PR No: C3403C
STMicroelectronics Reports Q2 2026 Financial Results
-- Q226 net revenues at $3.49 billion
-- Gross margin at 34.8% (non-U.S. GAAP1 gross margin at 35.2%)
-- Operating income at $187 million (non-U.S. GAAP1 operating income at $269
million)
-- Business outlook at mid-point: Q326 net revenues of $3.70 billion and
gross margin of 37.0%
Geneva, July 23, 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 second quarter ended June 27, 2026. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported second quarter net revenues of $3.49 billion, gross margin of 34.8%, operating income of $187 million, and net income of $222 million or $0.24 diluted earnings per share (non-U.S. GAAP(1) gross margin of 35.2%, non-U.S. GAAP(1) operating income of $269 million, and non-U.S. GAAP(1) net income of $291 million or $0.31 diluted earnings per share).
Jean-Marc Chery, ST President & CEO, commented:
-- "Q2 net revenues came above the mid-point of our business outlook range,
driven by higher revenues in CECP and Automotive. Gross margin was in
line with the mid-point of our business outlook range."
-- "On a year-over-year basis, Q2 net revenues increased 26.0%. Q2 gross
margin was 34.8%, operating margin was 5.4% and net income was $222
million. On a non-U.S. GAAP1 basis gross margin was 35.2%, operating
margin was 7.7% and net income was $291 million."
-- "During the quarter demand increased further, with strong bookings in all
end markets. We saw improved visibility and signs of tight supply in
several product categories. Inventory in distribution is now below our
standard target."
-- "Our third quarter business outlook, at the mid-point, is for net
revenues of $3.70 billion, increasing about 6.2% sequentially and about
16.2% year-over-year. Gross margin is expected to be about 37.0%,
including about 70 basis points of unused capacity charges."
-- "We anticipate a revenue growth acceleration in Q4, mainly driven by our
engaged customer programs in AI datacenters and LEO satellite
communication. We expect Q4 revenues to be above $4 billion, this
translates into a H2 vs H1 growth above our normal 15% seasonality."
-- "Driven by continued strong demand in AI datacenters, we are raising our
revenue ambition for datacenters. Revenues are now expected above $1
billion in 2026 and, assuming the current dynamic continues and with the
current engagements we have, well above $2 billion in 2027. This confirms
ST's strong position in the evolving AI datacenters."
Quarterly Financial Summary
U.S. GAAP (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y -------------------------------- ------- ------- ------- ------ -------- Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% -------------------------------- ------- ------- ------- ------ -------- Gross Profit $1,215 $1,045 $926 16.3% 31.1% -------------------------------- ------- ------- ------- ------ -------- Gross Margin 34.8% 33.8% 33.5% 100bps 130bps -------------------------------- ------- ------- ------- ------ -------- Operating Income (Loss) $187 $70 $(133) 165.5% - -------------------------------- ------- ------- ------- ------ -------- Operating Margin 5.4% 2.3% -4.8% 310bps 1,020bps -------------------------------- ------- ------- ------- ------ -------- Net Income (Loss) $222 $37 $(97) 496.8% - -------------------------------- ------- ------- ------- ------ -------- Diluted Earnings Per Share $0.24 $0.04 $(0.11) 500.0% - -------------------------------- ------- ------- ------- ------ -------- Non-U.S. GAAP(1) (US$ m, except per share data) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y -------------------------------- ------- ------- ------- ------ -------- Gross Profit $1,229 $1,056 $926 16.4% 32.7% -------------------------------- ------- ------- ------- ------ -------- Gross Margin 35.2% 34.1% 33.5% 110bps 170bps -------------------------------- ------- ------- ------- ------ -------- Operating Income $269 $171 $57 57.3% 371.9% -------------------------------- ------- ------- ------- ------ -------- Operating Margin 7.7% 5.5% 2.1% 220bps 560bps -------------------------------- ------- ------- ------- ------ -------- Net Income $291 $122 $57 138.5% 410.5% -------------------------------- ------- ------- ------- ------ -------- Diluted Earnings Per Share $0.31 $0.13 $0.06 138.5% 416.7% -------------------------------- ------- ------- ------- ------ --------
Second Quarter 2026 Summary Review
Net Revenues by Reportable Segment(2) (US$ m) Q2 2026 Q1 2026 Q2 2025 Q/Q Y/Y --------------------------- --------- --------- --------- ------- ------- Analog products, MEMS and Sensors (AM&S) segment 1,426 1,318 1,133 8.2% 26.0% --------------------------- --------- --------- --------- ------- ------- Power and discrete products (P&D) segment 464 389 447 19.2% 3.7% --------------------------- --------- --------- --------- ------- ------- Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,890 1,707 1,580 10.7% 19.6% --------------------------- --------- --------- --------- ------- ------- Embedded Processing $(EMP)$ segment 1,147 975 847 17.7% 35.5% --------------------------- --------- --------- --------- ------- ------- RF Optical Communications (RFOC) segment 445 409 336 8.6% 32.0% --------------------------- --------- --------- --------- ------- ------- Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,592 1,384 1,183 15.0% 34.5% --------------------------- --------- --------- --------- ------- ------- Others 5 4 3 - - --------------------------- --------- --------- --------- ------- ------- Total Net Revenues $3,487 $3,095 $2,766 12.7% 26.0% --------------------------- --------- --------- --------- ------- -------
Net revenues totaled $3.49 billion, representing a year-over-year increase of 26.0%. Year-over-year net sales to OEMs and Distribution increased 23.3% and 33.1%, respectively. On a sequential basis, net revenues increased 12.7%, 110 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.22 billion, representing a year-over-year increase of 31.1%. Gross margin of 34.8%, increased 130 basis points year-over-year, mainly due to lower unused capacity charges and better product mix. Non-U.S. GAAP(1) gross margin was 35.2%, in line with the mid-point of ST's guidance.
Operating income increased from an operating loss of $133 million in the year-ago quarter to an operating income of $187 million. ST's operating margin increased on a year-over-year basis to 5.4% of net revenues, compared to negative 4.8% operating margin in the second quarter of 2025. Operating income included $58 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 and $24 million PPA effects from the acquisition of NXP's MEMS sensor business. Excluding these items, non-U.S. GAAP(1) Operating income stood at $269 million in the second quarter (or 7.7% non-U.S. GAAP(1) operating margin).
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)(2) segment:
-- Revenue increased 26.0% mainly due to Imaging and MEMS and, to a lesser
extent, Analog.
-- Operating profit increased by 69.2% to $144 million. Operating margin was
10.1% compared to 7.5%.
Power and Discrete products (P&D) segment:
-- Revenue increased 3.7%.
-- Operating result decreased from a loss of $56 million to a loss of $99
million. Operating margin was -21.4% compared to -12.5%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
-- Revenue increased 35.5% mainly due to General Purpose MCU and, to a
lesser extent, Custom Processing and Connected Security.
-- Operating profit increased by 97.8% to $226 million. Operating margin was
19.7% compared to 13.5%.
RF Optical Communications (RFOC) segment:
-- Revenue increased 32.0%.
-- Operating profit increased by 56.3% to $94 million. Operating margin was
21.2% compared to 17.9%.
Net income and diluted Earnings Per Share increased to $222 million and $0.24 respectively, compared to a net loss of $97 million and a negative $0.11 respectively in the year-ago quarter. In the second quarter of 2026 non-U.S. GAAP(1) Net income stood at $291 million and non-U.S. GAAP(1) diluted Earnings Per Share stood at $0.31.
Cash Flow and Balance Sheet Highlights
Trailing 12 Months
------------- -------- ---------- -------- -------------------------------
Q2 Q2 Q2 TTM
(US$ m) 2026 Q1 2026 2025 2026 Q2 2025 Change
------------- -------- ---------- -------- -------- --------- ----------
Net cash
from
operating
activities 502 534 354 2,259 2,332 -3.1%
------------- -------- ---------- -------- -------- --------- ----------
Free cash
flow
(non-U.S.
GAAP(1) ) 75 (723)(2) (152) (261) 142 -283.8%
------------- -------- ---------- -------- -------- --------- ----------
Net cash from operating activities was $502 million in the second quarter, after approximately $44 million outflow related to restructuring, compared to $354 million in the year-ago quarter.
Net Capex (non-U.S. GAAP(1) ), was $409 million in the second quarter compared to $465 million in the year-ago quarter.
Free cash flow (non-U.S. GAAP(1) ) was positive at $75 million in the second quarter compared to negative $152 million in the year-ago quarter.
Inventory at the end of the second quarter was $3.19 billion, compared to $3.17 billion in the previous quarter and $3.27 billion in the year-ago quarter. Days sales of inventory at quarter-end was 126 days, compared to 140 days for the previous quarter and 166 days for the year-ago quarter.
In the second quarter, ST paid cash dividends to its stockholders totaling $75 million.
ST's net financial position (non-U.S. GAAP(3) ) remained strong at $2.01 billion as of June 27, 2026, compared to $2.00 billion as of March 28, 2026, and reflected total liquidity of $6.03 billion and total financial debt of $4.02 billion. Adjusted net financial position (non-U.S. GAAP(1) ), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $1.70 billion as of June 27, 2026.
During the quarter, ST issued a new $1.5 billion dual-tranche senior unsecured convertible bond (Tranche A and Tranche B for $750 million each) due 2031 and 2033 and announced the early redemption of its $750 million convertible bond due in 2027.
Corporate developments
On May 27, 2026, STMicroelectronics held its 2026 Annual General Meeting of Shareholders in Amsterdam, the Netherlands. All proposed resolutions were approved by the Shareholders.
Business Outlook
ST's guidance, at the mid-point, for the 2026 third quarter is:
-- Net revenues are expected to be $3.70 billion, an increase of 6.2%
sequentially, plus or minus 350 basis points.
-- Gross margin of 37.0%, plus or minus 200 basis points.
-- This outlook is based on an assumed effective currency exchange rate of
approximately $1.14 = EUR1.00 for the 2026 third quarter and includes the
impact of existing hedging contracts.
-- The third quarter will close on September 26, 2026.
This business outlook does not include any impact of potential further changes to global trade tariffs compared to the current situation.
Conference Call and Webcast Information
ST will conduct a conference call with analysts, investors and reporters to discuss its second quarter 2026 financial results and current business outlook today at 9:30 a.m. Central European Time $(CET)$ / 3:30 a.m. U.S. Eastern Time $(ET)$. A live webcast (listen-only mode) of the conference call will be accessible at ST's website, https://investors.st.com, and will be available for replay until August 7, 2026.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP.
See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:
-- changes in global trade policies, including the continuation, adoption
and expansion of tariffs and trade barriers and sanctions, that are
affecting and could further affect the macro-economic environment and are
adversely impacting and could further adversely impact the demand for our
products;
-- uncertain macro-economic and industry trends (such as inflation and
fluctuations in supply chains), which are impacting and may further
impact production capacity and end-market demand for our products;
-- customer demand that differs from projections which may require us to
undertake transformation measures that may not be successful in realizing
the expected benefits in full or at all;
-- the ability to design, manufacture and sell innovative products in a
rapidly changing technological environment;
-- changes in economic, social, public health, labor, political, or
infrastructure conditions in the locations where we, our customers, or
our suppliers operate, including as a result of macro-economic or
regional events, geopolitical and military conflicts, social unrest,
labor actions, or terrorist activities;
-- unanticipated events or circumstances, which may impact our ability to
execute our plans and/or meet the objectives of our research and
development and manufacturing programs, which benefit from public
funding;
-- financial difficulties with any of our major distributors or significant
curtailment of purchases by key customers;
-- the loading, product mix, and manufacturing performance of our production
facilities and/or our required volume to fulfill capacity reserved with
suppliers or third-party manufacturing providers;
-- availability and costs of equipment, raw materials, utilities,
third-party manufacturing services and technology, or other supplies
required by our operations (including increasing costs resulting from
inflation);
-- the functionalities and performance of our IT systems, which are subject
to cybersecurity threats and which support our critical operational
activities including manufacturing, finance and sales, and any breaches
of our IT systems or those of our customers, suppliers, partners and
providers of third-party licensed technology;
-- theft, loss, or misuse of personal data about our employees, customers,
or other third parties, and breaches of data privacy legislation;
-- the impact of intellectual property claims by our competitors or other
third parties, and our ability to obtain required licenses on reasonable
terms and conditions;
-- changes in our overall tax position as a result of changes in tax rules,
new or revised legislation, the outcome of tax audits or changes in
international tax treaties which may impact our results of operations as
well as our ability to accurately estimate tax credits, benefits,
deductions and provisions and to realize deferred tax assets;
-- variations in the foreign exchange markets and, more particularly, the
U.S. dollar exchange rate as compared to the Euro and the other major
currencies we use for our operations;
-- the outcome of ongoing litigation as well as the impact of any new
litigation to which we may become a defendant;
-- product liability or warranty claims, claims based on epidemic or
delivery failure, or other claims relating to our products, or recalls by
our customers for products containing our parts;
-- natural events such as severe weather, earthquakes, tsunamis, volcano
eruptions or other acts of nature, the effects of climate change, health
risks and epidemics or pandemics in locations where we, our customers or
our suppliers operate;
-- increased regulation and initiatives in our industry, including those
concerning climate change and sustainability matters and our goal to
become carbon neutral in all direct and indirect emissions (scopes 1 and
2), product transportation, business travel, and employee commuting
emissions (our scope 3 focus), and to achieve our 100% renewable
electricity sourcing goal by the end of 2027;
-- epidemics or pandemics, which may negatively impact the global economy in
a significant manner for an extended period of time, and could also
materially adversely affect our business and operating results;
-- industry changes resulting from vertical and horizontal consolidation
among our suppliers, competitors, and customers;
-- the ability to successfully ramp up new programs that could be impacted
by factors beyond our control, including the availability of critical
third-party components and performance of subcontractors in line with our
expectations; and
-- individual customer use of certain products, which may differ from the
anticipated uses of such products and result in differences in
performance, including energy consumption, may lead to a failure to
achieve our disclosed emission-reduction goals, adverse legal action or
additional research costs.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as "believes", "expects", "may", "are expected to", "should", "would be", "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information -- Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2025 as filed with the Securities and Exchange Commission ("SEC") on February 26, 2026. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Item 3. Key Information -- Risk Factors" from time to time in our SEC filings, could have a material adverse effect on our business and/or financial condition.
About STMicroelectronics
At ST, we are 49,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41 22 929 59 20
jerome.ramel@st.com
MEDIA RELATIONS:
Alexis Breton
Corporate External Communications
Tel: + 33 6 59 16 79 08
alexis.breton@st.com
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share
data ($))
Three months ended
June 27, June 28,
2026 2025
----------- -----------
(Unaudited) (Unaudited)
----------- -----------
Net sales 3,481 2,745
Other revenues 6 21
NET REVENUES 3,487 2,766
Cost of sales (2,272) (1,840)
GROSS PROFIT 1,215 926
Selling, general and administrative expenses (444) (420)
Research and development expenses (551) (514)
Other income and expenses, net 25 65
Impairment, restructuring charges and other
related phase-out costs (58) (190)
Total operating expenses (1,028) (1,059)
OPERATING INCOME (LOSS) 187 (133)
Interest income 41 60
Interest expense (15) (15)
Other components of pension benefit costs (4) (5)
Gain (loss) on financial instruments, net 46 (19)
INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTEREST 255 (112)
Income tax benefit (expense) (30) 18
----------- -----------
NET INCOME (LOSS) 225 (94)
Net income attributable to noncontrolling interest (3) (3)
----------- -----------
NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS 222 (97)
=========== ===========
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.25 (0.11)
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO
PARENT COMPANY STOCKHOLDERS 0.24 (0.11)
NUMBER OF WEIGHTED AVERAGE SHARES USED IN
CALCULATING DILUTED EPS 928.0 893.9
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share
data ($))
Six months ended
June 27, June 28,
2026 2025
----------- -----------
(Unaudited) (Unaudited)
----------- -----------
Net sales 6,570 5,257
Other revenues 12 26
NET REVENUES 6,582 5,283
Cost of sales (4,322) (3,516)
GROSS PROFIT 2,260 1,767
Selling, general and administrative expenses (873) (810)
Research and development expenses (1,071) (1,004)
Other income and expenses, net 70 115
Impairment, restructuring charges and other
related phase-out costs (129) (198)
Total operating expenses (2,003) (1,897)
OPERATING INCOME (LOSS) 257 (130)
Interest income 80 122
Interest expense (28) (29)
Other components of pension benefit costs (8) (9)
Gain on financial instruments, net 7 6
INCOME (LOSS) BEFORE INCOME TAXES AND
NONCONTROLLING INTEREST 308 (40)
Income tax benefit (expense) (40) 4
----------- -----------
NET INCOME (LOSS) 268 (36)
Net income attributable to noncontrolling interest (9) (5)
----------- -----------
NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS 259 (41)
=========== ===========
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.29 (0.05)
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO
PARENT COMPANY STOCKHOLDERS 0.28 (0.05)
NUMBER OF WEIGHTED AVERAGE SHARES USED IN
CALCULATING DILUTED EPS 921.3 894.9
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
December
As at June 27, March 28, 31,
In millions of U.S. dollars 2026 2026 2025
(Unaudited) (Unaudited) (Audited)
ASSETS
-----------------------------------------
Current assets:
Cash and cash equivalents 3,096 1,889 2,837
Short-term deposits 1,800 1,850 1,100
Marketable securities 1,136 832 985
Trade accounts receivable, net 2,067 1,820 1,745
Inventories 3,188 3,173 3,136
Other current assets 1,410 1,263 1,468
Total current assets 12,697 10,827 11,271
Goodwill 705 707 315
Other intangible assets, net 747 750 324
Property, plant and equipment, net 10,895 10,959 11,058
Non-current deferred tax assets 435 436 408
Long-term investments 144 113 152
Other non-current assets 1,409 1,338 1,272
14,335 14,303 13,529
Total assets 27,032 25,130 24,800
----------- ----------- ---------
LIABILITIES AND EQUITY
-----------------------------------------
Current liabilities:
Short-term debt 1,063 319 298
Trade accounts payable 1,774 1,436 1,487
Other payables and accrued liabilities 1,406 1,438 1,440
Dividends payable to stockholders 265 18 89
Accrued income tax 62 57 37
Total current liabilities 4,570 3,268 3,351
Long-term debt 2,962 2,250 1,835
Post-employment benefit obligations 382 380 403
Long-term deferred tax liabilities 58 58 60
Other long-term liabilities 1,010 1,003 926
4,412 3,691 3,224
Total liabilities 8,982 6,959 6,575
Commitment and contingencies
Equity
Parent company stockholders' equity
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
Additional Paid-in Capital 3,373 3,331 3,281
Retained earnings 12,888 13,118 13,082
Accumulated other comprehensive income 732 798 945
Treasury stock (506) (636) (637)
----------- ----------- ---------
Total parent company stockholders'
equity 17,644 17,768 17,828
Noncontrolling interest 406 403 397
Total equity 18,050 18,171 18,225
Total liabilities and equity 27,032 25,130 24,800
----------- ----------- ---------
STMicroelectronics N.V.
SELECTED CONSOLIDATED CASH FLOW DATA
------------------------------------------------ ------- ------- -------
Cash Flow Data (in US$ millions) Q2 2026 Q1 2026 Q2 2025
------------------------------------------------ ------- ------- -------
Net Cash from operating activities 502 534 354
------------------------------------------------ ------- ------- -------
Net Cash used in investing activities (686) (1,874) (332)
------------------------------------------------ ------- ------- -------
Net Cash from (used in) financing activities 1,392 398 (191)
------------------------------------------------ ------- ------- -------
Net Cash increase (decrease) 1,207 (948) (165)
------------------------------------------------ ------- ------- -------
Selected Cash Flow Data (in US$ millions) Q2 2026 Q1 2026 Q2 2025
------------------------------------------------ ------- ------- -------
Depreciation & amortization 492 454 464
------------------------------------------------ ------- ------- -------
Net payment for Capital expenditures (419) (379) (481)
------------------------------------------------ ------- ------- -------
Payment for business acquisition - (895) -
------------------------------------------------ ------- ------- -------
Net proceeds from issuance of convertible bonds 1,490 - -
------------------------------------------------ ------- ------- -------
Dividends paid to stockholders (75) (71) (81)
------------------------------------------------ ------- ------- -------
Change in inventories, net (42) (3) (140)
------------------------------------------------ ------- ------- -------
Appendix
ST Supplemental Financial Information
Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025
--------------------------------- ------- ------- ------- ------- -------
Net Revenues By Market Channel
(%)
--------------------------------- ------- ------- ------- ------- -------
Total OEM 70% 72% 73% 73% 72%
--------------------------------- ------- ------- ------- ------- -------
Distribution 30% 28% 27% 27% 28%
--------------------------------- ------- ------- ------- ------- -------
EUR/$ Effective Rate 1.16 1.16 1.14 1.14 1.09
--------------------------------- ------- ------- ------- ------- -------
Reportable Segment Data (US$
m)
--------------------------------- ------- ------- ------- ------- -------
Analog products, MEMS and Sensors
(AM&S) segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 1,426 1,318 1,449 1,434 1,133
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 144 161 235 221 85
--------------------------------- ------- ------- ------- ------- -------
Power and Discrete products (P&D)
segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 464 389 412 429 447
--------------------------------- ------- ------- ------- ------- -------
- Operating Income (Loss) (99) (84) (124) (67) (56)
--------------------------------- ------- ------- ------- ------- -------
Subtotal: Analog, Power &
Discrete, MEMS and Sensors (APMS)
Product Group
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 1,890 1,707 1,861 1,863 1,580
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 45 77 111 154 29
--------------------------------- ------- ------- ------- ------- -------
Embedded Processing (EMP) segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 1,147 975 1,015 976 847
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 226 164 195 161 114
--------------------------------- ------- ------- ------- ------- -------
RF Optical Communications (RFOC)
segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 445 409 449 345 336
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 94 61 105 57 60
--------------------------------- ------- ------- ------- ------- -------
Subtotal: Microcontrollers,
Digital ICs and RF products
(MDRF) Product Group
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 1,592 1,384 1,464 1,321 1,183
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 320 226 300 218 174
--------------------------------- ------- ------- ------- ------- -------
Others (a)
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 5 4 4 3 3
--------------------------------- ------- ------- ------- ------- -------
- Operating Income (Loss) (178) (232) (286) (192) (336)
--------------------------------- ------- ------- ------- ------- -------
Total
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 3,487 3,095 3,329 3,187 2,766
--------------------------------- ------- ------- ------- ------- -------
- Operating Income (Loss) 187 70 125 180 (133)
--------------------------------- ------- ------- ------- ------- -------
(a) Net revenues of Others include revenues from sales of assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment, restructuring charges and other related phase-out costs, management reorganization costs, start-up costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, operating earnings of other products as well as PPA effects from the acquisition of NXP's MEMS sensor business. With additional cost elements included in the table below:
(US$ m) Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 --------------------------------- ------- ------- ------- ------- ------- Unused capacity charges 37 69 88 102 103 --------------------------------- ------- ------- ------- ------- ------- Impairment, restructuring charges and other related phase-out costs 58 71 141 37 190 --------------------------------- ------- ------- ------- ------- ------- PPA effects from the acquisition of NXP's MEMS sensor business 24 30 - - - --------------------------------- ------- ------- ------- ------- -------
(Appendix -- continued)
ST Supplemental Non-U.S. GAAP Financial Information
U.S. GAAP -- Non-U.S. GAAP Reconciliation
The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measures. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.
ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST's U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST's on-going operating results, (ii) the ability to better identify trends in ST's business and perform related trend analysis, and (iii) to facilitate a comparison of ST's results of operations against investor and analyst financial models and valuations, which may exclude these items.
Non-U.S. GAAP Gross Profit, Non-U.S. GAAP Operating Income, Non-U.S. GAAP Net Income and Non-U.S. GAAP Diluted Earnings Per Share (non-U.S. GAAP measures)
Operating income before impairment, restructuring charges and other related phase-out costs, and other certain items, is used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items, such as impairment, restructuring charges and other related phase-out costs, and PPA effects. Non-U.S. GAAP gross profit is also used by management to communicate the impact of PPA effects on gross margin. Adjusted net earnings and earnings per share (EPS) are used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items like impairment, restructuring charges and other related phase-out costs and other certain items, such as PPA effects, net of the relevant tax impact.
Q2 2026 (US$ m, except per share Operating Corresponding data) Gross Profit Income Net Income Diluted EPS ------------------ -------------- ----------- ------------ --------------- U.S. GAAP 1,215 187 222 0.24 ------------------ -------------- ----------- ------------ --------------- Impairment, restructuring charges and other related phase-out costs - 58 58 ------------------ -------------- ----------- ------------ --------------- PPA effects of NXP's MEMS sensor business acquisition 14 24 24 ------------------ -------------- ----------- ------------ --------------- Estimated income tax effect - - (13) ------------------ -------------- ----------- ------------ --------------- Non-U.S. GAAP 1,229 269 291 0.31 ------------------ -------------- ----------- ------------ ---------------
(Appendix -- continued)
Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures)
Net Financial Position, a non-U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet.
ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited.
Jun 27 Mar 28 Dec 31 Sep 27 Jun 28
(US$ m) 2026 2026 2025 2025 2025
----------------------- --------- --------- --------- --------- ---------
Cash and cash
equivalents 3,096 1,889 2,837 1,999 1,616
----------------------- --------- --------- --------- --------- ---------
Short term deposits 1,800 1,850 1,100 1,450 1,650
----------------------- --------- --------- --------- --------- ---------
Marketable securities 1,136 832 985 1,327 2,363
----------------------- --------- --------- --------- --------- ---------
Total liquidity (a) 6,032 4,571 4,922 4,776 5,629
----------------------- --------- --------- --------- --------- ---------
Short-term debt (b() (1,063) (319) (298) (256) (1,006)
----------------------- --------- --------- --------- --------- ---------
Long-term debt (a)
(b() (2,962) (2,250) (1,835) (1,910) (1,951)
----------------------- --------- --------- --------- --------- ---------
Total financial debt (4,025) (2,569) (2,133) (2,166) (2,957)
----------------------- --------- --------- --------- --------- ---------
Net Financial
Position (non-U.S.
GAAP) 2,007 2,002 2,789 2,610 2,672
----------------------- --------- --------- --------- --------- ---------
Advances received on
capital grants (306) (316) (333) (345) (361)
----------------------- --------- --------- --------- --------- ---------
Adjusted Net
Financial Position
(non-U.S. GAAP) 1,701 1,686 2,456 2,265 2,311
----------------------- --------- --------- --------- --------- ---------
(a) Total liquidity and long-term debt increased following the issuance of a new $1.5 billion dual-tranche senior unsecured convertible bonds.
(b) Long-term debt contains standard conditions but does not impose minimum financial ratios. Committed credit facilities for $1,191 million equivalent are currently undrawn. Short-term debt includes $750 million after the announcement of the early redemption of the convertible bonds due 2027.
(Appendix -- continued)
Net Capex and Free Cash Flow (non-U.S. GAAP measures)
ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-U.S. GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period.
Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period.
ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies, and therefore, comparability may be limited.
Q4 Q3
(US$ m) Q2 2026 Q1 2026 2025 2025 Q2 2025
--------------------------- --------- --------- ------- ------- ---------
Payment for purchase of
tangible assets, as
reported (453) (549) (518) (431) (574)
--------------------------- --------- --------- ------- ------- ---------
Proceeds from sale of
tangible assets, as
reported - 3 - 3 4
--------------------------- --------- --------- ------- ------- ---------
Proceeds from capital
grants and other
contributions, as
reported 34 167 111 11 89
--------------------------- --------- --------- ------- ------- ---------
Advances from capital
grants allocated to
property, plant and
equipment 10 17 12 16 16
--------------------------- --------- --------- ------- ------- ---------
Net Capex (non-U.S. GAAP) (409) (362) (395) (401) (465)
--------------------------- --------- --------- ------- ------- ---------
Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.
ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.
Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies, and therefore, comparability may be limited.
Q4 Q3
(US$ m) Q2 2026 Q1 2026 2025 2025 Q2 2025
--------------------------- --------- --------- ------- ------- ---------
Net cash from operating
activities 502 534 674 549 354
--------------------------- --------- --------- ------- ------- ---------
Net Capex (409) (362) (395) (401) (465)
--------------------------- --------- --------- ------- ------- ---------
Payment for purchase of
intangible assets, net
of proceeds from sale (31) (17) (20) (18) (41)
--------------------------- --------- --------- ------- ------- ---------
Proceeds from (payment
for) financial assets 13 17 (2) - -
--------------------------- --------- --------- ------- ------- ---------
Payment for business
acquisitions(a) - (895) - - -
--------------------------- --------- --------- ------- ------- ---------
Free Cash Flow (non-U.S.
GAAP) 75 (723) 257 130 (152)
--------------------------- --------- --------- ------- ------- ---------
(a) Q126 Free cash flow includes $895 million cash-out related to the acquisition of NXP MEMS sensor business.
(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(2) Q226 Analog products, MEMS and Sensors (AM&S) segment included revenues associated with NXP's MEMS sensor business.
(3) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(2) Q126 Free cash flow includes $895 million cash-out related to the acquisition of NXP MEMS sensor business.
Attachment
-- C3403C - Q226 Earnings PR - STMICROELECTRONICS
(END) Dow Jones Newswires
July 23, 2026 01:00 ET