STMicroelectronics Reports Q4 2025 Financial Results Amid Mixed Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy STM?
Source: Benzinga
STMicroelectronics' stock fell 5.01% as it hit a 5-day low, reflecting broader market weakness with the Nasdaq-100 down 2.26% and S&P 500 down 1.40%.
The company reported Q4 2025 net revenues of $3.33 billion, a 0.2% year-over-year growth that exceeded analyst expectations, driven by strong demand in Personal Electronics. However, adjusted earnings per share of $0.11 fell significantly short of the consensus estimate of $0.25, indicating profitability pressures that may affect investor confidence. The gross margin of 35.2% was above guidance but down 250 basis points year-over-year, highlighting challenges from manufacturing inefficiencies and currency fluctuations. Management anticipates a decline in Q1 2026 revenues to $3.04 billion, an 8.7% sequential drop, but remains optimistic about growth in 2026, particularly in data centers and automotive sectors.
The mixed results reflect a complex market environment, with certain segments performing well while others lagged. The company plans to invest between $2.0 billion and $2.2 billion in capital expenditures for 2026 to enhance its manufacturing capabilities and adapt to market changes.
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Analyst Views on STM
Wall Street analysts forecast STM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STM is 33.25 USD with a low forecast of 25.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 28.980
Low
25.00
Averages
33.25
High
45.00
Current: 28.980
Low
25.00
Averages
33.25
High
45.00
About STM
STMicroelectronics N.V. is a Netherlands-based semiconductor company. It designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company's segments include Automotive and Discrete Group (ADG), Analog, MEMS and Sensors Group (AMS), and Microcontrollers and Digital ICs Group (MDG). The ADG segment comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. The AMS segment includes low-power analog ICs for all markets, smart power products; Touch Screen Controllers, Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products, among others. The AMS segment comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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