STMicroelectronics N.V. reported Q4 2025 net revenues of $3.33 billion, gross margin of 35.2%, and operating income of $125 million, which includes $141 million related to impairment, restructuring charges and other phase-out costs. The company recorded a GAAP net loss of $30 million, or -$0.03 diluted EPS. On a non-U.S. GAAP basis, operating income was $266 million and net income was $100 million, or $0.11 diluted EPS, including a negative one-time tax impact of $0.18 per share.
For full year 2025, net revenues were $11.80 billion with a gross margin of 33.9%. Operating income totaled $175 million, including $376 million related to impairment, restructuring and other phase-out costs. GAAP net income was $166 million. On a non-U.S. GAAP basis, operating margin was 4.7% and net income was $486 million. Net Capex (non-U.S. GAAP) was $1.79 billion and free cash flow (non-U.S. GAAP) was $265 million.
Management noted that Q4 revenue came in above the mid-point of guidance, driven by Personal Electronics and, to a lesser extent, CECP and Industrial, while Automotive trailed expectations. Gross margin exceeded the mid-point largely on favorable mix, and Q4 marked a return to year-over-year growth.
At the mid-point, Q1 2026 guidance calls for net revenues of $3.04 billion, down 8.7% sequentially—better than average past seasonality—and continuing the Y/Y growth trajectory that began in Q4. Gross margin is expected to be about 33.7%, including ~220 basis points of unused capacity charges. For 2026, the company plans to invest $2.0–$2.2 billion in Net Capex (non-U.S. GAAP).
Strategic priorities include accelerating innovation, executing the program to reshape the manufacturing footprint and resize the global cost base, and strengthening free cash flow generation.
Original – STMicroelectronics