0.29 $0.37 -62.1% -70.3% ------------------------------- ------- ------- ------- -------- --------
Fourth Quarter 2025 Summary Review
Reminder: on January 1, 2025, we made some adjustments to our segment reporting. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.
Net Revenues by Reportable Segment(2) (US$ m) Q4 2025 Q3 2025 Q4 2024 Q/Q Y/Y ------------------------------------ ------- ------- ------- ----- ------ Analog products, MEMS and Sensors (AM&S) segment 1,449 1,434 1,348 1.1% 7.5% ------------------------------------ ------- ------- ------- ----- ------ Power and discrete products (P&D) segment 412 429 602 -3.9% -31.6% ------------------------------------ ------- ------- ------- ----- ------ Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,861 1,863 1,950 -0.1% -4.6% ------------------------------------ ------- ------- ------- ----- ------ Embedded Processing $(EMP)$ segment 1,015 976 1,002 3.9% 1.2% ------------------------------------ ------- ------- ------- ----- ------ RF & Optical Communications (RF&OC) segment 449 345 366 30.5% 22.9% ------------------------------------ ------- ------- ------- ----- ------ Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,464 1,321 1,368 10.8% 7.0% ------------------------------------ ------- ------- ------- ----- ------ Others 4 3 3 - - ------------------------------------ ------- ------- ------- ----- ------ Total Net Revenues $3,329 $3,187 $3,321 4.5% 0.2% ------------------------------------ ------- ------- ------- ----- ------
Net revenues totaled $3.33 billion, representing a year-over-year increase of 0.2%. Year-over-year net sales to OEMs and Distribution increased 0.6% and decreased 0.7%, respectively. On a sequential basis, net revenues increased 4.5%, 160 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.17 billion, representing a year-over-year decrease of 6.5%. Gross margin of 35.2%, 20 basis points better than the mid-point of ST's guidance, decreased 250 basis points year-over-year, mainly due to lower manufacturing efficiencies and, to a lesser extent, negative currency effect, and lower level of capacity reservation fees.
Operating income decreased from $369 million in the year-ago quarter to $125 million. ST's operating margin decreased 730 basis points on a year-over-year basis to 3.8% of net revenues, compared to 11.1% in the fourth quarter of 2024. Operating income included $141 million impairment, restructuring charges and other related phase-out costs for the quarter, mainly reflecting charges related to the execution of the previously announced company-wide program to reshape our manufacturing footprint and resize our global cost base. Excluding these items, non-U.S. GAAP(1) Operating income stood at $266 million in the fourth quarter.
By reportable segment, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
-- Revenue increased 7.5% mainly due to Imaging.
-- Operating profit increased by 6.6% to $235 million. Operating margin was
16.2% compared to 16.3%.
Power and Discrete products (P&D) segment:
-- Revenue decreased 31.6%.
-- Operating result decreased from a profit of $45 million to a loss of $124
million. Operating margin was -30.2% compared to 7.5%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
-- Revenue increased 1.2% due to an increase in General Purpose MCU,
partially offset by a decrease in Connected Security and Custom
Processing.
-- Operating profit increased by 7.5% to $195 million. Operating margin was
19.2% compared to 18.1%.
RF & Optical Communications (RF&OC) segment:
-- Revenue increased 22.9%.
-- Operating profit increased by 11.0% to $105 million. Operating margin was
23.4% compared to 25.9%.
Net Earnings and diluted Earnings Per Share decreased to a negative $30 million and a negative $0.03 respectively, including certain one-time non-cash income tax expenses of $163 million, compared to a positive $341 million and $0.37 respectively in the year-ago quarter. In the fourth quarter of 2025 non-U.S. GAAP(1) Net income stood at $100 million and non-U.S. GAAP(1) diluted Earnings Per Share stood at $0.11, including certain negative one-time tax expenses impact of $0.18 per share.
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