# STMicroelectronics (STM)

Sector: Semiconductors

| Field | Value |
|---|---|
| Price | $46.26 |
| Market cap | $41B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-12 |
| Next earnings | 2027-01-28 (estimate) |

Analysts: Leaning bullish

Picks: Research only

Discount category: Below intrinsic value

## In short

The market prices ST as a cyclical chipmaker with profit that lags its sales and heavy capacity spending, and sales growth with a higher gross margin and new data center products can lift its value.

## Themes and gap

- Themes: AI supplier (ai-supplier), Tariffs and trade (trade-tariffs)
- Gap type: Can close (closable)
- Why: The Q4 report in January 2027 and the 2027 outlook show whether gross margin reaches 39.0% and demand stays above supply.

## About

STMicroelectronics (ST) designs and makes semiconductors. It is a Dutch company that runs its operations from Geneva, Switzerland. It sells chips for cars, factories, personal electronics, communications equipment and data centers. ST reports four segments: Analog products, MEMS and Sensors (AM&S); Power and discrete products (P&D); Embedded Processing (EMP); and RF Optical Communications (RFOC). Net revenues were $3,757 million in Q3 2026 and $10,339 million in the first nine months of 2026. In 2025, net revenues were $11.80 billion, and its largest customer, Apple, was 17.7% of them (20-F). In 2026, ST bought NXP's MEMS sensor business for $895 million in cash. Jean-Marc Chery is President and Chief Executive Officer. ST files a 20-F each year and furnishes its quarterly results on Form 6-K. The pick is the ordinary share on the NYSE (STM), in US dollars.

## Thesis

The market prices ST as a cyclical chipmaker whose profit has not yet recovered as fast as its sales. Net revenues rose 17.9% to $3,757 million in Q3 2026, and gross margin rose to 37.3% from 33.2%. But the non-U.S. GAAP operating margin was only 11.4%, the Power and discrete segment lost $81 million in the quarter, and net capex was $643 million. ST also depends on one customer, Apple, for 17.7% of 2025 revenue. For the price to rise, ST must reach its Q4 outlook of $4.15 billion in net revenues at a gross margin of about 39.0%, keep demand above supply, and turn its data center and satellite products into steady sales. It expects data center revenue of about $1 billion in 2026 and says it could double in 2027. Its program to reshape its factories and cut its cost base must also lower costs. The Q4 report in late January 2027 and the 2027 outlook are the next tests. If the recovery holds, the gap can close within about two years.

## Checkpoints

- Oct 29, 2026: Q3 2026 results: net revenues against the outlook. Status: Passed. Watch: Net revenues at or above the mid-point of the outlook range pass; below fail. Outcome: Net revenues were $3,757 million, above the mid-point of the outlook range.
- Jan 28, 2027 (estimate): Q4 2026 results: net revenues and gross margin. Status: Pending. Watch: Net revenues of $4.15 billion or more and a gross margin of 39.0% or more pass; less fails.
- Jul 2027 (estimate): Q2 2027 results: operating margin. Status: Pending. Watch: A non-U.S. GAAP operating margin of 14% or more in Q2 2027 passes; less fails.

## Balance sheet

- Cash: $5.3B
- Debt: $3.2B
- Net cash: $2.1B
- Debt due within 12 months: $309M

At September 26, 2026, ST had total liquidity of $5,312 million: cash and cash equivalents of $2,612 million, short-term deposits of $1,400 million and marketable securities of $1,300 million. Total financial debt was $3,206 million, with $309 million due within a year. The net financial position was $2.11 billion, and $1.81 billion after capital grant advances for which capex has not yet been spent. In Q3, net cash from operating activities was $1,020 million, net capex was $643 million and free cash flow was $351 million. ST settled its $750 million convertible bonds in cash and treasury shares in Q3. It had 895,970,755 shares outstanding. All amounts are in US dollars.

As of 2026-09-26.

Sources:

- https://www.sec.gov/Archives/edgar/data/932787/000093278726000086/c3419c-q326earningspressre.htm
- https://www.sec.gov/Archives/edgar/data/932787/000093278726000094/stm-6k_q3x2026.htm

## Dividends

- Dividend yield: 0.8% (last 12 months, at the current price)
- Paid per share, last 12 months: $0.36 (4 payments)
- Current annual rate: $0.36 ($0.09 x 4 a year)
- Latest ex-dividend date: 2026-09-22, $0.09 per share
- Growth from 2020 to 2025: 14.1% a year
- Growth from 2015 to 2025: -1.0% a year

Dividends per share by year: 2016: $0.28, 2017: $0.24, 2018: $0.24, 2019: $0.24, 2020: $0.186, 2021: $0.222, 2022: $0.24, 2023: $0.24, 2024: $0.33, 2025: $0.36.

Source: company filings and market data, read on 2026-11-13.

## Recent events

- 2026-10-29: ST reported Q3 2026 results. Net revenues were $3,757 million, up 17.9%, gross margin was 37.3%, operating income was $367 million and net income was $291 million ($0.31 per diluted share). Non-U.S. GAAP net income was $344 million ($0.37). The Q4 outlook at the mid-point is net revenues of $4.15 billion and a gross margin of about 39.0%, which gives about $14.5 billion for 2026.
- 2026-10-29: Bondholders converted all $750 million of ST's convertible bonds due in 2027. ST settled them with $750 million in cash and about 4.2 million shares from treasury stock. ST paid $83 million in dividends and bought back $91 million of shares in Q3.
- 2026-06-02: ST raised its revenue ambition for Data Centers to about $1 billion in 2026, from nicely above $500 million. It said that revenue could double in 2027 if the current trend continues.
- 2026-04-23: ST reported Q1 2026 results. Net income was $37 million ($0.04 per diluted share) and non-U.S. GAAP net income was $122 million ($0.13). Free cash flow included $895 million paid for NXP's MEMS sensor business.
- 2026-02-26: ST filed its 20-F for 2025. Net revenues fell 11.1% to $11.80 billion, net income was $166 million and non-U.S. GAAP net income was $486 million.

## Latest news and filings

- Next earnings: 2027-01-28 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-02-26 | 20-F | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | stm-20251231 | https://www.sec.gov/Archives/edgar/data/932787/000093278726000009/stm-20251231.htm |
| 2025-02-27 | 20-F | Annual report for the period ended Dec 31, 2024 | 2024-12-31 | stm-20241231 | https://www.sec.gov/Archives/edgar/data/932787/000093278725000006/stm-20241231.htm |

Every filing on SEC EDGAR (CIK 932787): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000932787&type=&dateb=&owner=include&count=40

## Risks

- High: The chip cycle can turn down again. Net revenues fell 11.1% in 2025, and the operating margin was 9.8% in Q3 2026, with unused capacity charges of $23 million in the quarter. A weaker market would hurt profit again.
- Medium: One customer is large. Apple was 17.7% of net revenues in 2025, against 14.5% in 2024 and 12.3% in 2023 (20-F). A loss of sockets at Apple would hit sales.
- Medium: Spending is high and cash flow is thin. Net capex was $643 million in Q3, and free cash flow over the last 12 months was negative $40 million after the $895 million NXP MEMS purchase. Restructuring charges were $184 million in nine months.
- Medium: Power and discrete products lose money. The segment had an operating loss of $81 million in Q3 2026, with an operating margin of negative 17.1%.
- Medium: Trade policy and currency. The outlook leaves out any further change in tariffs. It assumes about $1.14 per euro and includes existing hedges, so a move in the euro changes margins.

## Links

- Page: https://picks.utilarium.app/company/STM/
- History of changes: https://picks.utilarium.app/company/STM/history/
- JSON with full history: https://picks.utilarium.app/data/company/STM.json

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