STMicroelectronics Reports Q4 Net Loss Amid Restructuring, Guides for Q1 Revenue Decline with Improving YoY Growth
STM sits 63% above its 52-week low of $17.25.
Summary
STMicroelectronics reported Q4 2025 net revenues of $3.33 billion and a U.S. GAAP net loss of $30 million due to restructuring charges, while providing Q1 2026 revenue guidance of $3.04 billion, indicating improving year-over-year growth.
Key Events · Earnings and Guidance · STM
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Q4 2025 Financial Performance
Net revenues reached $3.33 billion, slightly above guidance, marking a return to year-over-year growth. Gross margin was 35.2%, also above guidance. However, the company reported a U.S. GAAP net loss of $30 million, or -$0.03 diluted EPS, significantly impacted by restructuring charges.
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Full Year 2025 Results
For the full year, net revenues decreased 11.1% to $11.80 billion, with U.S. GAAP operating income at $175 million and net income at $166 million, a substantial decline from the prior year.
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Q1 2026 Business Outlook
STMicroelectronics expects Q1 2026 net revenues of $3.04 billion, a sequential decrease of 8.7%. This is described as better than average past seasonality and accelerating the year-over-year growth dynamic. Gross margin is projected at 33.7%, including approximately 220 basis points of unused capacity charges.
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Impact of Restructuring Charges
The company incurred $141 million in impairment and restructuring charges in Q4 2025, and $376 million for the full year, related to a program to reshape its manufacturing footprint and resize its global cost base.
Analysis · STM · Manufacturing
STMicroelectronics reported a mixed fourth quarter, with net revenues and gross margin exceeding the mid-point of its guidance. However, the company posted a U.S. GAAP net loss of $30 million, primarily due to $141 million in impairment and restructuring charges related to its manufacturing footprint reshaping program. Full-year 2025 results showed a significant decline in revenue and profitability compared to 2024, also impacted by substantial restructuring costs. Looking ahead, the company's first-quarter 2026 revenue guidance, while sequentially lower, is better than average past seasonality and indicates an acceleration of year-over-year growth, which began in Q4. Investors will weigh the short-term impact of restructuring and GAAP losses against the positive forward-looking commentary on revenue trends and continued strategic investments.
At the time of this filing, STM was trading at $28.12 on NYSE in the Manufacturing sector, with a market capitalization of approximately $26.6B. The 52-week trading range was $17.25 to $33.47. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.