STMicro Q2 Revenue Jumps 26%, Raises Data Center Target to $1B+ in 2026
STM has more than doubled off its 52-week low of $21.11.
Summary
STMicroelectronics reported Q2 revenue of $3.49 billion, up 26% year-over-year and above the mid-point of its outlook, driven by strength in Automotive and CECP. Gross margin was 34.8%, in line with guidance, and non-U.S. GAAP operating income reached $269 million. The company raised its data center revenue ambition to above $1 billion in 2026 and well above $2 billion in 2027, citing strong AI-related demand and improved visibility. Q3 guidance calls for $3.70 billion in revenue and 37% gross margin, with Q4 expected to exceed $4 billion, implying second-half growth well above normal seasonality. This follows the June 2 announcement of a significantly raised data center target, now further increased, and the $1.5 billion convertible bond offering in June. The results and outlook confirm accelerating momentum in AI and satellite communication markets, with supply tightening in several product categories.
At the time of this announcement, STM was trading at $67.66 on NYSE in the Technology sector, with a market capitalization of approximately $58.3B. The 52-week trading range was $21.11 to $81.42. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.