Netherlands' STMicroelectronics slightly beats Q3 revenue estimates on strength in CECP and personal electronics segments

STMicroelectronics

29/10/2026 06:12

Overview
Netherlands-based semiconductor maker's Q3 revenue up 17.9% yr/yr, slightly beating analyst expectations
Q3 adjusted EPS was $0.31; no analyst estimate provided for comparison
Q3 operating income missed analyst expectations

Outlook
STMicroelectronics expects Q4 net revenues of $4.15 bln, up 10.5% sequentially
Company sees Q4 gross margin at 39.0%
STMicroelectronics forecasts FY26 revenue of about $14.5 bln and gross margin of 36.4%

Result Drivers
SEGMENT GROWTH - Co said higher revenues in CECP and Personal Electronics drove Q3 results, per CEO Jean-Marc Chery
GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to lower unused capacity charges and improved product mix
DEMAND RECOVERY - Co said increased demand and strong bookings supported ongoing recovery across markets

Company press release: ID:nGNE8zbmF9

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$3.76 bln
$3.73 bln (12 Analysts)
Q3 EPS
 
$0.31
 
Q3 Net Income
 
$291 mln
 
Q3 Gross Margin
 
37.30%
 
Q3 Operating Income
Miss
$367 mln
$401.12 mln (10 Analysts)
Q3 EBIT Margin
 
9.80%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for STMicroelectronics N.V. is €69.00, about 59.1% above its October 28 closing price of €43.37
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 37 three months ago

Reuters Recommended Reads
Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales
Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates
Oct 28 - Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)