STMicroelectronics N.V. · STM · FY2025 Q4 · Calendar Q1 2026
STMicroelectronics: Recovery Signs Meet Margin and Demand Risks
The call presents a tentative recovery rather than a broad-based rebound. Management cited Q4 year-over-year growth and several potential demand drivers, but the full-year decline, expected sequential Q1 revenue drop, and margin pressure leave execution and demand recovery unproven.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Compared with the prior quarter's emphasis on improving inventory and Q4 margin recovery, the current call shifts focus to the full-year revenue decline, Q1 sequential softness, and a larger 2026 investment plan. Management still points to automotive ADAS, silicon carbide, industrial microcontrollers, sensors, and optical interconnects as growth opportunities.
Guidance delta
Guidance sentiment was characterized as maintained. The supplied analysis indicates Q1 revenue is expected to decline sequentially, with gross margin near current levels; planned 2026 capital spending increases to support optical-interconnect capacity and manufacturing reshaping.
Key takeaways
- Q4 returned to year-over-year revenue growth, but FY2025 revenue declined.
- Management expects a sequential revenue decline in Q1 2026.
- Gross margin was pressured by product mix and unused capacity charges; management expects improvement in 2026.
- Optical interconnect demand, automotive ADAS, silicon carbide, industrial microcontrollers, and the NXP MEMS business are identified as potential growth drivers.
Management priorities
- Reshape manufacturing capacity and address unused-capacity costs.
- Invest in optical-interconnect capacity and manufacturing changes.
- Launch newer STM32 and wireless microcontrollers and expand edge-AI products.
- Integrate the NXP MEMS sensor business and develop additional sensor offerings.
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Analyst 52W Price Targets
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Nov 2, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| TD Cowen | Hold | Hold | Maintain | Oct 20, 2026 |
| Goldman Sachs | Neutral | Neutral | Maintain | Jul 27, 2026 |
| Mizuho | Outperform | Outperform | Maintain | Jul 24, 2026 |
| Susquehanna | Positive | Positive | Maintain | Jul 21, 2026 |
| B of A Securities | Neutral | Neutral | Maintain | Jun 2, 2026 |
| Baird | Outperform | Neutral | Upgrade | Jul 22, 2025 |
| Jefferies | Buy | Hold | Upgrade | Feb 19, 2025 |
| Bernstein | Market Perform | Outperform | Downgrade | Feb 5, 2025 |
| Barclays | Underweight | Equal Weight | Downgrade | Jan 22, 2025 |
| JP Morgan | Neutral | Overweight | Downgrade | Dec 9, 2024 |
| Craig-Hallum | Buy | Buy | Maintain | Oct 31, 2024 |
| Berenberg | Buy | Hold | Upgrade | Apr 23, 2024 |
| Cowen & Co. | Outperform | Outperform | Maintain | Jan 27, 2023 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Nov 8, 2022 |
| William Blair | Perform | Market Perform | Maintain | Oct 17, 2022 |
| Canaccord Genuity | Buy | Buy | Maintain | Apr 30, 2021 |
| UBS | Neutral | Buy | Downgrade | Jan 13, 2021 |
| Citigroup | Buy | Neutral | Upgrade | Mar 19, 2020 |
| Bank of America | Buy | Neutral | Upgrade | May 31, 2019 |
| Deutsche Bank | Hold | Buy | Downgrade | Sep 26, 2018 |
| Kepler Cheuvreux | Hold | Reduce | Upgrade | Jan 26, 2018 |
| Stifel Nicolaus | Buy | Hold | Upgrade | Jun 27, 2017 |
| Stifel | Buy | Hold | Upgrade | Jun 27, 2017 |
| Credit Suisse | Neutral | Underperform | Upgrade | Jan 27, 2017 |
| Natixis | Buy | Buy | Maintain | Sep 14, 2015 |
| HSBC | Hold | Reduce | Upgrade | Jul 24, 2015 |
| Banca Akros | Accumulate | Reduce | Upgrade | May 13, 2015 |
| Exane BNP Paribas | Neutral | Outperform | Downgrade | Jan 17, 2014 |
| Williams Capital | Sell | Sell | Maintain | Apr 24, 2012 |
Named analyst price targets
Upside is calculated against the persisted previous close $46.74. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Mizuho Securities | Vijay Rakesh | $70 | $49.13 | +49.8% | Oct 29, 2026 |
| Goldman Sachs | Alexander Duval | $60.5 | $51.54 | +29.4% | Jul 27, 2026 |
| Barclays | Simon Coles | $60 | $52.37 | +28.4% | Jul 24, 2026 |
| Mizuho Securities | Analyst unavailable | $80 | $53.13 | +71.2% | Jul 24, 2026 |
| Craig-Hallum | Analyst unavailable | $70 | $54.6 | +49.8% | Jul 23, 2026 |
| Susquehanna | Analyst unavailable | $75 | $64.58 | +60.5% | Jul 21, 2026 |
| UBS | Analyst unavailable | $100 | $73.32 | +113.9% | Jun 10, 2026 |
| Mizuho Securities | Vijay Rakesh | $84 | $79.51 | +79.7% | Jun 3, 2026 |
| Raymond James | Analyst unavailable | $83 | $80.26 | +77.6% | Jun 2, 2026 |
| Mizuho Securities | Analyst unavailable | $68 | $60.96 | +45.5% | May 19, 2026 |
| Robert W. Baird | Analyst unavailable | $90 | $49.71 | +92.6% | Apr 24, 2026 |
| Craig-Hallum | Analyst unavailable | $58 | $44.86 | +24.1% | Apr 23, 2026 |
| Mizuho Securities | Analyst unavailable | $48 | $41.57 | +2.7% | Apr 16, 2026 |
| Seaport Global | Analyst unavailable | $34 | $32.49 | -27.3% | Feb 9, 2026 |
| Mizuho Securities | Analyst unavailable | $28 | $28.71 | -40.1% | Jan 9, 2026 |
| Mizuho Securities | Analyst unavailable | $26 | $26.47 | -44.4% | Dec 16, 2025 |
| Mizuho Securities | Vijay Rakesh | $22 | $22.11 | -52.9% | Nov 25, 2025 |
| Robert W. Baird | Analyst unavailable | $45 | $25.26 | -3.7% | Oct 24, 2025 |
| Susquehanna | Christopher Rolland | $40 | $30.54 | -14.4% | Oct 22, 2025 |
| Goldman Sachs | Alexander Duval | $26.5 | $26.32 | -43.3% | Jul 25, 2025 |
| Susquehanna | Christopher Rolland | $28 | $22.45 | -40.1% | Jan 31, 2025 |
| Craig-Hallum | Anthony Stoss | $36 | $27.07 | -23.0% | Oct 31, 2024 |
| Susquehanna | Christopher Rolland | $35 | $27.99 | -25.1% | Oct 21, 2024 |
| Craig-Hallum | Anthony Stoss | $42 | $33.46 | -10.1% | Jul 25, 2024 |
| Citigroup | Spiro Dounis | $65 | $43.08 | +39.1% | Jun 18, 2024 |
| Goldman Sachs | Alexander Duval | $45.8 | $43.1 | -2.0% | Jun 17, 2024 |
| Susquehanna | Analyst unavailable | $50 | $38.24 | +7.0% | Dec 12, 2022 |
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Start freeCompany context
Snapshot as of publicationSTMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures, and markets a broad range of semiconductor products. Its offerings include analog chips, discrete power semiconductors, microcontrollers, and sensors, with a strong presence in the automotive and industrial sectors.
Historical context
All STM earningsTechnology peers this season
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| INTC Intel Corp. | FY2026 Q3 · Calendar Q4 2026 | +27.9% | -28.6% | Intel: AI Server Demand Offsets PC Weakness, CapEx Rises |
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| MPWR Monolithic Power Systems, Inc. | FY2026 Q3 · Calendar Q4 2026 | +5.1% | +1.1% | MPWR tops $1 billion in revenue as data-center demand accelerates |
| TWLO Twilio Inc. | FY2026 Q3 · Calendar Q4 2026 | +12.2% | -15.2% | Twilio raises growth outlook as AI and software adoption expand |
| SNDK Sandisk Corporation | FY2027 Q1 · Calendar Q4 2026 | +6.1% | -13.5% | SNDK: AI-driven NAND demand remains strong, but execution risks persist |
| RBLX Roblox Corporation | FY2026 Q3 · Calendar Q4 2026 | +26.2% | -18.1% | Roblox pairs strong engagement with lower Q4 bookings guidance |
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars · 2026-11-02T07:40:48.637814+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-11-02T07:40:48.634991+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-11-02. For educational purposes only; not investment advice.