STMicroelectronics (STM) Earnings Date & Reports

Key Takeaways

• STM is expected to report third-quarter 2026 results (the fiscal quarter ended September 26, 2026) in late October 2026.
• Company guidance points to Q3 2026 net revenues of about $3.70 billion at the midpoint, up 6.2% sequentially and 16.2% year over year.
• Management expects gross margin of approximately 37.0%, an improvement from the 34.8% reported in Q2 2026.
• Q2 2026 results beat expectations, with revenue of $3.49 billion and non-GAAP diluted earnings per share of $0.31.
• AI data center demand is a central theme after management raised its 2026 data center revenue target to above $1 billion.
• Despite the Q2 beat, shares fell sharply after that report, making investor sentiment a key item to watch this quarter.

Earnings Context and Why It Matters

STMicroelectronics (STM) is one of Europe's largest semiconductor manufacturers, serving automotive, industrial, personal electronics, and communications customers. Its upcoming quarterly earnings matter because they test whether the broad demand recovery that began in 2025 is still accelerating. The report will show whether strength in communications equipment and AI data centers — where optical connectivity and silicon photonics have become major growth drivers — can offset lingering softness in power and discrete products. Investors are also watching how quickly the company's restructuring program, aimed at reshaping its manufacturing footprint and reducing costs, translates into higher margins. With shares volatile around earnings, this release is a key signal for the wider chip cycle.

Earnings Expectations

For the third quarter of 2026, STMicroelectronics has guided for net revenues of $3.70 billion at the midpoint, within a range of plus or minus 350 basis points. That implies roughly 6.2% sequential growth and 16.2% year-over-year growth. Gross margin is expected to be about 37.0%, plus or minus 200 basis points, including roughly 70 basis points of unused-capacity charges.

These targets follow a strong second quarter, when STM reported net revenues of $3.49 billion, up 26.0% year over year and about 1% above the consensus estimate. Non-GAAP diluted earnings per share came in at $0.31, beating the consensus of roughly $0.26 by about 19%. Bookings strengthened further, with a book-to-bill ratio close to two, and distribution-channel inventory fell below the company's standard target. Key metrics to watch this quarter include the book-to-bill ratio, data center and optical-connectivity revenue, and whether the Power & Discrete segment narrows its operating loss.

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Market Reaction and Investor Sentiment

Sentiment around STM heading into its third-quarter report is mixed. In the second quarter, the company delivered a clear beat on both revenue and earnings, yet the stock still dropped sharply in pre-market trading following the release — a reminder that forward guidance and valuation can matter more to investors than headline results. For this quarter, investors will weigh management's improving gross-margin trajectory and strong data center momentum against concerns about the persistently negative margins in Power & Discrete products and ongoing restructuring charges. Commentary on supply tightness, bookings, and the fourth-quarter outlook is likely to drive the stock's reaction more than the headline numbers alone.

Forward Outlook and Key Factors to Monitor

Beyond the third-quarter print, management has signaled that revenue growth should accelerate in the fourth quarter, driven by engaged customer programs in AI data centers and low-earth-orbit (LEO) satellite communications. The company expects fourth-quarter revenues above $4 billion, implying second-half growth above its normal seasonal pattern.

The data center opportunity is a key watch item. STM now expects data center revenues above $1 billion in 2026, with ambitions to reach well above $2 billion in 2027 if current demand and customer engagements continue. Optical connectivity — spanning silicon photonics, electronic ICs, and microcontrollers — is central to this story.

Investors should also monitor the progress of the company-wide cost and manufacturing restructuring, which continues to generate impairment and phase-out charges. Net capital expenditures are expected at the high end of the $2.0 billion to $2.2 billion range for 2026, reflecting investment in growth areas. A recovery in the Power & Discrete segment, the trajectory of gross margin toward management's longer-term targets, and any impact from global trade tariffs remain important factors to follow in the quarters ahead.

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