STMicroelectronics (STM) Falls 15.9% After First Quarterly Loss Since 2013

by MarketNewsData

STMicroelectronics reported mixed Q2 results, with revenue topping expectations but earnings swinging to a loss due to restructuring charges. The stock dropped 15.86% on the day, closing at $26.73.

Key Results

  • Revenue: $2.77 billion
    ▲ Above company guidance midpoint of $2.71B and up from $2.52B in Q1
    ▼ Down ~14.4% YoY

  • GAAP Net Income: –$97 million (–$0.11 per share)
    ▼ Below analyst estimate of ~$0.10 EPS

  • Non-GAAP Income (ex-impairments): $57 million ($0.06 EPS)

Q3 Outlook

  • Revenue guidance: ~$3.17 billion
    ▲ Up 14.6% QoQ
    ▼ Down ~2.5% YoY

  • Gross Margin forecast: ~33.5%, down from ~37.8% YoY

Highlights

  • Company took $190 million in restructuring and impairment costs

  • Plans to cut 5,000 jobs across Europe by 2027

  • Announced $950 million acquisition of part of NXP’s MEMS sensor business

  • Notes improving orders in industrial, but weak automotive and consumer demand persist

Stock Reaction

  • Close: $26.73

  • Change: –$5.04 (–15.86%)

  • Volume: 20.29M shares

Context & Takeaways

  • This was STM’s first quarterly loss in over a decade

  • Cost-heavy internal manufacturing strategy left it more exposed than outsourced peers

  • Strategic focus is shifting to higher-value sensor tech and leaner operations

Investors concerned about execution risk amid the restructuring, even as revenue trends hint at early signs of recovery.

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