STMicroelectronics N.V. Form 6-K Summary
Business Context and Reporting Period
This Form 6-K reports the unaudited interim consolidated financial results for STMicroelectronics N.V. for the three and six months ended June 27, 2026. The company is a global integrated device manufacturer focusing on semiconductor technologies for mobility, power management, and cloud-connected autonomous systems. The fiscal year runs from January 1 to December 31.
Key Financial Metrics
| Metric (in millions, except per share) | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 |
|---|---|---|---|---|
| Net Revenues | $3,487 | $2,766 | $6,582 | $5,283 |
| Gross Profit | $1,215 | $926 | $2,260 | $1,767 |
| Gross Margin | 34.8% | 33.5% | 34.3% | 33.5% |
| Operating Income | $187 | ($133) | $257 | ($130) |
| Net Income (Parent) | $222 | ($97) | $259 | ($41) |
| Diluted EPS | $0.24 | ($0.11) | $0.28 | ($0.05) |
| Operating Cash Flow | $502 (Q2) | $354 (Q2) | $1,036 (6M) | $928 (6M) |
| Free Cash Flow (Non-GAAP) | $75 (Q2) | ($152) (Q2) | ($648) (6M) | ($122) (6M) |
| Net Financial Position | $2,007 (as of June 27, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Q2 2026 revenues increased 26.0% year-over-year (YoY) and 12.7% sequentially, driven by higher volumes in Consumer Electronics, Computing, and Power (CECP) and Automotive segments.
- Profitability Turnaround: The company returned to profitability in Q2 2026 with an operating income of $187 million, compared to an operating loss of $133 million in Q2 2025. This improvement was driven by lower unused capacity charges, better product mix, and reduced restructuring charges compared to the prior year.
- Restructuring Costs: Impairment, restructuring, and phase-out costs totaled $58 million in Q2 2026, a significant decrease from $190 million in Q2 2025.
- Acquisition Impact: The acquisition of the MEMS sensor business from NXP (completed Feb 2026) contributed to revenue growth and resulted in $14 million of Purchase Price Allocation (PPA) effects in Q2 gross profit.
- Segment Performance: Embedded Processing (EMP) revenues grew 35.5% YoY, and RF Optical Communications (RFOC) grew 32.0% YoY. Power and Discrete (P&D) revenues grew 3.7% YoY.
Guidance, Outlook, and Risks
- Q3 2026 Outlook: Management expects sequential revenue growth of approximately 6.7% (+/- 350 bps) and a U.S. GAAP gross margin of approximately 37.0% (+/- 200 bps).
- Capital Investment: 2026 Net Capex is expected to be in the high end of the $2.0 to $2.2 billion range, supporting capacity additions in Silicon Carbide (SiC) and Cloud Optical Interconnect.
- Data Center Ambition: Revenue ambition for Data Centers was raised to approximately $1 billion for 2026, with potential to double in 2027.
- Debt Financing: In June 2026, the company issued $1.5 billion in senior unsecured convertible bonds (maturing 2031/2033) to fund general corporate purposes and redeem outstanding 2027 convertible bonds.
- Risks: Key risks include global trade tariffs, macroeconomic trends, supply chain fluctuations, currency exchange rate volatility (USD/EUR), and the successful ramp-up of new manufacturing facilities (Catania, Italy; Chongqing, China).
Investor Verification Checklist
- Free Cash Flow Volatility: Verify the impact of the $895 million cash outflow for the NXP MEMS acquisition on the negative 6M Free Cash Flow of $648 million.
- Restructuring Execution: Monitor the execution of the manufacturing reshaping program and the associated $58 million in Q2 restructuring/phase-out costs.
- Convertible Bond Settlement: Track the settlement of the $750 million 2020 Tranche B convertible bonds, which are due for early redemption in Q3 2026.
- SiC Ramp-Up: Assess the progress of the new 200mm SiC manufacturing facilities in Catania and Chongqing, which are currently in the ramp-up phase.
- Non-GAAP Reconciliations: Review the reconciliation of Non-U.S. GAAP measures (Adjusted Net Income, Free Cash Flow) to U.S. GAAP figures to understand the impact of PPA effects and restructuring charges.