STMicroelectronics NV Earnings
On October 23, 2025, STMicroelectronics N.V. (ST), a global leader in semiconductor technology, reported its earnings for the third quarter of 2025, showing resilience and strategic growth amid industry challenges. With net revenues totaling $3.19 billion, the company achieved a gross margin of 33.2% and an operating income of $180 million, which included $37 million related to impairments, restructuring, and phase-out costs. The net income for the quarter was reported at $237 million, translating to diluted earnings per share (EPS) of $0.26 using U.S. GAAP standards, and $0.29 on a non-U.S. GAAP basis.
STMicroelectronics NV Results
Below are key financial metrics for STMicroelectronics' third quarter, providing insights into its performance:
| Metric | Q3 2025 | Q3 2024 | YOY Change (%) |
|---|---|---|---|
| Net Revenue | $3.19 billion | $3.26 billion | -2.0% |
| Gross Margin | 33.2% | 37.8% | -4.6% points |
| Operating Income | $180 million | $381 million | -52.8% |
| Net Income | $237 million | $351 million | -32.5% |
| Diluted EPS | $0.26 | $0.37 | -29.7% |
| Non-U.S. GAAP Net Income | $267 million | $351 million | -24.0% |
| Non-U.S. GAAP EPS | $0.29 | $0.37 | -21.6% |
ST reported a sequential revenue increase of 15.2%, exceeding mid-point expectations. However, the year-over-year figures were impacted by lower manufacturing efficiencies and a challenging economic environment.
Revenue Breakdown
The following table details revenue performance across ST's major business segments:
| Segment | Q3 2025 Revenue | Change vs Q3 2024 (%) |
|---|---|---|
| Analog, MEMS and Sensors (AM&S) | +7.0% | Positive momentum |
| Power and Discrete (P&D) | -34.3% | Significant decline |
| Embedded Processing (EMP) | +8.7% | Strong growth |
| RF & Optical Communications (RF&OC) | -3.4% | Moderate decline |
In-Depth Segment Performance
Analog, MEMS and Sensors saw a 7% revenue increase, driven primarily by advancements in imaging technology. Operating profit increased moderately by 2.1%, though the operating margin slightly decreased to 15.4% from 16.1% due to varying product mix.
Power and Discrete experienced a significant revenue decline of 34.3%, leading to an operational loss of $67 million, reflecting the ongoing challenges in the semiconductor industry and a shift away from certain production focuses.
The Embedded Processing segment exhibited robust growth attributed to general-purpose microcontrollers, with an 8.7% revenue hike and a 9.4% increase in operating profit.
RF & Optical Communications experienced a modest revenue dip of 3.4%, combined with a notable decrease in operating profit by 31.6%. The segment's operating margin fell from 23.4% to 16.6%.
Key Developments
Significant corporate developments for ST during this period include a definitive agreement to acquire NXP's MEMS sensor business for up to $950 million. This strategic move, set to close in 2026, aims to bolster ST's position in the MEMS market with enhanced technological capabilities.
Comments from Company Officers
Jean-Marc Chery, ST's President & CEO, acknowledged the mixed results, pointing out positive developments like the increased revenue from personal electronics and sustained performance in automotive and industrial sectors. Mr. Chery emphasized the company's strategic priorities: "Our strategic priorities remain clear: accelerating innovation; executing our company-wide program to reshape our manufacturing footprint and resize our global cost base, which remains on schedule to deliver the targeted savings; and strengthening free cash flow generation."
Dividends and Share Repurchases
Consistent with its commitment to returning value to shareholders, STMicroelectronics paid out $81 million in cash dividends and executed a $91 million share buyback during the third quarter. These actions reflect a continuing dedication to shareholder returns despite broader industry headwinds.
STMicroelectronics NV Stock Forecast
Given the financial performance and strategic developments at ST, such as the acquisition of NXP's MEMS sensor business, the outlook for the company's stock is cautiously optimistic. The strategic acquisition, combined with expected revenue growth in the fourth quarter, indicates ST's resilience and potential for recovery. The mid-point business outlook for the fourth quarter projects net revenues to rise to $3.28 billion with a gross margin of 35.0%.
Stock Projections : Based on fundamental analysis, including current performance and market conditions, we estimate a near-term stock price range for STMicroelectronics between $34 and $42. This reflects both the company's challenges and its proactive steps to capitalize on emerging market recovery and strategic investments.
Overall, while STMicroelectronics faces certain industry challenges, its strategic initiatives and operational adjustments position it for potential long-term growth within the semiconductor sector.
