STMicroelectronics (NYSE:STM) Posts Quarterly Earnings Results, Misses Estimates By $0.16 EPS

STMicroelectronics (NYSE:STM) announced its quarterly earnings data on Thursday. The semiconductor producer reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.27 by ($0.16), Zacks reports. STMicroelectronics had a return on equity of 4.06% and a net margin of 4.55%.The firm had revenue of $3.33 billion during the quarter, compared to analysts’ expectations of $3.29 billion.

Here are the key takeaways from STMicroelectronics’ conference call:

• ST posted a Q4 beat with $3.33B in revenue (above outlook midpoint), returned to year‑over‑year growth in Q4, and generated $257M of free cash flow in the quarter.
• Q4 and FY results included material one‑time charges (≈$141M in Q4, $376M FY) that contributed to a Q4 net loss and the company guided a sequential revenue decline of 8.7% for Q1 with a near‑term gross‑margin trough (~33.7%).
• Automotive momentum is improving with multiple design wins across EV and traditional vehicle domains, and the planned acquisition of NXP’s MEMS sensor business (expected to close H1‑2026) is positioned to strengthen ST’s sensor footprint.
• Management highlights data‑center/AI and Cloud Optical Interconnect as major growth drivers—securing design wins in silicon photonics, SiC/silicon power, and pluggable optics—and targets $500M in 2026 revenue toward a $1B goal before 2030.
• ST plans ~$2.2B net CapEx in 2026 to support capacity for growth drivers and manufacturing reshaping; management expects unused‑capacity charges to decline during 2026 and gross margin to improve after Q1, but benefits are phased over 2026–2027.

STMicroelectronics Stock Performance

Shares of STMicroelectronics stock traded down $1.68 during midday trading on Thursday, hitting $28.65. The company had a trading volume of 13,831,570 shares, compared to its average volume of 6,987,171. The stock has a market cap of $25.73 billion, a PE ratio of 49.41, a P/E/G ratio of 3.66 and a beta of 1.56. STMicroelectronics has a 1-year low of $17.25 and a 1-year high of $33.47. The business’s 50 day simple moving average is $26.31 and its two-hundred day simple moving average is $26.70. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.22 and a quick ratio of 2.28.

Trending Headlines about STMicroelectronics

Here are the key news stories impacting STMicroelectronics this week:

• Positive Sentiment: Management guided Q1 revenue slightly above consensus and provided mid-point metrics (Q1 net revenues ~ $3.04B; gross margin ~33.7%), which relieved some top-line fears and is supportive for near-term revenue outlook. Reuters: STM forecasts Q1 revenue
• Positive Sentiment: Strategic win: ST and NanoXplore announced a space-qualified European FPGA product, opening a niche aerospace/space market with long lead times and high certification barriers — a positive for long-term diversification. Design-Reuse: FPGA for space
• Positive Sentiment: Management flagged improving chip sales across personal electronics, communications and industrial segments, suggesting revenue momentum is returning after prior weakness. WSJ: Improving chip sales
• Neutral Sentiment: Short interest fell meaningfully in January (down ~14% month-over-month), reducing immediate short-squeeze risk but also reflecting changing positioning — not a direct driver of fundamentals. Short interest update (source: summary)
• Neutral Sentiment: Analyst previews and valuation checks are mixed ahead of results — investors are parsing margins and auto demand guidance to decide medium-term earnings trajectory. Yahoo Finance: Margin/guidance analysis
• Negative Sentiment: Reported Q4 EPS of $0.11 missed consensus (~$0.27), which pressured the stock — revenue beat was slight, but the EPS shortfall raises near-term profitability concerns. MarketBeat: Q4 EPS miss
• Negative Sentiment: FY25 results include sizable impairment and restructuring charges (Q4 operating income included $141M; FY25 included ~$376M of related charges). Management warns restructuring costs will continue to weigh on results, pressuring margins and near-term earnings visibility. GlobeNewswire: Q4 & FY25 results
• Negative Sentiment: Commentary and press coverage emphasize that while revenue momentum is improving, margin recovery may lag because of ongoing phase-out, restructuring, and impairment costs — a near-term drag on EPS revisions. MSN: Restructuring cost warnings

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Advisory Services Network LLC bought a new stake in shares of STMicroelectronics in the 3rd quarter worth about $52,000. Rakuten Securities Inc. boosted its holdings in shares of STMicroelectronics by 132.7% in the 2nd quarter. Rakuten Securities Inc. now owns 2,916 shares of the semiconductor producer’s stock worth $89,000 after acquiring an additional 1,663 shares in the last quarter. Kelleher Financial Advisors bought a new stake in STMicroelectronics during the 3rd quarter worth approximately $106,000. Legal & General Group Plc acquired a new stake in STMicroelectronics during the 2nd quarter valued at $119,000. Finally, EverSource Wealth Advisors LLC raised its position in STMicroelectronics by 79.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,883 shares of the semiconductor producer’s stock valued at $148,000 after purchasing an additional 2,156 shares during the last quarter. 5.05% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on STM shares. Weiss Ratings restated a “sell (d+)” rating on shares of STMicroelectronics in a research note on Wednesday, January 21st. TD Cowen restated a “hold” rating on shares of STMicroelectronics in a research report on Friday, October 24th. Mizuho set a $28.00 target price on shares of STMicroelectronics in a research report on Friday, January 9th. Robert W. Baird set a $45.00 price target on shares of STMicroelectronics in a report on Friday, October 24th. Finally, Susquehanna raised their price objective on shares of STMicroelectronics from $35.00 to $40.00 and gave the company a “positive” rating in a research report on Wednesday, October 22nd. Seven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $31.19.

STMicroelectronics Company Profile

STMicroelectronics is a global semiconductor company headquartered in Geneva, Switzerland, formed through the 1987 merger of SGS Microelettronica and Thomson Semiconducteurs. The company designs, develops and manufactures a broad range of semiconductor products and solutions that serve multiple end markets worldwide. ST’s offerings span from basic components to integrated systems, emphasizing energy-efficient and high-performance devices for modern electronics.

Product categories include microcontrollers (notably the widely used STM32 family), analog and mixed-signal ICs, power MOSFETs and power-management devices, MEMS and sensors, image sensors, and discrete semiconductors.