Q3 Financial Performance: STMicroelectronics reported a Q3 Non-GAAP EPS of $0.29, beating expectations by $0.07, with revenue of $3.19 billion, slightly down 1.8% year-over-year but exceeding estimates by $20 million.
Cash Flow and Capex: The company generated $549 million in net cash from operating activities, down from $723 million a year ago, and reduced its net capital expenditures to $401 million from $565 million in the previous year.
Fourth Quarter Outlook: For Q4 2025, STMicroelectronics anticipates net revenues of $3.28 billion, a 2.9% sequential increase, with a gross margin expected around 35.0%, although this is below consensus estimates.
Long-term Projections: The company projects full-year 2025 revenues of approximately $11.75 billion, indicating a 22.4% growth in the second half compared to the first half, while also adjusting its net capex plan to slightly below $2 billion for FY25.
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
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.
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
Mizuho
Neutral
maintain
$26 -> $28
2026-01-09
Reason
Mizuho
Price Target
$26 -> $28
AI Analysis
2026-01-09
maintain
Neutral
Reason
Mizuho raised the firm's price target on STMicroelectronics to $28 from $26 and keeps a Neutral rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.
Mizuho
Neutral
maintain
$22 -> $26
2025-12-16
Reason
Mizuho
Price Target
$22 -> $26
2025-12-16
maintain
Neutral
Reason
Mizuho raised the firm's price target on STMicroelectronics to $26 from $22 and keeps a Neutral rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group heading into 2026. U.S. electric vehicle sales were down 20%-50% month-over-month in October and November, and 2026 launch cancels and delays will be a headwind in 2026, the analyst tells investors in a research note. Mizuho sees a mixed sector outlook with EV headwinds for the analog and auto component supply chain, with industrials potentially performing better.
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Mizuho
Vijay Rakesh
Neutral
initiated
$22
2025-11-25
Reason
Mizuho
Vijay Rakesh
Price Target
$22
2025-11-25
initiated
Neutral
Reason
Mizuho analyst Vijay Rakesh initiated coverage of STMicroelectronics with a Neutral rating and $22 price target. The firm views STM as a leading European analog manufacturer with long-term tailwinds that are being offset by near-term headwinds. China electric vehicle growth is slowing and the company's recovery in industrial is "muted," the analyst tells investors in a research note.
Berenberg
Buy
downgrade
2025-10-27
Reason
Berenberg
Price Target
2025-10-27
downgrade
Buy
Reason
Berenberg lowered the firm's price target on STMicroelectronics to EUR 26 from EUR 28 and keeps a Buy rating on the shares.
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.
