STMicroelectronics N.V. is a global semiconductor company that designs, develops, manufactures, and markets a broad range of semiconductor products. Its offerings include ...
STMicroelectronics N.V. (STM) is a large, global semiconductor innovator focused on technologies used across everyday electronics. The company operates across the semiconductor value chain—designing and developing devices, manufacturing them, and selling them to customers—supporting products in areas such as smart mobility, energy-efficient electronics, and IoT-enabled systems. ST positions itself as ...STMicroelectronics N.V. (STM) is a large, global semiconductor innovator focused on technologies used across everyday electronics. The company operates across the semiconductor value chain—designing and developing devices, manufacturing them, and selling them to customers—supporting products in areas such as smart mobility, energy-efficient electronics, and IoT-enabled systems. ST positions itself as a leader in intelligent and energy-efficient semiconductor solutions, emphasizing technologies for a “smarter, greener, more sustainable future.”
From a product perspective, ST’s portfolio spans multiple high-demand categories. The provided overview highlights analog integrated circuits, discrete power semiconductors, microcontrollers, and sensors. These building blocks are used in systems that require precise control (analog), efficient conversion and power handling (power/discrete semiconductors), embedded processing (microcontrollers), and measurement/detection (sensors). In terms of end markets, ST is particularly strong in automotive and industrial applications, where semiconductor reliability, long-life qualification processes, and performance under harsh conditions matter.
Business-wise, ST’s manufacturing and technology capabilities support long-term customer programs and high-volume electronics. As a major semiconductor supplier, it typically works with OEMs and electronics manufacturers to deliver device roadmaps that align with platform lifecycles. The company’s long-term competitiveness depends heavily on process technology, device design, and ongoing R&D. The investor-relations excerpt also indicates extensive R&D investment and a large patent footprint (thousands of active/pending patents), reflecting a strong technology-development focus.
Cost and operating considerations in semiconductors often depend on wafer/process technology, utilization, and supply-chain execution. The dataset’s profitability margins (e.g., net profit margin around the mid-3% range; operating margin around the high-5% range) and returns (e.g., return on equity and assets in the low-to-mid single digits) are consistent with the structured, capital-intensive nature of semiconductor manufacturing and the variability that can arise from demand cycles.
Key management includes Jean-Marc Chery, who serves as President and Chief Executive Officer (since May 2018). ST’s scale (over 50,000 employees worldwide) supports global operations spanning R&D, product design, manufacturing, and commercial delivery.
Overall, ST’s aim is to keep expanding its technology leadership in power, automotive-focused semiconductors, sensing, and embedded processing, while pairing that innovation with sustainability and efficiency improvements that reduce energy usage in end products and support more environmentally responsible electronics.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$11.8B
-10.8%
+12.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$166.5M
-89.3%
+500.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+33.9%
-13.9%
+3.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.7%
-78.3%
+103.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.4%
-88.0%
+432.5%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-52.0M
+75.9%
-178.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-0.4%
+73.0%
-169.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
12.0%
-34.1%
+57.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.36x
+8.2%
-16.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, welcome to the STMicroelectronics Second Quarter 2026 Earnings Release Conference Call and Live Webcast. I am Moira, the Chorus Call operator. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jerome Ramel, EVP, Corporate Development and Integrated External Communications. Please go ahead.
Jerome Ramel: Thank you, Moira, and thank you, everyone, for joining our second quarter 2026 financial results call. Hosting the call today is Jean-Marc Chery, ST President and Chief Executive Officer. Joining Jean-Marc on the call are Lorenzo Grandi, President and CFO; Marco Cassis, President, Analog, Power and Discrete, MEMS and Sensors Group, and Head of STMicroelectronics Strategy, System Research and Applications and Innovation Office; and Remi El-Ouazzane, President of Microcontrollers, Digital ICs and RF Products Group. This live webcast and presentation materials can be accessed on ST Investor Relations website. A replay will be available shortly after the conclusion of this call. This call will include forward-looking statements that involve risk factors that could cause ST results to differ materially from management expectations and plans. We encourage you to review the safe harbor statement contained in the press release that was issued with the results this morning and also in ST's most recent regulatory filings for a full description of these risk factors. Also, to ensure all participants have an opportunity to ask questions during the Q&A session, please limit yourself to one question and a brief follow-up. Now I'd like to turn the call over to Jean-Marc Chery, ST President and CEO.
Jean-Marc Chery: Thank you, Jerome. Good morning, everyone, and thank you for joining ST for our Q2 2026 earnings conference call. I will start with an overview of the second quarter, including business dynamics. And I will hand over to Lorenzo for the detailed financial overview. I will then comment on the outlook and conclude before answering your question. So starting with Q2. Our second quarter net revenues of $3.49 billion came in above the midpoint of our business outlook range, driven by higher revenues in Communication Equipment, Computer Peripherals and Automotive. Gross margin was 34.8% and non-U.S. GAAP gross margin was 35.2%. Both were in line with the midpoint of our business outlook range. Non-U.S. GAAP diluted earnings per share was $0.31. During the second quarter, inventory in our balance sheet remained flattish. In distribution, inventory further decreased and is now below our standard target. We generated a positive $75 million free cash flow. Let's now discuss our business dynamics during Q2. During the quarter, demand increased further with strong bookings and book-to-bill close to 2 overall. We were well above 1 in all end markets and significantly above 2 in Communication Equipment & Computer Peripherals, mostly driven by …
