GET DAILY SIGNALSSTMicroelectronics (STM): Q1 2026 Revenue Climbs +23% YoY, Beats Estimates on AI and Automotive Momentum
Key Takeaways
- STMicroelectronics reported Q1 2026 net revenues of $3.10 billion, up 23% year-over-year and beating consensus estimates of approximately $3.05 billion.
- GAAP gross margin reached 33.8%, with non-GAAP gross margin at 34.1%, above the midpoint of guidance.
- Non-GAAP diluted earnings per share (EPS) came in at $0.13, up 85.7% year-over-year but missing analyst expectations of around $0.18.
- Q2 2026 guidance projects net revenues of $3.45 billion at the midpoint, signaling 11.6% sequential growth.
- Strong bookings and AI-driven demand position data center revenues to exceed $500 million for full-year 2026.
- Shares surged over 6% in premarket trading following the release, reflecting optimism despite the EPS miss.
Earnings Context: Why These Results Matter for STM Investors
STMicroelectronics (STM), a key player in semiconductors for automotive, industrial, and consumer electronics, has just shared its Q1 2026 results as the chip sector shows signs of recovery. Following a tough 2025 marked by inventory adjustments, these figures point to strengthening demand, especially in AI infrastructure and personal electronics. From what I see, investors like us are focused on whether this signals a lasting rebound, margin improvements, and smooth execution on moves like the NXP MEMS sensor acquisition. With auto production picking up globally and AI data center opportunities on the rise, this report sheds light on STM's edge over peers such as NXP and Infineon—shaping stock valuations and overall sector outlook in these uncertain times.
Breaking Down the Reported Q1 Numbers
On April 23, 2026, STMicroelectronics released its Q1 2026 results for the quarter ended March 28, 2026. Net revenues hit $3.095 billion, down 7% from the prior quarter but up 23% year-over-year, clearing both the company's guidance midpoint and consensus estimates of $3.05 billion. I also checked this using Tickeron’s AI Screener to see how STM stacks up against industry peers, and the growth stemmed from stronger sales in personal electronics and cloud-edge computing products (CECP), though partly offset elsewhere.
GAAP gross margin improved to 33.8%, up 40 basis points year-over-year, while non-GAAP gross margin—excluding Purchase Price Allocation (PPA) effects from the NXP acquisition—was 34.1%. GAAP operating income stood at $70 million, non-GAAP at $171 million. GAAP net income was $37 million, or $0.04 diluted EPS; non-GAAP net income reached $122 million, or $0.13 per diluted share, which fell short of consensus by about $0.05.
Segment-wise, Automotive, Microcontrollers & Sensors (AM&S) delivered $1.318 billion in revenues, up 23.2% year-over-year. Personal Computers & Displays (P&D) came in at $389 million, down 1.8%. Other areas like EMP and RFOC posted solid growth. Management highlighted strong bookings and normalized distribution inventory as encouraging signs.
Market Reaction and What Investors Are Focusing On
STM shares rose more than 6% in premarket trading after the release, pushing toward recent highs. The revenue beat and positive Q2 guidance overshadowed the EPS miss, with the market latching onto robust demand indicators, bookings strength, and AI exposure as proof of sector recovery. In my view, sentiment is cautiously optimistic, though execution will be key amid macro challenges and competitive pressures.
A Tool I Rely On for Deeper Insights: Tickeron’s AI Screener
One resource I turn to regularly in my analysis is Tickeron’s AI Screener, an AI-powered tool for discovering stocks and ETFs. It lets me filter thousands of names using technical patterns, fundamentals, trends, volatility, and AI signals—customizing by industry, market cap, indicators, price patterns, and performance metrics. This streamlines finding trade ideas, breakout candidates, and opportunities far faster than manual scans, enhancing my research process. I’ve found it particularly useful for sizing up STM in context.
Forward Outlook: Q2 Guidance and Key Metrics to Track
STMicroelectronics guided Q2 2026 net revenues to $3.45 billion at the midpoint, implying 11.6% sequential growth and 24.9% year-over-year. GAAP gross margin is expected at 34.8% (including ~100 basis points of unused capacity charges), with non-GAAP at 35.2%. This reflects ongoing momentum in customer programs and better market dynamics.
One thing that stands out is the push toward full-year data center revenues over $500 million in 2026, scaling above $1 billion in 2027, fueled by AI infrastructure. I’m watching segments like Automotive & Discrete & Power (AM&S), the NXP MEMS integration and its PPA effects closely. Broader trends in semiconductor inventory normalization, auto production, and supply chain geopolitics will matter too. Strong bookings suggest upside potential, but keep an eye on margin strains from unused capacity and restructuring. Next up: Q2 results in July and AI program updates.
Disclaimer
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STM in downward trend: 10-day moving average crossed below 50-day moving average on October 16, 2026
The 10-day moving average for STM crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 14 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 88%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on STM as a result. In 68 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 73%.
The Moving Average Convergence Divergence Histogram (MACD) for STM turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 41 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
STM moved below its 50-day moving average on October 09, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where STM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 74%.
The Aroon Indicator for STM entered a downward trend on September 23, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 10 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.99% 3-day Advance, the price is estimated to grow further. Considering data from situations where STM advanced for three days, in 206 of 298 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
STM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 1 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.138) is normal, around the industry mean (6.022). STM's P/E Ratio (-880.400) is considerably lower than the industry average of (20.769). Projected Growth (PEG Ratio) (0.195) is also within normal values, averaging (3.761). Dividend Yield (0.008) settles around the average of (0.012) among similar stocks. P/S Ratio (3.370) is also within normal values, averaging (45.794).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 58 (best 1 - 100 worst), indicating steady price growth. STM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 91 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. STM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock worse than average.
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