Q2 2026 STMicroelectronics NV Earnings Call Transcript
Key Points
- STMicroelectronics NV (STM) reported Q2 2026 net revenues of $3.49 billion, exceeding the midpoint of their business outlook range.
- Automotive revenues increased 14% sequentially and 16% year-over-year, driven by strong demand for application-specific ICs and sensors.
- The company secured significant design wins in automotive, industrial automation, and AI data centers, indicating strong future growth potential.
- STMicroelectronics NV (STM) is raising its revenue ambition for data centers, expecting revenues above $1 billion in 2026 and well above $2 billion in 2027.
- The integration of NXP MEMS sensor business is progressing well, strengthening their automotive sensor business.
- Gross margin was impacted by non-recurring costs related to the manufacturing reshaping program, with a negative impact expected to persist throughout the year.
- Personal electronics revenue growth is expected to be below normal seasonality in Q3, moderating sequential growth.
- The company faces temporary tightness in supply for general-purpose microcontrollers due to strong demand.
- STMicroelectronics NV (STM) is still in the process of completing its manufacturing reshaping program, affecting optimal efficiency and gross margin targets.
- Legacy analog technology ramp-up delays have impacted the company's capability to fully meet demand in Q3.
Thank you everyone for joining our second-quarter 2026 financial result 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; Marc Cassis, President, Analog Power and Discrete, MEMS and Sensor Group, and Head of STMicroelectronics Strategy, System Research and Application and Innovation Office; and Remi El-Quazzane, President, Microcontrollers, Digitalizing and RF Product Groups.
These live webcasts 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's what issued with the results this
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