Quarterly Revenue and Guidance
Q1 net revenues $3.1B (includes ~$40M from NXP MEMS). Q2 guidance $3.45B ±350bps (midpoint +11.6% sequential, +24.9% YoY). Company expects full-year 2026 revenues to show double-digit growth.
STMicroelectronics
· STM
April 23rd, 2026
Summary
- Earnings Call Date:
- 2026-04-23
- Change Since:
- +44.66%
- Next Earnings Date:
- 2026-07-23
Earnings Call Sentiment
PositiveThe call presents a largely positive commercial momentum with strong year‑over‑year growth across multiple segments, robust bookings, strategic wins (AWS engagement, photonics PIC100, NXP MEMS acquisition) and an upgraded 2026 top‑line outlook. However, near‑term profitability and cash generation are affected by restructuring charges, acquisition cash outflow, temporary manufacturing inefficiencies and higher OpEx to accelerate new opportunities. Management expects margins and operational benefits to improve sequentially through 2026 with more substantial benefits materializing in late 2027 and 2028.
Company Guidance
ST guided Q2 revenues of $3.45 billion (±350 basis points), which at the midpoint implies +11.6% sequential and +24.9% year‑over‑year growth, and said revenues should be well above average seasonality; Q2 gross margin is expected to be about 34.8% (±200 bps) including roughly 100 bps of unused‑capacity charges (non‑U.S. GAAP gross margin ~35.2%), while Q2 non‑U.S. GAAP net OpEx is guided to $950–$960 million (higher sequentially due to calendar effects, start‑up costs and one extra month of NXP MEMS OpEx). For full‑year 2026, like‑for‑like net OpEx is expected up mid‑to‑high single digits y/y (low‑double‑digit up including the NXP acquisition and FX, with ~ $50M of added NXP OpEx and an FX assumption around $/€1.15–1.16); the company reiterated data‑center revenues “nicely above” $500M in 2026 and well above $1B in 2027, reaffirmed a path to sequential gross‑margin improvement (despite ~50 bps of nonrecurring reshaping costs persisting this year) and the longer‑term target of >40% gross margin when quarterly revenues exceed ~$4B.
Strong Year‑over‑Year Segment Growth
Year-over-year growth by reportable segment: Analog/MEMS & Sensors +23.2%, Embedded Processing +31.3%, RF & Optical Communication +33.9%; Power & Discrete slightly down -1.8%. By end market: Communication Equipment & Computer Peripherals +41%, Industrial +26%, Personal Electronics +21%, Automotive +15%.
Data Center & AI Opportunity
Confirmed data center revenue targets: 'nicely above' $500M for 2026 and 'well above' $1B for 2027. Multiple design wins (silicon and SiC power, photonics) and expanded multiyear multi‑billion USD engagement with AWS to enable cloud/AI infrastructure.
Profitability Trends and Q2 Margin Outlook
Q1 gross margin 33.8% (34.1% ex-PPA); YoY gross margin +40bps. Q2 gross margin guidance ~34.8% (non-GAAP ~35.2%). Management expects sequential gross margin improvement through H2 2026.
Operational Wins & Production Milestones
Start of high-volume production for silicon photonics PIC100 platform; first batch of STM32 wafers fully produced in China delivered to customers; secured multiple design wins in 800V DC AI data center power conversion and expanded 800V portfolio with NVIDIA.
Bookings, Design Momentum and Market Position
Booking momentum strong with book-to-bill well above 1 across end markets. Design wins across automotive (EV/Hybrid/onboard chargers, ADAS sensors), industrial (robotics, automation), LEO satellites and personal electronics. Ranked #1 worldwide for general purpose microcontrollers for the 5th consecutive year (Omdia).
Strategic Acquisition Completed
Completed acquisition of NXP's MEMS sensor business in February; adds complementary accelerometer/6-axis capabilities, strengthens automotive sensor portfolio and contributed ~$40M revenue in Q1.
Sustainability Progress
Issued annual integrated sustainability report; on track for carbon neutrality (Scopes 1 & 2 + certain Scope 3 categories) by 2027 and sourcing 86% renewable electricity in 2025 with a 2027 target of 100%.
Operator
Ladies and gentlemen, welcome to the STMicroelectronics First Quarter 2026 Earnings Release Conference Call and Live Webcast. I am Moira, the Chorus Call operator. [Operator Instructions] The conference is being recorded. The conference must not be recorded for publication or broadcast. [Operator Instructions] At this time, it's my pleasure to hand over to Jerome Ramel, EVP, Corporate Development and Integrated External Communications. Please go ahead.
Jerome Ramel
Thank you, Moira. Thank you, everyone, for joining our first quarter 2026 financial results call. Hosting the call today is Jean-Marc Chery, ST President and Chief Executive Officer. Joining Jean-Marc on the call are Lorenzo Grandi, President and CFO; and Marco Cassis, President, Analog, Power and Discrete, MEMS and Sensor Group, and Head of STMicroelectronics Strategy, System Research and Applications and Innovation Office. This live webcast and presentation materials can be accessed on ST Investor Relations website. A replay will be available shortly after the conclusion of this call. This call will include forward-looking statements that involve risk factors that could cause ST results to differ materially from management expectations and plans. We encourage you to review the safe harbor statement contained in the press release that was issued with the results this morning and also in ST's most recent regulatory filings for a full description of these risk factors.
Also, to ensure all participants have an opportunity to ask questions during the Q&A session, please limit yourself to one question and a brief follow-up. Now I...
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