StockWatch
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Semiconductors
Quarterly ResultJul 23, 2026, 12:04 PM

STMicroelectronics Q2 Net Revenue $3.49B, EPS $0.24; Raises 2026 Datacenter Outlook

AI Summary

STMicroelectronics reported strong Q2 2026 financial results with net revenues of $3.49 billion, a 26.0% year-over-year increase, and diluted EPS of $0.24. The company saw increased demand and strong bookings across all end markets, leading to improved visibility and signs of tight supply. ST provided a Q3 2026 revenue outlook of $3.70 billion and raised its 2026 datacenter revenue ambition to over $1 billion, with expectations to exceed $2 billion in 2027.

Key Highlights

  • Q2 2026 net revenues reached $3.49 billion, up 26.0% year-over-year.
  • Diluted earnings per share (U.S. GAAP) was $0.24, compared to $(0.11) in Q2 2025.
  • Gross margin improved to 34.8%, an increase of 130 basis points year-over-year.
  • Operating income was $187 million, a significant improvement from a $133 million loss in Q2 2025.
  • Q3 2026 net revenue outlook is $3.70 billion, with a gross margin of 37.0%.
  • Raised 2026 datacenter revenue ambition to over $1 billion, targeting over $2 billion in 2027.
  • Analog products, MEMS and Sensors (AM&S) segment revenue increased 26.0% year-over-year.
  • Embedded Processing (EMP) segment revenue grew 35.5% year-over-year.