EarningsQ2 2026 Earnings Report

STMicroelectronics (STMN) Q2 2026 Earnings Report

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Previous Report: Q1 2026

MX:STMN Q2 2026 EPS Results

Actual EPS$5.35

Consensus EPS$4.58

Beat/MissBeat by +$0.78

One Year Ago EPS$1.04

MX:STMN Q2 2026 Revenue Results

Actual Revenue$60.10B

Expected Revenue$59.78B

Beat/MissBeat by +$322.93M

YoY Revenue Growth+23.95%

Earnings Announcement Details

QuarterQ2 2026

Date07/23/2026

TimeBefore Open

Conference CallThursday, July 23, 2026

MX:STMN Upcoming Earnings

STMicroelectronics's next earnings date is estimated for October 29, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:STMN Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 23, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call presented a strong operational and financial performance with meaningful revenue acceleration, improving profitability, positive free cash flow and substantial design wins (notably in optical connectivity and data center applications). Management raised data center revenue ambitions and highlighted large addressable markets (LEO satellite, quantum collaboration). Offsetting factors include ongoing nonrecurring manufacturing reshaping costs, temporary underloading/unloading charges, a materially negative margin in Power & Discrete, and near-term supply/ramping constraints for legacy analog and some microcontroller lines. Overall, the positives around revenue growth, bookings, cash flow and upgraded data center outlook materially outweigh the transitory headwinds tied to restructuring and ramping.

Company Guidance

ST guided Q3 2026 revenues of $3.7 billion (±350 bps), implying +6.2% sequential and +16.2% year‑over‑year growth, with gross margin about 37% (±200 bps) including ~70 bps of unused capacity charges (Q2 GM was 34.8%, non‑U.S. GAAP 35.2%); non‑U.S. GAAP net OpEx is expected at roughly $980 million in Q3 (would be ~$920M excluding start‑up and employee share award headwinds) and full‑year non‑U.S. GAAP OpEx is guided slightly above $3.8 billion (up low double‑digit YoY; like‑for‑like up high single‑digit); 2026 net CapEx is expected at the high end of $2.0–$2.2 billion. Management also raised its data‑center ambition to >$1 billion in 2026 and well above $2 billion in 2027, expects Q4 revenues >$4 billion (H2 vs H1 growth above their normal ~15% seasonality), reported book‑to‑bill ~2 (well above 2 in optical/comm), backlog ≈4.5–5 quarters, Q2 inventory $3.19B (126 days), Q2 free cash flow +$75M, net financial position $2.01B (liquidity $6.03B; debt $4.02B), and noted issuance of a $1.5B dual‑tranche convertible bond.

Revenue Beat and Sequential Growth

Q2 net revenues of $3.49 billion came in above the midpoint of outlook; Q3 guidance midpoint implies revenues of $3.7 billion (up ~6.2% sequentially) and Q4 guidance above $4.0 billion. Year-over-year revenue increases by end market: Communications Equipment & Computer Peripherals +50% YoY, Industrial +34% YoY, Personal Electronics +20% YoY, Automotive +16% YoY.

Strong Segment and Product Momentum

By segment YoY growth: Analog Products, MEMS & Sensors +26%; Embedded Processing +35.5%; RF & Optical +32%; Power & Discrete +3.7%. Notable product traction: strong design wins in optical connectivity (silicon photonics), microcontrollers for pluggable optics, automotive application-specific ICs and sensors, industrial MEMS sensors with embedded AI, and new LiDAR modules.

Improved Profitability and Return to Net Income

Gross profit $1.22 billion (+31.1% YoY); gross margin 34.8% (+130 bps YoY). Q2 net income $222 million vs. net loss of $97 million a year ago. Non-U.S. GAAP net income $291 million and non-U.S. GAAP diluted EPS $0.31.

Positive Free Cash Flow and Operating Cash Generation

Free cash flow of +$75 million in Q2 versus -$152 million in Q2 2025. Net cash from operating activities $502 million in Q2 (vs. $354 million year-ago). Net CapEx $409 million in Q2; full-year 2026 net CapEx expected at the high end of $2.0–$2.2 billion.

Inventory Reduction and Improved Visibility

Inventory roughly flat at $3.19 billion; days sales of inventory improved to 126 days (from 140 days prior quarter and 166 days YoY). Distribution inventory decreased further and is now below the company’s standard target. Book-to-bill close to 2 overall, >2 in key segments; backlog ~4.5–5 quarters of Q2 average revenue.

Raised Data Center Revenue Ambition

Now expecting data center revenue above $1 billion in 2026 and, assuming current dynamics, well above $2 billion in 2027; strength driven by optical connectivity (silicon photonics + electronic ICs + microcontrollers) and multiple design wins across power and optics.

Large New Market Opportunities and Strategic Moves

Addressable Low Earth Orbit (LEO) satellite market opportunity highlighted (~$3 billion by 2030); ST expects well above $3 billion cumulative space revenue over 2026–2028. Also participated in Quobly Series A to support silicon-based quantum commercialization.

Improved Segment Margins in Key Areas

Non-GAAP operating income (ex items) $269 million with non-GAAP operating margin 7.7%. High-margin segments: Embedded Processing ~19.7% and RF & Optical Communications ~21.2% non-GAAP operating margins.

MX:STMN Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 29, 2026	2026 (Q3)	6.96 / -	5.007	―
Jul 23, 2026	2026 (Q2)	4.58 / 5.35	1.036	416.67% (+4.32)
Apr 23, 2026	2026 (Q1)	3.00 / 2.24	1.209	85.71% (+1.04)
Jan 29, 2026	2025 (Q4)	4.77 / 1.90	6.388	-70.27% (-4.49)
Oct 23, 2025	2025 (Q3)	3.87 / 5.01	6.388	-21.62% (-1.38)
Jul 24, 2025	2025 (Q2)	1.61 / 1.04	6.561	-84.21% (-5.52)
Apr 24, 2025	2025 (Q1)	0.71 / 1.21	9.323	-87.04% (-8.11)
Jan 30, 2025	2024 (Q4)	6.04 / 6.39	19.683	-67.54% (-13.29)
Oct 31, 2024	2024 (Q3)	5.46 / 6.39	20.028	-68.10% (-13.64)
Jul 25, 2024	2024 (Q2)	6.04 / 6.56	18.301	-64.15% (-11.74)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed