STMicroelectronics expects Q3 2025 revenues to rise 14.6% sequentially amid industrial recovery and automotive volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 24 2025
0mins
Source: SeekingAlpha
Management Insights: STMicroelectronics reported Q2 2025 revenues of $2.77 billion, with strong growth in Personal Electronics and Industrial sectors, despite a decline in Automotive revenue due to customer-specific issues. The company anticipates sequential growth for Q3 and aims for gross margin improvement in Q4 while managing restructuring costs.
Financial Performance: The company experienced a net operating loss of $133 million in Q2, primarily due to restructuring and impairment costs, while free cash flow was negative at $152 million. Analysts expressed concerns about automotive revenue volatility and inventory normalization, but management remains optimistic about recovery in Industrial and Personal Electronics.
Analyst Views on STM
Wall Street analysts forecast STM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STM is 33.25 USD with a low forecast of 25.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 29.030
Low
25.00
Averages
33.25
High
45.00
Current: 29.030
Low
25.00
Averages
33.25
High
45.00
About STM
STMicroelectronics N.V. is a Netherlands-based semiconductor company. It designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company's segments include Automotive and Discrete Group (ADG), Analog, MEMS and Sensors Group (AMS), and Microcontrollers and Digital ICs Group (MDG). The ADG segment comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. The AMS segment includes low-power analog ICs for all markets, smart power products; Touch Screen Controllers, Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products, among others. The AMS segment comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
