STMicroelectronics (ST) has announced its financial results for the third quarter ended September 27, 2025, reporting net revenues of $3.19 billion, a gross margin of 33.2%, operating income of $180 million, and net income of $237 million, or $0.26 per diluted share. On a non-U.S. GAAP basis, the company recorded operating income of $217 million and net income of $267 million, or $0.29 per diluted share.

President and CEO Jean-Marc Chery said third-quarter revenue came in slightly above the midpoint of the company’s guidance, supported by stronger demand in Personal Electronics. Automotive and Industrial segments performed as expected, while the Communications, Equipment, Computers, and Peripherals (CECP) segment remained in line with projections. Gross margin was slightly below expectations, mainly due to product mix effects within the Automotive and Industrial divisions.

Compared to the same quarter last year, ST’s net revenue decreased by 2%, while the non-U.S. GAAP operating margin declined to 6.8% from 11.7%. Non-U.S. GAAP net income fell to $267 million from $351 million a year earlier.

The company reported a book-to-bill ratio above one during the third quarter, with Automotive above parity and Industrial at parity—indicating ongoing demand stability in key end markets.

For the fourth quarter, ST expects net revenues around $3.28 billion, representing a sequential increase of about 2.9%, and a gross margin of approximately 35.0%, which includes around 290 basis points of unused capacity charges.

At the midpoint of its outlook, ST projects full-year 2025 revenues of approximately $11.75 billion, reflecting a 22.4% increase in the second half compared to the first half—an encouraging signal of recovery across its core markets. The company expects full-year gross margin to be about 33.8%.

Chery said ST has adjusted its capital expenditure plans to align with current market conditions, now targeting slightly below $2 billion in net Capex for 2025.

“Our strategic priorities remain clear,” he said. “We continue to accelerate innovation, execute our company-wide program to reshape our manufacturing footprint and cost structure, and strengthen free cash flow generation. These actions are positioning ST for sustainable growth as market conditions improve.”

Original – STMicroelectronics