STMicroelectronics stock: Q3 profit beats, Q4 outlook rises

Published on 10/29/2026 at 17:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

STMicroelectronics stock trades at EUR 44.41 after the Q3 release. Revenue rose 17.9% year over year, while Q4 guidance points to USD 4.15 billion.

Q3-Erholung und Ausblick

STMicroelectronics meldete für das dritte Quartal einen Umsatzanstieg und eine deutlich verbesserte operative Entwicklung.
Die Prognose für das vierte Quartal liegt über dem Umsatz des dritten Quartals und sieht eine höhere Bruttomarge vor.
Embedded Processing und RF Optical Communications waren die wachstumsstärksten berichteten Segmente.

STMicroelectronics, NL0000226223, Illustration mit AI erstellt.

STMicroelectronics reported its third-quarter 2026 results on October 29, with revenue growth, higher margins and a stronger fourth-quarter outlook. The STMicroelectronics results release carried by Fidelity said revenue reached USD 3.76 billion, up 17.9% from the year-earlier quarter.

Revenue and margins improve

U.S. GAAP gross margin increased to 37.3% from 33.2% a year earlier. Operating income rose to USD 367 million from USD 180 million, while net income reached USD 291 million. Adjusted operating income was USD 429 million, compared with USD 217 million in the third quarter of 2025.

The improvement was uneven across the portfolio. Embedded Processing revenue increased 24.1% to USD 1.21 billion, and RF Optical Communications revenue rose 46.2% to USD 504 million. Power and Discrete products generated USD 477 million of revenue but recorded an operating loss of USD 81 million.

What has changed since the last report

The new report adds a clearer demand signal and a higher data-center contribution. Reuters, carried by Euronext, reported that ST now expects about USD 1.3 billion of data-center revenue in 2026, up from a July forecast of more than USD 1 billion. The company reiterated its 2027 target of well above USD 2 billion.

Management guides for fourth-quarter revenue of USD 4.15 billion at the midpoint, plus or minus 3.5%, and a gross margin of 39.0%, plus or minus 2.0 percentage points. The outlook implies sequential revenue growth of 10.5% and includes about 40 basis points of unused-capacity charges.

Share price context

Lang & Schwarz quoted the share at EUR 44.41 at 17:03:48 Berlin time on October 29, 2026. The price was EUR 43.58 at 10:10 a.m. in the earlier same-day report, so the latest quote was 1.90% higher. This is a comparison with the earlier report, not a Xetra daily performance measure.

For investors, the key question is whether stronger demand and better factory utilization can translate into sustained profitability. The company said third-quarter free cash flow was positive at USD 351 million, while restructuring and related phase-out costs of USD 55 million remained in operating income.