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 Review

Reminder: 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 Gen...

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