STMicroelectronics Reports 2025 Third Quarter Financial Results
Q3 net revenues $3.19 billion; gross margin 33.2%; operating income of $180 million, including $37 million related to impairment, restructuring charges and other related phase-out costs; net income of $237 million
Business outlook at mid-point: Q4 net revenues of $3.28 billion and gross margin of 35.0%
Geneva, October 23, 2025, STMicroelectronics N.V. ("ST") (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the third quarter ended September 27, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information). ST reported third quarter net revenues of $3.19 billion, gross margin of 33.2%, operating income of $180 million, and net income of $237 million or $0.26 diluted earnings per share (non-U.S. GAAP1 operating income of $217 million, and non-U.S. GAAP1 net income of $267 million or $0.29 diluted earnings per share).Jean-Marc Chery, ST President & CEO, commented:
"Q3 net revenues came slightly above the mid-point of our business outlook range, with higher revenues in Personal Electronics, while Automotive and Industrial performed as anticipated, and CECP was broadly in line with expectations. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix within Automotive and Industrial."
"On a year-over-year basis, Q3 net revenues decreased 2.0%, non-U.S. GAAP1 operating margin decreased to 6.8% from 11.7% and non-U.S. GAAP1 net income decreased to $267 million from $351 million."
"In the third quarter, our book-to-bill ratio was above one, with Automotive above parity and Industrial at parity."
"Our fourth quarter business outlook, at the mid-point, is for net revenues of $3.28 billion, increasing sequentially by 2.9%, gross margin is expected to be about 35.0%; including about 290 basis points of unused capacity charges."
"The mid-point of this outlook translates into full year 2025 revenues of about $11.75 billion. This represents a 22.4% growth in the second half compared to the first half, confirming signs of market recovery. Gross margin is expected to be about 33.8%."
To optimize our investments in response to the current market conditions, we have reduced our Net Capex plan, now slightly below $2 billion for FY25."
"Our strategic priorities remain clear: accelerating innovation; executing our company-wide program to reshape our manufacturing footprint and resize our global cost base, which remains on schedule to deliver the targeted savings; and strengthening free cash flow generation."
Quarterly Financial Summary
U.S. GAAP(US$ m, except per share data)
Q3 2025
Q2 2025
Q3 2024
Q/Q
Y/Y
Net Revenues
$3,187
$2,766
$3,251
15.2%
-2.0%
Gross Profit
$1,059
$926
$1,228
14.3%
-13.7%
Gross Margin
33.2%
33.5%
37.8%
-30 bps
-460 bps
Operating Income (Loss)
$180
$(133)
$381
-
-52.9%
Operating Margin
5.6%
-4.8%
11.7%
1,040 bps
-610 bps
Net Income (Loss)
$237
$(97)
$351
-
-32.3%
Diluted Earnings Per Share
$0.26
$(0.11)
$0.37
-
-29.7%
Non-U.S. GAAP1(US$ m, except per share data)
Q3 2025
Q2 2025
Q3 2024
Q/Q
Y/Y
Operating Income
$217
$57
$381
278.8%
-43.2%
Operating Margin
6.8%
2.1%
11.7%
470 bps
-490 bps
Net Income
$267
$57
$351
369.1%
-23.9%
Diluted Earnings Per Share
$0.29
$0.06
$0.37
383.3%
-21.6%
Third Quarter 2025 Summary ReviewReminder: on January 1, 2025, we made some adjustments to our segment reporting. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.
Net Revenues by Reportable Segment2(US$ m)
Q3 2025
Q2 2025
Q3 2024
Q/Q
Y/Y
Analog products, MEMS and Sensors (AM&S) segment
1,434
1,133
1,340
26.6%
7.0%
Power and discrete products (P&D) segment
429
447
652
-4.3%
-34.3%
Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group
1,863
1,580
1,992
17.9%
-6.5%
Embedded Processing (EMP) segment
976
847
898
15.3%
8.7%
RF & Optical Communications (RF&OC) segment
345
336
357
2.4%
-3.4%
Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group
1,321
1,183
1,255
11.6%
5.3%
Others
3
3
4
-
-
Total Net Revenues
$3,187
$2,766
$3,251
15.2%
-2.0%
Net revenues totaled $3.19 billion, representing a year-over-year decrease of 2.0%. Year-over-year net sales to OEMs and Distribution decreased 5.1% and increased 7.6%, respectively. On a sequential basis, net revenues increased 15.2%, 60 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.06 billion, representing a year-over-year decrease of 13.7%. Gross margin of 33.2%, 30 basis points below the mid-point of ST's guidance, decreased 460 basis points year-over-year, mainly due to lower manufacturing efficiencies, negative currency effect, lower level of capacity reservation fees and, to a lesser extent, the combination of sale price and product mix.Operating income decreased from $381 million in the year-ago quarter to $180 million. ST's operating margin decreased 610 basis points on a year-over-year basis to 5.6% of net revenues, compared to 11.7% in the third quarter of 2024. Operating income included $37 million impairment, restructuring charges and other related phase-out costs for the quarter, reflecting impairment of assets and restructuring charges predominantly associated with the previously announced company-wide program to reshape our manufacturing footprint and resize our global cost base. Excluding these items, non-U.S. GAAP1 Operating income stood at $217 million in the third quarter.By reportable segment, compared with the year-ago quarter: In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:Analog products, MEMS and Sensors (AM&S) segment:
Revenue increased 7.0% mainly due to Imaging.
Operating profit increased by 2.1% to $221 million. Operating margin was 15.4% compared to 16.1%.
Power and Discrete products (P&D) segment:
Revenue decreased 34.3%.
Operating profit decreased from $80 million to an operating loss of $67 million. Operating margin was -15.6% compared to 12.2%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
Revenue increased 8.7% mainly due to General Purpose MCU.
Operating profit increased by 9.4% to $161 million. Operating margin was 16.5% compared to 16.4%.
RF & Optical Communications (RF&OC) segment:
Revenue decreased 3.4%.
Operating profit decreased by 31.6% to $57 million. Operating margin was 16.6% compared to 23.4%.
Net Earnings and diluted Earnings Per Share decreased to $237 million and $0.26 respectively, compared to $351 million and $0.37 respectively in the year-ago quarter. Non-U.S. GAAP1 Net income and diluted Earnings Per Share, stood at $267 million and $0.29 respectively in the third quarter of 2025. Cash Flow and Balance Sheet Highlights
Trailing 12 Months
(US$ m)
Q3 2025
Q2 2025
Q3 2024
Q3 2025
Q3 2024
TTM Change
Net cash from operating activities
549
354
723
2,158
3,764
-42.7%
Free cash flow (non-U.S. GAAP1)
130
(152)
136
136
813
-83.3%
Net cash from operating activities was $549 million in the third quarter compared to $723 million in the year-ago quarter.Net Capex (non-U.S. GAAP1), was $401 million in the third quarter compared to $565 million in the year-ago quarter. Free cash flow (non-U.S. GAAP1) was positive $130 million in the third quarter, compared to positive $136 million in the year-ago quarter.Inventory at the end of the third quarter was $3.17 billion, compared to $3.27 billion in the previous quarter and $2.88 billion in the year-ago quarter. Days sales of inventory at quarter-end was 135 days, compared to 166 days for the previous quarter and 130 days for the year-ago quarter.In the third quarter, ST paid cash dividends to its stockholders totaling $81 million and executed a $91 million share buy-back, as part of its current share repurchase program. ST's net financial position (non-U.S. GAAP4) remained strong at $2.61 billion as of September 27, 2025, compared to $2.67 billion as of June 28, 2025, and reflected total liquidity2 of $4.78 billion and total financial debt of $2.17 billion. Adjusted net financial position (non-U.S. GAAP1), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.27 billion as of September 27, 2025.Corporate developments
On July 24, 2025, ST entered into a definitive transaction agreement for the acquisition of NXP's MEMS sensor business for a purchase price of up to $950 million in cash, including $900 million upfront and $50 million subject to the achievement of technical milestones. The transaction which will be financed with existing liquidity is subject to customary closing conditions, including regulatory approvals, and is expected to close in H1 2026.Business OutlookST's guidance, at the mid-point, for the 2025 fourth quarter is:
Net revenues are expected to be $3.28 billion, an increase of 2.9% sequentially, plus or minus 350 basis points.
Gross margin of 35.0%, plus or minus 200 basis points.
This outlook is based on an assumed effective currency exchange rate of approximately $1.15 = €1.00 for the 2025 fourth quarter and includes the impact of existing hedging contracts.
The fourth quarter will close on December 31, 2025.
This business outlook does not include any impact of potential further changes to global trade tariffs compared to the current situation. Conference Call and Webcast InformationST will conduct a conference call with analysts, investors and reporters to discuss its third quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST's website, https://investors.st.com, and will be available for replay until November 7, 2025.Use of Supplemental Non-U.S. GAAP Financial InformationThis press release contains supplemental non-U.S. GAAP financial information.Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP.See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.Forward-looking InformationSome of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:
changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and directly or indirectly adversely impact the demand for our products;
uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products;
customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all;
the ability to design, manufacture and sell innovative products in a rapidly changing technological environment;
changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities;
unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding;
financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers;
availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation);
the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology;
theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation;
the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;
natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate;
increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027;
epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results;
industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers;
the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and
individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as "believes", "expects", "may", "are expected to", "should", "would be", "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information, Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission ("SEC") on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.Unfavorable changes in the above or other factors listed under "Item 3. Key Information, Risk Factors" from time to time in our SEC filings, could have a material adverse effect on our business and/or financial condition.About STMicroelectronicsAt ST, we are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at www.st.com. For further information, please contact:INVESTOR RELATIONS:Jérôme RamelEVP Corporate Development & Integrated External Communication Tel: +41 22 929 59 20 RELATIONS:Alexis BretonCorporate External CommunicationsTel: + 33 6 59 16 79
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data ($))
Three months ended
September 27,
September 28,
2025
2024
(Unaudited)
(Unaudited)
Net sales
3,183
3,245
Other revenues
4
6
NET REVENUES
3,187
3,251
Cost of sales
(2,128)
(2,023)
GROSS PROFIT
1,059
1,228
Selling, general and administrative expenses
(395)
(385)
Research and development expenses
(502)
(492)
Other income and expenses, net
55
30
Impairment, restructuring charges and other related phase-out costs
(37)
-
Total operating expenses
(879)
(847)
OPERATING INCOME
180
381
Interest income, net
38
55
Other components of pension benefit costs
(4)
(4)
Gain on financial instruments, net
79
-
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST
293
432
Income tax expense
(54)
(71)
NET INCOME
239
361
Net income attributable to noncontrolling interest
(2)
(10)
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS
237
351
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS
0.27
0.39
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS
0.26
0.37
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS
918.9
938.6
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data ($))
Nine months ended
September 27,
September 28,
2025
2024
(Unaudited)
(Unaudited)
Net sales
8,440
9,915
Other revenues
30
32
NET REVENUES
8,470
9,947
Cost of sales
(5,643)
(5,980)
GROSS PROFIT
2,827
...
