STMicroelectronics NV (STM) shares plummeted 13.76% in trading on Thursday following the release of its second-quarter 2025 financial results, which fell short of analyst expectations and included significant restructuring charges.

The semiconductor manufacturer reported adjusted earnings of $0.06 per share, missing the analyst consensus estimate of $0.10 by 40%. This represents a stark 84.21% decrease from earnings of $0.38 per share in the same period last year. While quarterly sales of $2.77 billion slightly beat the analyst consensus estimate of $2.70 billion, it still marked a 14.42% decrease compared to the $3.23 billion reported in Q2 2024.

The company's financial performance was impacted by several factors, including: 1. A significant operating loss of $133 million, compared to an operating income of $375 million in the year-ago quarter. 2. Impairment, restructuring charges, and other related phase-out costs totaling $190 million for the quarter, reflecting the company's previously announced program to reshape its manufacturing footprint and resize its global cost base. 3. A decline in gross margin to 33.5% from 40.1% in the same quarter last year, mainly due to product mix, lower manufacturing efficiencies, and higher unused capacity charges.

Despite the weak Q2 results, STMicroelectronics provided a somewhat optimistic outlook for Q3 2025, projecting net revenues of $3.17 billion, which would represent a 14.6% sequential increase. However, the company cautioned that it is still operating amid an uncertain macroeconomic environment, which could impact future performance.