Highlights

  • Q3 net revenues reach USD 3.19B; gross margin at 33.2% with net income of USD 237M.
  • Analog and Embedded Processing segments show sequential growth, while Power segment declines.
  • Q4 guidance expects USD 3.28B net revenues and a gross margin near 35.0%.

STMicroelectronics N.V. (NYSE:STM) announced its U.S. GAAP financial results for the third quarter ended 27 September 2025. The company recorded net revenues of USD 3,187M, down 2.0% from the same quarter last year, with a gross margin of 33.2%. Operating income came in at USD 180M, which included USD 37M in impairment, restructuring, and other phase-out costs. Net income reached USD 237M, translating to USD 0.26 per diluted share.

On a non-U.S. GAAP basis, operating income was USD 217M and net income totaled USD 267M, or USD 0.29 per diluted share. Compared to Q3 2024, the non-U.S. GAAP operating margin declined to 6.8% from 11.7%, while non-U.S. GAAP net income decreased from USD 351M.

Segment Performance
In the Analog, Power & Discrete, MEMS and Sensors (APMS) group, revenue for the Analog, MEMS & Sensors segment grew 7.0%, supported by strong demand for imaging products. Operating profit for the segment rose to USD 221M. The Power & Discrete business saw a 34.3% decline in revenue, resulting in an operating loss of USD 67M.

Within the Microcontrollers, Digital ICs and RF (MDRF) group, Embedded Processing revenue increased 8.7%, producing an operating profit of USD 161M. RF & Optical Communications revenue fell 3.4%, with operating profit down 31.6% to USD 57M. Combined revenue from the APMS and MDRF segments totaled USD 3,187M.

Cash Flow and Balance Sheet
Net cash generated from operating activities in Q3 2025 totaled USD 549M, compared with USD 723M a year earlier. Non-U.S. GAAP free cash flow was USD 130M, while net capital expenditures reached USD 401M. Inventory at quarter-end amounted to USD 3.17B, representing 135 days of sales. The company distributed USD 81M in dividends and repurchased USD 91M worth of shares. Its non-U.S. GAAP net financial position was USD 2.61B, with total liquidity of USD 4.78B and total debt of USD 2.17B.

Corporate Developments
On 24 July 2025, STMicroelectronics signed a definitive agreement to acquire NXP’s MEMS sensor business for up to USD 950M. The transaction includes an upfront payment of USD 900M and an additional USD 50M contingent on technical milestones.

Outlook
For the fourth quarter of 2025, the company forecasts net revenues of USD 3.28B, reflecting a sequential increase of 2.9%, and a gross margin around 35.0%.

Management Commentary
Jean-Marc Chery, President and CEO of STMicroelectronics, commented:
“Q3 net revenues came in slightly above the mid-point of our business outlook, supported by stronger Personal Electronics sales, while Automotive and Industrial performed as expected, and CECP aligned with our projections. Gross margin was marginally below the mid-point of the outlook mainly due to product mix within Automotive and Industrial.”