STMicroelectronics Forecasts Q1 Revenue Above Estimates Amid Chip Market Recovery (STM)

STMicroelectronics (STM) projects Q1 2026 revenue slightly above market expectations as semiconductor demand rebounds, though restructuring costs will persist beyond Q4 2025’s $141M charge. Shares rose 5% in early trading following the update. CEO Jean-Marc Chery stated visibility into 2026 is “significantly better” than entering 2025, citing improved channel inventory and clearer order trends. Core markets—automotive, industrial, consumer electronics—had cooled post-pandemic due to high inventories and reduced customer pull-through. Q4 2025 net profit totaled $125M, below the $222M consensus and prior-year $369M. Excluding restructuring, underlying profit was $266M, signaling operational stabilization. CFO Grandi warned manufacturing realignment in Europe will incur costs throughout 2026, justifying cautious expense guidance.